Allowed

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

DRT2 Mar 2024OA/675/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the original application filed by Axis Bank Ltd. under Section 19 of the RDBFI Act, 1993, for recovery of Rs. 70,75,431.57p against respondents who failed to repay an overdraft facility secured by an equitable mortgage. The debt and costs with uniform simple interest @8.80% p.a. were declared recoverable.

What did the court decide?

Recovery Certificate issued for Rs. 70,75,431.57p with interest @8.80% p.a. enforceable against mortgaged property or personal assets.

Axis Bank Ltd. versus M/S Gidderwindi Commission Agent and… — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.675/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 15.09.2021

¶5

DATE OF DECISION: 02.03.2024

¶6

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., Jagraon, Distt. Ludhiana through its Authorized Representative Sh. Parveen Kumar.

¶7

……..Applicant

¶8

Versus

¶9

M/S Gidderwindi Commission Agent, R/O Shop No. 123, New Grain Market, Jagraon, Ludhiana, Punjab-142026,through its Proprietor Sh. Gurbachan Singh.

¶10

Sh. Gurbachan Singh S/O Sh. Kartar Singh, Proprietor Of M/S Gidderwindi Commission Agent, R/o Shop No.-123, New Grain Market, Jagraon, Ludhiana, Punjab-142026.

¶11

2^nd Address:- Sh. Gurbachan Singh S/O Sh. Kartar Singh, Proprietor of

¶12

M/S Gidderwindi Commission Agent, R/o Village Gidderwindi, Jagraon, Ludhiana, Punjab-142026.

¶13

Sh. Ranjit Singh S/o Sh. Gurbachan Singh, Guarantor of M/S Gidderwindi Commission Agent, R/o Village Gidderwindi, Jagraon, Ludhiana, Punjab-142026.

¶14

….Defendants

¶15

Advocates:

¶16

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

¶17

¶18

FINAL ORDER

¶19

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.70,75,431.57p (Rupees Seventy Lacs Seventy Five Thousand Four Hundred Thirty One and Paisa Fifty Seven only). The Original Application has been filed through Sh. Parveen Kumar, Authorized Representative o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 19.09.2019, which is Annexure A1 to this OA.

¶20

The brief facts of the OA are that the defendant no.1 i.e. firm through its Proprietor defendant nos. 2 had approached the applicant bank for the grant of Credit Facility i.e. Over Draft Limit of Rs.60.00 Lacs vide Loan Application dated 20.08.2019, which is Annexure A2 to this OA.

¶21

The applicant Bank sanctioned the Credit Facility i.e. Over Draft Limit of Rs.52.00 Lacs vide Sanction Letter dated 23.09.2019, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

¶22

Defendant No. 2 had mortgaged his immovable property i.e. Commercial property measuring 278 Sq. Yards situated at Shop No. 123, New Grain Market, Jagraon, Tehsil Jagraon, Distt. Ludhiana through Equitable Mortgage of Sale deed dated 21.06.2019 bearing Vasika No. 1039, which is Annexure A8 this OA.

¶23

Documents executed:-Working Capital Loan Agreement, D.P. Note Delivery Cum Waiver Letter, Demand Promissory Note, Deed of Guarantee all dated 23.09.2019, which are Annexures A4 to A7 to this OA; Loan Recall Notice along with dispatched Proof dated 30.07.021, which is Annexure A9 to this OA; Statement of Account along with Banker Books Evidence dated 03.07.2021, which is Annexure A10 to this OA.

¶24

The loan account became irregular and was classified as NPA

¶25

and after adjusting debit and credit entries in loan account there was a

¶26

¶27

debit of Rs.70,75,431.57p, 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.

¶28

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 A10 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. Rs.70,75,431.57p (Rupees Seventy Lacs Seventy Five Thousand Four Hundred Thirty One and Paisa Fifty Seven 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @8.80% with half yearly rests from 04.07.2021 till the realization. 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

¶29

¶30

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 @8.80%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.

¶31

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs. Rs.70,75,431.57p (Rupees Seventy Lacs Seventy Five Thousand Four Hundred Thirty One and Paisa Fifty Seven only) jointly and severally, with costs, current and future simple interest @8.80%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 attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

¶32

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

¶33

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

¶34

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.

¶35

Pronounced by me in the Open Tribunal.

¶36

Dated: 02.03.2024

¶37

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

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

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd. v. M/S Gidderwindi Commission Agent 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

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 Limited versus Sh. Sukhwant Singh and Another

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

Punjab National Bank versus Smt. Avtar Kaur and Another