Allowed

Bank of India v. Tajinder Pal Singh and others

DRT15 Jan 2025OA/588/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal, Chandigarh allowed an application filed under Section 19 RDBFI Act 1993. The Bank claimed dues and interest. The Tribunal allowed the application but adjusted the future interest rate to 8% p.a. and issued a recovery certificate for sale of properties. Defendants were absent.

What did the court decide?

Allowed application for recovery of Rs. 52,29,790 with 8% simple interest; Issued Recovery Certificate; Ordered sale of properties for realization.

Bank of India versus Tajinder Pal Singh and others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.588/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.04.2023

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DATE OF DECISION: 15.01.2025

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act No. V of 1970 having its Head Office at “Star House” C-5, Block-G, Bandra Kurla Complex, Bandra (East) Mumbai-400051, and Branch Office amongst others places at Kapurthala (Punjab) through its duly Constituted Attorney Sh. Anil Kumar Gera, presently posted as Chief Manager, at Sutlej Market Branch, Jalandhar (Punjab).

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……..Applicant Versus

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1. Sh. Tajinder Pal Singh S/o Sh. Kamaljit Singh R/o House no.4, Hargobind Nagar, Near Bawa Lalwani School, Jalandhar Road, Kapurthala (Punjab)-144601.

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Smt. Kulwinder kaur W/o Sh. Kamaljit Singh, R/o House no.4, Hargobind Nagar, Near Bawa Lalwani School, Jalandhar Road, Kapurthala (Punjab)-144601.

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Sh. Bhagwant Singh S/o Sh. Niranjan Singh, R/o Village Bhullar Bet, PO Nurpur Lubana, District Kapurthala, (Punjab)-144804.

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….……Defendants

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Advocates:

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Argued by Sh. Anil Malhotra, Advocate proxy for Sh. Meena Malhotra, Advocate for 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.52,29,790.00p (Rupees Fifty Two Lacs Twenty Nine Thousand Seven hundred Ninety only). The Original Application has been filed through Sh. Anil Kumar Gera, Chief Manager of the applicant, who is competent

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to institute the Original Application vide Copy of General Power of Attorney dated 18.05.2018, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 to 3 had approached the applicant for the grant of KCC Limit of Rs.28.00 Lacs vide Loan application dated 16.06.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.28.00 Lacs vide Sanction Letter dated 03.07.2015, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 & 2 had mortgaged their immovable property i.e. total land measuring 24Kanal-04Marla detailed as a. land measuring 16Kanal-17Marla situated at Village Ibban, Hadbast No.202, Tehsil and District Kapurthala and b. land measuring 07Kanal-07Marla situated at Village Budhopunder, Hadbast No.202, Tehsil and District Kapurthala vide Declaration u/s 4(1) & Letter to sub Registrar for creation of Charge dated 29.06.2015, which is Annexure A3 to this OA. Documents executed:- True Photocopy of Demand Promissory Note, True Photocopy of Bearer Letter, True Photocopy of Agreement of loan cum hypothecation of standing crops, True Photocopy of Consolidated Multipurpose stamp Undertakings, True Photocopy of Deed of Guarantee all dated 03.07.2015, which are Annexures A5 to A9 to this OA; True Photocopy of Acknowledgement of debts both dated 08.05.2018 & 18.12.2020, which are Annexures A10 & A12 to this OA; True Photocopy of MCLR Agreement dated 03.10.2019, which is Annexure A11 to this OA; True Photocopy of legal notice dated 05.03.2022 along with postal receipts, which are Annexures A13 to A16 to this OA; True Photocopy of Recall notice dated 28.03.2023 along with postal receipts, which are Annexures A17 to A20 to this OA and Copy of statement of accounts dated 18.03.2023 along with duly certified Under Banker’s Book Evidence, which is Annexure A21 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts

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there was a debit of Rs.52,29,790.00p, which is recoverable and the defendants were 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded 18.06.2024.

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In support of the OA, affidavit of Sh. Anil Kumar Gera, Chief Manager, Bank of India, has been filed.

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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 bank had proved its case. From the perusal of all the Annexure A1 to A21 to this OA, it is proved that the defendants approached applicant bank for availing of the loan 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 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 bank is entitled to recover a sum of Rs.52,29,790.00p (Rupees Fifty Two Lacs Twenty Nine Thousand Seven hundred Ninety 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 @12.60%p.a. (including 2% penal interest) with half yearly rests from 19.03.2023 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

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.52,29,790.00p (Rupees Fifty Two Lacs Twenty Nine Thousand Seven hundred Ninety only) jointly and severally, with costs, current and future simple interest @8.00%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 bank 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 bank 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 24.02.2025. 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: 15.01.2025.

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

Bank of India v. Tajinder Pal Singh and others

Case brief

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Bank of India v. Tajinder Pal Singh and others

Case brief

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