Allowed

Indian Bank v. Kikkar Singh Alias Kikar Singh

DRT16 Jul 2024OA/589/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of Rs.46.47 Lacs outstanding to respondents, a borrower and guarantor, who failed to repay a sanctioned agricultural loan. The Tribunal granted a uniform simple interest rate of 8.00% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.46,47,425/- with simple interest @8.00% p.a.; issuance of Recovery Certificate.

Indian Bank versus Kikkar Singh Alias Kikar Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.589 /2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.03.2022

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DATE OF DECISION: 16.07.2024 Indian Bank, (erstwhile Allahabad Bank) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Corporate Office at Avvai Shanmugam Salai, Royapettah, Chennai- 600014 and a Branch amongst at G.T Road, Moga through its duly constituted attorney Sh. Surinder Kumar, Senior Manager.

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……..Applicant Versus 1. Sh. Kikkar Singh @ Kikar Singh S/o Sh. Sardara Singh R/o H.No.199, Village Daya Kalan, P.O. Kishanpura, Tehsil Dharamkot, Distt. Moga. (Borrower/Mortgagor) 2. Sh. Lali Singh S/o Sh. Chand Singh, R/o H.No.151, Village Daya Kalan, P.O. Kishanpura, Tehsil Dharamkot, Distt. Moga (Guarantor) ….……Defendants Advocates: Argued by Sonal Chabra, Advocate proxy for Ms. Puja Sharma, Advocate for the Applicant Defendants are ex-parte FINAL ORDER 1. 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.46,47,425.00 (Rupees Forty Six Lakhs Forty Seven Thousand Four Hundred and Twenty Five Only). The Original Application has been filed through Sh. Surinder Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General

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Power of Attorney dated 26.08.2010, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant Nos.1 and 2 had approached the applicant bank for the grant of Kisan Cash Credit Limit of Rs.22.00 vide Loan Application dated 28.04.2015, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the ‘Akshay Krishi’ Kisan Cash Credit Limit of Rs.22.00Lacs vide Sanction Letter dated 30.04.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants vide Acknowledgment Letter dated 06.06.2015, which is Annexure A3A to this OA. 4. Defendants Nos.1 had mortgaged his immovable properties i.e. total land measuring 32 Kanal 0 Marla Situated at Village Kishanpura Kalan Janubi, Tehsil Dharamkot, Distt. Moga vide Letter to Sub Registrar/ Joint Sub Registrar for creation of charge bearing Vasika No.200 dated 25.05.2015 and Declaration under section 4(1) dated 20.05.2015, which are Annexure A7, A8 and A8T to this OA. Documents executed:-, Id proofs of defendant no.1 in File 3, which is Annexure A4 to this OA; D.P. Note, Hypothecation Agreement and Deed of Guarantee all dated 06.06.2015, which is Annexure A4A, A5 and A6 to this OA . Consent Latter to be executed by borrower and guarantor, which is Annexure A9 to this OA; Acknowledgement of Debt dated 01.10.2018, which is Annexure A10 to this OA; Recall notice dated 16.04.2018 with postal receipt, which is Annexure A11 to this OA; Legal notice dated 28.12.2021 with its translation and Postal receipts, which is Annexure A12 and A12T to this OA. Statement of account with certificate, which is Annexure A13 to this OA. 5. 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.46,47,425/- which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount,

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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 03.07.2024. 7. In support of the OA, affidavit of Sh. Surinder Kumar, Senior Manager, Indian 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 bank had proved its case. From the perusal of all the Annexure A1 to A13 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.46,47,425/(Rupees Forty Six Lakhs Forty Seven Thousand Four Hundred and Twenty Five 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed [email protected]%p.a. plus penal interest @2.00%p.a. with Yearly rests from 08.02.2022 the realization. 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

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.46,47,425/- (Rupees Forty Six Lakhs Forty Seven Thousand Four Hundred and Twenty Five Only) Jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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. 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 05.08.2024. 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.

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Pronounced by me in the open Tribunal . Dated: 16.07.2024

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

Indian Bank v. Kikkar Singh Alias Kikar Singh

Case brief

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Indian Bank v. Kikkar Singh Alias Kikar Singh

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