Allowed

Bank of India v. Chamkaur Singh and Others

DRT19 Sept 2024OA/864/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a defaulted KCC and OD loan. The court fixed a uniform simple interest rate of 8.00% p.a. and ordered recovery from mortgaged properties or personal assets.

What did the court decide?

Recovery of Rs.38,04,352.00 jointly and severally with simple interest @8.00% p.a. from date of filing; recovery via sale of mortgaged property or attachment of assets; Recovery Certificate issued.

Bank of India versus Chamkaur Singh and Others — Money Laundering | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.864/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.06.2023

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DATE OF DECISION: 19.09.2024

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Bank of India, a body Corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act 1970, having its Head Office at “Star House”, C-5, G-Block,2^nd Floor, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and one of its Branches at College Road, VPO Dakha, Tehsil & District Ludhiana through Sh. Kailash Kumar Sagar, Chief Manager, Bank of India, Asset Recovery Department, Zonal Office, Rakh Bagh, Ludhiana its Principal Officer and Constituted Attorney.

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……..Applicant

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Versus

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Sh. Chamkaur Singh S/o Sh. Manjit Singh Village & Post Office Baddowal, Tehsil & District Ludhiana.

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Sh. Inderjit Singh S/o Sh. Manjit Singh Village & Post Office Baddowal, Tehsil & District Ludhiana.

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Sh. Sanjeev Kumar S/o Sh. Krishan Lal Village Mandi Mullanpur, Tehsil & District Ludhiana.

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….……Defendants

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Advocates:

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Argued by Sh. R.V. Mehra, Advocate for Applicant (through VC) 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.38,04,352.00 (Rupees Thirty Eight Lac Four Thousand Three Hundred Fifty Two Only). The Original Application has been filed through Sh. Kailash Kumar Sagar, Chief Manager of the applicant, who

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is competent to institute the Original Application vide Power of Attorney dated 13.12.2019, 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 the grant of KCC Limit Rs.6.00 Lac & OD Limit of Rs.5.00 Lac of vide Loan applications dated 28.06.2012, which are Annexures A2 & A3 to this OA. Defendant no.3 Stood as a Guarantor. 3. The applicant sanctioned the KCC Limit Rs.6.00 Lac & OD Limit of Rs.5.00 Lac vide Sanction Letters dated 10.07.2012, which are Annexures A4 & A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 & 2 had mortgaged his immovable properties i.e. total land measuring 18 Kanal 03 Marla situated in Village Badowal, Tehsil & District Ludhiana vide Registered Mortgage Deed bearing vasika nos.1047 & 1046 dated 20.07.2012, with its Translations, which are Annexures A12, A13, A20 & A21 to this OA. Documents executed:- Demand Promissory Note, Demand Promissory Note Bearer Letter, Deed of Hypothecation cum Loan Agreement, of Composite Document, Letter of Declaration & Assurance, Letter of Declaration & undertaking and authority, Agreement of Guarantee all dated 24.07.2012, which are Annexures A6 to A11 and A14 to A19 & A22 to this OA; Letters of acknowledgment of Debts & Securities of KCC dated 24.11.2024, 22.07.2015, 30.03.2016 & 05.02.2019, which are Annexures A27 to A33 to this OA; Legal notice dated 29.01.2022 with postal receipts, which are Annexures A23 to A26 to this OA and Certified copies of the Statement of accounts (KCC Limit & ODL Limit), which are Annexure A34 & A35 to this OA. 5. The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.38,04,352.00, 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.

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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 16.08.2024.

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In support of the OA, affidavit of Sh. Kailash Kumar Sagar, Chief Manager, of India h as been filed.

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Heard arguments and perused record.

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It was argued by learned counsel through Video

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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 A35 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.38,04,352.00 (Rupees Thirty Eight Lac Four Thousand Three Hundred Fifty Two 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 in relief clause has claimed interest @14.10%p.a. including Penal Interest 2% with half yearly rests from 31.05.2023 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 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 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.38,04,352.00 (Rupees Thirty Eight Lac Four Thousand Three Hundred Fifty Two Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan accounts 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 11.10.2024.

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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 . Dated: 19.09.2024

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

Bank of India v. Chamkaur Singh and Others

Case brief

What is this about?

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Bank of India v. Chamkaur Singh and Others

Case brief

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