Allowed

Indian Bank v. Messrs Kaura Cold Storage and Others

DRT11 Feb 2025OA/791/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an original application by Indian Bank against non-appearing defendants for recovery of Rs.4.69 Crores. The debt, certified as NPA, was recoverable jointly and severally with reduced simple interest and execution against mortgaged properties.

What did the court decide?

Recovery of Rs.4,69,84,748/- jointly and severally with 08% p.a. simple interest, costs, and recovery via sale of mortgaged/other assets.

Indian Bank versus Messrs Kaura Cold Storage and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.791/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.06.2024

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DATE OF DECISION: 11.02.2025

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Indian Bank a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai, having its Zonal Office at Jalandhar and amongst other places a branch at Sultanpur Lodhi, District Kapurthala, Punjab through its authorized officer, Mrs. Ashu Bansal, Manager, Indian Bank, Sultanpur Lodhi, Kapurthala, Punjab.

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……..Applicant

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Versus

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M/s. Kaura Cold Storage, having its office at Village Shahjahanpur, Malsian Road, Near Adda Tashpur Fattuwal, Tehsil Sultanpur Lodhi, Kapurthala, Punjab through its partners.

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Sh. Gurdeep Singh S/o Sh. Satnam Singh R/o Village Shahjahanpur Lohian, Malsian Road, Tehsil Sultanpur Lodhi, Kapurthala, Punjab (Partner of defendant no.1).

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Sh. Swaran Singh S/o Sh. Satnam Singh R/o R/o Village Shahjahanpur Lohian, Malsian Road, Tehsil Sultanpur Lodhi, Kapurthala, Punjab (Partner of defendant no.1).

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Sh. Surjit Singh S/o Sh. Satnam Singh R/o Village Shahjahanpur Lohian, Malsian Road, Tehsil Sultanpur Lodhi, Kapurthala, Punjab (Partner of defendant no.1).

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……Defendants

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Advocates:

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Argued by Ms. Manjari Joshi, Advocate for the applicant Defendant 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.4,69,84,748.00 (Rupees Four Crore Sixty Nine Lacs Eighty Four Thousand Seven Hundred & Forty Eight Only). The Original Application has been filed through Mrs. Ashu Bansal, Manager o f the applicant, who is competent to institute the Original Application vide Letter of Authorization dated 04.12.2023, which are Annexures A1 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant for the grant of Term Loan of Rs.5.00 Crore and OD Limit of Rs.60 Lakhs vide application dated 12.09.2017, which is Annexure A2 to this OA.

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The applicant sanctioned Term Loan of Rs.5.00 Crore and OD Limit of Rs.60 Lakhs vide Sanction Letter dated 05.12.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants vide Acknowledgement letter dated 07.12.2017, which is Annexure A4 to this OA.

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Defendant nos.2 to 4 had mortgaged their immovable property i.e. all part and parcel of land and building measuring 15K-7M situated at Kala Sanghya Lohian Khass Road, Village Shahjahanpur, Hadbast No.20, Tehsil Sultanpur Lodhi, District Kapurthala, Punjab vide equitable Mortgage of Sale Deed bearing vasika no. 540 dated 05.06.2009 and Jamabandi for the year 2017-2018 along with their translations, which is Annexure A10 and A14 to this OA. Documents executed:- D.P Notes dated 14.12.2017, 02.02.2018, 03.02.2018, 15.02.2018 and 17.11.2018, which is Annexure A5 and A6 to this OA; Term Loan Agreement, Hypothecation of goods, Deed of Guarantee and Declaration by borrower/mortgagor all dated 14.12.2017, which is Annexure A7, A8, A9 and A11 to this OA; Letter of mortgagor confirming deposit of title deeds dated 16.12.2017, which

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is Annexure A12 to this OA; CERSAI Registration dated 16.01.2018, which is Annexure A13 to this OA;; Notice dated 21.09.2019, 24.10.2019, 29.10.2019, 03.02.2020 and 13.04.2020, which are Annexures A15 and A16 to this OA; Legal Notice dated 17.02.2022, which is Annexure A17 to this OA; Statements of Accounts with certificate, which are Annexures A18 and A19 to this OA; Acknowledgement of debt dated 27.11.2018, which is Annexure A20 to this OA; Demand Notice U/s 13(2) of SARFAESI Act dated 21.03.2022, which is Annexure A21 to this OA and Possession Notice dated 20.05.2024 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.4,69,84,748.00 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. 6. 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 21.01.2025. 7. In support of the OA, affidavit of Mrs. Ashu Bansal, 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 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 is entitled to recover a sum

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of Rs.4,69,84,748.00 (Rupees Four Crore Sixty Nine Lacs Eighty Four Thousand Seven Hundred & Forty Eight Only) along with interest from the defendant, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.90%p.a. in TL loan and interest @10.85%p.a. in OD Limit with monthly rests in both from 28.05.2024 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.4,69,84,748.00 (Rupees Four Crore Sixty Nine Lacs Eighty Four Thousand Seven Hundred & Forty 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 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. 12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 12.03.2025.

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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. Pronounced by me in the open Tribunal .

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Dated:11.02.2025

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

Indian Bank v. Messrs Kaura Cold Storage and Others

Case brief

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Indian Bank v. Messrs Kaura Cold Storage and Others

Case brief

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