Allowed

Bank of India v. Sh. Kirpal Singh

DRT26 Mar 2025OA/1243/2024

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed by Bank of India against two defendants for recovery of a loan debt of approx. Rs. 27 lakhs. The court ex-parte the absent defendants and modified the claimed interest rate to 8% per annum, ordering issuance of a Recovery Certificate.

What did the court decide?

Debt of Rs. 27,00,670.89 with interest @8% p.a. ordered to be paid; Recovery Certificate issued.

Bank of India versus Sh. Kirpal Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1243/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.10.2024

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DATE OF DECISION: 26.03.2025

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head Office at Star House, Plot No.C-5, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office amongst other places at Kilaraipur Distt. Ludhiana through Sh. Suresh Kumar, Chief Manager & constitute Attorney of Bank of India, Zonal Office, Rakh Bagh, Ludhiana.

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……..Applicant

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Versus

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Sh. Kirpal Singh S/o Sh. Natha Singh R/o Village Kasba Bharal,

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Tehsil & Distt. Malerkotla.

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Sh. Darbara Singh S/o Sh. Gurcharan Singh R/o Village Jalwana, Tehsil & Distt. Malerkotla.

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………. Defendants

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Advocates:

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Argued by Sh. B.S. Walia, 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.27,00,670.89p (Rupees Twenty Seven Lacs Six Hundred Seventy and Paise Eighty Nine Only). The Original Application has been filed through Sh. Suresh Kumar, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 20.02.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had

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approached the applicant for grant of KCC Limit of Rs.6.00 Lacs and

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2 OA/1243/2024 BANK OF INDIA VS . KIRPAL SINGH AND ANOTHER

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AGOD limit of Rs.4.50 Lacs vide Loan Applications dated 05.01.2016, which are Annexures A2 & A12 to this OA.

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The applicant sanctioned KCC Limit of Rs.6.00 Lacs and AGOD limit of Rs.4.50 Lacs vide Sanction Letters dated 11.01.2016, which are Annexures A3 & A13 to this OA. 4. Defendant no.1 had mortgaged his immovable properties i.e. total Agriculture land measuring 18K-11M situated in Village Kasba Bharal, Hadbast no.6, Sub-Tehsil Ahmedgarh, Tehsil Malerkotla, Distt. Sangrur (Punjab) vide Declaration U/s 4(1) bearing dated 08.01.2016, which is Annexure A4 to this OA. Documents executed:- Promise notes, L515, L-516, Hypothecation Agreement, Letters of declaration and Deeds of guarantee all dated 11.01.2016, which are Annexures A5 to A11 & A14 to A19 to this OA; Legal Notice and receipt dated 06.09.2024, which are Annexures A20 & A21 to this OA; Accounts statements with certificate, which are Annexures A22 & A23 to this OA and Acknowledgements of debts dated 22.08.2018, 18.06.2021 & 07.12.2023, which are Annexures A24 to A26 to this OA. 5. 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.27,00,670.89p, 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 06.03.2025. 7. In support of the OA, affidavit of Sh. Suresh Kumar, Chief Manager, Bank of India h as been filed. 8. Heard arguments and perused record.

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OA/1243/2024 BANK OF INDIA VS . KIRPAL SINGH AND ANOTHER

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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 A26 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.27,00,670.89p (Rupees Twenty Seven Lacs Six Hundred Seventy and Paise Eighty 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 @13.00%p.a. with half yearly rests from 07.01.2024 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 loans 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 @08.00%p.a. in 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.

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OA/1243/2024 BANK OF INDIA VS . KIRPAL SINGH AND ANOTHER

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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.27,00,670.89p (Rupees Twenty Seven Lacs Six Hundred Seventy and Paise Eighty 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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 25.04.2025. 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: 26.03.2025 (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Bank of India v. Sh. Kirpal Singh

Case brief

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Bank of India v. Sh. Kirpal Singh

Case brief

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