Allowed

Axis Bank Limited v. Harchand Singh and Another

DRT30 Nov 2024OA/917/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal admitted an application filed by Axis Bank against two defendants for recovery of a principal amount of Rs. 33,26,080.23. After the defendants failed to appear, the tribunal proceeded ex-parte, allowing the application and directing recovery from hypothecated properties or personal assets.

What did the court decide?

Declared defendants liable to pay Rs. 33,26,080.23 plus simple interest at 8% p.a. from the date of filing; directed issuance of Recovery Certificate and authorized sale of mortgaged or personal asset

Axis Bank Limited versus Harchand Singh and Another — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.917/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.07.2024

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DATE OF DECISION: 30.11.2024

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Axis Bank Ltd. having its Registered Office at ‘Trishul’ 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad, Gujarat and also at Axis Bank, Loan Centre, SCO No.367368, Sector-34A, Chandigarh-160022 through its Sh. Sandeep Kumar, its authorized representative.

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……..Applicant Versus

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Sh. Harchand Singh S/o Sh. Balbir Singh Vill. Jagatpura, Tehsil Patti, Distt. Tarn Taran-143419.

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Smt. Sukhwant Kaur W/o Sh. Harchand Singh, Vill. Jagatpura, Tehsil Patti, Distt. Tarn Taran-143419.

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………. Defendants

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Advocates:

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Argued by Ms. Pinki, Advocate proxy for Sh. Gagandeep Toni, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.33,26,080.23p (Rupees Thirty Three Lacs Twenty Six Thousand Eighty And Paise Twenty Three 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 General 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 defendants had approached the applicant for grant of KCC Limit of Rs.22.00 Lacs vide Loan Application dated 03.11.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.22.00 Lacs vide Sanction Letter dated 19.11.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 7.11 Acre(56K-19M) situated at Village Jagatpura, H.B. No.91, Tehsil Patti, Distt. Tarn Taran vide Declaration under Section 4(1) dated 1 9.11.2014, which is Annexure A6 to this OA and Letter to Sub-Registrar for creation of charge dated 19.11.2014, which is Annexure A7 to this OA Documents executed:-Loan-cum-Hypothecation Agreement & D.P. -Loan-cum-Hypothecation Agreement & D.P. Note dated 20.11.2014, which are Annexures A4 & A5 to this OA;; Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A8 to this OA & Notice dated 16.05.2024 with Postal Receipts, which are Annexures A9 & A10 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 adebit of Rs.33,26,080.23p, which is recoverable and the defendants was 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 28.11.2024. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Authorized Representative, Axis Bank h as been filed. 8. Heard arguments and perused record.

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Documents executed:-Loan-cum-Hypothecation Agreement & D.P. -Loan-cum-Hypothecation Agreement & D.P. Note dated 20.11.2014, which are Annexures A4 & A5 to this OA;; Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A8 to this OA & Notice dated 16.05.2024 with Postal Receipts, which are Annexures A9 & A10 to this OA.

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It was argued by learned proxy counsel 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 A10 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 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 is entitled to recover a sum of Rs.33,26,080.23p (Rupees Thirty Three Lacs Twenty Six Thousand Eighty And Paise Twenty Three 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 @11.00%p.a. with rests from 21.11.2014 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 @08.00%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.33,26,080.23p (Rupees Thirty Three Lacs Twenty Six Thousand

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Eighty And Paise Twenty Three Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.01.2025.

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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: 30.11.2024

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

Axis Bank Limited v. Harchand Singh and Another

Case brief

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Axis Bank Limited v. Harchand Singh and Another

Case brief

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