Allowed

Indian Bank v. Mukhtiar Singh

DRT14 Feb 2025OA/1134/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Indian Bank for recovery of an outstanding loan of Rs. 72,34,117.00. After hearing arguments and noting the defendant's absence, the court granted relief and instructed issuance of a Recovery Certificate.

What did the court decide?

Application allowed; defendant liable to pay principal sum with simple interest @8.00% p.a.; Recovery Certificate issued to enable recovery from sale of mortgaged or personal assets.

Indian Bank versus Mukhtiar Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1134/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.08.2021

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DATE OF DECISION: 14.02.2025

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Indian Bank (erstwhile Allahabad Bank) on the basis of Amalgamation Scheme dated 04.03.2020 having its Corporate Office address at 254, 260, Avvai Shanmugham Salai, Royapettah, Chennai-600014. A body corporate with perpetual succession constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970, having amongst other branches at various places including at Mehna Branch, District Moga through its Authorised Attorney Sh. Shobhit Gautam, Branch Manager, constituted Power of Attorney holder of the applicant and Principal Officer.

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……..Applicant

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Versus

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Sh. Mukhtiar Singh S/o Sh. Tarlok Singh, R/o Village Ammiwala, Tehsil Dharamkot, District Moga

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….……Defendant

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Advocates:

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Argued by Sh. Lekh Raj Nandal, Advocate for the applicant Defendant 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.72,34,117.00 (Rupees Seventy Two Lacs Thirty Four Thousand One Hundred Seventeen only). The Original Application has been filed through Sh. Shobhit Gautam, Branch Manager and Principal Officer o f the applicant, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.36.50 Lacs vide Loan application dated 11.12.2012, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.36.50 Lacs vide Memorandum of Sanction and Sanction Letter dated 22.12.2012, which are Annexures A4 & A6 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. agricultural land measuring 31K-02M situated at Village Ammiwala, Tehsil Dharamkot, District Moga, Punjab vide Registered Mortgaged Deed bearing vasika No. 3679 dated 26.02.2013 with its translation, which is Annexure A7 to this OA.

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Documents executed:- Copy of Report of Mins dated 11.12.2012, which is Annexure A3 to this OA; Copy of Interview-cum-appraisal dated 22.12.2012, which is Annexure A5 to this OA; Copy of Hypothecation Deed and Copy of Demand Promissory Note both dated 28.02.2013, which are Annexures A8 & A9 to this OA; Copy of Demand Notice dated 03.06.2021, which is Annexure A10 to this OA; Copy of Acknowledgment of Debts dated 13.12.2018, which is Annexure A11 to this OA and Copy of Statement of Account, which is Annexure A12 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.72,34,117.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 01.05.2024.

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In support of the OA, affidavit of Sh. Shobhit Gautam, Branch Manager and Principal Officer, Indian Bank h as 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 A12 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.72,34,117.00 (Rupees Seventy Two Lacs Thirty Four Thousand One Hundred Seventeen only) along with interest from the defendant, 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 @9.85%p.a. with monthly rests from 03.06.2021 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 defendant, 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 defendant is liable to pay to the applicant a total sum of Rs.72,34,117.00 (Rupees Seventy Two Lacs Thirty Four Thousand One Hundred Seventeen only), 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 shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant 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 defendant. 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 17.03.2025.

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Copy of this order be given dasti to the applicant and be sent to defendant 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: 14.02.2025

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

Indian Bank v. Mukhtiar Singh

Case brief

What is this about?

What did the court decide?

Indian Bank v. Mukhtiar Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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