Allowed

Indian Bank v. Gurnam Singh and Another

DRT12 Feb 2025OA/1218/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Indian Bank's application for recovery of Rs. 30.45 lakhs along with future interest @8% p.a. from the respondents who defaulted on a KCC loan. The Tribunal set interest due to market conditions and ordered issuance of a Recovery Certificate.

What did the court decide?

Declarations of liability to pay principal and interest @8% p.a. Order to issue Recovery Certificate and enforce claim via execution proceedings under SARFAESI Act.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1218/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.10.2024

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DATE OF DECISION: 12.02.2025

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Indian Bank, (erstwhile Allahabad Bank), on the basis of Amalgamation Scheme dated 01.04.2020, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970 having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai, Tamil Nadu, 600014 and having its Zonal Office at Ludhiana, and amongst other branches a branch at Roopnagar through its Branch Manager Mrs. Suman duly constituted and authorized signatory.

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……..Applicant Versus

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1. Sh. Gurnam Singh S/o Sh. Mehar Chand R/o House No.68, Nodhe Majara, Tehsil Anandpur Sahib, District Roopnagar-140001.

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Sh. Sukhwinder Singh S/o Sh. Mehar Chand R/o House No.68, Nodhe Majara Tehsil Anandpur Sahib, District Roopnagar-140001.

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………Defendants

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Advocates:

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Argued by Ms. Deepika Mittal, 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.30,45,574.00p (Rupees Thirty Lacs Forty Five Thousand Five Hundred Seventy Four Only). The Original Application has been filed through Mrs. Suman, Chief Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 24.07.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant bank for the grant of KCC Loan (Akshay Krishi)

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of Rs.14.00 Lacs vide Loan Application dated 01.01.2013, which is Annexure A2 to this OA.

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3. The applicant Bank sanctioned the KCC Loan (Akshay Krishi) of
Rs.14.00 Lacs vide Sanction Letter dated 21.01.2013 and Memorandum
of sanction of Loan dated 04.02.2013, which areAnnexures A4 and
A5to this OA and the terms and conditions were duly accepted by the
defendants.
4. Defendant no.1 had mortgaged his immovable property i.e. total
land measuring 28Kanal-09Marla situated at Village Dhamana, Hadbast
No.517, Tehsil Anandpur Sahib, District Roopnagar vide Registered
Mortgage Deed bearing vasika no. 2331 dated 21.01.2013 with its
translations,which isAnnexure A9to this OA.
Documents executed:- Interview of Cum Appraisal, which isAnnexure
A3to this OA; D.P. Note dated 03.02.2013, which isAnnexure A6to this OA; Hypothecation agreement and Consent clauses to be executed by borrower both dated 04.02.2013, which areAnnexures A7 & A8to this OA; Affidavit dated 10.01.2013, which isAnnexure A10to this OA;
Acknowledgment of Debt dated 30.11.2018, 24.11.2021 & 13.03.2023, which areAnnexures A11, A14 & A15to this OA; Legal Notices dated 27.09.2019 & 08.07.2020, which areAnnexures A12 & A13to this OA and Account Statement with certificate, which isAnnexure A16to 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.30,45,574.00p, 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 22.01.2025.
7. In support of the OA, affidavit ofMrs. Suman,Chief Manager,
Indian Bankhas 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 A16 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 bank. 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.30,45,574.00p (Rupees Thirty Lacs Forty Five Thousand Five Hundred Seventy Four 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.

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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 @14.00%p.a. with penal interest @2.00%p.a. with monthly rests from 13.09.2024 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 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 defendants are liable to pay to the applicant a total sum of Rs.30,45,574.00p (Rupees Thirty Lacs Forty Five Thousand Five Hundred Seventy Four Only) jointly and severally, with costs, current

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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 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 13.03.2025. 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: 12.02.2025.

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

Indian Bank v. Gurnam Singh and Another

Case brief

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Indian Bank v. Gurnam Singh and Another

Case brief

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