Allowed

Idbi Bank Limited v. Manpreet Kaur and Others

DRT19 Dec 2024OA/558/2023

Case brief

AI extract

What is this about?

The DRT allowed IDBI Bank's application for recovery of Rs.20,05,735.66 from four respondents who default on KCC and term loans. The Tribunal declared respondents jointly and severally liable and directed issuance of a recovery certificate, permitting enforcement via mortgaged properties or personal assets under SARFAESI Act provisions.

What did the court decide?

Declared respondents jointly and severally liable to pay Rs.20,05,735.66 + 8% p.a. interest; Recovery Certificate issued; liberty to enforce via SARFAESI Act sale or personal asset attachment.

Idbi Bank Limited versus Manpreet Kaur and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.558/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.03.2023

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DATE OF DECISION: 19.12.2024

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IDBI BANK LIMITED, a company within the meaning of the Companies Act, 2013 and a Banking Company within the meaning of Section 5(c) under the Banking Regulations Act,1949 having its registered Office at IDBI Tower, WTC Complex, Cuffe Parade, Colaba, Mumbai and having one of its branch office at Bhadson, Patiala, District Patiala(Punjab) through Sh. Parveen Asija posted as Assistant General Manager and being an authorized Signatory of the applicant.

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……..Applicant

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Versus

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Smt. Manpreet Kaur W/o Sh. Ranbir Singh, R/o Village Bhadson (Patiala Road), Tehsil Nabha, Distt. Patiala, Punjab.

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Sh. Narinder Singh S/o Sh. Mahinder Singh, R/o Village Bhadson (Patiala Road), Tehsil Nabha, Distt. Patiala, Punjab.

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Sh. Harshwinder Singh S/o Sh. Ratinder Singh, R/o H.No.34, Ward No.4, Nai Abadi, Khanna, District Ludhiana, Punjab.

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Sh. Rajinder Singh S/o Sh. Harbhajan Singh, R/o H.No.34, Ward No.4, Nai Abadi, Khanna, District Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Jiteshwar Malhi, Advocate proxy for Sh. Dharam Paul Garg, Advocate for Applicant (through VC) 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.20,05,735.66p (Rupees Twenty Lacs Five Thousand Seven Hundred Thirty Five And Paise Sixty Six only). The Original Application has been filed through Sh. Parveen Asija, Assistant General Manager of the applicant, who is competent to institute the Original Application vide

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Delegation of Power with authorization, which is Annexure P/A to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for the grant of KCC Limit of Rs.7.00 Lacs and Term Loan of Rs.18.00 Lacs vide Loan Application dated 20.09.2019, which is Annexure A1 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.7.00 Lacs and Term Loan of Rs.18.00 Lacs vide Letter of Intent dated 14.11.2019, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 20bigha 18biswa situated at Village Bhadson (Patiala Road), Tehsil Nabha, District Patiala, Punjab vide Declaration u/s 4(1) dated 15.11.2019, with its Translations, and Letter to Sub Registrar for Entering the lien over mortgage property, which are Annexures A8 & A9 to this OA.

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Documents executed:-Demand Promissory Note, Take Delivery Letter, Declaration by Borrower regarding end use of funds and inclusion terms and conditions and Guarantee Agreements all dated 26.11.2019 which are Annexures A3 to A5 and A7 to this OA; Deed of Hypothecation dated 27.11.2019, which is Annexure A6 to this OA; Acknowledgement of Debt cum Revival Letter dated 13.08.2021, which are Annexures A10 to this OA; Statements of Accounts with certificate, which is Annexure A11 to this OA and Copy of the Recall Notices dated 06.12.2022 and 06.01.2023, which is Annexure A12 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.20,05,735.66p, 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 12.12.2024.

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In support of the OA, affidavit of Sh. Parveen Asija, Assistant General Manager , IDBI Bank Ltd., h as been filed. 8. Heard arguments and perused record.

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It was argued by learned proxy counsel (through Video Conferencing) 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 P/A, A1 to A12 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.20,05,735.66p (Rupees Twenty Lacs Five Thousand Seven Hundred Thirty Five And Paise Sixty Six 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.10%p.a. along with penal interest @2%p.a. with half yearly rests 14.03.2023 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

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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.20,05,735.66p (Rupees Twenty Lacs Five Thousand Seven Hundred Thirty Five And Paise Sixty Six 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.02.2025.

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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: 19.12.2024.

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

Idbi Bank Limited v. Manpreet Kaur and Others

Case brief

What is this about?

What did the court decide?

Idbi Bank Limited v. Manpreet Kaur and Others

Case brief

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What did the court decide?

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