Allowed

Bank of India v. Jaswant Singh and Another

DRT14 Oct 2024OA/800/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Bank of India for recovery of Rs. 35.62 lakhs from two borrowers who defaulted on a credit limit. The court ordered repayment with adjusted simple interest and authorized recovery from mortgaged assets or personal property.

What did the court decide?

Recovery of Rs. 35,62,744.00 with costs and simple interest at 8% p.a., enforceable via sale of mortgaged or personal assets.

Bank of India versus Jaswant Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.800/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.06.2023

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DATE OF DECISION: 14.10.2024

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No. V of 1970, having its head office at “Star House” C-5, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and branch office amongst other places at Nihal Singh Wala, 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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Sh. Jaswant Singh S/o Sh. Gulzara Singh, R/o Village Patto Jawahar Singh Wala, Tehsil Nihal Singh Wala, District Moga (Punjab)142055

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Sh. Charanjit Singh S/o Sh. Babu Singh, R/o Village Himmatpura, Tehsil Nihal Singh Wala, District Moga (Punjab)-142039

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….……Defendants

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Advocates:

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Present Ms. Ashmita Goel, 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 Rs.35,62,744.00 (Rupees Thirty Five Lacs Sixty Two Thousand Seven Hundred and Forty Four only). The Original Application has been filed through Sh. Prasad Dwarka, Constituted Attorney o f 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 the defendants no.1 & 2 had approached the applicant for the grant of Cash Credit Limit(KCC) of

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Rs.10.00 Lacs and Over Draft Limit of Rs.5.00 Lacs vide Loan application for grant of credit facilities dated 16.10.2014, which are Annexures A2 & A3 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.10.00 Lacs and further sanctioned the Overdraft Limit of Rs.5.00 Lacs vide Sanction Letters dated 08.11.2014, which are Annexures A5 & A6 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 37K-02M situated at Village Patto Jawahar Singh Wala, Tehsil Nihal Singh Wala, District Moga (Punjab) vide Declaration under Section 4 (1) dated 3 1.10.2014 along with its Translations, which is Annexure A4 to this OA.

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Documents executed:- Demand Promissory Note, Bearer Letter, Agreement of Hypothecation, Consolidated Stamped Undertaking/Agreement, Miscellaneous Undertaking/Declarations, Deed of Guarantee all dated 08.11.2014, which are Annexures A7 to A13 to this OA; Acknowledgement dated 03.06.2017, 17.06.2017 and 02.06.2020, which are Annexures A14 to A17 to this OA; Legal Notice dated 18.03.2023 along with postal Receipts, which are Annexures A18 to A20 to this OA and Statement of account alongwith statement of uncharged interest, duly certified under Banker’s Books Evidence, which are Annexures A21 & A22 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.35,62,744.00, 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 01.10.2024.

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In support of the OA, affidavit of Sh. Prasad Dwarka, Constituted Attorney, Bank of India h as been filed.

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Learned proxy counsel present has not advanced any arguments. Perused record.

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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 A22 to this OA, it is proved that the defendants 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 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 sum of Rs.35,62,744.00 (Rupees Thirty Five Lacs Sixty Two Thousand Seven Hundred and Forty Four only) along with interest from the defendants, jointly and 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 in relief clause has claimed interest @12.95%p.a. with half yearly rests from 01.03.2023 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 both the loan accounts 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.35,62,744.00 (Rupees Thirty Five Lacs Sixty Two Thousand Seven Hundred and Forty Four 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.

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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 24.10.2024.

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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 . Dated: 14.10.2024

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

Bank of India v. Jaswant Singh and Another

Case brief

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Bank of India v. Jaswant Singh and Another

Case brief

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