Allowed

Indian Bank v. Sukhdev Singh and Another

DRT8 Oct 2024OA/385/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Indian Bank against the legal heirs of deceased borrowers for recovery of a loan of Rs. 37,22,234. The court held the heirs jointly and severally liable, reduced the interest rate to 8% per annum, and issued a Recovery Certificate. It directed recovery from mortgaged or personal assets.

What did the court decide?

Legal heirs ordered to pay Rs. 37,22,234.00 with 8% p.a. interest; Recovery Certificate issued; claim enforceable via sale of mortgaged or personal assets.

Indian Bank versus Sukhdev Singh and Another — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.385/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.04.2024

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DATE OF DECISION: 08.10.2024

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Indian Bank, (erstwhile Allahabad Bank), on the basis of Amalgamation dated 01.04.2020, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 66, Rajaji Salai, Chennai and Corporate Office at 254-260, Avvai Shanmugham Salai, Chennai, Tamil Nadu, 600014 and having its Zonal Office at Jalandhar and amongst other branches a branch at Nawanshahr through its Branch Manager Mrs. Dolly duly constituted and authorized signatory.

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……..Applicant

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Versus

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Sh. Sukhdev Singh, S/o Sh. Jagtar Singh (since deceased) through legal heirs

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a. Smt. Surinder Kaur mother of Sh. Sukhdev Singh r/o Village Mirpur Lakha, District Nawanshahr-144421

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Sh. Harpeet Singh S/o Sh. Jagtar Singh (since deceased) through legal heirs

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b. Smt. Rajvir Kaur w/o Sh. Harpreet Singh r/o Village Mirpur Lakha, District Nawanshahr-144421.

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………. Defendants

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Advocates:

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Argued by Ms. Deepika Mittal, 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.37,22,234.00 (Rupees Thirty Seven Lacs Twenty Two Thousand

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Two Hundred Thirty Four Only). The Original Application has been filed through Mrs. Dolly, Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 02.08.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 (since deceased) had approached the applicant for grant of KCC Limit of Rs.19.50 Lacs vide Loan Application dated 10.06.2014, which is Annexure A2 to this OA. Further, defendant no.1 (since deceased) had approached the applicant bank for Restructuring the KCC Limit by converting the overdue interest in to fresh Term Loan of Rs.4.00 Lacs vide Request Letter dated 27.06.2017, which is Annexure A16 to this OA

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The applicant sanctioned KCC Limit of Rs.13.00 for the 1^st year and to be enhanced upto Rs.19.50 Lacs for the 5^th year vide Sanction Letter dated 02.07.2014, which is Annexure A5 to this OA. Later, applicant bank again sanctioned Restructuring the KCC Limit by converting the overdue interest in to fresh Term Loan of Rs.4.00 Lacs vide Sanction Letter dated 27.06.2017, which is Annexure A17 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 (since deceased) had mortgaged his immovable properties i.e. total land measuring 15M-02M-06 Sarsa i situated Village Mirpur Lakha, H.B. No.177, District Nawanshahr vide Registered Mortgaged Deed bearing vasika No.908 dated 1 8.06.2014 and as per Jamabandi for the year 2013-2014 along with their translations, which are Annexures A9 & A10 to this OA. Documents executed:-Interview cum appraisal form & Memorandum for sanction letter both dated 18.06.2014, which are Annexures A3 & A4 to this OA; D.P. Note, Hypothecation Agreement, Consent clause to be executed by borrower, Report of means and standing, consent clause to be executed by guarantor & Deed of guarantee all dated

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02.07.2014, which are Annexures A6 to A8 & A13 to A15 to this OA; Affidavit dated 09.06.2014, which is Annexure A11 to this OA; Lien Report dated 18.07.2018, which is Annexure A12 to this OA; D.P. Note & Acknowledgement of Debt both dated 27.06.2017, which are Annexures A18 & A19 to this OA; Legal Notice dated 21.06.2017 with postal receipts, which is Annexure A20 to this OA; Acknowledgement of Debt dated 24.07.2023, which is Annexure A21 to this OA; Legal Notice dated 21.02.2022 with its translation and postal receipts, which is Annexure A22 to this OA; Recall Notice dated 09.08.2022, which is Annexure A23 to this OA; Letter Acknowledgement of Debt dated 12.07.2023, which is Annexure A24 to this OA; Legal notice dated 28.02.2024 with postal receipts, which is Annexure A25 to this OA and Statement of Account along with Certificate, which is Annexures A26 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.37,22,234.00, which is recoverable and the legal heirs of both the deceased defendant no.1 and 2 i.e. 1(a) and 2(b) 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 25.09.2024.

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In support of the OA, affidavit of Mrs. Dolly, Branch Manager, Indian Bank has been filed. 8. Heard arguments and perused record. 9. It was argued by learned 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 A26 to this OA, it is proved that the defendant

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nos.1 and 2 (both Since deceased) approached applicant for availing of the loans facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.37,22,234.00 (Rupees Thirty Seven Lacs Twenty Two Thousand Two Hundred Thirty Four Only) along with interest from the legal heirs of both the deceased defendant no.1 and 2 i.e. 1(a) and 2(b), jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @12.75%p.a. along with penal interest @2%p.a. with monthly rests from 19.03.2024 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 of the defendants, quantum of loans 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 @08.00%p.a. in both the loan accounts 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 legal heirs of both the deceased defendant no.1 and 2 i.e. 1(a) and 2(b) are liable to pay to the applicant a total sum of Rs.37,22,234.00 (Rupees Thirty Seven Lacs Twenty Two Thousand Two Hundred Thirty Four Only) jointly and severally, with costs, current and future simple

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interest @08.00%p.a. in the loan accounts 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 legal heirs of both the deceased defendant no.1 and 2 i.e. 1(a) and 2(b) in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the legal heirs of both the deceased defendant no.1 and 2 i.e. 1(a) and 2(b). 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 23.10.2024. 15. Copy of this order be given dasti to the applicant and be sent to the legal heirs of both the deceased defendant no.1 and 2 i.e. 1(a) and 2(b) 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: 08.10.2024

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

Indian Bank v. Sukhdev Singh and Another

Case brief

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Indian Bank v. Sukhdev Singh and Another

Case brief

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