Allowed

Bank of India v. Satnam Singh and Others

DRT24 Dec 2024OA/839/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Bank of India against legal heirs of a deceased borrower for recovery of a classified loan. The Tribunal held the defendants liable to pay the principal sum with costs and adjusted future interest at 8.00% per annum.

What did the court decide?

Directs defendants to pay Rs. 28,81,157.00 jointly and severally with costs and future interest @ 8.00% p.a.; directs issue of Recovery Certificate.

Bank of India versus Satnam Singh and Others — Execution and Attachment | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.839/2023

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 20.06.2023

¶5

DATE OF DECISION: 24.12.2024

¶6

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, Brock-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch office amongst other places at Bhulath, District Kapurthala (Punjab), through its duly Constituted Attorney Sh. Anil Kumar Gera, presently posted as Chief Manager, at Sultej Market Branch, Jalandhar (Punjab).

¶7

……..Applicant

¶8

Versus

¶9

Sh. Satnam Singh S/o Sh. Mahinga Singh R/o H.No.283, Village Butran, Tehsil & District Jalandhar (Pb)-144622, (Legal heir of Borrower Sh. Mahinga Singh, being son).

¶10

Smt. Surjit Kaur W/o Sh. Mahinga Singh R/o H.No.218A, Village Butran, Tehsil & District Jalandhar (Pb)-144622 (Legal heir of Borrower Sh. Mahinga Singh, being wife).

¶11

Sh. Manjit Singh S/o Sh. Mahinga Singh R/o H.No.218A, Village Butran, Tehsil & District Jalandhar (Pb)-144622 (Legal heir of Borrower Sh. Mahinga Singh, being son).

¶12

Sh. Tarlok Singh S/o Sh. Khajan Singh R/o H.No.124, Village Boparai, District Kapurthala (Pb)-144622.

¶13

….……Defendants

¶14

Advocates:

¶15

Argued by Sh. Anil Malhotra, Advocate proxy for Ms. Meena Malhotra, Advocate for the applicant (through VC) Defendants are ex-parte

¶16

FINAL ORDER

¶17

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.28,81,157.00 (Rupees Twenty Eight Lacs Eighty One Thousand One Hundred Fifty Seven only). The Original Application has been filed

¶18

¶19

through Sh. Anil Kumar Gera, Chief Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 18.05.2018, which is Annexure A1 to this OA.

¶20

The brief facts of the OA are that the Late Sh. Mahinga Singh, defendant no.1 and 4 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 29.12.2014, which is Annexure A2 to this OA.

¶21

The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Credit Sanction dated 15.01.2015, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Late Sh. Mahinga Singh had mortgaged his immovable properties i.e. total land measuring 15Kanal-09Marla situated at Village Buttran, H.B. No. 79, Tehsil Jalandhar-2 (Bhogpur ) vide Declaration u/s 4(1) dated 14.01.2015, along with its Translations, which is Annexure A3 to this OA. Documents executed:- True Copy of Demand Promissory Note, True Copy of Bearer Letter, True Copy of Arrangement for hypothecation cum loan, True Copy of Consolidated Stamped Undertaking/Agreement, True Copy of Misc. Undertakings/Declarations, True Copy of Deed of Guarantee all dated 15.01.2015, which are Annexures A5 to A13 to this OA; True Copy of Acknowledgement of Debt dated 04.12.2017 & 09.10.2020, which are Annexures A14 & A15 to this OA; True Copy of Recall Notice dated 25.03.2023, along postal Receipts, which are Annexures A16 to A20 to this OA and Statement of account along with Certificate under Banker’s Book Evidence Act dated 14.06.2023, which is Annexure A21 to this OA.

¶22

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.28,81,157.00, 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.

¶23

¶24

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 20.12.2024.

¶25

In support of the OA, affidavit of Sh. Anil Kumar Gera, Chief Manager, Bank of India has been filed. 8. Heard arguments and perused record.

¶26

It was argued by learned proxy counsel through video conferencing 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 A21 to this OA, it is proved that the Late Sh. Mahinga Singh, defendant no.1 and 4 approached applicant 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 applicant. Late Sh. Mahinga Singh, defendant no.1 and 4 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the Late Sh. Mahinga Singh, defendant no.1 and 4 was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.28,81,157.00p (Rupees Twenty Eight Lacs Eighty One Thousand One Hundred Fifty Seven 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.10%p.a. with yearly rests from 13.06.2023 till the realization.

¶27

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

¶28

¶29

account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶30

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.28,81,157.00p (Rupees Twenty Eight Lacs Eighty One Thousand One Hundred Fifty Seven 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 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.

¶31

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 14.02.2025.

¶32

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. Pronounced by me in the open Tribunal . Dated: 24.12.2024

¶33

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

Bank of India v. Satnam Singh and Others

Case brief

What is this about?

What did the court decide?

Bank of India v. Satnam Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Hdfc Bank Limited versus Satnam Singh and Others

Punjab National Bank versus Gurbachan Singh and Another

Hdfc Bank Limited versus Najar Singh and Others

Union Bank of India versus M/S Krishna Box Factory and Others

Bank of India versus Messrs Radiant Cottex and Others

Punjab National Bank versus Iqbal Singh