Allowed

Bank of India v. Joginder Singh and Others

DRT10 Sept 2024OA/928/2022

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed by Bank of India against the legal heirs of a deceased borrower and a co-borrower for recovery of a loan of Rs. 25,21,778.50. The Tribunal found the case proven and directed joint and several liability of the respondents with uniform simple interest at 8.00% p.a. The applicant was granted a Recovery Certificate.

What did the court decide?

Total sum of Rs. 25,21,778.50 with costs and future simple interest @8.00% p.a. granted. Recovery Certificate issued. Entitlement to recover via sale of mortgaged or personal assets.

Bank of India versus Joginder Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.928/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.05.2022

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DATE OF DECISION: 10.09.2024

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) act 1970, having its Head Office at Star House, C-5, G-Block, Bandra Kurla Complex, Bandra (East) Mumbai-400051 and having its Zonal Office at Surya Kiran Complex, 1^st Floor, Phase-II, The Malln near Rakh Bagh, Civil Lines, Ludhiana and amongst various branches having its branch at Jarg, Tehsil Payal, District Ludhiana, though its duly Constituted Attorney and Authorized Officer of plaintiff bank Sh. Kailash Krishna Bhatt.

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……..Applicant

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Versus 1. Sh. Joginder Singh S/o Sh. Bachan Singh, r/o H. No. 419, village Bhurthla Mander, Tehsil Malerkotla, Distict Sangrur, now deceased through Legal heirs:- (Borrower- Deceased)

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Represented through Legal Heir(s):-

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1(i) Smt. Paramjit Kaur W/o Sh. Joginder Singh, R/o H.No. 419, Village Bhurthla Mander, Tehsil Malerkotla, District Sangrur, Punjab. 1(ii) Sh. Sukhwinder Singh S/o Sh. Joginder Singh, R/o H.No. 419, Village Bhurthla Mander, Tehsil Malerkotla, District Sangrur, Punjab. 1(iii) Sh. Jaspal Singh S/o Sh. Joginder Singh, R/o H.No. 419, Village Bhurthla Mander, Tehsil Malerkotla, District Sangrur, Punjab. 1(iv) Sh. Jasveer Singh S/o Sh. Joginder Singh, R/o H.No. 419, Village Bhurthla Mander, Tehsil Malerkotla, District Sangrur, Punjab.

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2. Sh. Jagminder Singh S/o Sh. Gajjan Singh, R/o H. No. 336, Village
Bhurthla Mander, Tehsil Malerkotla, District Sangrur, Punjab.
………Defendants

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Advocates:

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Argued by Sh. Satish Jaswal, counsel proxy for Sh. Mohit Goyal, counsel 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.25,21,778.50p (Rupees Twenty Five Lacs Twenty One Thousand Seven Hundred Seventy Eight and Paisa Fifty only). The Original Application has been filed through Sh. Kailash Krishna Bhatt, Constituted Attorney and Authorized Officer who is competent to institute the Original Application vide Power of Attorney dated 24.10.2018, which is Annexure A2 to this OA. 2. The brief facts of the OA are that the defendant no.1 (since deceased) and defendant no.2 had approached the applicant bank for the grant of Cash Credit Limit (KCC) of Rs.6.00 Lacs and Agriculture Over draft of Rs.10.00 vide Loan Applications dated 09.06.2015, which are Annexures A3 and A4 to this OA 3. The applicant Bank sanctioned the Cash Credit Limit (KCC) of Rs.6.00 Lacs and Agriculture Over draft of Rs.10.00 Lacs vide Credit Sanction Advice and Credit Sanction both dated 16.07.2015, which are Annexures A5 & A13 to this OA and the terms and conditions were duly accepted by the defendant no.1 (since deceased) and defendant no.2. 4. Defendant no.1 (since deceased) had mortgaged his immovable properties i.e. total land measuring 19Bighe-04Biswe situated at Village Bhurthla Mander, Tehsil Malerkotla, District Sangrur, Punjab vide Declaration under Section 4 (1) of The Agricultural credit operations and Miscellaneous Provisions (bank) Act, 1978 dated

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10.07.2015, Jamabandi for the year 2013-14 along with their translation, which are Annexures A21 & A22 to this OA. Documents executed:- Legal Opinion dated 16.06.2015, which is Annexure A1 to this OA; Demand Promissory Note, Declaration by borrower, Letter of Declaration, Undertaking & Authority, Deed of Guarantee, Hypothecation-cum-Loan, Declaration by borrower, acknowledgment of Debt/Securities, Demand Promissory Note, Declaration by borrower, Letter of Declaration, Undertaking & Authority, Deed of Guarantee, Declaration by Borrower all dated 16.07.2015, which are Annexures A6 to A12 & A14 to A18 to this OA; Acknowledgment of Debt/ Securities dated 12.07.2018, which is Annexure A19 to this OA; Death Certificate dated 06.06.2019, which is Annexure A20 to this OA; and Statements of accounts and Memorandum of Interest along with the certificates under Banker’s Book Evidence Act, which are Annexures A23 to A26 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.25,21,778.50p, which is recoverable and the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), 1(iv) and defendant no.2 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 01.08.2024. 7. In support of the OA, affidavit of Sh. Kailash Krishna Bhatt , Constituted Attorney and Authorized Officer, Bank of India Limited has been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy 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 Annexures A1 to A26 to this OA, it is proved that the defendant no.1

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(since deceased) and defendant no.2 approached applicant bank for availing of the loan facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.25,21,778.50p (Rupees Twenty Five Lacs Twenty One Thousand Seven Hundred Seventy Eight and Paisa Fifty only) along with interest from the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), 1(iv) and defendant no.2, 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 @13.80%p.a. in KCC Limit and Agri OD from 27.05.2022 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 both the loan accounts 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 legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), 1(iv) and defendant no.2 are liable to pay to the applicant a total sum of Rs.25,21,778.50p (Rupees Twenty Five Lacs Twenty One Thousand Seven Hundred Seventy Eight and Paisa Fifty only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in

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both the loan accounts 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 legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), 1(iv) and defendant no.2 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.

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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 05.10.2024.

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Copy of this order be given dasti to the applicant bank and be sent to the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), 1(iv) and defendant no.2 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.

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Dated: 10.09.2024

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

Bank of India v. Joginder Singh and Others

Case brief

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Bank of India v. Joginder Singh and Others

Case brief

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