Allowed

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

DRT2 Mar 2024OA/671/2022

Case brief

AI extract

What is this about?

This judgment allows an original application filed by Axis Bank Ltd. for recovery of a debt of Rs.47,64,256.55 against several defendants, including partners and guarantors. The Defendants did not appear ex-parte. The Tribunal declared the defendants liable to repay the amount with simple interest at 9% per annum from the date of filing and ordered the issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs.47,64,256.55 jointly and severally with simple interest at 9% p.a. and issuance of Recovery Certificate.

Axis Bank Ltd. versus M/S Gurbachan Singh and Sons and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.671/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.09.2021

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DATE OF DECISION: 02.03.2024

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Axis Bank LTD. (earlier UTI Bank Ltd.), a banking company, carrying on the banking business under the Banking Regulation Act, 1949 incorporated under the Companies Act, 1956 and having its Registered Office at ‘Trishul’, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380006, Gujarat and one of its branch offices amongst other places known as Axis Bank Ltd., Addadakha, Distt. Ludhiana through its Authorized Representative Sh. Parveen Kumar.

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……..Applicant

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Versus

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M/S Gurbachan Singh & Sons R/o Shop No. 45, New Gain Market, Mandi Mullanur, Ludhiana, Punjab-141001, through its Partners.

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Sh. Manjit Singh S/o Sh. Mohinder Singh, Partner & Guarantor of M/S Gurbachan Singh & Sons, R/o H.No. 60 Village Mohi, Tehsil Ludhiana- Part 2, Distt. Ludhiana, Punjab-141001.

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Sh. Iqbal Singh S/o Sh.Avtar Singh, Partner & Guarantor of M/S Gurbachan Singh & Sons, R/o H.No. 60 Village Mohi, Tehsil Ludhiana- Part 2, Distt. Ludhiana, Punjab-141001.

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Smt. Harbans Kaur W/o Sh. Avtar Singh, Partner & Guarantor of M/S Gurbachan Singh & Sons, R/o H.No. 61 Village Mohi, Tehsil Ludhiana- Part 2, Distt. Ludhiana, Punjab-141001.

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Sh. Bharpur Singh Thind S/o Sh. Manjit Singh, Partner & Guarantor of M/S Gurbachan Singh & Sons, R/o H.No. 54 Village Mohi, Tehsil Ludhiana- Part 2, Distt. Ludhiana, Punjab-141001.

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Smt. Jagjeevan Kaur W/o Sh. Manjit Singh, Guarantor of M/S Gurbachan Singh & Sons, R/o H.No. 60 Village Mohi, Tehsil Ludhiana- Part 2, Distt. Ludhiana, Punjab-141001

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………Defendants

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Advocates:

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Argued by Sh.Gurnam Singh, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.47,64,256.55p (Rupees Forty Seven Lacs Sixty Four Thousand Two Hundred Fifty Six and Paisa Fifty Five only). The Original Application has been filed through Sh. Parveen Kumar, Authorized Representative of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 19.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 firm was availing CC Limit of Rs 15.00 Lacs and approached the applicant bank through its partners defendant no. 2 to 6 for enhancement of Limit to Rs. 40.00 Lacs vide Loan Application which is Annexure A2 to this OA 3. The applicant Bank sanctioned CC Limit of Rs.40.00 Lacs vide Sanction Letter dated 03.12.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No. 4 & 6 had mortgaged the immovable properties i.e. commercial property measuring 188.88 Sq. Yards situated at Shop No. 43, New Mandi, Township Mandi, Mullanpur, Distt. Ludhiana through equitable mortgage of Sale deed dated 13.05.1993 bearing Vasika No. 146 & 147, Declaration cum Confirmation Deed, Record of

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Mortgaged by Deposit Title Deeds dated 15.07.2016 which are Annexures A14 to A17 this OA.

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Documents executed:- Demand/Short Term credit facility Agreement, D.P. Note Delivery Cum waiver Letter, Joint and Several Demand Promissory Note, Deed of Guarantees all dated 15.07.2016, which are Annexures A4 to A11 to this OA; Partnership Deed dated 05.03.2015, which is Annexure A12 to this OA; Letter of Acknowledgement dated 31.08.2018, which is Annexure A13 to this OA; Loan Recall Notice Along with Dispatched Proof dated 30.07.2021, Annexure A18 to this OA and Statement of Account along with Banker Books Evidence dated 03.07.2021, which is Annexure A19 to this OA.

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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.47,64,256.55p, 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 12.02.2024. 7. In support of the OA, affidavit of Sh. Parveen Kumar, Authorized Representative, Axis Bank 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 A19 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

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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.47,64,256.55p (Rupees Forty Seven Lacs Sixty Four Thousand Two Hundred Fifty Six and Paisa Fifty 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.

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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 @9.00% with half yearly rests from 04.07.2021 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 exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @9.00%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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.47,64,256.55 (Rupees Forty Seven Lacs Sixty Four Thousand Two Hundred Fifty Six and Paisa Fifty Five only) jointly and severally, with costs, current and future simple interest @9.00%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

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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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 16.03.2024. 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: 02.03.2024

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

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

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

What the court decided

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