The DRT allowed the bank's application for recovery of Rs. 34.81 lacs against two defendants who failed to repay a sanctioned KCC loan facility after the account was classified as NPA.
Recovery of Rs. 34,81,881.00 with simple interest at 7.30% p.a., costs, and declaration of joint and several liability.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.906/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 06.07.2023
DATE OF DECISION: 10.09.2024
Indian Bank, a body Corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act,1970,having its Head Office/Registered Office at 66, Rajaji Salai, Chennai, Tamilnadu State and w.e.f.01.04.2020 being the successor to Allahabad Bank in terms of Gazette of India Notification No.G.S.R.156 (E) dated 4th March,2020 issued by the Central Government in exercise of the powers conferred upon it by Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings)Act,1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings)Act,1980 (40 of 1980),the Central Government after Consultation with the Reserve Bank of India, notified the Scheme of Amalgamation of Allahabad Bank into Indian Bank Scheme,2020.Therefore,the term “Applicant Bank”, wherever the context so warrants, would interchangeably mean the erstwhile Allahabad Bank and/or Indian Bank. The erstwhile Allahabad Bank’s Branch Office at Patran, Tehsil Patran, District Patiala(Punjab), now known as Indian Bank, Patran, Tehsil Patran, District Patiala (Punjab) through its Senior Manager Sh. Yogesh Kumar.
……..Applicant
Versus
….……Defendants
Advocates:
Argued by Sh.Banni Thomas, Advocate for the Applicant Defendants are already ex-parte
FINAL ORDER
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Hundred Eighty One Only). The Original Application has been filed through Sh. Yogesh Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide Authorized Letter dated 20.09.2022 which is Annexure A1 to this OA.
Documents executed:- Notification dated 04.03.2020, which is Annexure A/A to this OA; Title Investigation Report dated 09.07.2013, which is Annexure A5 to this OA; Hypothecation Agreement dated 14.06.2013, which is Annexure A6 to this OA; Deed of Guarantee, which is Annexure A7 to this OA; Demand Promissory Note dated 13.05.2013, 18.05.2015 and 02.09.2016, which is Annexure A8 to this OA; Application & Request letter, Demand Promissory Note both dated 12.07.2018, which are Annexures A9 & A10 to this OA; Revival Letter dated 02.09.2016, which is Annexure A11 to this OA; Acknowledgement of Debt all dated 20.09.2018 and 27.01.2020, which are Annexures A12 & A13 to this OA; Legal Notice dated 24.05.2022 which is Annexure A14 to this OA and statement of account with certificate dated 12.05.2023, which is Annexure A15 to this OA.
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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 @7.30%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.34,81,881.00 (Rupees Thirty Four Lacs Eighty One Thousand Eight Hundred Eighty One Only)jointly and severally, with costs, current and future simple interest @7.30%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.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the application for recovery of dues amounting to Rs. 34,81,881.00 is maintainable against the defendants.
Whether uniform simple interest at 7.30% per annum shall be granted from the date of filing.
Whether the defendants are liable to pay the claimed amount jointly and severally with interest.
1 provisions across 1 enactments
Indian Bank
Sh. Kumba Singh S/o Sh. Modan Singh
Sh. Sukhwinder Singh S/o Sh. Jagroop Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
