Allowed

Bank of India v. Davinder Singh and Others

DRT20 Nov 2024OA/673/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's Original Application filed under Section 19 RDBFI Act for recovery of Rs.33,71,226.00. Declaring defendants jointly and severally liable, the Tribunal granted uniform simple interest at 8% p.a. from the filing date and authorized recovery through hypothecated properties or personal assets.

What did the court decide?

Declaring defendants jointly and severally liable to pay Rs.33,71,226.00 with costs and 8% p.a. simple interest. Recovery from sale of mortgaged/personal properties ordered.

Bank of India versus Davinder Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.673/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.05.2023

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DATE OF DECISION: 20.11.2024

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at “Star House”, C-5, G-Block, 2^nd Floor, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and one of its branches at Partap Road, Moga through Sh. Ajit Singh Dadwal, Chief Manager, Bank of India, Moga Branch, District Moga its principal officer and Constituted Attorney.

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……..Applicant Versus

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Sh. Davinder Singh S/o Sh. Rattan Singh (deceased)

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a. Smt. Paramjit Kaur widow of Sh. Davinder Singh

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b. Sh. Ajaypal Singh S/o Sh. Davinder Singh

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Both r/o House No.29, Basti Ram Chander, Village Ghal Kalan, Patti Maher, Moga.

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Sh. Darshan Singh S/o Sh. Balvir Singh, Village Ghal Kalan, Patti

Maher, Moga.

………. Defendants

Advocates:

Argued by Sh. R.V. Mehra, Advocate for the applicant (through VC) 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.33,71,226.00 (Rupees Thirty Three Lacs Seventy One Thousand Two Hundred Twenty Six Only). The Original Application has been filed

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through Sh. Ajit Singh Dadwal, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 20.02.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 (deceased) and defendant no.2 had approached the applicant for grant of KCC Limit of Rs.5.00 Lacs and Agriculture OD Limit of Rs.10.00 Lacs vide Loan Application dated 10.08.2016, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.5.00 Lacs and (Agriculture) OD Limit of Rs.10.00 Lacs vide Sanction Letters dated 12.08.2016, which is Annexure A3 to this OA.

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Defendant no.1 had mortgaged his immovable properties i.e. total Land measuring 32K-00M situated in Village Ghal Kalan, Patti Maher, Moga vide Declaration under Section 4(1) dated 19.08.2016, which is Annexure A11 to this OA.

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Documents executed:-D.P. Notes, Bearer letter, Agreement of Hypothecation, Composite Document, Letter of Declaration & Assurance, Letter of declaration undertaking and Authority & Agreement of Guarantee all dated 23.08.2016, which are Annexures A4 to A10 & A12 to this OA; Legal Notice dated 01.08.2022 along

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with postal receipt, which are Annexures A13 to A16 to this OA; Statement of Accounts for KCC and OD Limit along with Certificate, which are Annexures A17 & A18 to this OA; Letters of Acknowledgement of Debts and Securities in KCC & Agriculture OD Limit dated 26.06.2019, which are Annexures A19 & A20 to this OA.

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The loan accounts became irregular and were classified as NPA

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and after adjusting debit and credit entries in loan accounts there was a debit of Rs.33,71,226.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant 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 14.11.2024

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In support of the OA, affidavit of Sh. Ajit Singh Dadwal, Chief Manager, Bank of India h as been filed.

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Heard arguments and perused record.

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It was argued by learned counsel through Video Conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A20 to this OA, it is proved that the defendants approached applicant for availing of the loans 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 loans 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 is entitled to recover a sum of Rs.33,71,226.00 (Rupees Thirty Three Lacs Seventy One Thousand Two Hundred Twenty Six Only) along with interest from the defendants, jointly and severally, 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 in relief clause has claimed interest @11.05%p.a. along with penal interest @2% with half yearly rests from 01.05.2023 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 loans 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 @08.00%p.a. in 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.

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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.33,71,226.00 (Rupees Thirty Three Lacs Seventy One Thousand Two Hundred Twenty Six Only) jointly and severally, with costs, current and future simple interest @08.00%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 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 17.12.2024.

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Copy of this order be given dasti to the applicant 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.

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Pronounced by me in the open Tribunal .

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Dated: 20.11.2024

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

Bank of India v. Davinder Singh and Others

Case brief

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Bank of India v. Davinder Singh and Others

Case brief

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