Allowed

Indian Bank v. Smt. Manpreet Kaur and Another

DRT25 Apr 2024OA/581/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of dues. Recognizing drastically reduced market interest rates, the Tribunal exercised discretion to grant uniform simple interest at 8.80%p.a. instead of the claimed rate, directing issuance of a recovery certificate against mortgaged properties.

What did the court decide?

Issuance of Recovery Certificate for Rs.20,10,911.00 plus 8.80%p.a. simple interest from filing date; liberty to recover via sale of mortgaged or personal assets.

Indian Bank versus Smt. Manpreet Kaur and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.581/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.04.2023

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DATE OF DECISION: 25.04.2024

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Indian Bank, (erstwhile Allahabad Bank), on the basis of Amalgamation Scheme dated 04.03.2022, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai, Tamil Nadu, 600014 and having its Zonal Office at Chandigarh and amongst other branches a branch at Patiala through its Chief Manager Mrs. Suman Lata duly constituted and Authorised Signatory

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……..Applicant

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Versus

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Mrs. Manpreet Kaur W/o Sh. Ravinder Singh, R/o Sant Hazara Singh Nagar, Near Narain Public School, Village Sanaour, Tehsil and District Patiala (Borrower)

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Also at: House No.382/7, Jattan Wala Chountra, Tehsil and District Patiala

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Sh. Ravinder Singh S/o Sh. Jaswant Singh, R/o House No.362/7, Jattan Wala Chuntra, Patiala, Tehsil and District Patiala (Guarantor)

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….……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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.20,10,911.00 (Rupees Twenty Lacs Ten Thousand Nine Hundred

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Eleven only). The Original Application has been filed through Mrs. Suman Lata, Chief Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 05.10.2021, 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 bank for the grant of Term Loan under All Bank Ashiana Housing Loan Scheme of Rs.15.00 Lacs vide Loan application dated 02.09.2018, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Term Loan under All Bank Ashiana Housing Loan Scheme of Rs.15.00 Lacs vide Sanction Letter dated 28.11.2018, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged her immovable properties i.e. total land measuring 0-2 ½ Marla i.e., 75.55 sq. yards situated at Sant Hajara Singh Nagar, Village Sanour, Tehsil and District Patiala vide Registered Sale Deed bearing vasika No.2018-19/11/1/5335 dated 07.01.2019 with its translation, Letter to Tehsildar for creating charge dated 14.11.2019 and Jamabandi with its translation, which are Annexures A12 to A14 to this OA.

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Documents executed:- D.P. Note dated 01.12.2018, which is Annexure A4 to this OA; Consent Clause to be executed by Borrower dated 28.11.2018, which is Annexure A5 to this OA; Declaration by Borrower dated 10.01.2019, which is Annexure A6 to this OA; Letter of Mortgagor confirming deposit of title deed for borrower dated 11.01.2019, which is Annexure A7 to this OA; Form ADV 85, which is Annexure A8 to this OA; Affidavit dated 23.10.2018, which is Annexure A9 to this OA; Consent Clause to be executed by Guarantor dated 28.11.2018, which is Annexure A10 to this OA; ADV 42 dated 01.12.2018, which is Annexure A11 to this OA; Cersai Report dated 17.11.2019, which is Annexure A15 to this OA; Recall Notice dated 20.11.2020, which is Annexure A16 to this OA; Legal Notice dated 23.12.2020 with postal receipt, which is Annexure A17 to this OA;

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Acknowledgement of Debt dated 20.04.2020 which is Annexure A18 to this OA; Notice U/s 13(2) dated 31.05.2021 along with postal receipts, which is Annexure A19 to this OA; Notice U/s 13(4) dated 18.07.2022, which is Annexure A20 to this OA; Order dated 23.09.2022 with its translation, which is Annexure A21 to this OA and Account Statement with certificate, which is Annexure A22 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.20,10,911.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank 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 13.03.2024. 7. In support of the OA, affidavit of Mrs. Suman Lata, Chief Manager, Indian Bank h as been filed. 8. Heard ex-parte 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, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A22 to this OA, it is proved that the defendants approached applicant bank 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 bank is entitled to recover a sum of Rs.20,10,911.00 (Rupees Twenty Lacs Ten Thousand Nine Hundred Eleven only) along with interest from the defendants, jointly and severally, from the date

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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 bank in relief clause has claimed interest @8.80%p.a. plus penal interest @2%p.a. with monthly rests from 31.03.2023 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 @8.80%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.20,10,911.00 (Rupees Twenty Lacs Ten Thousand Nine Hundred Eleven only) jointly and severally, with costs, current and future simple interest @8.80%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank 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 bank 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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12.	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 02.05.2024. 15. Copy of this order be given dasti to the applicant bank 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. Pronounced by me in the open Tribunal . Dated: 25.04.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Smt. Manpreet Kaur and Another

Case brief

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Indian Bank v. Smt. Manpreet Kaur and Another

Case brief

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