Allowed

Central Bank of India v. Jagtar Singh and Another

DRT18 Jan 2025OA/4/2024

Case brief

AI extract

What is this about?

The DRT allowed the recovery application filed by Central Bank of India against two borrowers for an outstanding KCC loan. The court declared the defendants jointly and severally liable for the principal amount and ordered uniform simple interest at 8% p.a., granting recovery via hypothecated/mortgaged properties under the SARFAESI Act.

What did the court decide?

Recovery of Rs.33,39,171.00 plus costs and simple interest at 8% p.a. from the date of filing, recoverable from sale of mortgaged or personal assets.

Central Bank of India versus Jagtar Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.4/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.09.2023

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DATE OF DECISION: 18.01.2025

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Central Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its head office at Chander Mukhi, Nariman Point, Mumbai400021 having one of its Branch situated at Central Bank of India, Mahavir Road, Behind old truck union, Mandi Ahmedgarh, District Malerkotla, Punjab through Mrs. Urvashi Sharma who is presently working as Senior Manager, Central Bank of India, Regional Office, K.P. Complex, Adj, Hotel Park Plaza, Ferozepur Road, Ludhiana, Punjab constituted Power of Attorney Holder of the applicant and Principal Officer.

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……..Applicant

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Versus

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Sh. Jagtar Singh S/o Sh. Sher Singh, R/o Village Akalgarh, Tehsil Raikot, District Ludhiana, Punjab.

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Sh. Baldev Singh S/o Sh. Sher Singh, R/o Village Akalgarh, Tehsil Raikot, District Ludhiana, Punjab.

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………. Defendants

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Advocates:

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Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Surinder Nath Sharma, 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.33,39,171.00 (Rupees Thirty Three Lacs Thirty Nine Thousand One Hundred Seventy One Only). The Original Application has been filed through Mrs. Urvashi Sharma, Senior Manager of the applicant, who is

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competent to institute the Original Application vide General Power of Attorney dated 24.03.2014, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 had approached the applicant for grant of KCC Loan of Rs.25.00 Lacs vide Loan Application dated 20.07.2013, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Loan of Rs.25.00 Lacs vide Sanction Letters dated 23.07.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 24K-10M situated at Village Akalgarh, Tehsil Raikot, District Ludhiana, Punjab vide Registered Mortgaged Deed bearing vasika no.1632 dated 2 6.07.2013 along with its translation, which are Annexures A4 & A4-T to this OA.

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Documents executed:-Advocate Report on Title dated 25.07.2013, which is Annexure A5 to this OA; Hypothecation Agreement, D.P. Note, Letter of Waiver & Letter of Continuity all dated 01.08.2013, which are Annexures A6, A8, A9 & A12 to this OA; Letters declaring acceptance of consent clause by the borrower/guarantor & Guarantee Agreement all dated 05.08.2013, which are Annexures A7, A10 & A11 to this OA; Balance Confirmation Letter dated 26.07.2016, which is Annexure A13 to this OA; Letter of Continuity, D.P. Note, Letter of Waiver & Letters declaring acceptance of consent clause by the borrower all dated 11.06.2019, which are Annexures A14 to A17 to this OA; Balance Confirmations dated 26.06.2019 & 28.04.2023, which are Annexures A18 & A19 to this OA; Notice of Recall of Bank’s dues by Advocate dated 19.06.2023, which is Annexure A20 to this OA and Statement of Account duly Certified, which is Annexure A21 to this OA.

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The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.33,39,171.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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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 19.06.2024.

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In support of the OA, affidavit of Mrs. Urvashi Sharma, Senior Manager, Central Bank of India 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 bank. The defendants failed to pay back the loans as per Housings 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.33,39,171.00 (Rupees Thirty Three Lacs Thirty Nine Thousand One Hundred Seventy 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 @11.20%p.a. along with penal interest @2.00%p.a. with half yearly rests from 18.08.2023 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

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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 @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.

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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.33,39,171.00 (Rupees Thirty Three Lacs Thirty Nine Thousand One Hundred Seventy 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.02.2025.

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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 .

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Dated: 18.01.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Central Bank of India v. Jagtar Singh and Another

Case brief

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Central Bank of India v. Jagtar Singh and Another

Case brief

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