Allowed

Indian Bank v. Darshan Singh and Others

DRT23 Sept 2024OA/341/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application for recovery of Rs.57.64 lakhs granted to three respondents who mortgaged land for a Kisan Credit Card loan. The court modified the claimed interest rate to 8% per annum and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.57,64,092 plus 8% p.a. simple interest; endorsement of Recovery Certificate to be issued for sale of mortgaged property.

Indian Bank versus Darshan Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.341/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.03.2024

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DATE OF DECISION: 23.09.2024

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Indian Bank (erstwhile Allahabad Bank), a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Corporate Office at 254-260, Avvai Shanmugham Salai, Royapeetah, Chennai-600014 and a branch amongst at G.T. Road, Moga through its duly constituted attorney Sh. Surinder Kumar, Senior Manager.

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……..Applicant

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Versus

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Sh. Darshan Singh S/o Sh. Bachan Singh R/o H No.759, VPO Bhinder Kalan, Tehsil Dharamkot, District Moga

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Sh. Balwinder Singh S/o Sh. Bachan Singh R/o H No.339, VPO Bhinder Kalan, Tehsil Dharamkot, District Moga

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Sh. Karam Singh S/o Sh. Bachan Singh R/o H No.66, Ward No.11, Dharamkot, District Moga

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Sh. Shinder Pal Singh S/o Sh. Bachan Singh R/o H No.66, VPO Dharamkot, Tehsil Dharamkot, District Moga

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….……Defendants

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Advocates:

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Argued by Ms. Priya, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.57,64,092.00 (Rupees Fifty Seven Lacs Sixty Four Thousand And Ninety Two Only). The Original Application has been filed through Sh.

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Surinder Kumar, Senior Manager of the applicant, who is competent to
institute the Original Application vide Authority Letter dated
17.10.2023, which isAnnexure A1to this OA.
2. The brief facts of the OA are that the defendant no.1 to 3 had
approached the applicant for the grant of ‘Akshay Krishi’ Kisan Credit
Card Scheme of Rs.20.00 Lacs vide Loan application dated
02.05.2014, which isAnnexure A2to this OA.
3. The applicant sanctioned the ‘Akshay Krishi’ Kisan Credit Card
Scheme of Rs.20.00 Lacs vide Sanction Letter dated 21.05.2014,
which isAnnexure A3to this OA and the terms and conditions were
duly accepted by the defendants.
4. Defendant No.1 to 3 had mortgaged his immovable property i.e.
land measuring 14K-14M detailed as:
a. land measuring 8K-5Msituated at Village Dharamkot Janubi,
Tehsil Dharamkot, District Moga
b. land measuring 6K-9Msituated at Village Dharamkot Samali,
Tehsil Dharamkot, District Moga
vide Registered Mortgaged Deed bearing vasika no.578 dated
30.05.2014 along with its Translation, which areAnnexures A7 & A-
7Tto this OA.
Documents executed:-Acknowledgment Letter, Identity proof of
defendants, D.P. Note, Hypothecation Agreement, Deed of Guarantee
& Consent Letters all dated 02.06.2014, which areAnnexures A3A to
A6 & A8to this OA; D.P. Note dated 14.03.2016, which isAnnexure
A9to this OA; Acknowledgement of Debt dated 05.06.2018 &
20.12.2022, which areAnnexures A10 & A10Ato this OA; Recall
Notices dated 16.04.2018 & 18.03.2020, which areAnnexures A11 &
A12to this OA; Legal Notice dated 02.07.2019 & 20.06.2022, which
areAnnexures A13 & A13Ato this OA and Account Statement along with interest certificate, which isAnnexure A14to this OA.
5. The loan account became irregular and was classified as NPA
and after adjusting debit and credit entries in loan account there was a

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debit of Rs.57,64,092.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 01.08.2024.

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In support of the OA, affidavit of Sh. Surinder Kumar, Senior Manager, Indian Bank h as been filed.

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Heard arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.57,64,092.00 (Rupees Fifty Seven Lacs Sixty Four Thousand And Ninety Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.70%p.a. along with penal interest @2%p.a. with yearly rests from 07.11.2023 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking

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of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.57,64,092.00 (Rupees Fifty Seven Lacs Sixty Four Thousand And Ninety Two Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 15.10.2024

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Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal. Dated: 23.09.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Darshan Singh and Others

Case brief

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Indian Bank v. Darshan Singh and Others

Case brief

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