Indian Bank versus Gurdev Singh

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.19/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.12.2021

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DATE OF DECISION: 08.01.2025

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Indian Bank, (erstwhile Allahabad Bank), a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Head Office at 254-260, Avvai Shanmugham Salai, Chennai and having its Zonal Office at Amritsar, and amongst other places a Branch at Mehna, District Moga (hereinafter) referred to as “the applicant” through its duly authorized officer Sh. Shobhit Gautam s/o Sh. Braham Parkash Gautam, Manager, Indian Bank, Mehna District Moga.

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……..Applicant

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Versus

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Sh. Gurdev Singh S/o Sh. Jagtar Singh, R/o House No.01, VPO Pandori, Ariayan, Tehsil Dharamkot, District Moga-142001

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….……Defendant

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Advocates:

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Argued by Sh. Mohan Prasad, Advocate proxy for Ms. Manjari Joshi, Advocate for the applicant Defendant is 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.35,90,751.00 (Rupees Thirty Five Lacs Ninety Thousand Seven Hundred and Fifty One only). The Original Application has been filed through Sh. Shobhit Gautam, Manager of the applicant, who is competent to institute the Original Application vide Authority Letter and Power of Attorney dated 31.08.2021 & 19.12.2014, which is Annexure A1, A-1/A to this OA.

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2

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The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.15.00 Lacs vide Loan application dated 11.01.2013, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.15.00 Lacs for the 1^st year and to be enhanced upto Rs.21.90 Lacs for the 5^th year vide Sanction Letter and Acknowledgement Letter dated 17.01.2013, which are Annexures A3 & A4 to this OA; and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land mearusing 16K-16M situated at Village Pandori Arayian, Tehsil Dharamkot, District Moga, Punjab vide Registered Mortgage Deed bearing vasika no.3358 dated 29.01.2013, and Jamabandi of the year 2007-08 along with their English Translation, which are Annexures A7, A-7T, A8 & A-8T to this OA.

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Documents executed: - Notification which is Annexure A-1/B to this OA; DP Note dated 08.02.2013, which is Annexure A5 to this OA; Hypothecation Agreement dated 29.01.2013, Which is Annexure A6 to this OA; Notice dated 30.01.2021, along with its translation which is Annexure A9 to this OA; Acknowledgment of debt dated 02.01.2016 and 21.12.2018 which is Annexure A10 to this OA and Account Statement with certificate, which is Annexure A11 to this OA. 5. 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.35,90,751.00, which is recoverable and the defendant was served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 16.04.2024.

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3

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In support of the OA, affidavit of Sh. Shobhit Gautam, 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 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 A11 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.35,90,751.00 (Thirty Five Lacs Ninety Thousand Seven Hundred and Fifty One only) along with interest from the defendant, 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 @10.65%p.a. with yearly rests from 11.12.2021 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 defendant, 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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4

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.35,90,751.00 (Thirty Five Lacs Ninety Thousand Seven Hundred and Fifty One only) 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 hypothecated/mortgaged properties of the defendant 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 defendant. 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 15.02.2025

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Copy of this order be given dasti to the applicant and be sent to defendant 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: 08.01.2025

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

Indian Bank v. Gurdev Singh

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Indian Bank v. Gurdev Singh

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