Allowed

Indian Bank v. Sh. Balwinder Singh

DRT11 Mar 2024OA/680/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's original application for recovery of an agricultural loan despite the defendant's ex-parte absence. It validated the debt, reduced the claimed interest rate, and ordered recovery proceedings against mortgaged and personal assets.

What did the court decide?

Defendant ordered to pay Rs.80,34,269.00 with simple interest @10% p.a.; recovery from mortgaged or personal assets permitted; Recovery Certificate issued.

Indian Bank versus Sh. Balwinder Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.680/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.04.2022

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DATE OF DECISION: 11.03.2024

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Indian Bank, (erstwhile Allahabad Bank) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai-600014 and a branch amongst at Malerkotla through its duly constituted attorney, Sh. Sumit Yadav, Assistant Manager, Indian Bank, Zonal Office, Chandigarh ……..Applicant Versus Sh. Balwinder Singh S/o Sh. Hardev Singh R/o Village Randirgarh, PO Cheema, Tehsil Jagraon, District Ludhiana (Borrower/Mortgagor)

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….……Defendant Advocates: Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant Defendant is ex-parte

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FINAL ORDER

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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.80,34,269.00 (Rupees Eighty Lacs Thirty Four Thousand Two Hundred Sixty Nine only). The Original Application has been filed through Sh. Sumit Yadav, Assistant Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 05.04.2017, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant bank for the grant of Agricultural Loan under ‘Akshay

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Krishi’ Kisan Credit Card of Rs.43.80 Lacs vide Loan application dated 09.01.2013, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Agricultural Loan under ‘Akshay Krishi’ Kisan Credit Card of Rs.43.80 Lacs vide Sanction Letter dated 15.01.2013, which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendant vide Acknowledgement Letter dated 15.01.2013, which is Annexure A-3A to this OA.

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Defendant had mortgaged his immovable properties i.e. total land measuring 20K-12M detailed as under: (i) total land measuring 13K-05M situated at Village Randhirgarh, Tehsil Jagraon; (ii) land measuring 01K-02M situated at Village Bhamipura-II, Tehsil Jagraon; and (iii) land measuring 06K-05M situated at Village Akharha-1, Tehsil Jagraon, District Ludhiana; Vide Registered Mortgaged Deed bearing Wasika No.5244 dated 21.01.2013 along with English Translation, which are Annexures A7 & A-7T to this OA. Documents executed:- PAN of the defendant in File 3, which is Annexure A4 to this OA; D.P. Note and Hypothecation Agreement both dated 31.01.2013, which are Annexures A5 & A6 to this OA; Affidavit dated 21.01.2013, which is Annexure A8 to this OA; Consent Letter, which is Annexure A9 to this OA; Acknowledgment of Debt dated 20.04.2017, which is Annexure A10 to this OA; Recall Notices dated 10.04.2016 & 10.04.2017, which are Annexures A11 & A12 to this OA; Legal Notices dated 18.11.2017 & 15.02.2019, which are Annexure A13 & A14 to this OA and Statement of Account, which is Annexure A15 to this OA. 5. 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.80,34,269.00, which is recoverable and the defendant was

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served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 28.07.2023.

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In support of the OA, affidavit of Sh. Sumit Yadav, Assistant Manager, Indian Bank h as 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 A15 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.80,34,269.00 (Rupees Eighty Lacs Thirty Four Thousand Two Hundred Sixty Nine only) along with interest from the defendant, 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 @10.30%p.a. along with @2%p.a. penal interest with half yearly rests from 10.01.2022 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 defendant, quantum of loan and prevalent market rates of

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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 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 defendant is liable to pay to the applicant a total sum of Rs.80,34,269.00 (Rupees Eighty Lacs Thirty Four Thousand Two Hundred Sixty Nine only), with costs, current and future simple interest @10.00%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 defendant 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 defendant. 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 19.03.2024. 15. Copy of this order be given dasti to the applicant bank and be sent to defendant 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: 11.03.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Sh. Balwinder Singh

Case brief

What is this about?

What did the court decide?

Indian Bank v. Sh. Balwinder Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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