Allowed

Indian Bank v. Jagtar Singh and Others

DRT17 Feb 2025OA/1252/2024

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank's original application for recovery of Rs.47.85 lakhs from respondents as legal heirs and borrowers, holding the account as provable debt. The Tribunal granted uniform simple interest at 8% p.a.

What did the court decide?

Respondents liable to pay Rs.47,85,355.00 with costs and uniform simple interest at 8% p.a.; issued Recovery Certificate; parties to appear before Recovery Officer.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1252/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.10.2024

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DATE OF DECISION: 17.02.2025

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Indian Bank, (erstwhile Allahabad Bank), on the basis of Amalgamation dated 01.04.2020, a body corporate constituted under the Banking Companies (Acquisition and 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

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Versus

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Sh. Jagtar Singh son of Sh. Sh. Nasib Singh through legal heirs:

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a. Charanjit Kaur w/o Jagtar Singh b. Aman Kaur d/o Jagtar Singh c. Parwinder Kaur d/o Jagtar Singh

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d. Gurinderpreet Singh s/o Jagtar Singh

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All r/o House no.39, Badi Jhlian Tehsil and District Roopnagar-140001.

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Sh. Harinder Singh son of Sh. Prem Singh, resident of House no.23, Gahunia Enclave Tehsil and District Roopnagar, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Bharat Mani Goyal, Advocate proxy for 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

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under Section 19 of the Recovery of Debts Due to Banks and Financial

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Institutions Act, 1993, against the Defendants for recovery of Rs.47,85,355.00 (Rupees Forty Seven Lacs Eighty Five Thousand Three Hundred Fifty Five Only). The Original Application has been filed through Mrs. Suman, Branch Manager o f 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(since deceased) and 2 had approached the applicant for the grant of KCC Limit of Rs.15.00 Lacs vide Loan Application dated 26.03.2013, which is Annexure A2 to this OA and further for its Renewal of Rs.15.00 Lacs to this OA. Further, defendant no.1 had approached the applicant for grant of Term Loan of Rs.9.04 Lacs vide Loan Application.

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The applicant sanctioned KCC Limit of Rs.15.00 Lacs vide Sanction Letter dated 26.03.2013, which is Annexure A5 to this OA and further for its Renewal of Rs.15.00 Lacs vide Renewal Application dated 08.05.2014, which is Annexure A15 to this OA. Further, defendant no.1 had approached the applicant for grant of Term Loan of Rs.9.04 Lacs vide Sanction Letter dated 27.09.2018, which is Annexure A16 to this OA and the terms and conditions were duly accepted by the Defendants.

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Defendants no.1 (since deceased) had mortgaged his immovable property i.e. land measuring 11K-16M situated at Village Badi Jhlian, H.B. No.168, Tehsil and District Roopnagar vide Mortgage Deed bearing vasika no. 2432 dated 26.03.2013 and jamabandi for the year 2008-2009 along with their translation, which are Annexures A9 & A10 to this OA. Documents executed:-Interview cum appraisal form, which is Annexure A3 to this OA; Memorandum for sanction of loan, D.P. Note, Hypothecation Agreement, Consent clause to be executed by borrower, Affidavit, Consent Clause by guarantor & Deed of guarantee

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all dated 28.03.2013, which are Annexures A4, A6 to A8, A11, A13 and A14 to this OA; Report on means & standings, which is Annexure A12 to this OA; Acknowledgements of debts dated 30.11.2018 & 18.11.2021, which are Annexures A17 & A20 to this OA; Legal Notices dated 27.09.2018 & 08.01.2020, which are Annexures A18 & A19 to this OA and Statement of Accounts along with the Banker’s Book Evidence Certificate, which is Annexure 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.47,85,355.00, which is recoverable and the Defendants was 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 legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and 1(d) and defendant no.2 were served notices to appear before this Tribunal but no one appeared on behalf of Defendants and they were proceeded ex-parte on 03.02.2025.

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In support of the OA, affidavit of Mrs. Suman, Branch Manager, Indian Bank h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy 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 defendant no.1(since deceased) and 2 approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendant no.1(since deceased) and 2 failed to pay back the loans as per terms and conditions of the agreement between the parties.

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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.47,85,355.00 (Rupees Forty Seven Lacs Eighty Five Thousand Three Hundred Fifty Five 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 @13.20%p.a. in KCC Limit and @11%p.a. in Term Loan along with penal interest @2% 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 @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.

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In the result, the application is allowed declaring that the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and 1(d) and defendant no.2 are liable to pay to the applicant a total sum of Rs.47,85,355.00 (Rupees Forty Seven Lacs Eighty Five Thousand Three Hundred Fifty Five 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

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aforesaid amount from the sale of hypothecated/mortgaged properties of the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and 1(d) and defendant no.2 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 legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and 1(d) and defendant no.2. 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 19.03.2025. 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: 17.02.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Jagtar Singh and Others

Case brief

What is this about?

What did the court decide?

Indian Bank v. Jagtar Singh and Others

Case brief

What is this about?

What did the court decide?

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