Allowed

Indian Overseas Bank v. Vikram and Another

DRT27 Aug 2024OA/986/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Indian Overseas Bank against a borrower and guarantor for recovery of Rs. 28,26,242. The court issued a Recovery Certificate, set interest at 8% p.a., and authorized enforcement against mortgaged and personal assets.

What did the court decide?

Issued Recovery Certificate; Decreed payment of Rs. 28,26,242 with costs and interest at 8% p.a.; Authorized recovery from sale of mortgaged and personal assets.

Indian Overseas Bank versus Vikram and Another — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.986/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.08.2023

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DATE OF DECISION: 27.08.2024

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Indian Overseas Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, (5 of 1970) having its Central Office at 763, Anna Salai, Chennai-600 022 and a branch office, amongst other places known as Zirakpur Branch1499 through Smt. Disha Dhiman, its Branch Manager, Constituted Attorney and Principal Officer.

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……..Applicant Versus

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Shri Vikram S/o Shri Dilbag Rai R/o Guru Nanakpura Colony, Lalru Mandi District SAS Nagar (PUNJAB)-140501

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(Borrower)

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Smt. Neha D/o Shri Lalta Prasad, Flat no. 602, Floor-6^th , Block-C, Ansal Woodbury Apartments, Bhabat, Zirakpur District SAS Nagar (PUNJAB)-140603 (Guarantor) ….……Defendants

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Advocates:

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Argued by Sh. Mohan Prasad, Advocate proxy for Sh. Pancham Sharma, counsel for the applicant Defendants are ex-parte

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FINAL ORDER 1. 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.28,26,242.00 (Rupees Twenty Eight Lacs Twenty Six Thousand Two Hundred Forty Two Only). The Original Application has been filed through Smt. Disha Dhiman, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 14.09.2015, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 had approached the applicant bank for the grant of Housing Loan of Rs.27.00 Lacs vide Loan Application dated 28.02.2022, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor.

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The applicant Bank sanctioned the Housing Loan of Rs.27.00 Lacs vide Sanction Letter dated 22.03.2022, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable property i.e. total land measuring 0.33 Marla situated at fLat No.7A, Ground Floor, Rehmat Enclave, Randhawa Road, Kharar, HB No. 184, MC & Tehsil Khara District SAS Nagar vide title deed No.2022-23/15/1/619 dated 11.04.2022 along with its translation, which is Annexures A8 to this OA.

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Documents executed: - Demand Promissory Note, Lette of undertaking, Housing loan agreement for direct finance scheme and Guarantee agreement all dated 22.03.2022, which are Annexures A4 to A7 to this OA; Confirmation Letter dated 12.04.2022, which is Annexure A9 to this OA; Demand Notice U/s 13(2) of SARFAESI Act dated 26.05.2023, which is Annexure A10 to this OA and Statement of account alongwith Certificate of Banker’s Book of Evidence dated 27.07.2023, which is Annexure A11 to this OA.

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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.28,26,242.00, which is recoverable and the defendants 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.

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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 19.07.2024.

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In support of the OA, affidavit of Smt. Disha Dhiman, Branch Manager, Indian Overseas Bank has been filed. 8. Heard ex-parte 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 A11 to this OA, it is proved that the defendants approached applicant bank 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 bank is entitled to recover a sum of Rs.28,26,242.00 (Rupees Twenty Eight Lacs Twenty Six Thousand Two Hundred Forty Two 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.50%p.a. with monthly rests from 23.07.2023 till the realization. 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.28,26,242.00 (Rupees Twenty Eight Lacs Twenty Six Thousand Two Hundred Forty Two Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 19.09.2024.

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Copy of this order be given dasti to the applicant bank 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: 27.08.2024

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

Indian Overseas Bank v. Vikram and Another

Case brief

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Indian Overseas Bank v. Vikram and Another

Case brief

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