Allowed

Axis Bank Limited v. Sh. Mangal Singh

DRT16 Aug 2024OA/600/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Bank's Original Application seeking recovery of an outstanding loan. After proceeding ex-parte due to respondent non-appearance, the order mandated repayment of the principal sum plus simple interest at 8% per annum.

What did the court decide?

Recovery certificate issued; Defendants ordered to pay Rs. 33,38,022.61 plus costs and simple interest at 8% per annum from the date of filing.

Axis Bank Limited versus Sh. Mangal Singh — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.600/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.02.2023

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DATE OF DECISION: 16.08.2024

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Axis Bank Ltd. a company incorporated under the provisions of Companies Act and a banking company within the meaning of the Section 5(c) of the Banking Regulation Act, 1949 (10 of 1949) and having its Registered Office at Trishul, Opposite Samartheshwar Temple, Near Law Garden, Ellisbridge, Ahmedabad-380006 (Gujarat) and having its branch amongst other places at Axis Bank Limited, Khadoor Sahib, District Tarn Taran (Punjab), through its Authorized Signatory, Sh. Sandeep Kumar.

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……..Applicant Bank Versus

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Sh. Mangal Singh S/o Sh. Suba Singh, R/o Vill. Dhoonda, Teh & Distt-Tarn Taran-143422, Punjab. (Borrower)

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Sh. Gurdial Singh S/O Sh. Mangal Singh, R/o Vill. Dhoonda, Teh & Distt-Tarn Taran-143422, Punjab. (Co-Borrower)

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….……Defendants

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Advocates:

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Argued by Sh. S.C. Prajapati, Advocate proxy for Sh. Rajiv Sharma, 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 defendant for recovery of Rs.33,38,022.61p (Rupees Thirty Three Lacs Thirty Eight Thousand Twenty Two and Sixty One Paise Only). The Original Application has been filed through Sh. Sandeep Kumar, Authorized Signatory of the

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applicant bank, who is competent to institute the Original Application vide Special Power of Attorney dated 16.09.2021, 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 bank for the grant of KCC Limit of Rs.25.50 Lacs vide Loan application dated 01.03.2016, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.25.50 Lacs and Farm Development Term Loan Rs.3.00 Lacs vide Sanction Letter dated 17.03.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 64K-00M situated at Village Dhoonda, Hadbast No. 343, Tehsil Goindwal Sahib, District Tarn Taran, Punjab, vide Declaration under section 4(1), Letter to Sub Registrar for creation of charge bearing vasika no.494 dated 18.03.2016 and Jamabandi along with its translation, which are Annexures A8 and A9 to this OA. Documents executed:-Loan cum Hypothecation Agreement, Term Loan Agreement, Joint and Several Demand Promissory Note and D.P. Note delivery cum Waiver Letter all dated 19.03.2016, which are Annexures A4, A5, A6, & A7 to this OA; Loan Recall cum Demand Notice dated 06.10.2022 along with Postal Receipts, which is Annexures A10 this OA and Statements of Accounts duly certified which are Annexures A11 & A12 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both loan accounts there was a debit of Rs.33,38,022.61p, 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 02.07.2024.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Authorized Signatory, Axis Bank Limited 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 Annexures A1 to A12 to this OA, it is proved that the defendants approached applicant bank 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 bank. 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 bank is entitled to recover a sum of Rs.33,38,022.61 (Rupees Thirty Three Lacs Thirty Eight Thousand Twenty Two and Sixty One Paise Only) along with interest from the defendants, 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 bank in relief clause has claimed interest @10.75%p.a. with half yearly rests along with penal interest @6%p.a from 14.09.2022 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

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,38,022.61 (Rupees Thirty Three Lacs Thirty Eight Thousand Twenty Two and Sixty One Paise Only) with costs, current and future simple interest @8.00%p.a. in the both loan accounts 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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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.09.2024. 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: 16.08.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Sh. Mangal Singh

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. Sh. Mangal Singh

Case brief

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