Allowed

Bank of India v. Sukhdev Singh and Others

DRT8 Oct 2024OA/638/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Bank of India against the legal heirs of Sh. Gurcharan Singh for recovery of Rs. 21,06,039.30 including interest. The tribunal affirmed the liability to pay jointly and severally and granted uniform simple interest at 8% p.a. instead of the claimed rates.

What did the court decide?

Recovery of Rs. 21,06,039.30 plus costs and future simple interest at 8% p.a. from the sale of mortgaged/attached properties.

Bank of India versus Sukhdev Singh and Others — Company and Corporate | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.638/2022

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 28.03.2022

¶5

DATE OF DECISION: 08.10.2024

¶6

Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act No. V of 1970, having its Head Office at “Star House” C-5, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office amongst other places at Village Bhullar, Distt. Muktsar, through its duly Constituted Attorney, Sh. Chetan Negi presently Posted as Chief Manager at Moga Branch.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Sukhdev Singh S/o Late Sh. Gurcharan Singh, Legal heir to the Estate of Late Sh. Gurcharan Singh resident of Village Sotha, District Muktsar.

¶10

Smt. Harjeet Kaur W/o Sh. Kewal Singh Legal heir to the Estate of Late Sh. Gurcharan Singh resident of Village Rori Kapura, District Faridkot.

¶11

Smt. Baljeet Kaur W/o Sh. Kuldeep Singh Legal heir to the Estate of Late Sh. Gurcharan Singh resident of Village Golewala, District Faridkot.

¶12

Smt. Sukhpal Kaur W/o Sh. Lakhveer Singh Legal heir to the Estate of Late Sh. Gurcharan Singh resident of Village Golewala, District Faridkot.

¶13

Sh. Jaswinder Singh S/o Sh. Baldev Singh R/o VPO Sotha, Distt. Muktsar.

¶14

Late Sh. Gurcharan Singh S/o Sh. Gajjan Singh (Borrower/Mortgagor since deceased) through Defendant no.1 to 4, known legal heirs to the estate of deceased, R/o Village Sotha, Distt. Muktsar.

…Defendants

Advocates:

Argued by Ms. Priya, Advocate proxy for Ms. Puja Sharma, Advocate for the Applicant Defendants are ex-parte

¶19

FINAL ORDER

¶20

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.21,06,039.30p (Rupees Twenty One Lacs Six Thousand Thirty Nine and Thirty Paise Only). The Original Application has been filed through Sh. Chetan Negi, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 03.12.2019, which is Annexure A1 to this OA. 2. The brief facts of the OA are that Sh. Gurcharan Singh (since deceased) had approached the applicant for the grant of KCC Limit of Rs.5.00 Lacs & Overdraft Limit of Rs.6.00 Lacs vide Loan applications dated 28.01.2016, which are Annexures A2 & A11 to this OA. 3. The applicant sanctioned KCC Limit of Rs.5.00 Lacs & Overdraft Limit of Rs.6.00 Lacs vide Sanction Letters dated 15.02.2016, which is Annexure A3 & A12 to this OA and the terms and conditions were duly accepted by the defendants.

¶21

Sh. Gurcharan Singh (Since deceased) had mortgaged his immovable property i.e. total land measuring 38Kanal 13Marla situated at Village Sotha, Tehsil & District Sri Muktsar Sahib Letter to Sub Registrar for Creating the Charge Vide Declarations under Section 4(1) bearing vasika no.2250 and vasika no.2251 both dated 24.02.2016, with its Translations, which are Annexures A7, A8 & A18 to this OA. Documents executed:- Votar Id of Defendant no.1 in FILE3, which is Annexure A2A to this OA; D.P.Note, Hypothecation Cum Loan Agreement, Deed of Guarantee, Agreement, Letter of Declaration, Undertaking & Authority, Deed of Guarantee all dated 26.02.2016, which are Annexures A4 to A6, A9 & A10, A13 to A16 to this OA;

¶22

¶23

Acknowledgment of Debt dated 23.01.2018, which is Annexure A19 to this OA; CERSAI Letter, which is Annexure A19A to this OA; Recall Notice dated 10.07.2019 and 05.08.2019 along with Translation, which are Annexures A20, A20T & A21 to this OA; Legal Notice dated 15.01.2020,17.03.2022 along with their translations and postal receipts, which are Annexures A22, A23 & A23T to this OA and Statements of accounts with certificate, which are Annexures A23 & A24 to this OA. 5. 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.21,06,039.30p, 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. 6. The legal heirs of Sh. Gurcharan Singh (Since deceased) i.e. defendant no.1 to 4 and defendant no.5 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 26.09.2024. 7. In support of the OA, affidavit of Sh. Chetan Negi, Constituted Attorney, Bank of India h as been filed. 8. Heard 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 A24 to this OA, it is proved that Sh. Gurcharan Singh (Since deceased) and defendant no.5 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 Sh. Gurcharan Singh (Since deceased) were classified as NPA. From the documentary evidence brought on record, it is

¶24

¶25

proved that applicant bank is entitled to recover a sum of Rs.21,06,039.30p (Rupees Twenty One Lacs Six Thousand Thirty Nine and Thirty Paise Only) along with interest from legal heirs of Sh. Gurcharan Singh (Since deceased) i.e. defendant no.1 to 4 and defendant no.5, jointly and severally, from the date of filing of the present Original Application till realization of all the accounts.

¶26

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.80%p.a. for KCC and 12.30%p.a. for Agricultural Overdraft Limit plus penal interest @2.00%p.a. with half yearly rests in both from 01.01.2022 till the realization.

¶27

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 defendant, 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 @08.00%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 legal heirs of Sh. Gurcharan Singh (Since deceased) i.e. defendant no.1 to 4 and defendant no.5 are liable to pay to the applicant a total sum of Rs.21,06,039.30p (Rupees Twenty One Lacs Six Thousand Thirty Nine and Thirty Paise 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 bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the legal heirs of Sh. Gurcharan Singh (Since deceased) i.e. defendant no.1 to 4 and defendant no.5 in execution proceedings if not sold

¶28

¶29

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 Sh. Gurcharan Singh (Since deceased) i.e. defendant no.1 to 4 and defendant no.5. The applicant is at liberty to enforce the claim through due process of law.

¶30

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 23.10.2024. 15. Copy of this order be given dasti to the applicant and be sent to the legal heirs of Sh. Gurcharan Singh (Since deceased) i.e. defendant no.1 to 4 and defendant no.5 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: 08.10.2024.

¶31

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

Bank of India v. Sukhdev Singh and Others

Case brief

What is this about?

What did the court decide?

Bank of India v. Sukhdev Singh and Others

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

Hdfc Bank Limited versus Harwant Singh and Others

Punjab National Bank versus Santosh Kumari

Icici Bank Limited versus Sachin Kumar

Punjab National Bank versus Hardeep Singh and Another

Punjab National Bank versus Arjan Singh and Another

Indian Bank versus Sukhdev Singh and Another