Allowed

Indian Bank v. Harjinder Kaur and Another

DRT24 Sept 2024OA/342/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Indian Bank for recovery of Rs.33,74,405 from two respondents who defaulted on a KCC loan. The court reduced the claimed interest rate to 8% p.a. and directed sale of mortgaged or personal assets for recovery.

What did the court decide?

Debt of Rs.33,74,405 with interest @8% p.a. allowed; Recovery Certificate issued; extinguishment of liability secured by sale of mortgaged properties.

Indian Bank versus Harjinder Kaur and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.342/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.03.2024

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DATE OF DECISION: 24.09.2024

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Indian Bank (erstwhile Allahabad Bank), a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai-600014 and a Branch amongst at Ferozepur Road, Moga through Sh. Sonu Kumar, Branch Manager Authorized by Applicant.

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……..Applicant

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Versus

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Smt. Harjinder Kaur W/o Sh. Pritam Singh, R/o H.No.87, Village Bajeke, P.O. Kaila, Tehsil Dharamkot, District Moga.

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Sh. Gurmit Singh S/o Sh. Jagtar Singh, R/o H.No.29, Village Takhatu Wala, P.O. Kot Ise Khan, 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.33,74,405.00 (Rupees Thirty Three Lac Seventy Four Thousand Four Hundred and Five Only). The Original Application has been filed through Sh. Sonu Kumar, Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 17.10.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no.1 had approached the applicant for the grant of KCC Limit of Rs.12.00 Lacs

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vide Loan Application dated 28.06.2014, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.12.00 Lacs for the 1^st year and to be enhance upto Rs.17,56,920.00 for the 5^th year vide Sanction Letter dated 11.07.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants vide Acknowledgment Letter dated 23.07.2014, which is Annexure A3A to this OA. 4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 21 kanal 3 Marla situated at Village Bajeke, Hadbast No.244, Tehsil Dharamkot, District Moga vide Registered Mortgage Deed bearing V asika No.496 dated 14.07.2014, with its translation, which is Annexure A7 to this OA. Documents executed:-, D.P. Note, Hypothecation Agreement, Deed of Guarantee, Consent Letters all dated 23.07.2014, which are Annexures A4A to A6 & A8 to this OA; Voter Id Proof of Defendants in FILE 3, which is Annexure A4 to this OA; Acknowledgment of Debt dated 30.05.2016, 06.08.2018 and 26.04.2023, which are Annexures A9 to A10A to this OA; Recall Notice dated 18.03.2020, which is Annexure A11 to this OA; Legal Notice dated 02.07.2019 and 20.06.2022, which is Annexure A12 to this OA and statement of account, which is Annexure A13 to 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 debit of Rs.33,74,405.00, 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. 6. 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. Sonu Kumar, Branch Manager, Indian Bank h as been filed.

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8. 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 A13 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.33,74,405.00 (Rupees Thirty Three Lac Seventy Four Thousand Four Hundred Five 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 @10.65%p.a. plus penal interest @2.00%p.a. with yearly rests from 07.11.2023 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 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,74,405.00 (Rupees Thirty Three Lac Seventy Four Thousand Four Hundred Five 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 16.10.2024.

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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.

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Pronounced by me in the open Tribunal . Dated: 24.09.2024.

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

Indian Bank v. Harjinder Kaur and Another

Case brief

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Indian Bank v. Harjinder Kaur and Another

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