Allowed

State Bank of India v. Shri Balwan

DRT25 Jan 2024OA/912/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of an outstanding loan of Rs. 23,47,130/- plus interest. The defendant appeared ex-parte, and the Tribunal granted uniform simple interest at 7% per annum from the date of filing.

What did the court decide?

Recovery Certificate issued for Rs. 23,47,130/- plus simple interest at 7% per annum from the date of filing.

State Bank of India versus Shri Balwan — Money Laundering | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

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ORIGINAL APPLICATION NO.912/2023

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DATE OF INSTITUTION: 03.06.2023

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DATE OF DECISION: 25^th DAY OF JANUARY, 2024

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State Bank of India , a body corporate, constituted under the State Bank of India Act, 1955, having its Central Office at Madam Cama Road, Nariman Point, Mumbai, one of its Local Head Offices at Sector17-A, Chandigarh and one of its Branches at Narwana, District Jind, Haryana, through its Branch Manager, Sh. Ashwani Kumar Yadav

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….. Applicant

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Versus

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Sh. Balwan s/o Sh. Juglal r/o Village Dandoa-Kalan, Tehsil Narwana, District Jind, Haryana . .... Defendant

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Argued by: Ms Neha Arora proxy counsel for Ms Richa Indal, Advocate for the applicant bank Defendant ex parte vide order dated 05.10.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of Rs.23,47,130/- (Rupees Twenty Three Lakh Forty Seven Thousand One Hundred and Thirty Only). It has been filed through Sh. Ashwani Kumar Yadav, Branch Manager of the applicant bank stated to be competent to institute the Original Application.

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The brief facts of the case of the applicant as per Original Application are that the defendant had approached the applicant bank

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OA/912/2023 STATE BANK OF INDIA VS SH. BALWAN 2

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for grant of KCC Facility of Rs. 12.50 lakh vide loan application Form dated 25.07.2016, Annexure-A1 (copy).

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The applicant bank sanctioned aforesaid credit facility to the defendant vide arrangement letter dated 25.07.2016, Annexure-A2, (copy), as per terms and conditions which were duly accepted by the defendant.

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In order to secure the aforementioned credit facility, the defendant executed hypothecation agreement dated 02.08.2016, Annexure-A3 (copy).

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The aforesaid loan facility was further secured by creation of simple mortgage by the defendant in respect of agricultural land measuring 72 Kanal 3 Marla situated in the revenue estate of DanodaKalan, Tehsil Narwana, District Jind, Haryana, fully detailed in Para No. 5(6) of the Original Application. Declaration dated 28.07.2016 under Section 4(1) of the Haryana Agricultural Credit Operations and Miscellaneous Provision (Banks) Act, 1973, is Annexure-A4 (copy).

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendant but he failed to maintain the financial discipline of the applicant bank leading to the loan account becoming irregular and it being classified as NPA. The defendant executed revival letters dated 04.07.2019 and 26.05.2022, Annexures-A5 and A6 (copy). The applicant bank recalled entire outstanding amount vide legal notices dated 28.01.2021 and 23.05.2022 along with postal receipts, Annexures-A7 and A8 (colly) (copy), but to no avail.

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.23,47,130/(Rupees Twenty Three Lakh Forty Seven Thousand One Hundred

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OA/912/2023 STATE BANK OF INDIA VS SH. BALWAN 3

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and Thirty Only), is recoverable against the defendant as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A9 (copy).

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Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

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Notice of the Original Application was duly served upon the defendant, but since none appeared on behalf of the defendant, thus, the defendant was proceeded against ex-parte vide order dated 05.10.2023 .

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In support of contents of the OA, affidavit of evidence of Sh. Ashwani Kumar Yadav, Branch Manager of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by the learned proxy counsel for the applicant bank and gone through the record carefully.

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It was argued by the learned proxy counsel for the applicant bank that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendant for recovery of the amount sought. From perusal of Annexures-A1 to A9 , it is clear that the defendant had approached the applicant bank for availing of the loan facility which was granted to him. It is further clear that the defendant had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendant failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary

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OA/912/2023 STATE BANK OF INDIA VS SH. BALWAN 4

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evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.23,47,130/- (Rupees Twenty Three Lakh Forty Seven Thousand One Hundred and Thirty Only) from the defendant.

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In so far as pendente lite and future interest is concerned, the applicant bank in relief sought, has not claimed any particular rate of interest. In declaration dated 28.07.2016 under Section 4(1) of the Haryana Agricultural Credit Operations and Miscellaneous Provision (Banks) Act, 1973, Annexure-A4 (copy), the rate of interest has been mentioned @11% per annum.

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This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

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In the result, the Original Application is allowed with costs holding that the defendant is liable to pay to the applicant bank a sum of Rs.23,47,130/- (Rupees Twenty Three Lakh Forty Seven Thousand One Hundred and Thirty Only) with current and future simple interest @7% per annum w.e.f. 03.06.2023, till the date of realisation of the amount. Accordingly, the applicant bank shall be at

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OA/912/2023 STATE BANK OF INDIA VS SH. BALWAN 5

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liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendant in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendant. However, the applicant bank is at liberty to enforce the claim through due process of law.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 12.03.2024.

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Copy of this order be sent to the applicant bank and the defendant through registered/speed post. This order be uploaded on the official website of this Tribunal.

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Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

State Bank of India v. Shri Balwan

Case brief

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State Bank of India v. Shri Balwan

Case brief

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