Allowed

Capital Small Finance Bank Limited v. Sh. Harjap Singh

DRT26 Mar 2025OA/529/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an ex-partie application by a bank for recovery of a defaulted KCC loan of Rs. 24.28 Lacs against four defendants, directing issuance of a recovery certificate and fixation of simple interest at 8% p.a.

What did the court decide?

Recovery of Rs. 24,28,828.00 jointly and severally with simple interest at 8% p.a. and issuance of a Recovery Certificate.

Capital Small Finance Bank Limited versus Sh… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.529/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.04.2024

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DATE OF DECISION: 26.03.2025

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Capital Small Finance Bank Limited, (Erstwhile Capital Local Area Bank Limited) having its registered office at 37, Midas Corporate Park, 3^rd Floor, G.T. Road, Jalandhar-144001 & having one of its Branch office at Nadala, District kapurthala through its authorized Representative Mr. Munish Sharma

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……..Applicant

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Versus

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Sh. Harjap Singh S/o Sh. Dalip Singh R/o House No.94, Village Lakhan Ke Padde, District Kapurthala, Punjab-144802.

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Smt. Jaswinder Kaur W/o Sh. Harjap Singh R/o House No.94, Village Lakhan Ke Padde, District Kapurthala, Punjab-144802.

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Sh. Mangal Singh S/o Sh. Chanchal Singh R/o Village Lakhan Ke Padde, District Kapurthala, Punjab-144802

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Sh. Mangal Singh S/o Sh. Harjap Singh R/o House No.94, Village Lakhan Ke Padde, District Kapurthala, Punjab-144802.

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….……Defendants

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Advocates:

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Argued by Sh. Manu Mittu, Advocate for Applicant (through VC) 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.24,28,828.00 (Rupees Twenty Four Lacs Twenty Eight Thousand Eight Hundred Twenty Eight only). The Original Application has been filed through Mr. Munish Sharma, authorized Representative of the applicant, who is competent to institute the Original Application vide Power of attorney dated 20.04.2019, which is Annexure A1 to this OA.

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2 OA/529/2024 CAPITAL SMALL FINANCE BANK LIMITED VS HARJAP SINGH AND OTHERS

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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.19.40 Lacs vide Loan Application dated 22.05.2018, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.19.40 Lacs vide Sanction Letter dated 29.05.2018, which is Annexure A3 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 total land measuring 27Kanal-04Marla situated at Hadbast No.98, Village Lakhan Ke Padde, Tehsil Dhilwan, District Kapurthala Punjab vide Legal Mortgage dated 30.05.2018 and Letter to Sub Registrar for Creation of Charge, which is Annexure A8 to this OA.

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Documents executed: - Copy of Loan Agreement, Copy of guarantee deed, Copy of Letter of undertaking, Copy of Demand Promissory Note all dated 31.05.2018, which are Annexures A4 to A7 to this OA; Copy of recall notice dated 21.03.2024, which is Annexure A9 to this OA; Copy of postal receipts, which is Annexure A10 to this OA; Statements of accounts, which is Annexure A11 to this OA; Certificate electronic Record dated 06.04.2024, which is Annexure A12 to this OA; Copy of Security & Balance Confirmations Letters, which is Annexure A13 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.24,28,828.00p, 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.

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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 06.03.2025.

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3 OA/529/2024 CAPITAL SMALL FINANCE BANK LIMITED VS HARJAP SINGH AND OTHERS

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In support of the OA, affidavit of Mr. Munish Sharma, authorized Representative, Capital Small Finance Bank Limited, has been filed. 8. Heard arguments and perused record.

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It was argued by learned counsel (through Video

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Conferencing) 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 A13 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 applicant. The defendants failed to pay back the loan as per terms 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.24,28,828.00p (Rupees Twenty Four Lacs Twenty Eight Thousand Eight Hundred Twenty 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 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 @12.75% p.a. along with penal interest @2.00%p.a. from 01.04.2024 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 @8.00%p.a. in the loan

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OA/529/2024 CAPITAL SMALL FINANCE BANK LIMITED VS HARJAP SINGH AND OTHERS

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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 defendants are liable to pay to the applicant a total sum of Rs.24,28,828.00p (Rupees Twenty Four Lacs Twenty Eight Thousand Eight Hundred Twenty Eight only) jointly and severally, 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 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 25.04.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 26.03.2025

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

Capital Small Finance Bank Limited v. Sh. Harjap Singh

Case brief

What is this about?

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Capital Small Finance Bank Limited v. Sh. Harjap Singh

Case brief

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