Allowed

Bank of India v. Sh. Kewal Krishan and Another

DRT7 Jun 2024OA/831/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the original application filed by Bank of India against borrowers and guarantor for recovery of ₹21,01,715.00. The court determined a uniform simple interest rate of 8% per annum and granted a recovery certificate despite the defendants appearing ex-parte.

What did the court decide?

Recovery Certificate issued for ₹21,01,715.00 plus 8% simple interest; Respondents liable jointly and severally.

Bank of India versus Sh. Kewal Krishan and Another — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.831/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.06.2022 DATE OF DECISION: 07.06.2024 Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertaking) 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 Kapurthala (Punjab), through its duly constituted attorney, Sh. Anil Kumar Gera, Chief Manager, Sutlej Market Branch, Empire Estate, Jalandhar. ……..Applicant Versus 1. Sh. Kewal Krishan S/o Sh Tilak Raj, Bhawanipur, Tehsil and District Kapurthala (Punjab)-144603. (Borrower) 2. Sh. Dalbir Singh S/o Sh. Ujjal Singh, Village Nanakpur, Tehsil and District Kapurthala (Punjab)-144606. (Guarantor) ….……Defendants Advocates: Argued by Sh. Anil Malhotra, Advocate proxy for Ms. Meena Malhotra, 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.21,01,715.00 (Rupees Twenty One Lacs One Thousand Seven Hundred and Fifteen only). The Original Application has been filed through Sh. Anil Kumar Gera, Chief Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 18.05.2018, 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 Agriculture Cash Credit

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Limit of Rs.15.00 Lacs vide Loan application dated 04.09.2010, which is Annexure A2 to this OA. Defendant No.2 stood as guarantor. 3. The applicant Bank sanctioned the Agriculture Cash Credit Limit of Rs.15.00 Lacs vide Sanction Letter dated 06.09.2010, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 23K-9M situated at Village Bhiwanipur, Tehsil and District Kapurthala (Punjab) vide Registered Mortgaged Deed bearing vasika No.2852 dated 06.09.2010 and along with its Translation, which is Annexure A11 to this OA.

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Documents executed:- Demand Promissory Note, Agreement of Hypothecation cum Loan, Consolidated/Multipurpose stamp undertaking, Various undertakings/Declarations, Deed of Guarantee all dated 06.09.2010, which are Annexures A4, A6 to A10 to this OA; Bearer Letter, which is Annexure A5 to this OA; Acknowledgement of Debt dated 26.04.2013, which is Annexure A12 to this OA; General Power of Attorney bearing vasika no.131 dated 24.06.2013 with its translation, which is Annexure A13 to this OA; Letter, which is Annexure A14 to this OA; Deed of Guarantee, Acknowledgment of Debt both dated 26.06.2013, which are Annexures A15 & A16 to this OA; Acknowledgment of Debt dated 18.03.2016 and 24.12.2018 which are Annexures A17 & A18 to this OA; Legal Notice and Postal receipts dated 09.11.2021, which are Annexures A19 to A21 to this OA and Statement of account along with statement of uncharged interest, duly certified under Banker’s Books Evidence act,1891, which is Annexure A22 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 account there was a debit of Rs.21,01,715.00, 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 10.04.2024.

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In support of the OA, affidavit of Sh. Anil Kumar Gera, Chief Manager, Bank of India has 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 A22 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.21,01,715.00 (Rupees Twenty One Lacs One Thousand Seven Hundred and Fifteen 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 @8.55%p.a. plus penal interest @2.00%p.a. with half yearly rests from 17.05.2022 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

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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.21,01,715.00 (Rupees Twenty One Lacs One Thousand Seven Hundred and Fifteen 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 24.06.2024.

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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: 07.06.2024

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

Bank of India v. Sh. Kewal Krishan and Another

Case brief

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Bank of India v. Sh. Kewal Krishan and Another

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