Allowed

Indian Bank v. Sh. Gurkirat Singh and Another

DRT1 May 2025OA/487/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an original application under the RDBFI Act for recovery of a loan of Rs. 21 lakhs. Finding that the defendant accounts were NPA and notices were duly served, the court decreed the claim but fixed a uniform simple interest rate of 8% p.a. for both accounts till realization.

What did the court decide?

Recovery of Rs. 21,15,658 with costs and 8% p.a. simple interest; Issuance of Recovery Certificate; Remand to Recovery Officer.

Indian Bank versus Sh. Gurkirat Singh and Another — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.487/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.03.2024

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DATE OF DECISION: 01.05.2025

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Indian Bank, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Coroprate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai -600014 and w.e.f. 01.04.2020 being the successor to Allahabad Bank in terms of Gazette of India Notification No.G.S.R.156€ dated 04.03.2020 issued by the Center Government in exercise of the powers conferred upon it by Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), the Central Government after consultation with the Reserve Bank of India, notified the scheme of Amalgamation of Allahabad Bank into Indian Bank Scheme,2020. Therefore, the term “Allahabad Bank”, wherever the context so warrants, would interchangeably mean the erstwhile Allahabad Bank and / or Indian Bank. The arstwhile Allahabad Bank’s Branch Office at Dashmesh nagar, Bela Chowk Branch, Tehsil Ropar, District Roop Nagar (Punjab) through its Principal Officer General Power of Attorney holder Ms. Suman Kumari posted as Senior Manager

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……..Applicant

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Versus

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1. Sh. Gurkirat Singh S/o Sh. Kehar Singh R/o Village Saloura, PO Patheri Jattan, Tehsil and District Roopnagar, Punjab.

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2. Sh. Ravinder Singh S/o Sh. Jasvir Singh, R/o House No.36, Village Saloura, PO Patheri Jattan, Tehsil and District Roopnagar, Punjab-140001

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….……Defendants

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Advocates:

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Argued by Ms. Savita Trighatia Nar, Advocate for the applicant Defendants are ex-parte

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OA NO.487/2024 INDIAN BANK VS GURKIRAT 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.21,15,658.00 (Rupees Twenty One Lacs Fifteen Thousand Six Hundred Fifty Eight Only). The Original Application has been filed through Ms. Suman Kumari, Senior Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 08.10.1996, 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 the grant of KCC of Rs.5.00 Lacs and further for its enhancement to Rs.7.00 Lacs vide Loan Application dated 10.12.2012 and 05.03.2014, which are Annexures A2 and A9 to this OA. Thereafter defendants again approached the applicant for restructuring of KCC Limit by converting the overdue interest into fresh Term Loan of Rs.3,48,101.00

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The applicant sanctioned KCC of Rs.5.00 Lacs and further sanctioned its enhancement to Rs.7.00 Lacs vide Sanction Letters dated 14.12.2012 and 05.03.2014, which are Annexures A3 and A10 to this OA. Thereafter applicant sanctioned restructuring of KCC Limit by converting the overdue interest into fresh Term Loan of Rs.3,48,101.00 and the terms and conditions were duly accepted by the defendants.

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Defendants no.1 had mortgaged his immovable property i.e. a. land measuring 3K-04M situated at VPO Saloura, Hadbast No.176, Tehsil and District Roopnagar, Punjab vide Registered Mortgage Deed bearing vasika no. 3189 dated 24.12.2012, Title Investigation Report dated 14.12.2012 and Mutation Confirmation Certificate along with their translations, which are Annexures A4 and A5 to this OA.

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b. land measuring 0K-18M situated at VPO Sangatpur, Hadbast No.171, Tehsil and District Roopnagar, Punjab vide Registered

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3 OA NO.487/2024 INDIAN BANK VS GURKIRAT SINGH AND ANOTHER

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Mortgage Deed bearing vasika no. 3159 dated 12.03.2014 along with its translation and Title Investigation Report dated 06.01.2014, which are Annexures A11 and A12 to this OA

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Documents executed:- Hypothecation Agreement, DP Note, Consent Clause dated 28.12.2012, which are Annexures A6 to A8 to this OA; Hypothecation Agreement, Deed of Guarantee DP Note, Consent Clause dated 13.03.2014, which are Annexures A13 to A17 to this OA; Acknowledgement of Debt dated 30.11.2018 and 21.07.2021,

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which are Annexures A18 and A19 to this OA; Letter/Communications dated 25.04.2014 and 18.01.2020, which is Annexure A20 to this OA; Legal Notices dated 08.01.2020 and 17.11.2023 with postal receipts, which is Annexure A21 to this OA and Account statement with certificate, which is Annexure A22 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.21,15,658.00, which is recoverable and the defendants was 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 29.04.2025.

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In support of the OA, affidavit of Ms. Suman Kumari, Senior Manager, Indian Bank h as been filed. 8. Heard arguments and perused record. 9. 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 A22 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were

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4 OA NO.487/2024 INDIAN BANK VS GURKIRAT SINGH AND ANOTHER

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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, 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.21,15,658.00 (Rupees Twenty One Lacs Fifteen Thousand Six Hundred Fifty Eight 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 @8.65%p.a. in KCC Limit and interest @10.95%p.a. in Term Loan with half yearly rests from 01.03.2024 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 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 were liable to pay to the applicant a total sum of Rs.21,15,658.00 (Rupees Twenty One Lacs Fifteen Thousand Six Hundred Fifty Eight 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

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OA NO.487/2024 INDIAN BANK VS GURKIRAT SINGH AND ANOTHER

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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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 23.05.2025

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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: 01.05.2025

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

Indian Bank v. Sh. Gurkirat Singh and Another

Case brief

What is this about?

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Indian Bank v. Sh. Gurkirat Singh and Another

Case brief

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What did the court decide?

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