Allowed

Idbi Bank Limited v. Jasvir Singh and Another

DRT5 Aug 2024OA/490/2023

Case brief

AI extract

What is this about?

The banking company obtained recovery of Rs.21.15 lakhs against borrowers and a guarantor from ex-parte proceedings. The tribunal reduced the claimed interest rate to 8% p.a. granted a recovery certificate, and allowed enforcement against mortgaged and personal assets.

What did the court decide?

Recovery of Rs.21,15,130.20 with 8% simple interest; issuance of Recovery Certificate; liberty to execute against mortgaged and personal assets.

Idbi Bank Limited versus Jasvir Singh and Another — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.490/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.03.2023

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DATE OF DECISION: 05.08.2024

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IDBI Bank Limited, a company within the meaning of Companies Act, 2013 and a Banking Company within the meaning of Section 5(c) of the Banking Regulation Act, 1949 and having its Registered Office at IDBI Tower, WTC Complex Cuffe Parade, Mumbai-400005 and its Branches at various places including a Branch Office at Phullanwal, District-Ludhiana, Punjab, through its authorized officer Sh. Satbir Singh.

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……..Applicant

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Versus

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Sh. Jasvir Singh S/o Sh. Darshan Singh, R/o H. No.160, VillageMaherna Khurad, Tehsil-Malerkotal, District-Sangrur (Borrower)

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Sh. Didar Singh S/o Sh. Gurdip Singh R/o H. No.165, VillageMaherna Khurad, Tehsil-Malerkotal, District-Sangrur (Guarantor)

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….……Defendants

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Advocates:

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Argued by Sh. Sumeet Sehgal, 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.21,15,130.20p (Rupees Twenty One Lacs Fifteen Thousand One Hundred Thirty and Twenty Paise only). The Original Application has been filed through Sh. Satbir Singh, Branch Head o f the applicant bank, who is competent to institute the Original Application vide Delegation of Powers, 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.20.00 Lacs vide Loan application dated 22.07.2013, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor.

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The applicant Bank sanctioned the KCC Limit of Rs.20.00 vide Letter of Intent dated 07.09.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable property i.e. land measuring 29K-7M situated at Village Maherna Khurad Tehsil Malerkotla, District Sangrur vide Registered Mortgaged Deed bearing Vasika No. 978, dated 09.09.2013 along with its English Translation, which are Annexures A13 & A14 to this OA.

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Documents executed:- Deed of Hypothecation, Demand Promissory Note, Certificate of Execution of Documents all dated 10.09.2013, which are Annexures A4, A6 & A7 to this OA; Deed of Guarantee dated 20.09.2013, which is Annexure A5 to this OA; Acknowledgment of Debt cum Revival Letter dated 20.08.2016 & 29.03.2019, which are Annexures A8 & A10 to this OA; Balance and Confirmation dated 31.03.2018, which is Annexure A9 to this OA; Revival Letters dated 29.08.2019 & 08.11.2021, which are Annexures A11 & A12 to this OA; Acknowledgment of Debt cum Revival Letters dated 26.05.2022 and 20.06.2022. which are Annexures A15 and A16 to this OA; Notice dated 15.12.2022, which is Annexure A17 to this OA and Statement of Loan account along with Certificate, which is Annexure A18 to this OA.

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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.21,15,130.20, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank 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 29.05.2024.

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In support of the OA, affidavit of Sh. Satbir Singh, Branch Head, IDBI Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 A18 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.21,15,130.20 (Rupees Twenty One Lacs Fifteen Thousand One Hundred Thirty and Twenty 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 account.

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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 @10.60%p.a. plus penal interest @2% 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

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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.21,15,130.20 (Rupees Twenty One Lacs Fifteen Thousand One Hundred Thirty and Twenty Paise only) jointly and severally, 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 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 27.08.2024. 15. Copy of this order be given dasti to the applicant bank 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: 05.08.2024

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

Idbi Bank Limited v. Jasvir Singh and Another

Case brief

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Idbi Bank Limited v. Jasvir Singh and Another

Case brief

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