Allowed

Indian Bank v. Ajmer Singh and Another

DRT27 Nov 2024OA/438/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a defaulted agricultural loan. The tribunal held the defendants jointly and severally liable to repay the principal amount with future simple interest, ordered the issuance of a recovery certificate, and directed enforcement against mortgaged properties.

What did the court decide?

Directing defendants to pay Rs. 38,32,775 along with interest; issuance of Recovery Certificate; enforcement via sale of mortgaged properties.

Indian Bank versus Ajmer Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.438/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.03.2023

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DATE OF DECISION: 27.11.2024

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Indian Bank, a body corporate constituted under the banking companies (Acquisition and Transfer of Undertakings) Act 1970, having its Corporate office at PNB No. 5555, 254-260, Avvai Shanmugam Salai, Royapeetah, Chennai and its branches throughout India and amongst other branches having a branch known as SPL CAF branch at B R S, Nagar, Ludhiana, through its Constituted Attorney Sh. Shobit Dawer, Senior Manager, SPL CAF Branch, BRS Nagar, Ludhiana and who is also the Principal Officer of the plaintiff applicant.

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……..Applicant

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Versus

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Sh. Ajmer Singh S/o Sh. Joga Singh, R/o Village Rajgarh, Tehsil Samrala, district Ludhiana, Punjab.

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Sh. Karnail Singh S/o Sh. Joga Singh, R/o Village Rajgarh, Tehsil Samrala, district Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Ashok Kumar Verma, Advocate for the applicant (through VC) 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.38,32,775.00 (Rupees Thirty Eight Lacs Thirty Two Thousand Seven Hundred and Seventy Five only). The Original Application has been filed through Sh. Shobit Dawer, Senior Manager of the applicant, who is competent to institute the Original vide Letter of Authorization dated 13.03.2023, which is Annexure A3 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant for the grant of ‘Akshay Krishi’ kisan Cash

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Credit Limit of Rs.18.00 Lacs vide Application for Loan dated 02.09.2015, which is Annexure A4 to this OA.

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The applicant sanctioned the ‘Akshay Krishi’ kisan Cash Credit Limit of Rs.18.00 Lacs for the 1^st year and to be enhanced upto Rs.26,35,380.00 for the 5^th year vide Sanction Letter dated 03.10.2015, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No. 1 had mortgaged his immovable properties i.e. total land measuring 35K-10M situated at Village Rajgarh, Hadbast No. 76, Tehsil Machhiwara, District Ludhiana (Punjab) vide Declaration under section 4 (1) dated 0 7.10.2015 along with its Translations, which is Annexure A13 to this OA.

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Documents executed:- Notification of Merger of banks dated 04.03.2020, which is Annexure A1 to this OA; Power of Attorney of Sh. Amarjit Singh dated 13.10.2016, which is Annexure A2 to this OA; Acknowledgement of Sanction, D.P. Note, Agreement of Hypothecation, Letter of consent by borrower, Letter of consent by Guarantor, Deed of Guarantee all dated 08.10.2015, which are Annexures A6 to A12 to this OA; D.P. Note, Supplementary Agreement both dated 18.05.2017, which are Annexures A14 & A15 to this OA; Acknowledgement of Debt dated 23.12.2015, 26.11.2018, 31.03.2020, which are Annexures A16 to A18 to this OA; Legal Notice dated 08.06.2021 along with its translations and postal Receipts, which is Annexure A19 to this OA and Statement of account, which is Annexure A20 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.38,32,775.00, 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 21.11.2024.

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In support of the OA, affidavit of Sh. Shobit Dawer, Senior Manager, Indian Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned counsel (through Video Conferencing) 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 A20 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.38,32,775.00 (Rupees Thirty Eight Lacs Thirty Two Thousand Seven Hundred and Seventy 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 @7.30%p.a. with half yearly rests from 23.03.2023 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 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 @7.30%p.a. in

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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.38,32,775.00 (Rupees Thirty Eight Lacs Thirty Two Thousand Seven Hundred and Seventy Five only) jointly and severally, with costs, current and future simple interest @7.30%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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 31.12.2024.

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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 .

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Dated: 27.11.2024

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

Indian Bank v. Ajmer Singh and Another

Case brief

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Indian Bank v. Ajmer Singh and Another

Case brief

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