Allowed

Indian Bank v. Harjinder Singh and Another

DRT26 Sept 2024OA/520/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Indian Bank against two borrowers for recovery of a defaulted KCC loan of Rs. 25.45 lakhs. The court, exercising discretion, modified the claimed interest rate to 8% per annum and granted a recovery certificate, permitting seizure of mortgaged properties.

What did the court decide?

Recovery of Rs. 25,45,441 with 8% simple interest; issuance of Recovery Certificate; authorization to sell hypothecated properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.520/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.04.2023

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DATE OF DECISION: 26.09.2024

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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 Khadoor Sahib, District Tarn Taran (Pb) through its Authorized Officer Sh. Vinay Kumar.

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……..Applicant

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Versus

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Sh. Harjinder Singh S/o Gurbhej Singh R/o Village Gagarewal, Tehsil Khadoor Sahib, District Tarn Taran

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Sh. Sohan Singh S/o Gurbhej Singh R/o Village Gagarewal, Tehsil Khadoor Sahib, District Tarn Taran

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….……Defendants

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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 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.25,45,441.00 (Rupees Twenty Five Lacs Forty Five Thousand Four Hundred Forty One 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 Authority Letter dated 11.11.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.10.00 Lacs vide Loan application dated 19.01.2013, which is Annexure A2 to this OA.

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The applicant sanctioned the loan under KCC Limit of Rs.10.00 Lacs vide Sanction Letter dated 23.01.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged his immovable properties i.e. total land measuring 12K-14M situated at Village Gagarewal, Tehsil Khadoor Sahib, District Tarn Taran vide Registered Mortgaged Deed bearing vasika no.1976 dated 23.01.2013 along with its translation, which is Annexure A5 to this OA.

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Documents executed:- Hypothecation Deed dated 29.01.2013, which is Annexure A4 to this OA; Notice dated 08.05.2019 with postal receipt, 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.25,45,441.00 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 21.08.2024. 7. In support of the OA, affidavit of Sh. Vinay Kumar, Authorized Officer, Indian Bank (erstwhile Allahabad Bank) h as been filed. 8. Heard ex-parte 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 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

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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.25,45,441.00 (Rupees Twenty Five Lacs Forty Five Thousand Four Hundred Forty One 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 @9.60%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 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 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 defendants are liable to pay to the applicant a total sum of Rs.25,45,441.00 (Rupees Twenty Five Lacs Forty Five Thousand Four Hundred Forty One Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in boththe loan accountsfrom 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

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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 18.10.2024.

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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

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Dated: 26.09.2024

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

Indian Bank v. Harjinder Singh and Another

Case brief

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Indian Bank v. Harjinder Singh and Another

Case brief

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