Allowed

Indian Bank v. Mohan Singh Gill and Others

DRT29 Nov 2024OA/498/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of outstanding dues of Rs. 29 lakhs from the defaulted borrowers, issuing a recovery certificate and directing interest at 8% per annum.

What did the court decide?

Recovery Certificate issued; Defendants declared liable to pay Rs. 29,05,939.00 jointly and severally with interest @8% p.a.; Liberty to enforce through execution under SARFAESI Act.

Indian Bank versus Mohan Singh Gill and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.498/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.04.2024

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DATE OF DECISION: 29.11.2024

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Indian Bank (erstwhile Allahabad Bank), on the basis of amalgamation dated 01.04.2020, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its head office at 66, Rajaji Salai, Chennai and Corporate Office at 254-260, Avvai Shanmugham Salai, Chennai, Tamil Nadu-600014 and having its Zonal Office at Jalandhar and amongst other branches a branch at Nawanshahr through its Branch Manager Smt. Dolly constituted and Authorized Signatory.

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……..Applicant

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Versus

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Sh. Mohan Singh Gill S/o Sh. Bawa Singh Gill R/o village Hansron, Tehsil Nawanshahr, District SBS Nagar, Punjab-144514

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Sh. Sohan Singh Gill S/o Sh. Bawa Singh Gill R/o village Hansron, Tehsil Nawanshahr, District SBS Nagar, Punjab-144514

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Sh. Avtar Singh S/o Sh. Bawa Singh Gill R/o village Hansron, Tehsil Nawanshahr, District SBS Nagar, Punjab-144514

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….……Defendants

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Advocates:

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Argued by Sh. Bharat Mani Goyal, Advocate proxy for Ms. Deepika Mittal, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.29,05,939.00 (Rupees Twenty Nine Lacs Five Thousand Nine Hundred and Thirty Nine only). The Original Application has been filed through Smt. Dolly, Branch Manager o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 02.08.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant for the grant of Cash Credit Limit (KCC) of Rs.9.00 Lacs vide Loan Application dated 24.01.2023, which is Annexure A2 to this OA and again approached the applicant for restructuring of KCC Limit by converting of overdue interest into fresh Term Loan of Rs.5.90 Lacs vide Request letter for Restructuring dated 23.03.2018, which is Annexure A15 to this OA.

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The applicant sanctioned the Cash Credit Limit (KCC) of Rs.9.00 Lacs vide Memorandum for Sanction of Loan, which is Annexure A4 to this OA and Sanction Letter dated 30.01.2013, which is Annexure A5 to this OA and further sanctioned restructuring of KCC Limit by converting of overdue interest into fresh Term Loan of Rs.5.90 Lacs vide Sanction Letter dated 27.03.2018, which is Annexure A16 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No. 1 had mortgaged his immovable properties i.e. total land measuring 09K-16M situated at Village Hansron, Tehsil Nawanshahr, District SBS Nagar (Punjab) vide Registered Mortgage Deed bearing vasika no. 5136 dated 3 1.03.2013 and Jamabandi of the year 2010-201 1 along with their Translations, which are Annexures A9 & A10 to this OA.

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Documents executed:- Interview cum Appraisal Form, DP Note, Hypothecation Agreement, consent Clause to be executed by borrower, Revival Letter, Report of means and Standings, Consent Clause to be executed by guarantor, Deed of Guarantee all dated 05.02.2013, which are Annexures A3, A6, A7, A8, A11 to A14 to this OA; DP Note, Acknowledgement of Debt both dated 27.03.2018, which are Annexures A17 & A18 to this OA; Notice dated 14.02.2018, 17.08.2019 and 09.08.2020 along with postal Receipts, which are Annexures A19 to A21 to this OA; acknowledgement of Debt dated 17.01.2023, which is Annexure A22 to this OA and Accounts Statements with certificate, which is Annexure A23 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.29,05,939.00, 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.

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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 27.11.2024.

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In support of the OA, affidavit of Smt. Dolly, 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 proxy 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 A23 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.29,05,939.00 (Rupees Twenty Nine Lacs Five Thousand Nine Hundred and Thirty Nine 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 interest @12.50%p.a. plus penal interest @2.00%p.a. with monthly rests from 24.02.2024 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

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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.29,05,939.00 (Rupees Twenty Nine Lacs Five Thousand Nine Hundred and Thirty Nine 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 03.01.2025.

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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: 29.11.2024

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

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Indian Bank v. Mohan Singh Gill and Others

Case brief

What is this about?

What did the court decide?

Indian Bank v. Mohan Singh Gill and Others

Case brief

What is this about?

What did the court decide?

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