Allowed

Indian Bank v. Gian Singh

DRT1 Oct 2024OA/509/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant Bank's Original Application for recovery of an outstanding NPA loan of approximately Rs. 29.21 lakhs. After an ex-parte hearing due to the defendant's non-appearance, the Court ordered recovery from mortgaged and personal assets, adjusting the claimed interest rate to 8% per annum.

What did the court decide?

Declared defendant liable to pay Rs.29,21,169 with costs and simple interest @8% p.a.; ordered issue of Recovery Certificate.

Indian Bank versus Gian Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.509/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.04.2023

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DATE OF DECISION: 01.10.2024

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Indian Bank (Erstwhile Allahabad Bank), having its Head Office at 66, Rajaji Silai, Chennai 600001 and having its branch office at different places including one at Jandiala Guru, Tehsil and District Tarn Taran (Pb) through its Authorized Officer Sh. Vinay Kumar.

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……..Applicant Versus

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Sh. Gian Singh S/o Sh. Gopal Singh, R/o Village Jawanda Kalan, Tehsil and District Tarn Taran.

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……. Defendant

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate proxy for Sh. Karan Kant Aggarwal, 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 defendant for recovery of Rs.29,21,169.00 (Rupees Twenty Nine Lacs Twenty One Thousand One Hundred Sixty Nine Only). The Original Application has been filed through Sh. Vinay Kumar, Authorized Officer of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 11.11.2021, 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 grant of KCC Limit of Rs.10.00 Lacs vide Loan Applications dated 07.01.2013, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.10.00 Lacs Sanction Letter dated 21.01.2013, which are Annexures A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 35K-12M situated Village Jawanda Kalan, H.B. No. 263, Tehsil and District Tarn Taran vide Registered Mortgage Deed bearing v asika No.6232 dated 2 1.01.2013 along with its translation, which is Annexure A5 to this OA.

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Documents executed:- Hypothecation Deed dated 24.01.2013, which is Annexure A4 to this OA; Notice dated 15.10.2019, which is Annexure A6 to this OA and Statement of Account along with Certificate by Officer Incharge of the computer system, which are Annexures A7 & A8 to this OA.

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The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.29,21,169.00 which is recoverable and the defendant was served recall notices but he 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 23.09.2024.

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In support of the OA, affidavit of Sh. Vinay Kumar, Authorized Officer, Indian Bank h as been filed. 8. Heard arguments and perused record. 9. 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 A8 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

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favour of the bank. 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.29,21,169.00 (Rupees Twenty Nine Lacs Twenty One Thousand and One Hundred Sixty Nine Only) along with interest from the defendant, 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 @9.95%p.a. along with penal interest @2%p.a with monthly rests from 17.02.2023 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 @08.00%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 Rs.29,21,169.00 (Rupees Twenty Nine Lacs Twenty One Thousand and One Hundred Sixty Nine Only) jointly and severally, with costs, current and future simple interest @08.00%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 hypothecated/mortgaged properties of the defendant

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in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 22.10.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 01.10.2024

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

Indian Bank v. Gian Singh

Case brief

What is this about?

What did the court decide?

Indian Bank v. Gian Singh

Case brief

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What did the court decide?

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