Allowed

Bank of India v. Paramjeet Kaur and Another

DRT23 Jan 2025OA/1297/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's application for recovery of Rs.25,81,207.00 principal and awarded uniform simple interest at 8% p.a. The application was decided ex-parte in the absence of defendants.

What did the court decide?

Total sum of Rs.25,81,207.00 with costs and simple interest @8.00% p.a. ordered; Recovery Certificate issued; execution proceedings authorized.

Bank of India versus Paramjeet Kaur and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1297/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.09.2023

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DATE OF DECISION: 24.01.2025

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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”, C-5, G-Block, 2^nd Floor, Bandra Kurla Complex, Bandra (East) Mumbai-400051 and having its Zonal Office at Surya Kiran Complex, 1^st Floor, Phase-II, The Mall, near Rakh Bagh, Civil Lines, Ludhiana and amongst various branches having its branch at Altos Nagar, Partap Singh Wala, Hambran Road, Tehsil and District Ludhiana, Punjab through its duly Constituted Attorney and Authorized Officer of Plaintiff Sh. Simar Preet Singh.

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……..Applicant

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Versus

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Smt. Paramjeet Kaur W/o Sh. Subash Chand, R/o House No. 44, Talwandi Kalan, Ladhowal, Tehsil and District Ludhiana, Punjab

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Sh. Madan Lal S/o Sh. Babu Ram, R/o House No. 44, Talwandi Kalan, Ladhowal, Tehsil and District Ludhiana, Punjab.

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….…Defendants

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Advocates:

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Argued by Sh. Satish Jaswal, Advocate proxy for Sh. Mouhit K. Goel, 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.25,81,207.00 (Rupees Twenty Five Lacs Eighty One Thousand Two Hundred and Seven Only). The Original Application has been filed through Sh. Simar Preet Singh, duly Constituted Attorney and Authorized Officer of the applicant, who is competent to institute the Original Application vide Authority Letter dated 04.02.2016, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had time to time approached the applicant for the grant of KCC Limit of Rs.9.00 Lacs and Agriculture Over Draft Limit of Rs.5.00 Lacs vide Loan Application dated 29.12.2016, which is Annexure A3 to this OA. 3. The applicant sanctioned the of KCC Limit of Rs.9.00 Lacs and Agriculture Over Draft Limit of Rs.5.00 Lacs vide Credit Sanction dated 21.01.2017, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant no. 1 had mortgaged her immovable property i.e. Total land measuring 30K-12M situated at Village Talwandi Kalan, Hadbast No.94, Tehsil and District Ludhiana, Punjab vide Declaration U/s 4 (1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act 1978 dated 23.01.2017 along with its English Translation, which is Annexure A18 to this OA.

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Documents executed:- Legal opinion dated 18.01.2017, which is Annexure A1 to this OA; Demand Promissory Note, Declaration by borrower, Deed of Guarantee, Declaration by borrower, Letter of Declaration, Undertaking and Authority, Format for MCLR AgreementNew Loans, Hypothecation cum Loan Agreement all dated 30.01.2017, which are Annexures A5 to A17 to this OA and Statement of Accounts (KCC) & (OD) along with Memorandum of Interest, which are Annexures A19 to A22 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in bothl the loan accounts there was a debit of Rs.25,81,207.00, 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 notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 21.06.2024.

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7.	In support of the OA, affidavit ofSh. Simar Preet Singh, duly
Con	stituted Attorney, Bank of Indiahas been filed.
8.	Heard arguments and perused record.

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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 A22 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant 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.25,81,207.00 (Rupees Twenty Five Lacs Eighty One Thousand Two Hundred and Seven 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.

¶23

In so far as pendent elite and future rate of interest is concerned the applicant in relief clause has claimed [email protected]% p.a. in KCC and interest @13.35%p.a. in OD with yearly rests in both accounts from 27.09.2023 the realization.

¶24

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 @8.00%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 defendants is liable to pay to the applicant a total sum of Rs.25,81,207.00 (Rupees Twenty Five Lacs Eighty One Thousand Two Hundred and Seven Only) with costs, current and future simple interest @8.00%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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.03.2025.

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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.

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Pronounced by me in the open Tribunal . Dated: 24.01.2025

¶32

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

Bank of India v. Paramjeet Kaur and Another

Case brief

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Bank of India v. Paramjeet Kaur and Another

Case brief

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