Allowed

Bank of Baroda v. Late Sh. Kewal Krishan

DRT9 Aug 2024OA/605/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the bank's application for recovery of Rs. 27,58,195.69 from the legal heirs of a deceased borrower and a co-borrower. The bank proved the loan facility, non-repayment, and subsequent classification as NPA. The Tribunal fixed uniform simple interest at 8% p.a. and directed issuance of a recovery certificate.

What did the court decide?

Recovery certificate issued for Rs. 27,58,195.69 with interest at 8% p.a.; leave to recover remaining dues from sale of mortgaged or personal assets granted.

Bank of Baroda versus Late Sh. Kewal Krishan — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.605/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 26.04.2023

¶4

DATE OF DECISION: 09.08.2024.

¶5

Bank of Baroda (Erstwhile Vijaya Bank ), a body corporate with perpetual succession constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act of 1970 having its Registered Head Office at Baroda Bhawan, R.C. Dutt Road, Alkapuri Baroda 390007 Gujrat and branch office at various places in India and Overseas including, a branch at B-XXX, 1626-C Sherpur Road Behind Aarti Steels, Focal Point, Ludhiana through Sh. Jainendra Kumar Katyayan, Senior Branch Manager and Constituted Attorney.

¶6

……..Applicant

¶7

Versus

¶8

Late Sh. Kewal Krishan S/o Sh. Atma Singh (Borrower) (Now deceased) through his Legal heir namely:-

¶9

(a) Smt. Anita Rani W/o Late Kewal Krishan, R/o H. No. 425, Street No. 7, Juhjar Nagar, Shimlapuri, Ludhiana -141003.

¶10

(b) Sh. Sahil verma S/o Late Kewal Krishan, R/o H. No. 425, Street No. 7, Juhjar Nagar, Shimlapuri, Ludhiana -141003

¶11

¶12

Smt. Anita Rani W/o Kewal Krishan (Co- Borrower), R/o H. No. 425, Street No. 7, Juhjar Nagar Shimlapuri Ludhiana -141003

¶13

….……Defendants

¶14

Advocates:

¶15

Argued by Ms. Ashmita Goel, Advocate proxy for Sh. Pawan Kumar Sharma, Advocate for Applicant Defendants are ex-parte

¶16

FINAL ORDER

¶17

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.27,58,195.69.00 (Rupees Twenty Seven Lakh Fifty Eight Thousand

¶18

¶19

One Hundred Ninety Five And Paisa Sixty Nine Only) The Original Application has been filed through Sh. Jainendra Kumar Katyayan, Senior Branch Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 17.06.2009, which is Annexure A1 to this OA.

¶20

The brief facts of the OA are that the defendant nos.1 (Since Deceased) and defendant no.2 had approached the applicant bank for the grant of Home Loan of Rs.22.00 Lacs vide Loan Application dated, which is Annexure A4 to this OA.

¶21

The applicant Bank sanctioned the Home Loan of Rs.22.00 Lacs vide Sanction Letter dated 18.11.2017, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants vide Terms and conditions, which is Annexure A10 to this OA.

¶22

Defendants No.2 had mortgaged his immovable properties i.e. total land measuring 130 Sq. Yds. situated at Village Lohara, Abadi known as Guru Gobind Singh Nagar, Tehsil and District Ludhiana vide Equitable Mortgage of Sale Deed bearing V asika No.8233 dated 08.12.2017 and Jamanbandi for the year 2009-2010 along with their translations, which is Annexure A23, A24, A25 & A26 to this OA. Documents executed:- Gazette Notification dated 02.01.2019 and 01.04.2019, Which are Annexures A2 & A3 to this OA; Affidavit cum Declaration dated 27.11.2017, Which is Annexure A6 to this OA; Surrender Letter dated 20.02.2020 , which is Annexure A7 to this OA; Re- Valuation report dated 15.04.2022 , which is Annexure A8 to this OA; Articles of agreement dated 17 .11.2017, w hich are Annexure A9 to this OA; Classification of advance & others details, which is Annexure A11 to this OA; Description of property, Demand Promissory Note, Letter of repayment, Statutory Liability, Common Letter of Authorization, Authorization letter, Memorandum and Letter from borrowers, all dated 18.11.2017, which are Annexures A12, A13, A16, A18, A19, A20, A21 and A22 to this OA; Letter of

¶23

¶24

Acknowledgment dated 20.02.2020 and 19.10.2022, which are Annexure A14 and A15 to this OA; Letter by Borrower for r elease of loan dated 17 .11.2017, w hich is Annexure A17 to this OA; S tatement of account with Certificate U/s 65-B of Indian Evidence act, Which are Annexures A27 and A28 to this OA; Copy of Misc. Expenses bill, Which is Annexure A29 to this OA; Death certificate of kewal krishan, Which is Annexure A30 to this OA; Notice under section 13(2) of SARFAESI Act dated 05.04.2019, Which is Annexure 31 to this OA; Possession notice under section 13(4) of SARFAESI Act dated 19.03.2020, Which is Annexure A32 to this OA and Sale notices dated 26.04.2022 & 25.08.2022, Which are Annexure A33 to A38 to this OA;

¶25

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.27,58,195.69.00 which is recoverable and the legal heirs of deceased defendant no.1 and defendant no.2 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.

¶26

The legal heirs of deceased defendant no.1 and defendant no.2 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 27.05.2024.

¶27

In support of the OA, affidavit of Sh. Jainendra Kumar Katyayan, Senior Branch Manager, Bank of Baroda has 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 A38 to this OA, it is proved that the defendant No.1(since deceased) and defendant no.2 approached applicant bank for availing of the loan facility which was granted to them and for that

¶28

¶29

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 defendant No.1(since deceased) and defendant no.2 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.27,58,195.69.00 (Rupees Twenty Seven Lakh Fifty Eight Thousand One Hundred Ninety Five And Paisa Sixty Nine Only) along with interest from the legal heirs of deceased defendant no.1 and defendant no.2, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶30

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @8.50%p.a. plus penal interest @2.00%p.a. with monthly rests from 01.04.2023 till the realization.

¶31

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 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 legal heirs of deceased defendant no.1 and defendant no.2 are liable to pay to the applicant a total sum of Rs.27,58,195.69.00 (Rupees Twenty Seven Lakh Fifty Eight Thousand One Hundred Ninety Five and Paisa Sixty Nine 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

¶32

¶33

applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the legal heirs of deceased defendant no.1 and defendant no.2 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 legal heirs of deceased defendant no.1 and defendant no.2. 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 02.09.2024 15. Copy of this order be given Dasti to the applicant bank and be sent to the legal heirs of deceased defendant no.1 and defendant no.2 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: 09.08.2024.

¶34

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

Bank of Baroda v. Late Sh. Kewal Krishan

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Late Sh. Kewal Krishan

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Asset Reconstruction Company (India) Limited versus Sukhpal Singh and Others

Punjab National Bank versus Sh. Jaswant Singh

Punjab National Bank versus Smt. Gurbir Kaur

Bank of India versus Sh. Davinder Pal Singh

Punjab National Bank versus Jagjit Singh

Punjab National Bank versus Sh. Karnail Singh