Allowed

State Bank of India v. Smt. Kamla Devi

DRT20 Jan 2024OA/963/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of outstanding dues against a female borrower from an agricultural loan. The court fixed uniform simple interest at 7% per annum from the date of filing, directing recovery from mortgaged/personal assets.

What did the court decide?

Recovery Certificate issued for Rs. 32,08,293/- with simple interest @ 7% per annum from 17.06.2023 till realisation to be recovered from mortgaged/personal assets.

State Bank of India versus Smt. Kamla Devi — Banking and Recovery | DRT (2024)

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

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ORIGINAL APPLICATION NO.963/2023

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DATE OF INSTITUTION: 17.06.2023

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DATE OF DECISION: 20^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 Corporate Centre at Madam Cama Road, Nariman Point, Mumbai, one of its local head offices at Sector17, Chandigarh and Branches all over India, including one at Adampur, District Hisar (Haryana)-125052 and one of its specialised Branches known as Stressed Assets Recovery Branch (SARB) at SCO No.70, Sector-5, Panchkula, District Panchkula (Haryana), through its Chief Manager, Sh. Ravindra Kumar Dass

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….. Applicant

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Versus

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Smt. Kamla Devi w/o Sh. Panchhi Ram r/o Village Bhana, Post Office Bhana, District Hisar (Haryana)

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.... Defendant

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Argued by: Sh. Anil Sharma, Advocate for the applicant bank Defendant ex parte vide order dated 04.01.2024

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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 due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of Rs.32,08,293/- (Rupees Thirty Two Lakh Eight Thousand Two Hundred and Ninety Three Only). It has been filed through Sh. Ravindra Kumar Dass, Chief Manager of the applicant bank stated

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OA/963/2023 STATE BANK OF INDIA VS KAMLA DEVI 2

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to be competent to institute the Original Application vide Gazette Notification dated 27.03.1987, Annexure-A1 (copy).

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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 for grant of Credit Facility of Rs. 1,86,000/- under KCC Scheme vide loan application Form dated 11.05.2015, Annexure-A2 (copy), which was renewed vide assessment sheet for renewal of KCC Limit dated 11.06.2018, Annexure-A6 (copy). Defendant further approached the applicant bank for enhancement of KCC Limit from Rs. 1,86,000/- to Rs. 7,81,500/- vide loan application Form dated 05.08.2019, Annexure-A11 (copy) and Term Loan of Rs. 37,50,000/- vide loan application Form dated 05.01.2018 for agricultural credit, Annexure-A7 (copy).

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The applicant bank sanctioned aforesaid facilities to the defendant vide letters of arrangement dated 28.05.2015, 05.01.2018 and 06.11.2019, Annexures-A3, A8 and A12 (copy), as per terms and conditions which were duly accepted by the defendant. 4. In order to secure the aforementioned credit facilities, the defendant executed hypothecation agreements dated 28.05.2015 and 05.01.2018, Annexures-A4 and A9 (copy).

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The aforesaid loan facilities were further secured by creation of registered mortgage by the defendant in respect of two parcels of agricultural land measuring 16 Kanal 2 Marla and 56 Kanal 14 Marla situated in the revenue estate of Bhana, Tehsil Adampur, District Hisar, Haryana, fully detailed in Para Nos. 5(v), 5(viii) and 5 (xi) of the Original Application.

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The documents related to the mortgage are as under:

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OA/963/2023 STATE BANK OF INDIA VS KAMLA DEVI 3

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i. Registered mortgage deed dated 22.05.2015 along with letter dated 22.05.2015 to the Tehsildar, Adampur, for entry/mutation of the mortgaged property, Annexure-A5 (colly) (copy).

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ii. Registered supplementary mortgage deed dated 28.11.2017, Annexure-A10 (copy).

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iii. Registered supplementary mortgage deed dated 06.11.2019 along with letter dated 06.11.2019 to the Tehsildar, Adampur, for entry/mutation of the mortgaged property and declaration on affidavit dated 29.09.2019 by the borrower, Annexure-A13 (colly) (copy).

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It is further the case of the applicant bank that the loan facilities were duly availed of by the defendant but he failed to maintain the financial discipline of the applicant bank leading to the loan accounts becoming irregular and those being classified as NPA on 09.08.2021. The defendant executed revival letters dated 25.05.2018, 23.12.2020 and 20.10.2022, Annexure-A15 (colly) (copy). The applicant bank recalled entire outstanding amount vide loan recall notice dated 31.05.2023, Annexure-A14 (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 accounts, a sum of Rs.32,08,293/(Rupees Thirty Two Lakh Eight Thousand Two Hundred and Ninety Three Only), is recoverable against the defendant as per statements of accounts, duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A16 (colly) (copy).

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OA/963/2023 STATE BANK OF INDIA VS KAMLA DEVI 4

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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 04.01.2024 .

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In support of contents of the OA, affidavit of evidence of Sh. Ravindra Kumar Dass, Chief Manager of the applicant bank was filed.

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

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It was argued by the learned 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 A16 , it is clear that the defendant had approached the applicant bank for availing of the loan facilities which were 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 evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.32,08,293/- (Rupees Thirty Two Lakh

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OA/963/2023 STATE BANK OF INDIA VS KAMLA DEVI 5

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Eight Thousand Two Hundred and Ninety Three Only) from the defendant.

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In so far as pendente lite and future interest is concerned, the applicant bank has claimed rate of interest @11.85% per annum in KCC limit and @11.45% per annum in term loan plus penal interest @1% per annum. In letters of arrangement dated 05.01.2018 and 06.11.2019, Annexures-A8 and A12 (copy), the rate of interest has been mentioned @13.45% per annum in term loan and @11.30% per annum in KKC limit.

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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 and the defendant being a female, 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.32,08,293/- (Rupees Thirty Two Lakh Eight Thousand Two Hundred and Ninety Three Only) with current and future simple interest @7% per annum w.e.f. 17.06.2023, till the date of realisation of the amount. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of

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OA/963/2023 STATE BANK OF INDIA VS KAMLA DEVI 6

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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 08.03.2024.

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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. Smt. Kamla Devi

Case brief

What is this about?

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State Bank of India v. Smt. Kamla Devi

Case brief

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