Allowed

Indian Bank v. Bhagwan Singh and Another

DRT26 Jul 2024OA/785/2022

Case brief

AI extract

What is this about?

ATM-III, Chandigarh allowed the applicants Original Application for recovery of Rs.23,92,363 from defendants as principal borrower and guarantor, noted non-appearance, allowed ex-parte, and ordered simple interest at 8% p.a. from date of filing instead of claimed 11.55%. Recovery Certificate issued.

What did the court decide?

Order granted recovery of Rs.23,92,363 jointly and severally with simple interest at 8% p.a. from date of filing OA; Recovery Certificate directed.

Indian Bank versus Bhagwan Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.785/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.02.2022

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DATE OF DECISION: 26.07.2024

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Indian Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office/Registered Office at 66, Rajaji Salai, Chennai, Tamilnadu State and w.e.f. 01.04.2020 being the successor to Allahabad Bank in terms of Gazette of India Notification No. G.S.R. 156(E) dated 04^th March, 2020 issued by the Central Government in exercise of the powers conferred upon it by Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), the Central Government after consultation with the Reserve Bank of India, notified the Scheme of Amalgamation of Allahabad Bank into Indian Ban Scheme, 2020. Therefore, the term “Applicant Bank”, wherever the context so warrants, would interchangeably mean the erstwhile Allahabad Bank and/or Indian Bank. The erstwhile Allahabad Bank’s Branch Office at Samana, Old Bus Stand, Pratap Colony, Samana, District Patiala (Punjab), now known as Indian Bank, Branch Office Samana, Old Bus Stand, Pratap Colony, Samana, District Patiala (Punjab) through its Branch Manager Sh. Naresh Kumar.

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……..Applicant Bank Versus
1. Sh. Bhagwan Singh S/o. Sh. Darabara Singh, R/o Village Daftariwala, Tehsil Patran, District Patiala (Punjab) …….Principal Borrower
2. Sh. Jagtar Singh S/o Sh. Mohinder Singh, R/o Village Daftariwala,
Tehsil Patran District Patiala (Punjab) ……...Guarantor ….……Defendants

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Advocates: Argued by Sh. G.P. Bharti Advocate proxy for Sh. Banni Thomas, Advocate for the applicant Defendants are ex-parte

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FINAL ORDER 1. 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.23,92,363.00 (Rupees Twenty Three Lacs Ninty Two Thousand Three Hundred and Sixty Three only). The Original Application has been filed through Sh. Naresh Kumar, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide Authority Letter dated 24.09.2021, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 had approached the applicant bank for the grant of loan under ’Akshay Krishi’ Kisan Credit Card Limit of Rs.9.50 Lacs vide Loan application dated 05.01.2013, which is Annexure A2 to this OA. Defendant No.2 stood as guarantor. 3. The applicant Bank sanctioned the loan under ‘Akshay Krishi’ Kisan Credit Card Limit of Rs.9.50 Lacs for the 1^st year and to be enhanced upto Rs.14.00 Lacs for the 5^th year vide Sanction Letter dated 15.02.2013, which is Annexure A3(Colly) to this OA; and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his agriculture land measuring 23K 01M situated at Village Daftariwala, Tehsil Patran, District Patiala (Punjab) vide Registered Mortgaged Deed bearing Vasika no.4734 dated 12.02.2013 along with true Translation, Title Investigation Report dated 14.02.2013 and Legal Report for correct number of Mutation No.308 dated 13.02.2013 as per jamabandi for the year 2006-2007, which is Annexure A4(Colly) to this OA. Documents executed: - Gazette Notification dated 04.03.2020. Hypothecation Agreement dated 12.02.2013, which is Annexure A5 to this OA; Deed of Guarantee, Demand Promissory Note, and Consent

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Clause to be executed by borrowers and Guarantor all dated 15.02.2013, which are Annexures A6, A7 & A8 to this OA; Acknowledgement of Debt dated 02.05.2017 which is Annexure A9 to this OA; Letter/Communication dated 03.01.2018, which is Annexure A10 to this OA and Statement of Account with Certified under Banker Books Evidence Act, 1891 dated 21.02.2022, which is Annexure A11(Colly) 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 accounts there was a debit of Rs.23,92,363.00 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.

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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 21.05.2024.

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In support of the OA, affidavit of Sh. Naresh Kumar, Branch Manager, Indian Bank h as been filed.

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Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A11 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 loans 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.23,92,363.00 (Rupees Twenty Three Lacs Ninty Two Thousand Three Hundred and Sixty Three only) along with interest from the defendants, jointly and

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severally, 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 @11.55%p.a. with half yearly rests from 29.01.2022 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 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.23,92,363.00 (Rupees Twenty Three Lacs Ninty Two Thousand Three Hundred and Sixty Three only) jointly and severally, with costs, current and future simple interest @8.00%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 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 17.08.2024.

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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.

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Pronounced by me in the open Tribunal

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Dated: 26.07.2024

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

Indian Bank v. Bhagwan Singh and Another

Case brief

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Indian Bank v. Bhagwan Singh and Another

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