Allowed

Bank of India v. Sh. Balkaran Singh and Another

DRT3 Apr 2024OA/396/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of a loan of Rs. 23,57,954.89 lent to the borrowers and guaranteed by the second defendant. The Tribunal fixed interest at 10% per annum order the issuance of a Recovery Certificate.

What did the court decide?

A Recovery Certificate for Rs. 23,57,954.89 with simple interest at 10% p.a. from the date of filing of the OA till realization.

Bank of India versus Sh. Balkaran Singh and Another — Company and Corporate | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.396/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.03.2023

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DATE OF DECISION: 03.04.2024

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Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No. V of 1970, having its Head Office at “Star House” C-5, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office amongst other places, at Gidderbaha, District Sri Muktsar Sahib through its Constituted Attorney, Sh. Ved Parkash

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……Applicant Bank Versus

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Sh. Balkaran Singh S/o Sh. Avtar Singh R/o Village Rukhala,

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Tehsil Gidderbaha, District Sri Muktsar Sahib, Punjab

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(Borrower/Mortgagor)

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Sh. Beant Singh S/o Sh. Gurdev Singh R/o Village Rukhala, Tehsil Gidderbaha, District Sri Mutsar Sahib, Punjab

(Guarantor)

………Defendants

Advocates:

Sh. R.S. Bhatia, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant bank Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs. 23,57,954.89p (Rupees Twenty Three Lacs Fifty Seven Thousand Nine Hundred Fifty Four and Eighty Nine paise only). The Original Application has been filed through Sh. Ved Parkash o f the applicant bank, who is competent to institute the Original Application vide Power of attorney dated 03.12.2019, which is Annexure A1 to this OA.

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2 2. The brief facts of the OA are that the defendants had approached the applicant bank for the grant of KCC Limit of Rs.4.00 Lacs and Mortgage Loan (OD Limit) of Rs.8.00 Lacs vide loan applications dated 06.04.2015, which are Annexures A2 and A3 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.4.00 Lacs and Mortgage Loan (OD Limit) of Rs.8.00 Lacs vide Memorandum for Sanction dated 06.04.2015, which are Annexures A4 to this OA and the terms and conditions were duly accepted by the defendants 4. Defendant No. 1 had mortgaged his immovable properties i.e. total land measuring 32K-00M detailed as: - a) Land Measuring 15K-2M situated at Village Rukhala, Tehsil Gidderbaha and District Sri Muktsar Sahib, Punjab b) Land Measuring 13K-1M situated at Village Kotbhai-1, Tehsil Gidderbaha and District Sri Muktsar Sahib, Punjab c) Land Measuring 3K-17M situated at Village Rukhala, Tehsil Gidderbaha and District Sri Muktsar Sahib, Punjab vide Declaration u/s 4(1) along with its translation dated 13.04.2015, which is Annexures A14 to this OA. Documents executed: - Demand promissory notes, Letters of Declarations, undertakings and Authorities, Agreements, Hypothecation cum loan agreement, and Deed of guarantee for both the loans all dated 20.04.2015, which are Annexures A5 to A13 to this OA; Acknowledgements of debt and securities dated 21.03.2018 and 07.01.2021, which are Annexures A15 to A18 to this OA; Legal notice dated 14.12.2022, which is Annexures A19 to this OA and Statements of accounts dated 31.01.2023, which are Annexures A20 and A21 to this OA. 5. The loan accounts became irregular and were declared NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.23,57,954.89p which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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amount, therefore, the applicant bank 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 were proceeded ex-parte on 18.03.2024.

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In support of the OA, affidavit of Sh. Ved Parkash, Bank of India, has been filed.

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Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A21 to this OA, it is proved that the defendants approached applicant bank for taking the loan facilities which were granted to them and they executed all the relevant documents but they did not pay the loan as per terms and conditions of the agreement and their accounts were declared NPA and from the documentary evidence it is proved that bank is entitled to recover a total sum of Rs.23,57,954.89p along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future interest are concerned, the applicant bank has claimed interest @13.20%p.a. with half yearly rests from 01.02.2023 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 properties, 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 @10.00%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.

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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.23,57,954.89p (Rupees Twenty Three Lacs Fifty Seven Thousand Nine Hundred Fifty Four and Eighty Nine paise only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank 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 bank 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 10.04.2024.

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Copy of this order be given dasti to the applicant bank 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: 03.04.2024

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

Bank of India v. Sh. Balkaran Singh and Another

Case brief

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Bank of India v. Sh. Balkaran Singh and Another

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