Allowed

Idbi Bank Limited v. Chamkaur Singh and Another

DRT20 Aug 2024OA/485/2022

Case brief

AI extract

What is this about?

The DR Tribunal allowed the bank's application for recovery of a specific sum. The defendants appeared ex-parte. The Tribunal reformed the interest rate from claimed figures to a uniform 8% per annum and ordered recovery from mortgaged or personal assets.

What did the court decide?

Declaration of liability to pay Rs.26,22,422.00 with simple interest at 8% p.a. and issuance of Recovery Certificate.

Idbi Bank Limited versus Chamkaur Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.485/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.02.2022

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DATE OF DECISION: 20.08.2024

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IDBI Bank Limited, company registered under the Companies Act, 1956 (1 of 1956) and a company within the meaning of Section 2(20) of the Companies Act, 2013 and a banking company within the meaning of Section 5(c) of the Banking Regulation Act, 1949 (10 of 1949) and having its Registered Office at IDBI Tower, W.T.C. Complex, Cuffe Parade, Mumbai-400005 and having a Branch Office, amongst others at B-150295, G.T. Road, Millier Ganj, Near Old Oswal Mills, Ludhiana-141003 (Punjab), through Sh. Sandeep Johar, BH/AGM and Authorized Signatory of IDBI Bank Ltd.

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……..Applicant

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Versus

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Sh. Chamkaur Singh son of Sh. Balbir Singh, resident of Village Churpura, Tehsil and District Ludhiana PIN – 141008 (Punjab)

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Sh. Kulwinder Singh son of Sh. Chamkaur Singh, resident of Churpura, Tehsil and District Ludhiana PIN – 141008 (Punjab)

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….……Defendant

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Advocates:

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Argued by Sh. Ram Paul Khole, Advocate proxy for Sh. Tajender K. Joshi, Advocate for the applicant 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.26,22,422.00 (Rupees Twenty Six Lacs Twenty Two Thousand Four Hundred Twenty Two Only). The Original Application has been filed through Sh. Sandeep Johar, Branch Head o f the applicant bank, who is competent to institute the Original Application vide Delegation of Power, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 had approached the applicant bank for the grant of KCC Limit of Rs.18.00 Lacs vide Loan Application dated 30.11.2015, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.18.00 Lacs vide Letter of Intent dated 04.12.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant No.1. 4. Defendant No.1 had mortgaged his immovable properties i.e. land measuring 30 Kanal 3 Marlas situated at Village Churpura, Hadbast No.104, Tehsil and District Ludhian a vide Mortgage Deed dated 15.12.2015 , which is Annexure A4 to this OA. Documents executed:- Deed of hypothecation, Common Guarantee Deed and Demand Promissory Note all dated 15.12.2015, which are Annexures A5 and A7 to this OA; Revival letter dated 26.04.2018, which is Annexure A8 to this OA; Debt Acknowledgment letter dated 26.04.2018 and 16.03.2020, which is Annexure A9(colly) to this OA; Recall Notice dated 20.05.2021, which is Annexure A10 to this OA; Guarantee Recall Notice dated 07.07.2021, which is Annexure A11 to this OA; and Statement of account dated 12.01.2022, which is Annexure A12 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries, there was a debit of Rs.26,22,422.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant bank 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 15.07.2024. 7. In support of the OA, affidavit of Sh. Sandeep Johar, Branch Head of IDBI Bank Ltd. 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 A12 to this OA, it is proved that the defendants approached applicant bank 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 bank. 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 bank is entitled to recover a sum of Rs.26,22,422.00 (Rupees Twenty Six Lacs Twenty Two Thousand Four Hundred Twenty Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @BBR i.e. @9.75%p.a.+1% and penal interest @2%p.a. from 01.04.2021 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, 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,22,422.00 (Rupees Twenty Six Lacs Twenty Two Thousand Four

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Hundred Twenty Two 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 10.09.2024.

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Copy of this order be given dasti to the applicant bank 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. Dated: 20.08.2024

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

Idbi Bank Limited v. Chamkaur Singh and Another

Case brief

What is this about?

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Idbi Bank Limited v. Chamkaur Singh and Another

Case brief

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