Allowed

Indian Bank v. Baldev Singh

DRT14 Feb 2025OA/1136/2022

Case brief

AI extract

What is this about?

In an Original Application under Section 19 of the RDBFI Act, 1993, the Debts Recovery Tribunal allowed the bank's claim for recovery of Rs.36,86,302. The court directed repayment with simple interest at 8% p.a. from the date of filing till realization and directed issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.36,86,302.00 with simple interest @8.00%p.a. from date of filing till realization; Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1136/2022 PRESIDED OVER BYMRIDULESH 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 & Transfer of Undertaking) Act of 1970 having amongst other branches at Various places including at Mehna Branch District Moga through its authorized Attorney SH. Shobhit Gautam, Branch Manager, Constituted Power of Attorney holder of the Bank and Principal Officer.

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……..Applicant

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Versus

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Sh. Baldev Singh S/o Sh. Banta Singh R/o Village Kanniyan Khurd District Moga (Punjab).

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Sh. Sukhdev Singh S/o Sh. Banta Singh R/o Village Kanniyan Khurd District Moga (Punjab).

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Sh. Gurmej Singh S/o Sh. Banta Singh R/o Village Kanniyan Khurd District Moga (Punjab).

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….……Defendants

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Advocates:

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Argued by Sh. Lekh Raj Nandal, Advocate for applicant Defendants are 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.36,86,302.00p (Rupees Thirty Six Lacs Eighty Six Thousand Three Hundred Two only). The Original Application has been filed through Sh. Shobhit Gautam, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 11.02.2021, which is Annexure A1 to this OA.

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2. The brief facts of the OA are that the defendants had approached the applicant for the KCC Limit of Rs.15.00 Lacs vide Loan Application
dated 22.05.2012, which isAnnexure A2to this OA.
3. The applicant sanctioned the KCC Limit of Rs.15.00 Lacs vide
Sanction Letter dated 28.05.2012, which isAnnexure A7to this OA and the terms and conditions were duly accepted by the defendants.
4. Defendants had mortgage their immovable properties i.e total land measuring 14K-18M detailed as:
a. land measuring 04K-0M situated atVillage Kishanpura Kalan,
Tehsil Dharamkot, District Moga (Punjab)
b. land measuring 10K-18M situated atVillage Kannian Khurd, Tehsil
Dharamkot, District Moga (Punjab) vide Registered Mortgage Deed bearing deed no. 980 dated 28.06.2012, with its translations,which isAnnexure A8to this OA.
Documents executed:- Report of Mins dated 24.05.2012, which is
Annexure A3to this OA; Appraisal, which isAnnexure A4to this
OA; Memorandum of sanction, Interview cum appraisal form both dated
28.05.2012, which areAnnexures A5 & A6to this OA; Hypothecation
Deed, Demand Promissory note both dated 11.07.2021, which are
Annexures A9 & A10to this OA; Demand Notice dated 05.10.2019, which isAnnexure A11to this OA and statements of account, which is Annexure A12to this OA.
5. 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.36,86,302.00p, which is recoverable and the defendants were served recall notices 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 01.05.2024.
7. In support of the OA, affidavit of Sh. Shobhit Gautam, Branch
Manager, Indian Bank has been filed.

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Heard arguments and perused record. 9. 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 defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.36,86,302.00p (Rupees Thirty Six Lacs Eighty Six Thousand Three Hundred 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 in relief clause has claimed interest @16.75%p.a. with monthly rests from 02.06.2021 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.36,86,302.00p (Rupees Thirty Six Lacs Eighty Six Thousand Three Hundred 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

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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.

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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 17.03.2025.

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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. 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. Baldev Singh

Case brief

What is this about?

What did the court decide?

Indian Bank v. Baldev Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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