Allowed

Indian Bank v. Sukhpal Singh

DRT27 Sept 2024OA/483/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's Original Application to recover a term loan of Rs.20.84 Lacs from the defendant. The Tribunal, exercising discretion due to market rate dynamics, fixed interest at 8% p.a. and granted the Recovery Certificate.

What did the court decide?

Recovery of Rs.20,84,740.00 with costs and simple interest at 8% p.a. from the date of filing until realization; Recovery Certificate issued.

Indian Bank versus Sukhpal Singh — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.483/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.04.2023

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DATE OF DECISION: 27.09.2024

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Indian Bank (erstwhile Allahabad Bank), on the basis of Amalgamation scheme dated 04.03.2022 a body corporate under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai, Tamil Nadu, 600014 and having its Zonal Office at Ludhiana and amongst other branches a branch at Morinda, through its Branch Manager Smt. Poonam duly constituted and authorized signatory.

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……..Applicant

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Versus

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Sh. Sukhpal Singh S/o Sh. Gurcharan Singh, R/o village Nathwal, District Gurdaspur, Punjab-143505

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….……Defendant

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Advocates:

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Argued by Ms. Deepika Mittal, Advocate for the applicant Defendant is 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.20,84,740.00 (Rupees Twenty Lacs Eighty Four Thousand Seven Hundred and Forty only). The Original Application has been filed through Smt. Poonam, Branch Manager o f the applicant, who is competent to institute the Original Application vide Authorization Letter dated 16.02.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for the grant of Term Loan (Housing Loan) of Rs.20.00 Lacs vide Loan application dated 15.09.2016, which is Annexure A2 to this OA.

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The applicant sanctioned the Term Loan (Housing Loan) of Rs.20.00 Lacs vide Sanction Letter dated 15.10.2016, which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. land measuring 03 Marla-03 Sarsahi situated at Global enclave Plot No.4 Village Bari Marauli, Tehsil Sri Chamkaur Sahib, District Roopnagar, Punjab. The above mentioned property has been sold vide Certificate of Sale dated 13.03.2013, which is Annexure A12 to this OA . Documents executed: - D.P. Note dated 18.10.2016 and 20.05.2020, which are Annexures A4 & A11 to this OA; Declaration by Borrower, Form ADV-85 both dated 24.10.2016, which are Annexures A5 & A7 to this OA; Letter of Mortgagor confirming deposit of Title Deed dated 25.10.2016, which is Annexure A6 to this OA; Form ADV-42 dated 14.10.2016, which is Annexure A8 to this OA; Legal Notice dated 20.08.2018, which is Annexure A9 to this OA; Acknowledgement of Debt dated 01.06.2017, which is Annexure A10 to this OA and Statement of account along with certificate regarding the Computer Account Statement, which is Annexure A13 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.20, 84,740.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 02.09.2024. 7. In support of the OA, affidavit of Smt. Poonam, Branch Manager, Indian Bank h as been filed.

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Heard arguments and perused record.

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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 A13 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.20,84,740.00 (Rupees Twenty Lacs Eighty Four Thousand Seven Hundred and Forty only) along with interest from the defendant, 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 @9.45%p.a. plus penal interest @2.00%p.a. with monthly from 24.03.2023 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 defendant, 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 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 defendant is liable to pay to the applicant a total sum of

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Rs.20,84,740.00 (Rupees Twenty Lacs Eighty Four Thousand Seven Hundred and Forty only), with costs, current and future simple interest @8.00%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 sale of personal assets of the defendant. 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 19.10.2024. 15. Copy of this order be given dasti to the applicant and be sent to defendant 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.

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Dated: 27.09.2024

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

Indian Bank v. Sukhpal Singh

Case brief

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What did the court decide?

Indian Bank v. Sukhpal Singh

Case brief

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What did the court decide?

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