Allowed

Bank of India v. Amar Singh and Another

DRT19 Sept 2024OA/44/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application for recovery under the RDBFI Act. The court decreed the principal sum and reduced the annual interest rate from 12.35% to 8% before granting a recovery certificate and directing execution proceedings.

What did the court decide?

Decreeted recovery of Rs. 40,05,177.00 with 8% p.a. simple interest; Recovery Certificate issued; liberty to enforce sale of assets.

Bank of India versus Amar Singh and Another — Cheque Dishonour | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.44/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.11.2022

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DATE OF DECISION: 19.09.2024

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at “Star House”, C-5, G-Block, 2^nd Floor, Bandra-Kurla Complex, Bandra (East), Mumbai-400051 and one of its Branches at Jagraon, District Ludhiana through Sh. Ved Prakash, Chief Manager & Constituted Attorney.

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……..Plaintiff

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Versus

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1. Sh. Amar Singh S/o Sh. Gurdev Singh, Village Rasulpur, (Jandi), Tehsil Jagraon, District Ludhiana.

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2. Sh. Ranjit Singh S/o Sh. Harnek Singh, Village Rasulpur, (Jandi), Tehsil Jagraon, District Ludhiana.

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….……Defendants

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Advocates:

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Argued by Sh. R.V. Mehra, 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.40,05,177.00 (Rupees Forty Lacs Five Thousand One Hundred Seventy Seven Only). The Original Application has been filed through Sh. Ved Prakash, Chief Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 13.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 approached the applicant for the grant of KCC Limit of Rs.10.00 Lacs and OD Limit of Rs.10.00 Lacs vide Loan Applications dated 04.02.2015, which are Annexures A2 & A3 to this OA.

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The applicant sanctioned the KCC Limit of Rs.10.00 Lacs and OD Limit of Rs.10.00 Lacs vide Sanction Letters dated 26.02.2015, which are Annexures A4 & A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable property i.e., land measuring 32K-00M situated at Village Rasulpur, Tehsil Jagraon, District Ludhiana vide Declaration U/s 4(1) bearing vasika no.1079 dated 23.02.2015 along with its Translation, which is Annexure A13 to this OA. Documents executed:-Demand Promissory Notes, Bearer Letter, Deed of Hypothecation, Composite Documents, Letters of Declaration & Assurance, Letters of Declaration undertaking and Authority, Letters of Authority, Agreements of Guarantee, D.P. Note delivery letter, , all dated 26.02.2015, which are Annexures A6 to A12 & A14 to A21 to this OA; Legal Notice along with Postal Receipts dated 19.05.2021, which are Annexures A22 to A24 to this OA; Letters of Acknowledgement of Debts and Securities in KCC Limit dated 09.02.2018 & 15.01.2021, which are Annexures A25 & A26 to this OA; Letters of Acknowledgement of Debts and Securities in OD Limit dated 09.02.2018 & 15.01.2021, which are Annexures A27 & A28 to this OA and Statement of KCC Limit & OD Limit accounts along with Certificate, which are Annexures A29 & 30 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.40,05,177.00, 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 and no one appeared on behalf of defendants and they were proceeded ex-parte on 08.08.2024.

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In support of the OA, affidavit of Sh. Ved Prakash, Chief Manager, Bank of India h as 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 A30 to this OA, it is proved that the defendants 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 applicant. 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.40,05,177.00 (Rupees Forty Lacs Five Thousand One Hundred Seventy Seven 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 future interest @12.35%p.a. along with @2%p.a. penal interest with half yearly rests, from 01.11.2022 till actual 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 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.40,05,177.00 (Rupees Fourty Lacs Five Thousand One Hundred Seventy Seven Only) jointly and severally, with costs, current and future simple interest @8.00%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 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 11.10.2024.

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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.

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Dated: 19.09.2024

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

Bank of India v. Amar Singh and Another

Case brief

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Bank of India v. Amar Singh and Another

Case brief

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