Allowed

Central Bank of India v. Sh. Nirmal Singh

DRT29 Apr 2025OA/14/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's application for recovery of Rs. 32.46 lakres owed by the respondents. Crediting evidence of a housing loan default and mortgage, the order fixed interest at 8% p.a., granted recovery of personal assets, and ordered the issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs. 32,46,233.00 with 8% p.a. interest; liberty to recover from sale of personal assets; issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.14/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.12.2023

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DATE OF DECISION: 29.04.2025

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Central Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Central Office at Chander Mukhi, Nariman Point, Mumbai and a Regional Office amongst other places at sector 17, Chandigarh through its General Power of Attorney cum Chief Manager Sh. Anil Kumar Batra. ……..Applicant Versus

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Sh. Nirmal Singh S/o Sh. Sajjan Singh, # Plot No.202, Sector -4, Pandwala Road, Mubarakpur, Tehsil Derabassi, District Mohali.

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2^nd Address : Plot No.201, Sector -4, Pandwala Road, Mubarakpur, Tehsil Derabassi, District Mohali

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3^rd Address : House No.1131, Sector 69, Mohali Pincode 160062

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4^th Address : House No.2012, Sector 69, Mohali Pincode 160062

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Smt. Jasveer Kaur W/o Sh. Nirmal Singh, # Plot No.202, Sector -4, Pandwala Road, Mubarakpur, Tehsil Derabassi, District Mohali.

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2^nd Address : Plot No.201, Sector -4, Pandwala Road, Mubarakpur, Tehsil Derabassi, District Mohali

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3^rd Address : House No.1131, Sector 69, Mohali Pincode 160062

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4^th Address : House No.2012, Sector 69, Mohali Pincode 160062

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….……Defendants

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Advocates:

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Argued by Sh. Abhineet Taneja, Advocate for the applicant Defendants are ex parte

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2 OA NO.14/2024 CENTRAL BANK OF INDIA VS NIRMAL SINGH AND ANOTHER

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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.32,46,233.00 (Rupees Thirty Two Lacs Fourty Six Thousand Two Hundred Thirty Three only). The Original Application has been filed through Sh. Anil Kumar Batra, Chief Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 17.07.2006, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 h ad approached the applicant for the grant of Housing Loan of Rs.3.10 Crore vide Loan Application dated 27.07.2021, which is Annexure A2 to this OA.

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The applicant sanctioned the Housing Loan of Rs.3.10 Crore vide Sanction Letter dated 31.07.2021 filed in compliance of the order dated 10.03.2025 vide diary no.5522 dated 08.04.2025 and the terms and conditions were duly accepted by the defendants.

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Defendants no.1 had mortgaged their immovable property i.e. Residential Plot/House No.2012-C, measuring 256.25 Sq. yards Situated at Sector 69, SAS Nagar, Mohali vide Equitable Mortgage of Sale Deed bearing vasika no.233 dated 03.06.2014 along with its translation, which is Annexure A6 to this OA. It is pertinent to mention that the above mentioned immovable property has been sold by applicant under SARFAESI Act vide Sale Certificate dated 11.08.2023 , which is Annexure A8 to this OA Documents executed:- Term Loan Agreement, Letter of Interest Variation and Supplementary Agreement dated 02.08.2021, which are Annexures A3 to A5 to this OA; Demand Notice dated 03.11.2022, which is Annexure A7 to this OA; and Account statement with IT Certificate, which is Annexure A9 to this OA.

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3 OA NO.14/2024

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CENTRAL BANK OF INDIA VS NIRMAL SINGH AND ANOTHER

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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.32,46,233.00, 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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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 17.02.2025.

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In support of the OA, affidavit of Sh. Anil Kumar Batra, Chief Manager, Punjab and Sind 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 A9 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.32,46,233.00 (Rupees Thirty Two Lacs Fourty Six Thousand Two Hundred Thirty Three 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 @9.45%p.a. along with penal interest @2.00%p.a. with half yearly rests from 01.11.2023 till the realization.

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4 OA NO.14/2024

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CENTRAL BANK OF INDIA VS NIRMAL SINGH AND ANOTHER

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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 @8.00%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.

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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.32,46,233.00 (Rupees Thirty Two Lacs Fourty Six Thousand Two Hundred Thirty Three only) jointly and severally, with costs, current and future simple interest @8.00%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 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 22.05.2025.

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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

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Dated: 29.04.2025

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

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OA NO.14/2024

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CENTRAL BANK OF INDIA VS NIRMAL SINGH AND ANOTHER

Central Bank of India v. Sh. Nirmal Singh

Case brief

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Central Bank of India v. Sh. Nirmal Singh

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