Allowed

Bank of India v. Gurchetan Singh and Others

DRT3 Aug 2024OA/844/2023

Case brief

AI extract

What is this about?

Bank of India filed an Original Application for recovery of a loan of Rs.55.56 lacs granted to a co-borrower and his heirs, with Defendant 4 as guarantor. The Tribunal allowed the application, declared the debt recoverable, and fixed interest at 8% p.a., directing issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.55,56,394 with costs and simple interest @8.00%p.a. from date of filing till realization; Recovery Certificate issued.

Bank of India versus Gurchetan Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.844/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.06.2023

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DATE OF DECISION: 03.08.2024

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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 Bhulath, District Kapurthala (Punjab), through its duly constituted attorney, Sh. Anil Kumar Gera, presently posted as Chief Manager, at Sutlej Market Branch, Jalandhar (Punjab).

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……..Applicant- Bank

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Versus

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Sh. Gurchetan Singh S/o Mohinder Singh, R/O Village Bajaj, Tehsil Bhulath, District Kapurthala, (Punjab)-144622 (Co-Borrower and legal Heir of Borrower, Sh. Mohinder Singh, Being Son)

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Smt. Balbir Kaur W/o Sh. Mohinder Singh, R/O Village Bajaj, Tehsil Bhulath, District Kapurthala, (Punjab)-144622 (legal Heir of Borrower, Sh. Mohinder Singh, Being Wife)

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Sh. Surjit Singh, S/o Sh. Mohinder Singh, R/O Village Bajaj, Tehsil Bhulath, District Kapurthala, (Punjab)-144622 (legal Heir of Borrower, Sh. Mohinder Singh, Being Son)

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Sh. Daler Singh, S/o Sh. Piara Singh, R/O Village Bajaj, Tehsil

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Bhulath, District Kapurthala, (Punjab)-144622 (Guarantor)

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….……Defendants

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Advocates:

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Argued by Sh. Anil Malhotra, 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 bank

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under Section 19 of the Recovery of Debts Due to Banks and Financial

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Institutions Act, 1993, against the defendants for recovery of Rs.55,56,394.00 (Rupees Fifty Five Lacs Fifty Six Thousand Three Hundred Ninety Four Only). The Original Application has been filed through Sh. Anil Kumar Gera, Chief Manager o f 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.

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The brief facts of the OA are that the defendant no.1 and late Sh. Mohinder Singh had approached the applicant bank for the grant of KCC Limit of Rs.32.00 Lacs vide Application dated 03.03.2016, which is Annexure A2 to this OA. Defendant no.4 stood as guarantor. 3. The applicant Bank sanctioned the KCC Limit of Rs.32.00 Lacs Sanction Letter dated 23.03.2016, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Late Sh. Mohinder Singh had mortgaged his Agriculture land measuring 33K-16M (4.2 acres) situated at Village Bajaj, Hadbast No.133, Tehsil Bhulath and District Kapurthala, (Punjab) vide Declaration U/s 4(1) dated 22.03.2016, which is Annexure A3 to this OA.

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Documents executed:-Demand Promissory Note, Bearer Letter, Agreement for Hypothecation, Consolidated Stamped Agreement, Letter of Declarations, Misc. Undertaking/declarations and Deed of Guarantee all dated 23.03.2016, which are Annexures A5 to A13 to this OA; MCLR Agreement dated 21.04.2017, which is Annexure A14 to this OA; Acknowledgement of Debts dated 07.05.2018, 01.03.2019 & 17.02.2022, which are Annexures A15 to A17 to this OA; Recall Notice along with Postal Receipts dated 25.03.2023, which is Annexure A18 to A21 to this OA and Statement of account along with the 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.55,56,394.00, which is recoverable and the defendants

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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 28.05.2024.

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In support of the OA, affidavit of Sh. Anil Kumar Gera, Chief Manager, Bank of India h as 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 defendant no.1 and Late Sh. Mohinder Singh 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 the defendant no.1 and Late Sh. Mohinder Singh 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.55,56,394.00 (Rupees Fifty Five Lacs Fifty Six Thousand Three Hundred Ninety 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 bank in relief clause has claimed interest @11.80%p.a. with monthly rests from 13.06.2023 till actual 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

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.55,56,394.00 (Rupees Fifty Five Lacs Fifty Six Thousand Three Hundred Ninety Four 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. 12. 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 Tribunal on 26.08.2024.

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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. Pronounced by me in the open Tribunal.

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Dated: 03.08.2023

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

Bank of India v. Gurchetan Singh and Others

Case brief

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Bank of India v. Gurchetan Singh and Others

Case brief

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