Allowed

Axis Bank Limited v. Tarlochan Singh and Others

DRT11 Nov 2024OA/861/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's recovery application for Rs. 63,60,710.53 against defaulters of a loan account. The court decried high interest rates and allowed 8% simple interest. A Recovery Certificate was issued.

What did the court decide?

Recovery Certificate issued; defendants liable to pay sum with 8% p.a. interest; recovery via sale of mortgaged or personal assets.

Axis Bank Limited versus Tarlochan Singh and Others — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.861/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.07.2024

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DATE OF DECISION: 11.11.2024

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Axis Bank Ltd. (earlier known as UTI Bank Ltd.), a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at ‘Trishul’ 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380-006, Gujarat and one of its branch offices amongst other places known as Asix Bank Ltd. situated in SCO No.367-368, 3^rd Floor, Sector 34-A, Chandigarh through its Manager, Sh. Sandeep Kumar.

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……..Applicant Versus

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Sh. Tarlochan Singh S/o Sh. Major Singh R/o H.No.23, Village Rahra, HB No.37, Tehsil Samana, Patiala-147101.

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Sh. Major Singh S/o Sh. Mahinder Singh R/o H.No.23, Village Rahra, HB No.37, Tehsil Samana, Patiala-147101.

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Sh. Inderjit Singh S/o Sh. Gurcharan Singh R/o Village Rahra, HB No.37, Tehsil Samana, Patiala-147101.

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………. Defendants

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Advocates:

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Argued by Sh. Gaurav Gupta, 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 Rs.63,60,710.53p (Rupees Sixty Three Lacs Sixty Thousand Seven Hundred Ten And Paise Fifty Three Only). The Original Application has been filed through Sh. Sandeep Kumar, Manager of the applicant, who

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is competent to institute the Original Application vide General Power of Attorney dated 16.09.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for KCC Limit of Rs.25.00 Lacs vide Loan Application dated 25.07.2008, which is Annexure A2 to this OA. Further, defendant no.1 & 2 had again approached the applicant for enhancement of KCC Limit to Rs.50.00 Lacs vide Loan Application dated 05.12.2011, which is Annexure A9 to this OA. Thereafter, defendants had also approached the applicant for Renewal of KCC Limit of Rs.50.00 Lacs.

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The applicant sanctioned KCC Limit of Rs.25.00 Lacs and further applicant sanctioned the enhancement of KCC Limit to Rs.50.00 Lacs vide Sanction Letter dated 29.12.2011, which is Annexure A10 to this OA. Further, applicant sanctioned for Renewal of Rs.50.00 Lacs vide Sanction letter dated 29.10.2020, which is Annexure A16 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant nos.1 and 2 had Hypothecated their movable properties, i.e. total Land measuring 48B-3B situated at Village Rahra, Tehsil Samana, Distt. Patiala vide Simple Mortgaged Deeds bearing vasika no.5219 dated 04.08.2008 and bearing vasika no.22440 dated 30.12.2011, which are Annexures A7 & A15 to this OA. Documents executed:-Loan cum hypothecation agreement, D.P. note delivery cum waiver, Joint & Several demand promissory note & Deed of Guarantee all dated 07.08.2008, which are Annexures A3 to A6 to his OA; Mutation Confirmation by advocate dated 12.08.2008, which is Annexure A8 to this OA; Loan cum hypothecation agreement, D.P. note delivery cum waiver, Joint & Several demand promissory note & Deed of Guarantee all dated 02.01.2012, which are Annexures A11 to A14 to his OA; Recall Notice dated 07.05.2024 with postal receipts, which is Annexure A17 to this OA; Foreclosure Letter, which is Annexure A18 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which are Annexures A19 & A20 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.63,60,710.53p, 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 06.11.2024.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Manager, Axis Bank h as 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 loans 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 loans 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 is entitled to recover a sum of Rs.63,60,710.53p (Rupees Sixty Three Lacs Sixty Thousand Seven Hundred Ten And Paise Fifty Three Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of 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 future interest @11.50%p.a. from 27.11.2023 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

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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 @08.00%p.a. in 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.63,60,710.53p (Rupees Sixty Three Lacs Sixty Thousand Seven Hundred Ten And Paise Fifty Three Only) jointly and severally, with costs, current and future simple interest @08.00%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.

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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 Tribunal on 02.12.2024.

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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: 11.11.2024

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

Axis Bank Limited v. Tarlochan Singh and Others

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. Tarlochan Singh and Others

Case brief

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What did the court decide?

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