Allowed

Idbi Bank Limited v. Gurpreet Singh and Another

DRT4 Sept 2024OA/894/2022

Case brief

AI extract

What is this about?

Deputy Recovery Tribunal allowed an application for recovery of dues under the Debt Recovery Act. The Tribunal declared defendants liable to pay the principal amount with modified simple interest and ordered issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; defendants ordered to pay Rs. 25,92,928.00 jointly and severally with simple interest at 8% p.a.

Idbi Bank Limited versus Gurpreet Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.894/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.03.2022

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DATE OF DECISION: 04.09.2024

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IDBI Bank Limited i.e. a company incorporated under the provisions of company act, 1956 and a company within the meaning of the Companies Act, 2013, and a Banking Company within the meaning of Banking Regulation Act, 1949 and having its Head Office at IDBI Tower, WTC Complex, Cuffe Parade, Mumbai-400005 and its branches at various places including a branch office at IDBI Bank Limited, SCO No. 38, Beant Singh Market, Aman Nagar-II, Bela Road, Roopnagar, district Ropar, Punjab through its duly Authorized Officer Ms. Shuchi Khurmi, Assistant General Manager.

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……..Applicant

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Versus

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Sh. Gurpreet Singh S/o Sh. Harpal Singh, R/o village Bahoje Majra, Rupnagar-140111, Punjab.

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Sh. Manpreet Singh S/o Sh. Harpal Singh, R/o Village Bahoje Majra, Rupnagar-140111, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Sukhwinder Singh, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.25,92,928.00 (Rupees Twenty Five Lacs Ninety Two Thousand Nine Hundred and Twenty Eight only). The Original Application has been filed through Ms. Shuchi Khurmi, Assistant General Manager of the applicant bank, who is competent to institute the Original Application vide Delegation of Powers, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant bank for the grant of Cash Credit Limit (KCC)

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of Rs.20.00 Lacs vide Loan application dated 23.09.2015, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Cash Credit Limit (KCC) of Rs.20.00 Lacs vide Sanction Letter dated 24.09.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable properties i.e. Total land measuring 26K-12½M situated at Village Bhojemajra, Hadbast No. 61, Tehsil Sri Chamakaur Sahib, District Rupnagar (Punjab) vide Declaration under section 4 (1) dated 24.09.2015 along with its Translations, which are Annexures A7 & A8 to this OA. Documents executed:- Deed of Hypothecation, Demand Promissory Note, Take Delivery Letter, Common Guarantee Deed executed by defendant no. 2 all dated 29.09.2015, which are Annexures A4 to A6 & A10 to this OA; Affidavit cum undertaking dated 30.09.2015, which is Annexure A9 to this OA; Recall Notice dated 17.06.2021 and 29.10.2021, which is Annexure A11 to this OA and Statement of Account with certificate, which is Annexure A12 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.25,92,928.00, which is recoverable and the defendants 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. 6. 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 15.07.2024.

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In support of the OA, affidavit of Ms. Shuchi Khurmi, Assistant General Manager, IDBI Bank Limited h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned 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

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Annexures A1 to A12 to this OA, it is proved that the defendants 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 defendants 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.25,92,928.00 (Rupees Twenty Five Lacs Ninety Two Thousand Nine Hundred and Twenty Eight 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 @9.80%p.a. plus penal interest @2%p.a. with monthly/ half yearly rests from 25.03.2022 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 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.25,92,928.00 (Rupees Twenty Five Lacs Ninety Two Thousand Nine Hundred and Twenty Eight 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

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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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 27.09.2024. 15. 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.

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Pronounced by me in the open Tribunal . Dated: 04.09.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Idbi Bank Limited v. Gurpreet Singh and Another

Case brief

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Idbi Bank Limited v. Gurpreet Singh and Another

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