Allowed

Indusind Bank Limited v. Jasvir Kaur and Others

DRT17 Jan 2025OA/1114/2024

Case brief

AI extract

What is this about?

In an ex-parte original application under Section 19 RDBFI Act, the RID declared the respondents liable to pay Rs.33,43,357.10 outstanding loan dues. The Tribunal allowed interest at 8% p.a. and granted a recovery certificate to the bank.

What did the court decide?

Recovery of Rs.33,43,357.10 with simple interest @8% p.a.; issue of Recovery Certificate; liberty to enforce against mortgaged or personal assets.

Indusind Bank Limited versus Jasvir Kaur and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1114/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.08.2024

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DATE OF DECISION: 17.01.2025

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IndusInd Bank Ltd., a body corporate and a scheduled Bank constituted under the provisions of the Companies Act, 1956 with its Registered Office at 2401, General Thimmayya Road, Cantonment, Pune – 411001 and amongst others its Branch at IndusInd Bank, Branch at Ground Floor, G.T. Road, Near Bus Stand, Jagraon-142026, Distt. Ludhiana, Punjab, through its Deputy Manager & Attorney Holder Sh. Ashutosh Seth S/o Sh. Shri Krishna Prasad Seth, presently posted at Zonal Office, Agri Business Division, SCO 62, Top Floor, Sector 32C, Chandigarh.

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……..Applicant

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Versus

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Mrs. Jasvir Kaur W/o Sh. Amar Singh, R/o Street No.1, Chawla Street, Near Sherpur Chowk, Sherpur Road, Jagraon, Distt. Ludhiana, Punjab-142026.

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Mrs. Gurneet Kaur W/o Sh. Balkaur Singh, R/o Near Dharamshala, Balochta Patti, Maur Nauabad, Moga, Punjab-142057.

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Mr. Balkaur Singh, S/o Sh. Dial Singh R/o Near Dharamshala, Balochta Patti, Maur Nauabad, Moga, Punjab-142057.

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…..….Defendants

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Advocates:

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Argued by Sh. Sumit Batra, Advocate for the applicant (through VC) 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

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Rs.33,43,357.10P (Rupees Thirty Three Lacs Forty Three Thousand Three Hundred Fifty Seven And Paise Ten Only). The Original Application has been filed through Sh. Ashutosh Seth, Deputy Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 10.07.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant bank for the grant of CC Limit of Rs.10.75 Lacs and OD Limit of Rs.25.00 Lacs vide application form dated 03.10.2022, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the CC Limit of Rs.7.50 Lacs and OD Limit of Rs.20.15 Lacs, vide Sanction Letter dated 26.10.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant Nos.1 had mortgaged her immovable properties total Agriculture Land measuring 62K-01M situated at Village Sher Sing Wala, H.B. No.62, Tehsil & Distt. Faridkot, Punjab vide Declaration under Section 4(1) dated 28.10.2022, which is Annexure A10 to this OA.

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Documents executed:- D.P. Notes, D.P. Delivery Letters, Guarantee Deed all dated 29.10.2022, which are Annexures A4 to A9 to this OA; Recall Notice dated 28.06.2024 with postal receipts, which is Annexure A11 to this OA and Statements of accounts along with Certificate under Banker Act, which are Annexures A12 & A13 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both loan accounts there was a debit of Rs.33,43,357.10P 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 08.01.2025.

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In support of the OA, affidavit of Sh. Ashutosh Seth, Deputy Manager, Indusind Bank Limited h as been filed.

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Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through Video Conferencing 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 A13 to this OA, it is proved that the defendants 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.33,43,357.10P (Rupees Thirty Three Lacs Forty Three Thousand Three Hundred Fifty Seven And Paise Ten Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of bothl the accounts.

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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 [email protected]%p.a. along with penal interest @18.00%p.a. with half yearly rests from 17.05.2024 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 loans and prevalent market rates of

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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 defendants are liable to pay to the applicant a total sum of Rs.33,43,357.10P (Rupees Thirty Three Lacs Forty Three Thousand Three Hundred Fifty Seven And Paise Ten Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in 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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 27.02.2025 15. 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. Pronounced by me in the open Tribunal . Dated: 17.01.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indusind Bank Limited v. Jasvir Kaur and Others

Case brief

What is this about?

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Indusind Bank Limited v. Jasvir Kaur and Others

Case brief

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