Allowed

Bank of India v. Harbhajan Singh Alias Bhajan Singh and Another

DRT15 Feb 2025OA/674/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of outstanding dues totaling Rs. 27,70,963.64. The Tribunal modified the claimed interest rate to a uniform 8% per annum and directed the issue of a Recovery Certificate for enforcement.

What did the court decide?

Recovery of Rs. 27,70,963.64 plus costs and simple interest at 8% per annum from initiation date to realization.

Bank of India versus Harbhajan Singh Alias Bhajan Singh and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.674/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.04.2024

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DATE OF DECISION: 15.02.2025

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No. V of 1970, having its Head Office at “Star House” C-5, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office amongst other places, at Village Kila Raipur, Distt. Ludhiana through its duly constituted attorney Sh. Suresh Kumar presently posted as Chief Manager at Khanna Branch.

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……..Applicant

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Versus

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Sh. Harbhajan Singh @ Bhajan Singh S/o Sh. Surjit Singh, R/o VPO Assi Kalan, District Ludhiana.

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Sh. Kamal Iqbal Singh S/o Sh. Harnek Singh, R/o Patti Sameria,

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VPO Kila Raipur, District Ludhiana.

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………. Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the 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.27,70,963.64p (Rupees Twenty Seven Lacs Seventy Thousand Nine Hundred Sixty Three and Paise Sixty Four Only). The Original Application has been filed through Sh. Suresh Kumar, Chief Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 20.02.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for grant of KCC Limit of Rs.12.00 Lacs and Agriculture OD Limit of Rs.9.00 Lacs vide Loan Application dated 12.03.2018, which are Annexures A2 and A12 to this OA.

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The applicant sanctioned KCC Limit of Rs.12.00 Lacs and Agriculture OD Limit of Rs.9.00 Lacs vide Memorandum for Sanction & Sanction Letter dated 23.04.2018, which are Annexures A3, A4 and A13 to this OA.

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Defendant no.1 had mortgaged his immovable properties i.e.

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a. land measuring 4B-16B-0B Pukhta i.e. 14B-8B-0B situated in Village Assi Kalan, H.B. No.283, Tehsil Dehlon, District Ludhiana vide Declarations u/s 4(1) of Punjab Agricultural Credit Operation and Miscellaneous Provisions Act 1978 dated 20.03.2018 along with their translations , which are Annexures A11 and A11-T to this OA.

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b. land measuring 03B-17B-12B Pukhta i.e. 11B-12B-16B situated in Village Assi Kalan, H.B. No.283, Tehsil Dehlon, District Ludhiana vide Declarations u/s 4(1) of Punjab Agricultural Credit Operation and Miscellaneous Provisions Act 1978 dated 20.03.2018 along with their translations , which are Annexures A19 and A19-T to this OA Documents executed:-D.P. Note, Hypothecation-Cum-Loan Agreement, Deed of Guarantee, Letter of Declaration, Undertaking & Authority Letter & Agreement all dated 23.04.2018, which are Annexures A5 to A9 to this OA; Letter to the Sub Registrar dated 20.03.2018, which are Annexures A10 to A10-T, A18 &, A18-T to this OA; D.P. Note, Deed of Guarantee, Letter of Declaration, Undertaking & Authority Letter & Agreement all dated 24.03.2018, which are Annexures A14 to A17 to this OA; Acknowledgement of debt dated 22.04.2021, which is Annexure A20 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which are Annexures A21 & 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 loan accounts there was

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adebit of Rs.27,70,963.64p, 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 23.01.2025.

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In support of the OA, affidavit of Sh. Suresh Kumar, Chief Manager, Bank of India h as 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 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 loans 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 loans 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.27,70,963.64p (Rupees Twenty Seven Lacs Seventy Thousand Nine Hundred Sixty Three and Paise Sixty Four 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 @11.35%p.a. for KCC and @11.30%p.a. for Agricultural Overdraft with half yearly rests from 19.04.2024 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

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instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loans 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 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 are liable to pay to the applicant a total sum of Rs.27,70,963.64p (Rupees Twenty Seven Lacs Seventy Thousand Nine Hundred Sixty Three and Paise Sixty Four 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.03.2025.

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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 . Dated: 15.02.2025

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

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Bank of India v. Harbhajan Singh Alias Bhajan Singh and Another

Case brief

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Bank of India v. Harbhajan Singh Alias Bhajan Singh and Another

Case brief

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