Allowed

Indian Bank v. Messrs Rakesh Kumar and Bros and Others

DRT20 Nov 2024OA/826/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed under the RDBFI Act, 1993. The court decreed payment of the outstanding loan amount with adjusted interest, treating the defendants jointly and severally liable, and directed issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 55,58,947.00 with simple interest at 8p.a. and issuance of Recovery Certificate.

Indian Bank versus Messrs Rakesh Kumar and Bros and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.826/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.06.2024

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DATE OF DECISION: 20.11.2024

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Indian Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Corporate office at PB-5555, 354-260, Avvai Shanmugam Salai, Royapettah, Chennai and its branches throughout Indian and amongst other branches one of its branch office at Dhangu Road, Pathankot through its Constituted Attorney Sh. Jagmohan Dhaka, Branch Manager, Indian Bank, Dhangu Road Pathankot and who is also the Principal Officer of the Plaintiff/Applicant.

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……..Applicant

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Versus

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M/s Rakesh Kumar and Bros through its Sole Proprietor Sh. Bhanu Sharma S/o Sh. Rakesh Kumar, Shot No.-57, Sabzi Market, Pathankot-145001

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Sh. Bhanu Sharma S/o Sh. Rakesh Kumar, Shop No.57, Sabzi Mandi, Pathankot-145001

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2^nd Address: -R/o 87/224, Ward No. 8, Qazipura Mohalla, Old Shahpur Road, Pathankot-145001

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Smt. Suman Sharma W/o Sh. Rakesh Kumar, R/o 87/224, Ward No. 8, Qazipura Mohalla, Old Shahpur Road, Pathankot-145001

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………Defendants

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Advocates:

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Argued by Sh. Varun Verma, 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.55,58,947.00 (Rupees Fifty Five Lacs Fifty Eight Thousand Nine Hundred and Forty Seven only). The Original Application has been filed through Sh. Jagmohan Dhaka, Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 25.10.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its proprietor i.e. defendant no.2 had approached the applicant for the grant of Cash Credit Limit of Rs.90.00 Lacs vide Loan Application dated 10.03.2021 and further for the grant of Term Loan (IND-GECLS) of Rs.25.00 Lacs vide Loan Application form IND-GECLS dated 01.12.2021, which are Annexures A2 & A10 to this OA 3. The applicant sanctioned the Cash Credit Limit of Rs.85.00 Lacs and later sanctioned a Term loan (IND-GECLS) of Rs.25.00 Lacs scheme vide Sanction Letters dated 30.03.2021 and 03.12.2021, which are Annexures A3 & A11 to this OA and the terms and conditions were duly accepted by the defendants.

¶20

Defendant no.4 had mortgaged her immovable properties i.e. total land measuring 1875 sq. feet situated within the revenue estate of Village Daulatpur, Hadbast No. 331, Shop No. 57, New Sabzi Mandi, Pathankot vide Transfer Deed bearing Vasika no. 6224 dated 09.02.2021 along with its translations, which is Annexure A8 to this OA.

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The above mentioned property is sold under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest act, 2002 vide Sale Certificate dated 15.12.2022, which is Annexure A18 to this OA

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Documents executed:- Single/Joint Promissory Note, Agreement for Open Cash Credit, Agreement for Hypothecation of Movable, Agreement of Guarantee all dated 30.03.2021, which are Annexures A4 to A7 to this OA; Letter from party to bank confirming the creation equitable mortgage dated 31.03.2021, which is Annexure A9 to this OA; Single/Joint Demand Promissory Note, Term Loan Agreement,

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Agreement of Guarantee, Letter from party to bank confirming extension of equitable mortgage all dated 04.12.2021, which are Annexures A12 to A15 to this OA; Notices under section 13(2) of SARFAESI dated 05.08.2022 with Postal Receipts, which is Annexure A16 to this OA; Notices under section 13(4) of SARFAESI dated 12.10.2022 with Postal Receipts, which is Annexure A17 to this OA and Statements of accounts, which are Annexures A19 & 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.55,58,947.00, 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 14.11.2024.

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In support of the OA, affidavit of Sh. Jagmohan Dhaka, Branch Manager Indian Bank has been filed.

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Heard 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 had proved its case. From the perusal of all the Annexures A1 to A20 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, both the 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.55,58,947.00 (Rupees Fifty Five Lacs Fifty Eight Thousand Nine

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Hundred and Forty Seven 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 @11.95%p.a. plus penal interest @2%p.a. with monthly rests from 20.05.2024 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.55,58,947.00 (Rupees Fifty Five Lacs Fifty Eight Thousand Nine Hundred and Forty Seven 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 16.12.2024.

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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 .

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Dated: 20.11.2024

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

Indian Bank v. Messrs Rakesh Kumar and Bros and Others

Case brief

What is this about?

What did the court decide?

Indian Bank v. Messrs Rakesh Kumar and Bros and Others

Case brief

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What did the court decide?

What the court decided

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