Allowed

Idbi Bank Limited v. Amanjot Singh and Another

DRT1 Aug 2024OA/820/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by IDBI Bank against a borrower and a guarantor for recovery of an agricultural loan defaulting to Rs. 56,13,802.39. The court proved the case ex-parte, adjusted interest rates, and issued a Recovery Certificate.

What did the court decide?

Issued a Recovery Certificate and ordered the recovery of Rs. 56,13,802.39 along with costs and simple interest at 8.00% p.a. from the date of filing.

Idbi Bank Limited versus Amanjot Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.820/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.06.2023 DATE OF DECISION: 01.08.2024 IDBI Bank Limited, a company within the meaning of the Companies Act, 2013 and a Banking Company within the meaning of Section 5 (C) of the Banking Regulation Act, 1949 and having its Registered Office at IDBI Tower, WTC Complex Cuffe Parade, Mumbai-400005 and its branches at various places including a Branch Office at Phullanwal, District Ludhiana, Punjab, through its authorized Officer Sh. Satbir Singh.

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……..Applicant

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Versus 1. Sh. Amanjot Singh S/o Sh. Paramjit Singh R/o, Village-Maherna Kalan, Tehsil Raikot-District Ludhiana. (Borrower) 2. Sh. Jasvir Singh Chahal S/o Sh. Darshan Singh Chahal R/o H.No.29, Ward No.-11, Mandi Ahmadgarh, District Sangrur. (Guarantor) ….……Defendants Advocates: Argued by Sh. J.S. Sehgal, Advocate proxy for Sh. Sumeet Sehgal, Advocate for the applicant Defendants are ex-parte 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.56,13,802.39p (Rupees Fifty Six Lacs Thirteen Thousand Eight Hundred Two and Paisa Thirty Nine only). The Original Application has been filed through Sh. Satbir Singh, Branch Head o f the applicant bank, who is competent to institute the Original Application vide Delegation of Power, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants no.1 had approached the applicant bank for the grant of Agriculture Cash Credit

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Limit (KCC) of Rs.50.00 Lacs vide Loan application dated 05.02.2016, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor. 3. The applicant Bank sanctioned the Agriculture Cash Credit Limit (KCC) of Rs.50.00 Lacs vide Letter of Intent dated 16.02.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 89K-06M situated at Village Maherna Kalan, Hadbast No.381, Tehsil Raikot, District Ludhiana (Punjab) vide Letter to Sub Registrar for creation of charge and Declaration u/s 4 (1) bearing vasika no.1368 dated 1 6.02.2016, which is Annexure A12 to this OA. Documents executed:- Hypothecation-cum-Loan Agreement, Common Guarantee Deed, Demand Promissory Note, Declaration to be obtained from the Borrower, Letter of Authority all dated 25.02.2016, which are Annexures A4 to A8 to this OA; Balance and Security Confirmation dated 31.05.2018, which is Annexure A9 to this OA; Acknowledgments of Debt cum Revival Letter dated 24.12.2019 and 17.05.2022, which are Annexures A10 & A11 to this OA; Notice dated 02.05.2023 along with postal Receipt, which are Annexures A13 & A14 to this OA and Account Statement along with Certificate regarding the Computer System and the genuineness of the statement of Account being prepared through computer System, which is Annexure A15 to this OA. 5. 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.56,13,802.39p, 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. 6. 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 27.05.2024.

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In support of the OA, affidavit of Sh. Satbir Singh, authorized Officer, IDBI Bank 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 bank had proved its case. From the perusal of all the Annexures A1 to A15 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 loan 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.56,13,802.39p (Rupees Fifty Six Lacs Thirteen Thousand Eight Hundred Two and Paisa Thirty Nine 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 bank in relief clause has claimed interest @10.85%p.a. plus penal interest @2%p.a. with yearly rests from 01.12.2022 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.56,13,802.39p (Rupees Fifty Six Lacs Thirteen Thousand Eight Hundred Two and Paisa Thirty Nine 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.

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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

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Tribunal on 22.08.2024.

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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 . Dated: 01.08.2024

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

Idbi Bank Limited v. Amanjot Singh and Another

Case brief

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Idbi Bank Limited v. Amanjot Singh and Another

Case brief

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