Allowed

Indian Bank v. Surmukh Singh and Others

DRT11 Sept 2024OA/70/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an original application by Indian Bank for recovery of dues totaling Rs. 36.69 lakhs. It declared legal heirs and guarantors jointly and severally liable, reduced the interest rate to 8% p.a., exercised power to sell mortgaged properties, and issued a recovery certificate.

What did the court decide?

Recovery of Rs. 36,69,521.00 with interest at 8% p.a.; liability declared jointly and severally; recovery via sale of mortgaged or personal assets authorized; Recovery Certificate issued.

Indian Bank versus Surmukh Singh and Others — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.70/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.12.2021

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DATE OF DECISION: 11.09.2024 Indian Bank, a body Corporate constituted under the Banking
companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Corporate Office 254-260, Avvai Shanmugam Salai, Royapettah, Chennai, Tamilnadu, 600014 and having its Zonal Office at Chandigarh and amongst other branches a branch at Mullanpur Garibdass through
Chief Manager Mrs. Mamta Chamoli Thapliyal Constituted and Authorized signatory. ……..Applicant Versus
1. Sh. Surmukh Singh S/o Sh. Bant Singh since deceased through his legal heirs (Borrower)
(i) Smt. Jasbir Kaur W/o Sh. Surmukh Singh
(ii) Sh. Daljinder Singh S/o Sh. Surmukh Singh
(iii) Sh. Jagmohan Singh S/o Sh. Surmukh Singh (presently residing in Italy)
All resident of Village Mundhon Sangtian, Sub Tehsil Majri, Tehsil Kharar, District SAS Nagar (Punjab)
2. Sh. Daljinder Singh S/o Late Sh. Surmukh Singh R/o Village Mundhon Sangtian, Sub Tehsil Majri, Tehsil Kharar, District SAS Nagar (Punjab) (Guarantor)
3. Smt. Jasbir Kaur W/o Sh. Surmukh Singh, R/o Village Mundhon Sangtian, Sub Tehsil Majri, Tehsil Kharar, District SAS Nagar (Punjab) (Nominee) ….……Defendants
Advocates: Argued by Ms. Deepika Mittal, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.36,69,521.00 (Rupees Thirty Six Lacs Sixty Nine Thousand Five Hundred Twenty One Only). The Original Application has been filed through Mrs. Mamta Chamoli Thapliyal, Senior Manager, of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 05.10.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no.1 (Since Deceased) had approached the applicant bank for the grant of ‘Akshay Krishi’ Kisan Credit Card Limit of Rs.26,22,480.00 and Term Loan of Rs.2,07,520.00 Lacs and Further for fixation of ‘Akshay Krishi’ Kisan Credit Card Limit to Rs.20.00 Lacs Vide Loan Application dated 28.08.2012 which are Annexures A2 & A11 to this OA. Later Later defendant no.2 requested the applicant bank for restructuring of ‘Akshay Krishi’ Kisan Credit Card Limit by converting the overdue interest into fresh Term Loan II of Rs.6.00 Lacs. Defendant no.2 stood as guarantor.

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The applicant Bank sanctioned the ‘Akshay Krishi’ Kisan Credit Card Limit of Rs.17,92,480.00 for the 1^st year and to be enhance upto Rs.26,22,480.00 for the 5^th year and Term Loan of Rs. Rs.2,07,520.00 Lacs and Further ‘Akshay Krishi’ Kisan Credit Card Limit of Rs.20.00 Lacs was fixed Vide Sanction Letter dated 25.09.2012 and 29.09.2015, which are Annexures A3 and A11 to this OA. Later on request the applicant bank for restructured the ‘Akshay Krishi’ Kisan Credit Card Limit by converting the overdue interest into fresh Term Loan II of Rs.6.00 Lacs Vide Sanction Letter dated 23.06.2017, which are Annexures A13 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 (Since Deceased) had mortgaged his immovable properties i.e. total land measuring 14 Bigha 8 Biswa (3 acre) situated

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at Village Mundhon Sangtian, Sub Tehsil Majri, Tehsil Kharar, District SAS Nagar (Punjab) vide Registered Mortgage Deed bearing Vasika No.2174 dated 25.09.2012 and Jamabandi of the year 2010-2011, with thier translation, which are Annexures A4, A5, A9 and A10 to this OA.

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Documents executed: -Hypothecation Agreement and Deed of Guarantee both dated 28.09.2012, which are Annexures A6 to A7 & A14 to this OA; Death Certificate dated 06.11.2013, which is Annexure A8 to this OA; Reminder dated 17.09.2015, which is Annexure A12 to this OA; Acknowledgment, DP Note both dated 23.06.2017, which are Annexures A15 & A17 to this OA; Letter of Restructuring of Loan dated 29.06.2017, which is Annexure A16 to this OA; Recall Notice dated 24.12.2018, which is Annexure A18 to this OA; Legal Notice dated 28.02.2019 with postal receipts, which is Annexure A19 to this OA and Accounts Statements with certificate, which is Annexure A20 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.36,69,521.00, which is recoverable and the legal heirs of defendant no.1 (Since deceased) i.e. 1(i), 1(ii), 1(iii) and defendant nos.2 and 3 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. 6. The defendants were served notices to appear before this Tribunal. Ms. Palki Bhandari, Advocate appeared on behalf of defendants and filed her Memo of Appearance on 07.07.2023 but did not filed Power of Attorney. Since no one appeared on behalf of defendants, they were proceeded ex-parte on 07.08.2024. 7. In support of the OA, affidavit of Mrs. Mamta Chamoli Thapliyal, Senior Manager, Indian Bank has been filed. 8. Heard ex parte arguments and perused record.

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It was argued by learned 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 Annexure A1 to A20 to this OA, it is proved that the defendant no.1(Since deceased) and defendant no.2 approached applicant bank 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 bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the legal heirs of defendant no.1 (Since deceased) i.e. 1(i), 1(ii), 1(iii) and defendant nos.2 and 3 were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.36,69,521.00 (Rupees Thirty Six Lacs Sixty Nine Thousand Five Hundred Twenty One Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all the accounts.

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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 @13.00%p.a. plus penal interest @2.00%p.a. with monthly rests from 23.12.2021 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 legal heirs of defendant no.1 (Since deceased) i.e. 1(i), 1(ii), 1(iii) and defendant nos.2 and 3, 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 both the loan accounts from the date of filing of the OA

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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 legal heirs of defendant no.1 (Since deceased) i.e. 1(i), 1(ii), 1(iii) and defendant nos.2 and 3 are liable to pay to the applicant a total sum of Rs.36,69,521.00 (Rupees Thirty Six Lacs Sixty Nine Thousand Five Hundred Twenty One Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts 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 legal heirs of defendant no.1 (Since deceased) i.e. 1(i), 1(ii), 1(iii) and defendant nos.2 and 3. 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 07.10.2024. 15. Copy of this order be given Dasti to the applicant bank and be sent to the legal heirs of defendant no.1 (Since deceased) i.e. 1(i), 1(ii), 1(iii) and defendant nos.2 and 3 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: 11.09.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Surmukh Singh and Others

Case brief

What is this about?

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Indian Bank v. Surmukh Singh and Others

Case brief

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