Allowed

Indian Bank v. Bujha Singh and Others

DRT20 Nov 2024OA/531/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Indian Bank against borrowers for recovery of Rs.1.15 crores. The court adjusted the claimed interest rate to 8% and directed recovery from mortgaged properties under SARFAESI Act.

What did the court decide?

Declaratory of liability to pay Rs.1.15 crores; recovery via sale of mortgaged properties under SARFAESI Act; issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.531/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.04.2024

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DATE OF DECISION: 20.11.2024

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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 Mrs. Dolly duly constituted and authorized signatory.

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……..Applicant Versus

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Sh. Bujha Singh, S/o Sh. Amar Singh (since deceased) through legal heirs (i) Sh. Balihar Singh S/o Sh. Bujha Singh (ii) Sh. Raghvir Singh S/o Sh. Bujha Singh (iii) Ms. Jasvir Kaur D/o Sh Bujha Singh

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All resident of Village Chokran, District Nawanshahr

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Sh. Balihar Singh S/o Sh. Bujha Singh R/o Village Chokran, District Nawanshahr

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Sh. Ramesh Kumar S/o Sh. Kalyan Dass R/o Ghakewal Road, Satguru Nagar Rahon, Shaheed Bhagat Singh Nagar, Rahon Punjab-144517. ………. Defendants

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Advocates:

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Argued by 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.1,15,54,960.00 (Rupees One Crore Fifteen Lacs Fifty Four Thousand Nine Hundred Sixty Only). The Original Application has been filed through Mrs. 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 defendant no.1 (since deceased) & 2 had approached the applicant for grant of KCC Limit of Rs.40.00 Lacs for the 1^st year and to be enhanced upto Rs.60.00 Lacs for the 5^th year vide Loan Application dated 10.05.2014, which is Annexure A2 to this OA. Further, defendant no.1 (since deceased) & 2 had again approached the applicant bank for Restructuring the KCC Limit by converting the overdue interest into fresh Term Loan of Rs.25.00 Lacs vide Request Letter dated 25.07.2018, which is Annexure A16 to this OA.

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The applicant sanctioned KCC Limit of Rs.60.00 Lacs vide Sanction Letter dated 02.07.2014, which is Annexure A5 to this OA. Later, applicant bank again sanctioned the Restructuring the KCC Limit by converting the overdue interest into fresh Term Loan of Rs.25.00 Lacs vide Sanction Letter dated 26.07.2018, which is Annexure A17 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 (since deceased) had mortgaged his immovable properties i.e. total land measuring 50K-18½M Situated Village Chhokaran, H.B. No.159, Tehsil Nawanshahr District SBS Nagar vide Registered Mortgaged Deed bearing v asika No.332 dated 05.05.2014 and Jamabandi for the year 2014-2015 along with their translations, which are Annexures A9 & A10 to this OA.

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Documents executed:-Interview cum appraisal form & Memorandum for sanction letter both dated 10.05.2014, which are Annexures A3 & A4 to this OA; D.P. Note, Hypothecation Agreement, Consent clause to be executed by borrower, Revival Letter, Report of means and standings of guarantor, consent clause to be executed by guarantor & Deed of guarantee all dated 10.05.2014, which are Annexures A6 to A8 & A12 to A15 to this OA; Affidavit dated 29.04.2014, which is Annexure A11 to this OA; D.P. Note dated 31.07.2018, which is Annexure A18 to this OA; Acknowledgement of Debt dated 26.07.2018, which is Annexure A19 to this OA; Legal Notices dated 30.01.2018 & 21.08.2019, which are Annexures A20 & A21 to this OA; Death Certificate dated 11.11.2020, which is Annexure A22 to this OA; Voucher dated 10.12.2021, which is Annexure A23 to this OA; Recall Notice dated 09.08.2022, which is Annexure A24 to this OA; Legal Notice dated 29.02.2024, which is Annexure A25 to this OA and Statement of Account along with Certificate, which is Annexures A26 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.1,15,54,960.00, 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 14.11.2024. 7. In support of the OA, affidavit of Mrs. Dolly, Branch Manager, Indian Bank h as been filed. 8. Heard 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,

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the applicant had proved its case. From the perusal of all the Annexures A1 to A26 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were 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 loans 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.01,15,54,960.00 (Rupees One Crore Fifteen Lacs Fifty Four Thousand Nine Hundred Sixty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @12.75%p.a. along with penal interest @2%p.a. with monthly rests from 19.03.2024 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 loans 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 accounts 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.01,15,54,960.00 (Rupees One Crore Fifteen Lacs Fifty Four Thousand Nine Hundred Sixty Only) jointly and severally, with costs,

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current and future simple interest @08.00%p.a. in 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 17.12.2024

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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: 20.11.2024

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

Indian Bank v. Bujha Singh and Others

Case brief

What is this about?

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Indian Bank v. Bujha Singh and Others

Case brief

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