Allowed

Idbi Bank Limited v. Harminder Singh

DRT14 Feb 2025OA/542/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for recovery of a corpus of Rs.36.53 lakhs classified as NPA. The court exercised discretion to grant uniform simple interest at 8.00% p.a. and ordered issuance of a recovery certificate.

What did the court decide?

Recovery certificate issued. Defendant to pay Rs.36,53,373 with simple interest at 8.00% p.a. from filing date. Recovery via sale of properties.

Idbi Bank Limited versus Harminder Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.542/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.01.2022

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DATE OF DECISION: 14.02.2025

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IDBI Bank Ltd., a company within the meaning of the Companies Act, 2013 and a Banking Company within the meaning of Section 5 (c) under the Banking Regulation Act, 1949 having its registered Office at IDBI Tower, WTC Complex, Cuffe Parade, Colaba, Mumbai and having one of its Branch Office at Tripuri, 644, Opposite Gurdwara Kashmirian, District Patiala (Punjab) through Sh. Alok Khanna posted as Branch Head/Assistant General Manager and being an authorized signatory of the applicant.

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……..Applicant Versus Sh. Harminder Singh S/o Sh. Sukhdev Singh, R/o Village Kheri Bhai Ki, Tehsil and District Fatehgarh Sahib.

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….……Defendant

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Advocates:

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Argued by Sh. D.P. Garg, Advocate for the applicant (through VC) 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 defendants for recovery of Rs.36,53,373.00 (Rupees Thirty Six Lacs Fifty Three Thousand Three Hundred Seventy Three only). The Original Application has been filed through Sh. Alok Khanna, Branch Head/Assistant General Manager of the applicant bank, who is competent to institute the Original Application vide Delegation of Powers, which is Annexure A-P/A to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.25.00 Lacs vide Loan application dated 02.05.2016, which is Annexure A1 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.25.00 Lacs vide Letter of Intent dated 20.05.2016, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 53K-15M situated at Village Kheri Bhai Ki, Hadbast no.258, Tehsil & District Fatehgarh Sahib, Punjab vide Self Declaration under Section 4 (1) along with its English Translation and Letter for Mutation to Sub-Registrar both dated 20.05.2016, which are Annexures A7 & A8 to this OA. Documents executed:- Copy of Demand Promissory Note and Copy of Certificate of Execution of Documents both dated 24.05.2016, which are Annexures A3 & A6 to this OA; Copy of Deed of Hypothecation, which is Annexure A4 to this OA; Copy of Letter of Authority and End Use Confirmation of Working Capital/KCC dated 24.05.2016 and 08.06.2016, which is Annexure A5 to this OA; Copy of Application cum Appraisal for Review of KCC Loans and Copy of Revival Letter both dated 22.10.2020, which are Annexures A9 & A10 to this OA; Copy of Statement of Account dated 03.01.2022, which is Annexure A11 to this OA and Copy of Recall Notice dated 09.12.2021, which is Annexure A12 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.36,53,373.00, which is recoverable and the defendant was served recall notice but he 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 notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 08.07.2024.

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In support of the OA, affidavit of Sh. Alok Khanna, Branch Head/Assistant General Manager, IDBI Bank Limited h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through Video Conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A-P/A, A1 to A12 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he 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 bank is entitled to recover a sum of Rs.36,53,373.00 (Rupees Thirty Six Lacs Fifty Three Thousand Three Hundred Seventy Three only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.00%p.a. along with penal interest @2.00% p.a. with half yearly rests from 04.01.2022 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 crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendant, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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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 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.36,53,373.00 (Rupees Thirty Six Lacs Fifty Three Thousand Three Hundred Seventy Three only), 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 bank 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 bank 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 17.03.2025. 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: 14.02.2025

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

Idbi Bank Limited v. Harminder Singh

Case brief

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Idbi Bank Limited v. Harminder Singh

Case brief

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