Allowed

Axis Bank Limited v. Sh. Sukhwant Singh and Another

DRT2 Mar 2024OA/669/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of an unpaid loan of Rs. 26.90 lakhs. The court declared the defendants jointly and severally liable for the principal amount and costs, and fixed the interest rate at 10% per annum.

What did the court decide?

Recovery of Rs. 26,90,336.98 with costs and simple interest at 10% p.a.; issuance of Recovery Certificate.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.669/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 21.03.2022

¶5

DATE OF DECISION: 02.03.2024

¶6

Axis Bank Limited, a company incorporated under the provisions of the 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 Samartheswar Temple, Near Law Garden, Ellisbridge, Ahmedabad-380006 (Gujarat) and having its Branch amongst other places at Axis Bank Limited, Sudhar, District Ludhiana (Punjab), through its Authorised Signatory, Sh. Sandeep Kumar

¶7

……..Applicant

¶8

Versus

¶9

Sh. Sukhwant Singh S/o Sh. Gurdial Singh R/o Village Gumti, Tehsil and District Barnala-148025

¶10

Sh. Jagsir Singh S/o Sh. Sukhwant Singh R/o Village Gumti, Tehsil and District Barnala-148025

¶11

….……Defendants

¶12

Advocates:

¶13

Argued by Sh. Gurnam Singh, proxy counsel for Sh. Rajiv Sharma, counsel for the applicant Defendants are ex-parte

¶14

FINAL ORDER

¶15

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.26,90,336.98/- (Rupees Twenty Six Lacs Ninety Thousand Three Hundred Thirty Six and Ninety Eight Paisa Only). The Original Application has been filed through Sh. Sandeep Kumar, Authorised Signatory o f the applicant bank, who is competent to institute the

¶16

¶17

Original Application vide Special General Power of Attorney dated 16.09.2021, which is Annexure A1 to this OA.

¶18

The brief facts of the OA are that the defendants had approached the applicant bank for the grant of KCC Limit of Rs. 20,00,000/- vide Loan application dated 11.12.2013, which is Annexure A2 to this OA.

¶19

The applicant Bank sanctioned the KCC Limit of Rs. 20,00,000/vide Sanction Letter dated 31.12.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

¶20

Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 19 Bigha situated at Village Gumti, Tehsil Mehal Kalan District Barnala, Punjab, vide Mortgage Deed dated 14.01.2014, which is Annexure A7 to this OA. Documents executed:- Loan-cum-Hypothecation Agreement, Joint and Several Demand Promissory Note and D.P. Note Delivery-cum-Waiver Letter all dated 21.01.2014, Which are Annexures A4 to A6 to this OA; Loan Recall-cum-Demand Notice dated 09.12.2021 along with its dispatch proof, which is Annexure A8 (colly) to this OA and Statements of account along with Certificate as per Banker’s Book Evidence act, which is Annexure A9 to this OA.

¶21

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.26,90,336.98/-, 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 12.02.2024. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Authorised Signatory, Axis Bank Limited h as been filed.

¶22

¶23

Heard ex-parte arguments and perused record.

¶24

It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebuted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A9 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.26,90,336.98/(Rupees Twenty Six Lacs Ninety Thousand Three Hundred Thirty Six and Ninety Eight Paisa 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.

¶25

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.70%p.a. along with @6%p.a. penal interest with half yearly rests from the date of filing of this OA till the realization.

¶26

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 @10.00%p.a. in the loan account till realization of the amounts ordered vide this final order. It is ordered accordingly.

¶27

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

¶28

¶29

Rs.26,90,336.98/- (Rupees Twenty Six Lacs Ninety Thousand Three Hundred Thirty Six and Ninety Eight Paisa Only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in the loan account from till the date of realization of the amounts. 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.

¶30

Any other application pending stands disposed of.

¶31

Issue Recovery Certificate accordingly.

¶32

Parties to appear before Learned Recovery Officer of this Tribunal on 16.03.2024.

¶33

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.

¶34

Pronounced in the Open Tribunal. Dated: 02.03.2024

¶35

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

Axis Bank Limited v. Sh. Sukhwant Singh and Another

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. Sh. Sukhwant Singh and Another

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

Punjab National Bank versus Sh. Baldev Singh and Another

Hdfc Bank Limited versus Sh. Bhupinder Singh and Others

Punjab National Bank versus M/S Kathpal Dairies and Others

Axis Bank Ltd. versus M/S Gidderwindi Commission Agent and Others

Axis Bank Ltd. versus M/S Gurbachan Singh and Sons and Others

Punjab National Bank versus Smt. Avtar Kaur and Another