Allowed

Bank of India v. Davinder Singh and Others

DRT30 Dec 2024OA/73/2023

Case brief

AI extract

What is this about?

In an unopposed ex-parte application under S. 19 of the RDBFIA, 1993, the Tribunal declared borrowers liable to repay a principal sum of Rs. 21,90,631. It modified the claimed interest rate to 8% p.a. simple interest and granted a recovery certificate, permitting enforcement via sale of mortgaged or personal assets.

What did the court decide?

Recovery of Rs. 21,90,631 with 8% p.a. simple interest; issuance of Recovery Certificate; liberty to enforce via sale of mortgaged or personal assets.

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.73/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.10.2022

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DATE OF DECISION: 30.12.2024

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970, (5 of 1970) having its head office at Star House, Plot No.C-5, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office amongst other places, at Rode, District Moga (Punjab), through its duly constituted attorney, Sh. Prasad Dwarka, presently posted as Chief Manager, at Hathur Branch, District Ludhiana (Punjab).

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……..Applicant

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Versus

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Shri Davinder Singh son of Late Shri Gurdev Singh, Resident of Village and PO Rode, Tehsil Bagha Purana & District Moga, Punjab 142049 (Co- Borrower Cum Legal heir of Borrower Late Sh. Gurdev Singh and Late Smt. Baldev kaur).

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Late Smt. Baldev kaur wife of Late Shri Gurdev Singh, (Legal heir of Borrower Late Sh. Gurdev Singh being wife) since expired through her legal heir i.e. defendant nos.1 and 3.

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Shri Nachatar Singh son of Late Shri Gurdev Singh, Resident of Village and PO Rode, Tehsil Bagha Purana & District Moga, Punjab 142049 (Legal heir of Borrower Late Sh. Gurdev Singh and Late Smt. Baldev kaur)

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….……Defendants

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Advocates:

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Argued by Sh. Gulshan Mehta, Advocate proxy for Ms. Meena Malhotra, 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

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Rs.21,90,631.00 (Rupees Twenty One Lacs Ninety Thousand Six Hundred Thirty One only). The Original Application has been filed through Sh. Prasad Dwarka, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 05.12.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that Late Sh. Gurdev Singh, defendant nos.1 and 3 had approached the applicant for the grant of KCC Limit of Rs.3.00 Lacs and further for enhancement of KCC Limit to Rs.6.00 and grant of fresh OD Limit of Rs.7.00 Lacs vide Loan Applications dated 04.04.2012 and 04.05.2017, which are Annexures A2, A11 & A12 to this OA.

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The applicant sanctioned the KCC Limit of Rs.10.00 Lacs and further sanctioned the enhancement of KCC Limit to Rs.6.00 and grant of fresh OD Limit of Rs.7.00 Lacs vide Sanction Letters dated 26.04.2012 and 15.05.2017, which are Annexures A3 & A13 to this OA and the terms and conditions were duly accepted by the defendants.

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Late Sh. Gurdev Singh had mortgaged his immovable properties i.e. total Land measuring 31Kanal-01 Marla situated at Village Rode-2, Hadbast no.111 Tehsil Bagha Purana & District Moga Punjab vide Registered Mortgage Deeds bearing vasika No 302 dated 27.04.2012 and Declaration U/s 4(1) dated 12.05.2017 a long with their translations, which are Annexures A4 and A14 to this OA.

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Documents executed:- Demand Promissory Note, Bearer Letter, Hypothecation Cum Loan Agreement, Consolidated Stamped Undertaking/Agreement and Misc. Undertakings/declarations all dated 05.05.2012, which are Annexures A5 to A9 to this OA; Letters of acknowledgment of debt & security dated 04.05.2015, 22.05.2017 and 02.05.2020, which are Annexures A10, A15 and A27 to A29 to this OA; Demand Promissory Note, Bearer Letter, Hypothecation Cum Loan Agreement, Consolidated Stamped Undertaking/Agreement, Misc.

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Undertakings/declarations and Deed of Guarantee all dated 23.05.2017, which are Annexures A16 to A26 to this OA; Recall Notices dated 27.05.2021 and 07.10.2021 with postal receipts, which is Annexures A30 to A33 to this OA and Statements of accounts along with memorandum of interest and certificate, which are Annexures A34 and A35 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.21,90,631.00, 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 26.12.2024.

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In support of the OA, affidavit of Sh. Prasad Dwarka, 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 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 A35 to this OA, it is proved that Late Sh. Gurdev Singh, defendant nos.1 and 3 approached applicant 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 Late Sh. Gurdev Singh, defendant nos.1 and 3 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the Late Sh. Gurdev Singh, defendant nos.1 and 3 were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,90,631.00 (Rupees Twenty One Lacs Ninety

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Thousand Six Hundred Thirty One 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.

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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 @11.88%p.a. with half yearly rests from 18.09.2022 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 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.21,90,631.00 (Rupees Twenty One Lacs Ninety Thousand Six Hundred Thirty One 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 applicant 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 19.02.2025.

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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: 30.12.2024.

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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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