Allowed

Bank of Baroda v. Shalpa and Another

DRT8 Oct 2024OA/863/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the application for recovery of Rs.23.74 Lakhs owed by borrowers. The court accepted the bank's claim, adjusted the interest rate to 8% p.a., and directed the issuance of a Recovery Certificate for enforcement against mortgaged or personal assets.

What did the court decide?

Recovery of principal sum of Rs.23,74,976.45 with simple interest at 8% p.a., costs, and issuance of Recovery Certificate.

Bank of Baroda versus Shalpa and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.863/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.07.2023

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DATE OF DECISION: 08.10.2024

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Bank of Baroda, erstwhile Vijaya Bank a Body Corporate, Constituted, under the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970, having its Registered Head Office at Baroda Bhawan, R.C. Dutt Road, Alkapuri Baroda390007, Gujarat and having amongst other branches one such branch at S.C.O. No.400, Sector 20, Panchkula through its Constituted Attorney & Chief Manager Sh. Deep Dogra.

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……..Applicant

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Versus

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Smt. Shalpa W/o Sh. Satish Kumar

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Sh. Satish Kumar S/o Late Sh. Hardhyan Singh

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Both residents of (i) House No.179-B, Near Shiv Mandir, Vikas Nagar, Baltana, Zirakpur-140603

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(ii). Village Padhana, District Karnal, Tehsil Nilokheri Haryana.

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(iii) House No.102,3^rd Floor, Golden Estate, Baltana, Zirakpur, District SAS Nagar-140604

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….……Defendants

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Advocates:

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Argued by Ms. Kanchan Sehgal, 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.23,74,976.45p (Rupees Twenty Three Lacs Seventy Four Thousand Nine Hundred Seventy Six And Paise Forty Five Only). The Original Application has been filed through Sh. Deep Dogra, Chief Manager of the applicant, who is competent to institute the Original Application

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vide Board Resolution dated 14.11.2017, which is Annexure A2 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 the grant of Housing Loan of Rs.24.00 Lacs vide Loan application dated 19.03.2018, which is Annexure A3 to this OA. Further, Defendants No.1 & 2 again approached the applicant for its Restructuring.

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The applicant sanctioned the Housing Loan of Rs.24.00 Lacs vide Sanction Letter dated 31.03.2018, which is Annexure A4 to this OA. Further applicant sanctioned the Restructuring of Housing Loan and sanctioned the FITL of Rs.21.70 Lacs vide Sanction Letter dated 31.12.2020, which is Annexure A11 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant had mortgaged his immovable properties i.e. House measuring 0Bigha 01 Biswa 05 Biswasi (62.50 Sq. Yards) situated at House No.179-B, Near Shiv Mandir, Vikas Nagar, village Baltana, SubTehsil Zirakpur, Tehsil Derabassi, District SAS Nagar Mohali vide Equitable Mortgage of Tittle Deed bearing vasika no.20182019/18/1/30 dated 25.07.2018 filed in compliance of order dated 31.08.2024 vide diary no.15415 dated 26.09.2024.

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Documents executed:- Notification dated 02.01.2019, which is Annexure A1 to this OA; Article of Agreement, Letter of Undertaking, Consideration Receipts all dated 31.03.2018, which are Annexures A5 & A6, A9 to this OA; Memorandum of Creation of Mortgage dated 26.07.2018, which is Annexure A7 to this OA; Valuation Report dated 26.11.2021, which is Annexure A8 to this OA; CERSAI report dated 29.06.2018, which is Annexure A10 to this OA; Agreement for Reschedulement dated 31.12.2020, which is Annexure A12 to this OA; SARFAESI Notice U/s 13(2) dated 02.05.2022, which is Annexure A13 to this OA and Statement of account with certificate, which is Annexure A14 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in all the loan accounts

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there was a debit of Rs.23,74,976.45, 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 23.07.2024.

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In support of the OA, affidavit of Sh. Deep Dogra, Chief Manager, Bank of Baroda 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 Annexure A1 to A14 to this OA, it is proved that the defendants 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. 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 is entitled to recover a sum of Rs.23,74,976.45 (Rupees Twenty Three Lacs Seventy Four Thousand Nine Hundred Seventy Six And Paise Forty Five Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all 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 @9.05%p.a. plus penal interest 2% with monthly rests from 01.06.2023 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 instant case including nature of the mortgaged property, undertaking

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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.23,74,976.45 (Rupees Twenty Three Lacs Seventy Four Thousand Nine Hundred Seventy Six And Paise Forty Five 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.

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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 23.10.2024.

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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: 08.10.2024.

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

Bank of Baroda v. Shalpa and Another

Case brief

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Bank of Baroda v. Shalpa and Another

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