Allowed

Bank of Baroda v. Krishna and Others

DRT9 Jan 2025OA/1363/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Bank of Baroda to recover a housing loan of Rs. 22.92 Lakls from ex-parte defendants. The Tribunal recognized the mortgage of a property by defendants and approved simple interest at 7.75% p.a., authorizing recovery via sale of mortgaged or personal assets.

What did the court decide?

Recovery of Rs. 22,92,249.08 p jointly and severally with simple interest @ 07.75% p.a.; Recovery Certificate issued.

Bank of Baroda versus Krishna and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1363/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.07.2022

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DATE OF DECISION: 09.01.2025

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Bank of Baroda (erstwhile Vijaya Bank) a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act of 1970 having its Head Office at Mandvi, Baroda and one of its branches at Bhai Randhir Singh Nagar, Ludhiana through its constituted attorney Sh. Sachin Garg, Branch Manager, Bank of Baroda, Bhai Randhir Singh Nagar Branch, Ludhiana and who is also the Principal Officer of the plaintiff/applicant.

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……..Applicant Versus

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Sh. Krishna S/o Sh. Rama Kant R/o H.No.5612, Street No.18, Daba Lohara Road, Fateh Singh Nagar, Lohara, Ludhiana 141016.

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2^nd Address : Sh. Krishna Prop. of M/s Krishna Telecom, Daba Lohara Road, Near Daba Police Chowki, Ludhiana, Punjab 141016.

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Sh. Rahul S/o Sh. Rama Kant R/o H.No.5612, Street No.18, Daba Lohara Road, Fateh Singh Nagar, Lohara, Ludhiana 141016.

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Sh. Gurpreet Singh S/o Sh. Kashmir Singh R/o #6034, Ward no.64, Street No.4, Guru Gobind Singh Nagar, Shimlapuri, Ludhiana, 141003.

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Smt. Nishu W/o Krishna R/o H.No.5612, Street No.18, Daba Lohara Road, Fateh Singh Nagar, Lohara, Ludhiana 141016

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….……Defendants

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Advocates:

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Argued by Sh. Ashok Kumar Verma, Advocate proxy for Sh. Varun Verma, Advocate for the applicant Defendant 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 defendant for recovery of Rs.22,92,249.08p (Rupees Twenty Two Lacs Ninety Two Thousand Two Hundred Forty Nine and Eight Paisa Only). The Original Application has been filed through Sh. Sachin Garg, Branch Manager of the applicant, who is competent to institute the Original Application vide Bank Circular dated 20.07.2012, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Housing Loan of Rs.21.87

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Lacs

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The applicant sanctioned Housing Loan of Rs.21.87 Lacs vide Sanction Letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant nos.1 and 2 had Mortgaged their immovable property i.e. Plot measuring 150 Sq. Yards situated at Village Lohara, Abadi New Satguru Nagar, Hadbast no.260, Tehsil and District Ludhiana vide Equitable Mortgage of Sale Deed bearing vasika no.201819/103/1/7103 dated 26.02.2019 with its translation, which is Annexure A7 to this OA.

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Documents executed:- Amalgamation Notification dated 02.01.2019, which is Annexure A1 to this OA; Article of Agreement, Letter of Authorization and Letter of Guarantee dated 18.02.2019, which are Annexures A4 to A6 to this OA; Memorandum of Deposit of Title Deed dated 26.02.2019, which is Annexure A8 to this OA; Letter of Acknowledgement of debt dated 15.01.2022, which is Annexure A9 to this OA; Recall Notices U/s 13(2) of SARFAESI Act dated 06.11.2021 along with postal receipts, which are Annexures A10 to A13 to this OA; Legal Notice dated 10.03.2021 with postal receipts, which are Annexures A14 to A20 to this OA and Statement of Account along with certificate, which is Annexure A21 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.22,92,249.08p, which is recoverable and the defendants were served recall notices but they did not repay the

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outstanding 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 06.01.2025. 7. In support of the OA, affidavit of Sh. Sachin Garg, Branch Manager, Bank of Baroda 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 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 applicant. 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.22,92,249.08p (Rupees Twenty Two Lacs Ninety Two Thousand Two Hundred Forty Nine and Eight Paisa Only) along with interest from the defendants from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.75%p.a. plus penal interest @2.00%p.a. with monthly rests from 26.06.2022 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

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @07.75%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.22,92,249.08p (Rupees Twenty Two Lacs Ninety Two Thousand Two Hundred Forty Nine and Eight Paisa Only) jointly and severally, with costs, current and future simple interest @07.75%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 property of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of applicant 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 19.02.2025.

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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: 09.01.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of Baroda v. Krishna and Others

Case brief

What is this about?

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Bank of Baroda v. Krishna and Others

Case brief

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