Allowed

Axis Bank Limited v. Diyal Singh and Others

DRT25 Nov 2024OA/915/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs. 27.95 lakh against borrowers and guarantors. While accepting the loan default, the Tribunal adjusted the claimed interest rate from 11.05% to 8% simple per annum and ordered the issuance of a recovery certificate.

What did the court decide?

Directing defendants to pay Rs. 27,95,512.11 with 8% simple interest and issuing a Recovery Certificate for enforcement proceedings.

Axis Bank Limited versus Diyal Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.915/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.07.2024

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DATE OF DECISION: 25.11.2024

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Axis Bank Ltd., Having its registered office at “Trishul, 3^rd Floor, Opposite Samartheswar Temple, law Garden, Ellisbridge Ahmedabad, Gujrat Also at: Axis Bank Loan Centre, SCO-367-368, Sector-34A, Chandigarh-160022, through Sh. Sandeep Kumar, its authorized Representative.

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……..Applicant

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Versus

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1. Sh. Diyal Singh S/o Sh. Tara Singh, Village Lakhna, Tehsil Patti, Distt.Tarn-Taran-143419.

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1. Sh. Davinder Singh S/o Sh. Diyal Singh, Village Lakhna, Tehsil Patti, Distt.Tarn-Taran-143419.

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1. Sh. Mandeep Singh S/o Sh. Diyal Singh, Village Lakhna, Tehsil Patti, Distt.Tarn-Taran-143419.

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Sh. Sarwan Singh S/o Sh. Nek Singh, Village Valtoha, Tehsil Patti, Distt.Tarn-Taran-143419

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….……Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate proxy for Sh. Gagandeep Toni, Advocate for the 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.27,95,512.11p (Rupees Twenty Seven Lac Ninety Five Thousand Five Hundred Twelve and Eleven Paisa only). The Original Application has been filed through Sh. Sandeep Kumar, authorized Representative of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.09.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant 1 & 2 had approached the applicant for the grant of Agriculture Cash Credit Limit of Rs.20.00 Lacs vide Loan Application dated 15.02.2014, which is Annexure A2 to this OA. Defendant nos.3 and 4 stood as guarantor vide Guarantor Form dated 15.02.2014, which is Annexure A3 to this OA

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The applicant sanctioned the Agriculture Cash Credit Limit of Rs.20.00 Lacs vide Sanction Letter dated 21.03.2024, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged her immovable properties i.e. Land Measuring 80Kanal 0Marla situated at Village Lakhna, Tehsil Patti, District Tarn Taran vide Registered Mortgage Deed bearing vasika no.1508 dated 26.03.2014, along with its Translations, which is Annexure A8 to this OA.

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Documents executed:- Loan cum Hypothecation Agreement, Demand Promissory Note, Copy of Deed of Guarantee all dated 25.03.2014, which are Annexures A5 to A7 to this OA; Account Statement with certificate, which is Annexure A9 to this OA; Demand Notice dated 16.05.2024 with postal receipts, which are Annexures A10 to A14 to this OA. 5. 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.27,95,512.11p, 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. 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 19.11.2024. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, authorized Representative, Axis Bank Ltd., h as been filed. 8. Heard arguments and perused record.

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It was argued by learned proxy counsel (through Video 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 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.27,95,512.11p (Rupees Twenty Seven Lac Ninety Five Thousand Five Twelve and Eleven Paisa 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 @11.05%p.a with rests from 25.11.2023 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 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.

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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.27,95,512.11p (Rupees Twenty Seven Lac Ninety Five Thousand Five Twelve and Eleven Paisa only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account

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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. 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 21.12.2024. 15. 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. Pronounced by me in the open Tribunal . Dated: 25.11.2024

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

Axis Bank Limited v. Diyal Singh and Others

Case brief

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Axis Bank Limited v. Diyal Singh and Others

Case brief

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