Allowed

Edelweiss Asset Reconstruction Company Limited v. M/S Dewan Chand Krishan Lal and Co.and Others

DRT6 Jan 2025OA/1039/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Edelweiss Asset Reconstruction Company Limited for recovery of Rs. 4.78 crores against the respondents. The court adjusted the claimed interest rate to 8% per annum and authorized the issuance of a Recovery Certificate for enforcement.

What did the court decide?

Recovery certificate issued for Rs. 4,78,10,349.92p with simple interest at 8.00% p.a. from the date of filing.

Edelweiss Asset Reconstruction Company Limited versus M/S… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1039/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.08.2024

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DATE OF DECISION: 06.01.2025

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Edelweiss Asset Reconstruction Company Limited, a company incorporated under the Companies Act, 1956 and registered as a Securitization and Asset Reconstruction Company pursuant to Section 3 of SARFAESI Act, 2002 having its registered office at Edelweiss House, Off CST Road, Kalina, Mumbai-400098 through its Authorized Officer Sh. V.K. Tiwari, presently posted at New Delhi.

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……..Applicant

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Versus

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M/s Dewan Chand Krishan Lal & Co., through its Proprietor Sh. Ashok Kumar Juneja, having its Office at 3722, Model Town Road, Opposite Chhabra Hospital, Ludhiana-141001.

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Smt. Rajni Juneja, wife of Sh. Ashok Kumar Juneja, resident of House No.164, B Block, Bhai Randhir Singh Nagar (B.R.S. Nagar) Ludhiana-141012.

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Sh. Ashok Kumar Juneja son of Sh. Krishan Lal Juneja, resident of House No.164 B Block, Bhai Randhir Singh Nagar (B.R.S. Nagar) Ludhiana-141012.

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Second Address: 67, Moh Saqnt, Isher Singh Nagar, Ludhiana- 141002.

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Sh. Sahil Juneja son of Sh. Ashok Juneja, resident of House No.164, B Block, Bhai Randhir Singh Nagar (B.R.S Nagar) Ludhiana-141012

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….……Defendants

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Advocates:

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Argued by Sh. Mahir Sood, Advocate for the applicant Defendants is 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.4,78,10,349.92p (Rupees Four Crore Seventy Eight Lacs Ten Thousand Three Hundred Forty Nine and Ninety Two Paise only). The Original Application has been filed through Sh. V.K. Tiwari, Authorized Officer of the applicant, who is competent to institute the Original Application vide Board Resolution dated 28.12.2023, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant no.1 through its proprietor i.e. defendant no.3 had approached the Indusind Bank Limited for the grant of Business Loan total of Rs.515.00 Lacs vide Loan applications dated 11.10.2017, 21.11.2018, 28.12.2018, 11.10.2017, 16.07.2017 and 03.03.2017, which are Annexures A- 4/1 to A-4/9 to this OA. 3. The IndusInd Bank Limited sanctioned the Business Loan total of Rs.3,70,86,000/- vide Sanction Letters dated 13.12.2017, 20.12.2017, 24.02.2017, 29.12.2018 & 25.11.2020, which are Annexures A-5/1 to A-5/5 and the terms and conditions were duly accepted by the defendant. Later the account got transferred to Edelweiss Asset Reconstruction Company Limited vide Assignment Agreement dated 29.12.2021 which is Annexure A1 to this OA

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Defendant No.2 had mortgaged her immovable property i.e. Residential House No.B-18-3722, measuring 250 Sq. Yds. Situated at Taraf Burrah, Jawahar Nagar Model Town Road, Tehsil and District Ludhiana, Punjab vide Equitable Mortgage of Sale Deed bearing vasika no.8530, dated 20.10.2000 along with its English Translation, which is Annexure A14 to this OA.

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Documents executed: -; Valuation Report dated 20.02.2017 which is Annexure A3 to this OA; Demand Promissory Notes dated

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23.02.2017, 15.12.2017 & 29.12.2018 which are Annexures A-6/1, A-6/2, A-6/3, A-6/4 to this OA; Loan Agreement dated 26.11.2020 which is Annexure A-6/5 to this OA; Declarations (For Extension of Mortgage by way of Constructive Delivery) and Supplemental Memorandum of Entry dated 29.12.2018 which are Annexures A7 to A9 to this OA; Declaration (For Extension of Mortgage by way of Constructive Delivery) dated 26.11.2020 which is Annexure A10 to this OA; Letters of Continuity dated 23.2.2017, 15.12.2017 & 29.12.2018 which are Annexures A-11/1, A-11/2, A-11/3 & A- 11/4 to this OA; Letters of General Lien and Set Off dated 23.02.2017, 15.12.2017 and 29.12.2018 which are Annexures A-12/1, A-12/2, A-12/3 & A-12/4 to this OA; Indemnity Bonds dated 02.01.2019 & 29.12.2018 which are Annexures A-13/1, A-13/2, A-13/3 to this OA; Notice U/s 13(2) dated 07.06.2024 along with postal receipts as well as track reports which are Annexure A15 & A16 (Colly) to this OA; Publication dated 13.06.2024 which is Annexure A17 to this OA; Statement of accounts with certificate, which are Annexures A-18/1 to A-18/5 to this OA and Summary of Loan accounts which are Annexures A-19/1 to A-19/5 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.4,78,10,349.92p, which is recoverable and the defendants were served recall notice 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 notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 02.01.2025. 7. In support of the OA, affidavit of Sh. V.K. Tiwari, Authorized Officer, Edelweiss Asset Reconstruction Company Limited has been filed.

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Heard arguments and perused record.

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It was argued by learned 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 A-19/5 to this OA, it is proved that the defendants approached the IndusInd Bank Limited 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 the IndusInd Bank Limited. 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 is entitled to recover a sum of Rs.4,78,10,349.92p (Rupees Four Crore Seventy Eight Lacs Ten Thousand Three Hundred Forty Nine and Ninety Two Paise only) along with interest from the defendants, 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 @10.65%p.a. in respect of Loan A/c no. PLE00222N, interest @10.00%p.a. in respect of Loan A/c no.PLE00357N, interest @10.35%p.a. in respect of Loan A/c no.PLE00553N, interest @12%p.a. in respect of Loan A/c no.PLE00554N and interest @9.25%p.a. in respect of Loan A/c no.PLE01025N with monthly rests from 09.07.2024 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

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just and appropriate to grant uniform simple interest @8.00%p.a. in 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.

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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.4,78,10,349.92p (Rupees Four Crore Seventy Eight Lacs Ten Thousand Three Hundred Forty Nine and Ninety Two Paise only), with costs, current and future simple interest @8.00%p.a. in the loan accounts 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 11.02.2025.

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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: 06.01.2025

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

Edelweiss Asset Reconstruction Company Limited v. M/S Dewan Chand Krishan Lal and Co.and Others

Case brief

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What did the court decide?

Edelweiss Asset Reconstruction Company Limited v. M/S Dewan Chand Krishan Lal and Co.and Others

Case brief

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What did the court decide?

What the court decided

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