Allowed

Bank of India v. Kaur Singh and Another

DRT8 Jan 2025OA/2118/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application by Bank of India against two defendants for recovery of Rs.44,12,540.02 loan dues. Fielding granted uniform interest at 8% p.a. and ordered recovery via property sale under SARFAESI Act provisions.

What did the court decide?

Recovery of Rs.44,12,540.02 with costs and interest @8% p.a.; Issuance of Recovery Certificate; Liberty to enforce claim through SARFAESI or attachment of personal assets.

Bank of India versus Kaur Singh and Another — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2118/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.11.2022

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DATE OF DECISION: 08.01.2025

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Star House, Plot No.C-5, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and a Branch Office amongst other places known as Malerkotla Branch, Bedi Complex, Opp. Main Industrial Estate and telephone Exchange, Thandi Sarak Malerkotla-148023, Punjab through Sh. Rajinder Pal Singh, its Constituted Attorney and Principal Officer.

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……..Applicant Versus

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Sh. Kaur Singh son of Sh. Inder Singh, resident of Village Isapur

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Landa, Tehsil Dhuri, District Sangrur, Punjab.

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Sh. Jagjiwan Singh son of Sh. Kulwant Singh, resident of Village Ahan Kheri, Tehsil Malerkotla, District Sangrur, Punjab.

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………. Defendants

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Advocates: Argued by Sh. Mohan Prasad, Advocate proxy for Sh. G.S. Anand, 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.44,12,540.02p (Rupees Forty Four Lacs Twelve Thousand Five Hundred Forty And Paise Two Only). The Original Application has been filed through Sh. Rajinder Pal Singh, Constituted Attorney o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 13.12.2019, 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.15.00 Lacs and AGOD Limit of Rs.10.00 Lacs vide Loan Applications dated 01.02.2013, which are Annexure A2 & A3 to this OA.

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The applicant sanctioned KCC Limit of Rs.15.00 Lacs and AGOD Limit of Rs.10.00 Lacs vide Sanction Letters dated 11.04.2013, which are Annexure A4 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 properties i.e. (i) Agriculture land measuring 14 Bigha 08 Biswa situated at Village Isapur, H.B. No.99, Sub-Tehsil Sherpur, Tehsil Dhuri, District Malerkotla/Sangrur Punjab vide Registered Mortgaged Deed b earing vasika no.2309 dated 22.03.2013, which are Annexure A18 to this OA.

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(i) land and building measuring 9 Bigha 12 Biswa situated at Village Isapur, H.B. No.99, Sub-Tehsil Sherpur, Tehsil Dhuri, District Malerkotla/Sangrur Punjab vide Registered Mortgaged Deed b earing vasika no.2320 dated 25.03.2013 along with their translations, which are Annexure A19 to this OA.

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Documents executed:-D.P. Notes, Bearer letters, Letters of Authority, Hypothecation-cum-loan agreement, Composite Letters, Composite Letters of declaration, undertaking and authority and Deeds of Guarantee all dated 11.04.2013, which are Annexures A5 to A17 to this OA; CERSAI Asset Id Based Search Report, which is Annexure A20 to this OA; Letter re: acknowledgement of debt & security dated 25.02.2016, 08.01.2019, 06.08.2021, 25.02.2016, 08.01.2019 & 06.08.2021, which are Annexures A21 to A26 to this OA; Singed Office copies of notices and postal receipts dated 26.05.2021 & 29.06.2022, which are Annexures A27 & A28 to this OA and Statement of Accounts of KCC and AGOD Limit along with certificate under Banker’s Book Evidence Act, which are Annexures A29 & A30 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.44,12,540.02p, 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. 6. 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 11.10.2023.

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In support of the OA, affidavit of Sh. Rajinder Pal Singh, Constituted Attorney, Bank of India h as been filed. 8. 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 A30 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were 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 terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.44,12,540.02p (Rupees Forty Four Lacs Twelve Thousand Five Hundred Forty And Paise Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @12.30%p.a. with half yearly rests in KCC Limit and monthly rests in AGOD Limit from 10.11.2022 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

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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 loans 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 @08.00%p.a. in both the loan accounts 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.44,12,540.02p (Rupees Forty Four Lacs Twelve Thousand Five Hundred Forty And Paise Two Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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 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 18.02.2025.

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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: 08.01.2025

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

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Bank of India v. Kaur Singh and Another

Case brief

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Bank of India v. Kaur Singh and Another

Case brief

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