Allowed

The Federal Bank Limited v. Sarabjeet Kaur and Another

DRT27 Nov 2024OA/441/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an original application filed by The Federal Bank Limited for recovery of a housing loan default. The court awarded the principal amount along with uniform simple interest at 8% p.a. and issued a recovery certificate, directing that the bank can enforce the claim via sale of mortgaged or personal assets.

What did the court decide?

Liability declared to pay Rs.53.91,985.86p with simple interest at 8% p.a.; Recovery Certificate issued.

The Federal Bank Limited versus Sarabjeet Kaur and… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.441/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.02.2024

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DATE OF DECISION: 27.11.2024

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The Federal Bank Limited, a banking Company registered under the Companies Act and having its Registered Office at Alwaye, Ernakulam, District and having one of its branches amongst other places at Mahal Hotel Complex, Ferozepur Road, Opposite Verma Milk Point, Ludhiana (Punjab)-141001 through its General Power of Attorney Holder/Authorized Signatory Mrs. Jasmit Kaur Joginder Singh Saluja.

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. … …..Applicant

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Versus

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Smt. Sarabjeet Kaur W/o Sh. Harvinder Singh Brar, R/o House No.3 & 4, Aggar Nagar Shant Park, Barewal Awana Rajgurru Nagar, Ludhiana-141012.

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Sh. Harvinder Singh Brar S/o Sh. Hardyal Singh R/o House No.3 & 4, Aggar Nagar Shant Park, Barewal Awana Rajgurru Nagar, Ludhiana-141012.

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….……Defendants

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Advocates:

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Argued by Sh. Nitin Grover, Advocate for 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.53,91,985.86p (Rupees Fifty Three Lacs Ninety One Thousand Nine Hundred Eighty Five And Eighty Six Paise Only). The Original Application has been filed through Smt. Jasmit Kaur Joginder Singh Saluja, Branch Head of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.09.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 & 2 had approached the applicant for the grant of Housing Loan of Rs.30.00 Lacs and Property Power Limit of Rs.30.00 Lacs.

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The applicant sanctioned Housing Loan of Rs.30.00 Lacs and Property Power Limit of Rs.30.00 Lacs vide Sanction Letters dated 12.12.2017, which are Annexures A2 & A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged her all the part and parcel of Residential Building constructed on measuring 686.33 sq.yds situated at House no.3 & 4 Shant park, Backside Aggar Nagar, Barewal Awana, Hadbast no.157, Ludhiana vide Equitable Mortgage of Title Deed bearing vasika no.8350 dated 03.12.2009 with its translation, which is Annexure A16 to this OA. Documents executed:-Copy of Limitation Order dated 11.01.2022, which is Annexure A/A to this OA; Copy of Agreement, Copy of Demand Promissory Note, Copy of security Letter, Copy of Agreement, Copy of Affidavit, Copy of Indemnity Bond all dated 12.12.2017, which are Annexures A4 to A9 to this OA; Copy of Loan Agreement, Copy of Demand Promissory Note, Copy of security Letter, Copy of Affidavit, Copy of Undertaking, Copy of Indemnity Bond, Copy of Letter Deposit of title deed all dated 18.12.2017, which are Annexures A10 to A15 & A17 to this OA; Copy of Letter dated 20.11.2020, which is Annexure A18 to this OA; Copy of Acknowledgment debt and security dated 11.11.2021, which is Annexure A19 to this OA; Copy of Demand Notice dated 20.05.2023 with postal receipts, which is Annexure A20 to this OA and Statement of Account with certificate under the Banker’s Book Evidence, which are Annexures A21 & A22 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 both the loan accounts there was a debit of Rs.53,91,985.86p, which is recoverable and the defendants were served recall notices but they did not repay the

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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 25.11.2024.

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In support of the OA, affidavit of Smt. Jasmit Kaur Joginder Singh Saluja, Branch Head, The Federal Bank Limited, has been filed. 8. 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 bank had proved its case. From the perusal of all the Annexures A/A, A1 to A22 to this OA, it is proved that the defendants approached applicant bank for availing of the loan 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 loan 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 bank is entitled to recover a sum of Rs.53,91,985.86p (Rupees Fifty Three Lacs Ninety One Thousand Nine Hundred Eighty Five And Eighty Six Paise Only) along with interest from the defendants, 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 @11.60%p.a. with monthly rests from 18.01.2024 till the realization. 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

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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 defendants are liable to pay to the applicant a total sum of Rs.53,91,985.86p (Rupees Fifty Three Lacs Ninety One Thousand Nine Hundred Eighty Five And Eighty Six Paise 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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 31.12.2024. 15. 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. Pronounced by me in the open Tribunal . Dated: 27.11.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

The Federal Bank Limited v. Sarabjeet Kaur and Another

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The Federal Bank Limited v. Sarabjeet Kaur and Another

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