Allowed

Bank of India v. Harjinder Kaur and Another

DRT17 Oct 2024OA/516/2024

Case brief

AI extract

What is this about?

DRT allowed the recovery application instituted under Section 19 RDBFI Act. The Tribunal directed the defendants to jointly and severally pay the outstanding sum of Rs. 28,24,084.00 along with simple interest at 8% p.a. and issued a recovery certificate.

What did the court decide?

Declared liability to pay Rs. 28,24,084.00 with 8% simple interest; issued Recovery Certificate; liberty to enforce via sale of mortgaged/personal assets.

Bank of India versus Harjinder Kaur and Another — Specific Performance | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.516/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.02.2024

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DATE OF DECISION: 17.10.2024

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head Office at Star House, C-5, G-Block, Bandra-kurla Complex, Bandra (East) Mumbai-400051, carrying on its business of Banking throughout India and inter alia, one of its Branch offices at Sector-25, Panchkula (Haryana) through its constituted attorney holder, Sh. Ravinder Yadav, Chief Manager, bank of India, currently posted at Sector-20, Chandigarh.

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……..Applicant

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Versus

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Smt. Harjinder Kaur wife of Sh. Baljit Singh R/o Village Naushehra, Tehsil Rajpura, District Patiala (Punjab) 140417.

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Sh. Baljit Singh, son of Sh. Jangir Singh, R/o Village Naushehra,

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Tehsil Rajpura, District Patiala (Punjab) 140417.

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………. Defendants

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Advocates:

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Argued by Sh. Harinder Kumar, Advocate proxy for Sh. Jatinder Kumar Sharma, 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.28,24,084.00 (Rupees Twenty Eight Lacs Twenty Four Thousand And Eighty Four Only). The Original Application has been filed through Sh. Ravinder Yadav, Chief Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 29.01.2021, 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 for grant of KCC Limit of Rs.15.00 Lacs vide Loan Application dated 11.07.2017 to this OA.

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The applicant sanctioned KCC Limit of Rs.15.00 Lacs vide Sanction Letter dated 27.07.2017, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. land measuring 12 Bighe 0 Biswe situated in Village Biwipur, H.B. No.86, Tehsil Rajpura, District Patiala vide Letter to Sub Registrar for creation of charge bearing vasika no.293 and Declaration under Section 4 (1) dated 26.07.2017 along with its translation, which is Annexure A11 to this OA. Documents executed:-Hypothecation cum loan agreement, Declaration to be obtained from the borrower, Demand Promissory Note, Composite authority letter from borrower, L-516, Letter of authority, MCLT Agreement & Deed of guarantee all dated 27.07.2017, which are Annexure A3 to A10 to this OA; Acknowledgment of debt and securities dated 04.02.2020, 15.01.2023 and 20.01.2023, which is Annexure A12 to this OA; Legal notice dated 14.08.2019 along with its translation and postal receipts, which is Annexure A13 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A14 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.28,24,084.00, 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. 6. 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 08.10.2024.

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In support of the OA, affidavit of Sh. Ravinder Yadav, Chief Manager, Bank of India 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 A14 to this OA, it is proved that the defendants approached applicant 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 is entitled to recover a sum of Rs.28,24,084.00 (Rupees Twenty Eight Lacs Twenty Four Thousand And Eighty Four 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 @11.25%p.a. along with penal interest @2%p.a. with half yearly rests from 01.02.2024 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 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 @08.00%p.a. in

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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.28,24,084.00 (Rupees Twenty Eight Lacs Twenty Four Thousand And Eighty Four 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 defendants 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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 28.10.2024.

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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 . Dated: 17.10.2024

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

Bank of India v. Harjinder Kaur and Another

Case brief

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Bank of India v. Harjinder Kaur and Another

Case brief

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