Indian Bank versus Smt. Avtar Kaur

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.219/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.01.2022

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DATE OF DECISION: 28.05.2025

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Indian Bank, erstwhile Allahabad Bank The amalgamation of Allahabad bank into Indian Bank Scheme, 2020 dated March 4, 2020 issued by the Government of India was published under Extraordinary Part-II, Section 3 Sub Section (i) in the gazette of India Sanctioning the amalgamation of Allahabad Bank into Indian Bank in terms of section 9 of the banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 (5 of 1970). The Scheme comes into force on the 1^st day of April, 2020. The Corporate office /Head office of the Indian Bank is at 254260, Avvai Shanmugam Salai, Pudupet, Gopalapuram, Chennai, Tamil Nadu 600014 and a branch at Goindwal Sahib, District Tarn Taran, Punjab through its authorized Officer Sh. Ashwani Kumar.

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……..Applicant

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Versus

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Smt. Avtar Kaur W/o Sh. Hari Singh R/o Village Munda Pind, Tehsil Khadoor Sahib, District Tarn Taran, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Varun Verma, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.22,02,660.63p (Rupees Twenty Two Lacs Two Thousand Six Hundred sixty & Sixty Three Paise Only). The Original Application has been filed through Sh. Ashwani Kumar, authorized Officer, of the applicant bank, who is competent to institute the Original Application vide Authority Letter, which is Annexure A21 to this OA.

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2 OA NO.219/2022 INDIAN BANK VS AVTAR KAUR

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of (Akshay Krishi Scheme Under) KCC Limit of Rs.10.00 Lacs vide Application loan dated 10.11.2012, which is Annexure A1 to this OA and further for its restructuring vide Letter of Restructuring dated 21.08.2018, which is Annexure A8 to this OA.

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The applicant Bank sanctioned the (Akshay Krishi Scheme Under) KCC Limit of Rs.10.00 Lacs vide Sanction letter dated 10.12.2012, which is Annexure A3 to this OA and further applicant sanctioned its restructuring vide sanction Letter dated 21.08.2018, which is Annexure A9 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgage her immovable properties i.e. total land measuring 33K-18M situated at Village Munda Pind A, Tehsil Khadoor Sahib, District Tarn Taran, Punjab vide Registered Mortgage Deed bearing vasika no. 836 dated 10.12.2012.

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Documents executed:-Memorandum of Sanction dated 10.12.2012, which is Annexure A2 to this OA; Acceptance of sanction letter, Demand Promissory Note, Hypothecation agreement all dated 18.12.2012, which are Annexures A4 to A6 to this OA; Confirmation and undertaking of restricting, Demand Promissory Note all dated 21.08.2018, which are Annexures A7 and A10 to this OA; Notice dated 13.11.2019, 10.12.2019 & 20.12.2019, which are Annexures A11 to A13 to this OA; Acknowledgement of debt dated 21.07.2021, which is Annexure A14 to this OA; Affidavit dated 10.11.2012, which is Annexure A15 to this OA; Account statement along with Computation chart of Interest & Certificate under Banker’s Book of Evidence, which are Annexures A16 to A19 to this OA and Copy of ID/Votar Card, which is Annexure A20 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.22,02,660.63p, which is recoverable and the defendant was

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3 OA NO.219/2022 INDIAN BANK VS AVTAR KAUR

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served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and she was proceeded ex-parte on 26.05.2025.

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In support of the OA, affidavit of Sh. Ashwani Kumar, authorized Officer, 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 A21 o this OA, it is proved that the defendant approached applicant for availing of the loan facility whichwas granted to her and for that she had executed all the relevant documents in favour of the bank. 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.22,02,660.63p (Rupees Twenty Two Lacs Two Thousand Six Hundred sixty & Sixty Three Paise 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 bank in relief clause has claimed interest @9.65%p.a. along with penal interest @2.00%p.a. with monthly rests from 19.12.2021 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

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4 OA NO.219/2022 INDIAN BANK VS AVTAR KAUR

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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 @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 defendant is liable to pay to the applicant a total sum of Rs.22,02,660.63p (Rupees Twenty Two Lacs Two Thousand Six Hundred sixty & Sixty Three Paise Only) 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 defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 12.06.2025. 15. Copy of this order be given Dasti to the applicant bank 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. Pronounced by me in the open Tribunal . Dated: 28.05.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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5 OA NO.219/2022 INDIAN BANK VS AVTAR KAUR

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DRT-III, Chandigarh

Indian Bank v. Smt. Avtar Kaur

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Indian Bank v. Smt. Avtar Kaur

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