Allowed

Indian Bank v. Sh. Stanam Singh

DRT25 Apr 2025OA/1381/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Indian Bank for recovery of a defaulting loan account against two borrowers. The Tribunal determined the defendants are jointly and severally liable for Rs. 46,46,191.00 and modified the interest rate to 8% per annum. A Recovery Certificate was issued.

What did the court decide?

Recovery of Rs. 46,46,191.00 at 8% p.a. simple interest; issuance of Recovery Certificate.

Indian Bank versus Sh. Stanam Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1381/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.11.2024

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DATE OF DECISION: 25.04.2025

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Indian Bank (erstwhile Allahabad Bank) on the basis of amalgamated 01.04.2024, a body corporate duly constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 having its Corporate Office at 254-260, Avvai Shanmugham Salai, Royapettah, Chennai, Tamil Nadu 600014 and having its Zonal Office at Jalandhar and amongst other branches a branch at Nawanshahr through its Branch Manager Mrs. Dolly duly constituted and authorized signatory

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……..Applicant

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Versus

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Sh. Stanam Singh S/o Sh. Malkait Singh R/o B6/391, Vikas Nagar, Dr. Rajpal Wali Gali, Rohan Road, Nawanshahr, Punjab144514

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Smt. Kulvir Kaur W/o Sh. Satnam Singh R/o B6/391, Vikas Nagar, Dr. Rajpal Wali Gali, Rohan Road, Nawanshahr, Punjab144514

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…….Defendants

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Advocates:

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Argued by Ms. Deepika Mittal, Advocate for 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.46,46,191.00 (Rupees Fourty Six Lacs Fourty Six Thousand One Hundred Ninety One Only). The Original Application has been filed through Mrs. Dolly, Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 02.08.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant of KCC Limit of Rs.30.00 Lacs vide

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2 OA NO.1381/2024 UNION BANK OF INDIA VS SATNAM SINGH AND ANOTHER

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Loan Application dated 09.09.2012, which is Annexure A2 to this OA and further for its renewal vide Application, which is Annexure A15 to this OA.

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The applicant sanctioned KCC Limit of Rs.30.00 Lacs vide Memorandum of Sanction and Sanction Letter both dated 07.11.2012, which are Annexures A4 and A5 to this OA and further sanction its renewal vide sanction Letter dated 10.08.2018, which is Annexure A16 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable property i.e. Land measuring 15K-1M situated at Rahon, Hadbast no.223, Nawanshahr, Punjab vide Registered Mortgage Deed bearing vasika no.3136 dated 19.09.2012 and Jamanbandi for the year 2008-2009 with their translations, which are Annexures A9 and A10 to this OA. Documents executed:- Interview cum appraisal Form, Demand Promissory Note, Hypothecation Agreement, Consent Clause to be executed by Borrower, Reports of Means, Deed of Guarantee Revival Latter all dated 07.11.2012, which are Annexures A3, A6 to A8 and A12 to A14 to this OA; Affidavit dated 10.10.2012, which is Annexure A11 to this OA; DP Note dated 10.08.2018, which is Annexure A17 to this OA; Acknowledgements of Debt dated 28.11.2018, 23.07.2021 and 22.07.2024, which are Annexures A18 to A20 to this OA; Recall Notice dated 18.04.2024, which is Annexure A21 to this OA; Legal Notices dated 20.05.2024 and 05.09.2024, which are Annexures A22 and A23 to this OA and Statement of Account, which is Annexure A24 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 loan account there was a debit of Rs.46,46,191.00, 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.

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3 OA NO.1381/2024 UNION BANK OF INDIA VS SATNAM SINGH AND ANOTHER

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of the defendants and they were proceeded ex parte on 22.04.2025.

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In support of the OA, affidavit of Mrs. Dolly, Branch Manager, Indian Bank h as been filed.

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Heard arguments and perused record.

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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 A24 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 loans 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.46,46,191.00 (Rupees Fourty Six Lacs Fourty Six Thousand One Hundred Ninety One 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 @13.00%p.a. plus penal interest @2.00%p.a. with monthly rests from 14.09.2024 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

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4 OA NO.1381/2024 UNION BANK OF INDIA VS SATNAM SINGH AND ANOTHER

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just and appropriate to grant uniform simple interest @08.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.46,46,191.00 (Rupees Fourty Six Lacs Fourty Six Thousand One Hundred Ninety One Only) jointly and severally, with costs, current and future simple interest @08.00%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 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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 22.05.2025. 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.

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Pronounced by me in the open Tribunal .

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Dated: 25.04.2025

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

Indian Bank v. Sh. Stanam Singh

Case brief

What is this about?

What did the court decide?

Indian Bank v. Sh. Stanam Singh

Case brief

What is this about?

What did the court decide?

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