Allowed

Rbl Bank Limited v. Randhir Singh and Another

DRT15 Jan 2025OA/120/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an ex-parte application by RBL Bank Limited for recovery of outstanding dues totaling approx Rs. 84 Lakhs from two borrowers. The Tribunal fixed a uniform repayment interest rate of 08%p.a. and directed issuance of a Recovery Certificate and sale of mortgaged properties.

What did the court decide?

Recovery Certificate issued; defendants liable to pay Rs. 84,16,286.69 plus future interest at 08% p.a.; recovery to be effected via sale of mortgaged properties or attachment of personal assets.

Rbl Bank Limited versus Randhir Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.120/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.01.2023

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DATE OF DECISION: 15.01.2025

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RBL Bank Limited, a Banking Companies incorporated and registered under the Companies Act, 1956 having its Registered Office at Ist Lane, Shahupuri, Kolhapur-416001 (hereinafter referred to as “the Bank”) and one of its Branch Office at RBL Bank, Property No.1, Opposite Modi Mill, Okhla Phase-III, New Delhi-110020 through its duly constituted Attorney Sh. Samirendu Patra, Manager.

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……..Applicant Versus

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Sh. Randhir Singh S/o Sh. Kuldeep Singh, R/o Harpalpur, Patiala-140701 (Punjab).

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Sh. Balwinder Singh S/o Sh. Nachhter Singh, R/o Village Bhagrana, Fatehgarh Sahib-140602, (Punjab).

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………. Defendants

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Advocates:

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Argued by Sh. C.S. Pasricha, Advocate for the 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.84,16,286.69P (Rupees Eighty Four Lacs Sixteen Thousand Two Hundred Eighty Six And Paise Sixty Nine Only). The Original Application has been filed through Sh. Samirendu Patra, Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 02.03.2022, 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 for KCC SF Loan of Rs.3.00 Lacs and KCC PF

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Loan of Rs.57.00 Lacs vide Loan Applications dated 20.07.2019, which is Annexure A2 to this OA.

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The applicant sanctioned KCC SF Loan of Rs.3.00 Lacs and KCC PF Loan of Rs.57.00 Lacs vide Sanction Letters dated 08.08.2019 and Addendum Sanction Letters dated 09.08.2019 & 21.08.2019, which are Annexures A3, A15 & A16 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 properties, i.e. a. Land measuring 326K-14M situated at Salempur Sekhan, Sub Tehsil Ghanaur, Distt Patiala, b. 56Bigha-17Biswa-10Biswasi situated at Mauja Gobindgarh Dakhli Jand Mangholi, Hadbast no.377, Sub Tehsil Ghanaur, Distt Patiala vide Declaration u/s 4(1) dated 28.08.2019 and their translations, which is Annexure A12 to this OA. Documents executed:-D.P. Notes, Letters of Continuity for D.P. Note, Agreement for Overdraft/Cash Credit Cum Hypothecation and Agreement of Guarantee all dated 16.08.2019, which are Annexures A4 to A8 & A11 to this OA; Disbursement Request Form dated 09.09.2019, which is Annexure A9 to this OA; Undertaking, which is Annexure A10 to this OA; Letter Written by Bank to Capital Small Finance Bank Regarding Takeover of Existing Credit Facility dated 10.09.2019, which is Annexure A13 to this OA; Declaration Form dated 14.08.2019, which is Annexure A14 to this OA; Legal Notice with tracking report dated 23.03.2021, which is Annexure A17 to this OA and Statements of Accounts along with Statements of Closure Statement KCC SF Loan Facilities all dated 06.09.2022, which are Annexures A18 to A21 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 loan accounts there was a debit of Rs.84,16,286.69P, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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amount, therefore, the applicant 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 07.01.2025.

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In support of the OA, affidavit of Sh. Samirendu Patra, Manager, RBI Bank Ltd h as been filed. 8. 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 A21 to this OA, it is proved that the defendants approached applicant for availing of the loans 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 loans 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.84,16,286.69P (Rupees Eighty Four Lacs Sixteen Thousand Two Hundred Eighty Six And Paise Sixty Nine Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @12.00%p.a. in KCC Limit and @14.35%p.a. in KCC PF Loan along with penal interest @4.00%p.a. from 07.09.2022 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

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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 @08.00%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.84,16,286.69P (Rupees Eighty Four Lacs Sixteen Thousand Two Hundred Eighty Six And Paise Sixty Nine Only) jointly and severally, with costs, current and future simple interest @08.00%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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 24.02.2025. 15. 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: 15.01.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Rbl Bank Limited v. Randhir Singh and Another

Case brief

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Rbl Bank Limited v. Randhir Singh and Another

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