Allowed

Asset Reconstruction Company (India) Limited v. Sukhpal Singh and Others

DRT8 Aug 2024OA/698/2023

Case brief

AI extract

What is this about?

The DRT allowed the ARCIL's original application for recovery of Rs. 5.15 crore outstanding on home loans. The court approved a uniform simple interest rate of 8% per annum instead of the claimed rate and ordered the issuance of a recovery certificate.

What did the court decide?

Declaratory that defendants are liable to pay Rs.5,15,09,088.51 with interest @8% p.a.; Recovery Certificate issued; Parties to appear before Recovery Officer.

Asset Reconstruction Company (India) Limited versus Sukhpal… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.698/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.05.2023

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DATE OF DECISION: 08.08.2024

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Asset Reconstruction Company (India) Limited , CIN No. U65999MH2002PLC134884, PAN No.AAECA3878M, a company incorporated under the Companies Act, 1956 and registered as an Asset Reconstruction Company with Reserve Bank of India pursuant to the Section 3 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and a Financial Institution under Section 2(h)(ia) of the Recovery of Debts and Bankruptcy Act, 1993 and having its Registered Office at the Ruby, 10^th Floor 29, Senapati Bapat Marg, Dadar (West) Mumbai-400028 through its Authorized Signatory – Mrs. Chandan Chaudhary, posted as Senior Manager and holding Power of Attorney dated 15.12.2022 on behalf of the Applicant. (acting in its capacity as trustee for Arcil-Retail Loan Portfolio-074-B-Trust).

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……..Applicant

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Versus

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1. Sh. Sukhpal Singh Son of Shri Jaswant Singh, Resident of House No.235, Ward No.9, Nank Nagri, Moga, District Moga, Punjab142001.

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Sh. Sahibjeet Singh Son of Shri Sukhpal Singh, Resident of House No.235, Ward No.9, Nanak Nagri, NCC Wali Gali, Moga, District Moga, Punjab-142001.

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Sh. Surinder Singh, Son of Sh. Jaswant Singh, resident of House No.235, Ward No.9, Nanak Nagri, Moga, District Moga, Punjab142001.

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Smt. Surinderjit Kaur @ Surinderjeet Kaur wife of Sh. Sukhpal Singh, resident of House No.235, Ward No.9, Nanak Nagri, Moga, District Moga, Punjab-142001.

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Smt. Parminder Kaur wife of Sh. Surinder Singh, resident of House No.235, Ward No.9, Nanak Nagri, Moga, District Moga, Punjab142001.

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Bhai Industries Private Ltd. through its Managing Director, having its registered office at near 7^th Milestone, GT Road, Moga, District Moga, Punjab-142001.

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….……Defendants

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Advocates:

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Argued by Sh. Puru Gupta, Advocate proxy for Sh. Vipul Dharmani, 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.5,15,09,088.51 (Rupees Five Crore Fifteen Lakh Nine Thousand Eighty Eight and Fifty One Paise Only). The applicant is filing the present Application in its capacity as Trustees of Arcil-Retail Loan Portfolio-074-B-Trust in view of the Assignment of Loans as set out hereafter pursuant to Section 5(1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, the Applicant is entitled to acquire the financial assets of any Bank or any financial institution in the manner as provided under Section 5(a) and 5(b) of the said Act (which forms the subject matter of the present Original Application) from ICICI Home Finance Company Ltd. (hereinafter referred to as the “ Assignor ”). The Applicant, being an Asset Reconstruction Company, on such acquisition, is deemed as the lender and all the right, title and interest in respect of both Loan Facilities together with all underlying

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securities, pledges and/or Guarantees and right, title and interest therein, as detailed hereinafter from the Assignor and thus the Applicant has stepped into the shoes of the Assignor vide Assignment Deed dated 28.07.2022, which is Annexure A14 to this OA. (hereinafter referred to as the “Applicant/Assignee” ). The Original Application has been filed through Mrs. Chandan Chaudhary, Senior Manager, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 15.12.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the ICICI Home Finance Company Limited for grant of Home loan of Rs.2.70 Crores and Top Up Home Loan of Rs.66.00 Lacs vide Loan applications dated 10.10.2017, which are Annexures A2 & A8 to this OA.

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The ICICI Home Finance Company Limited sanctioned the Home loan of Rs.2.70 Crores and Top Up Home Loan of Rs.66.00 Lacs vide Sanction Letters dated 24.10.2017, which are Annexures A3 & A9 to this OA and the terms and conditions were duly accepted by the defendants vide Acknowledgement Form dated 24.10.2017, which is Annexure A6 to this OA.

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Defendant No.1 had mortgaged his immovable properties i.e. a. Land measuring 01K-04M, House No. 235, Moga Mehal Singh-1 (Nanak Nagri), Tehsil and District Moga, Punjab b. Land measuring 01K-0M, House No. 314, Moga Mehal Singh-1 (Nanak Nagri), Tehsil and District Moga, Punjab both vide Equitable Mortgage of Transfer deeds bearing Vasika No.1253 dated 26.05.2016 and Vasika No.4211, dated 11.11.2016 along with Jamanbandi and their English Translations, which is Annexure A13 to this OA. Documents executed:- Acknowledgements of other charges, which are Annexures A4 and A10 to this OA; Loan Facility Agreement-I and

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Loan Disbursement Memo both dated 24.10.2017, which are Annexures A5, A7 to this OA; Loan Facility Agreement-I dated 10.11.2017, which is Annexure A11 to this OA; Disbursal request and Loan Disbursement Memo dated 13.11.2017, which is Annexure A12 to this OA; Demand Notice dated 07.02.2023, which is Annexure A15 to this OA and Statement of account with certificate, which is Annexure A16 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.5,15,09,088.51 which is recoverable. 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 15.05.2024.

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In support of the OA, affidavit of Mrs. Chandan Chaudhary, Senior Manager of Asset Reconstruction Company (India) Limited. has been filed.

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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 had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendants approached ICICI Home Finance Company Limited for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan 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

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sum of Rs.5,15,09,088.51 (Rupees Five Crore Fifteen Lakh Nine Thousand Eighty Eight and Fifty One Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has interest @10.40%p.a. along with monthly rests from 28.04.2023 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 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 @8.00%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.5,15,09,088.51 (Rupees Five Crore Fifteen Lakh Nine Thousand Eighty Eight and Fifty One Paise Only) jointly and severally, with costs, current and future simple interest @8.00%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 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. 12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 31.08.2024.

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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: 08.08.2024

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

Asset Reconstruction Company (India) Limited v. Sukhpal Singh and Others

Case brief

What is this about?

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Asset Reconstruction Company (India) Limited v. Sukhpal Singh and Others

Case brief

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