Allowed

Indian Bank v. Jagdish Singh and Another

DRT12 Feb 2025OA/795/2024

Case brief

AI extract

What is this about?

The DRT allowed the debtor rehabilitation tribunal allowed the bank's application for recovery of Rs. 65,84,034 against defendants who defaulted on a secured KCC loan, granting uniform simple interest at 8% p.a. and ordering a recovery certificate.

What did the court decide?

Declaration of liability to pay Rs. 65,84,034 jointly and severally with costs and simple interest at 8% p.a. Recovery certificate issued and enforcement via sale of assets.

Indian Bank versus Jagdish Singh and Another — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.795/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.06.2024

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DATE OF DECISION: 12.02.2025

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Indian Bank (erstwhile Allahabad Bank) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai-600014 and a branch amongst SAM branch, Industrial Area-A, near Cheema Chowk, Ludhiana through duly Constituted Attorney Sh. Vikram Singh, Chief Manager presently posted at SAM branch, Industrial Area-A, near Cheema Chowk, Ludhiana.

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……..Applicant

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Versus

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Sh. Jagdish Singh S/o Sh. Maninder Singh R/o Village Sadarpura, Tehsil Jagraon, District Ludhiana, Punjab.

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Sh. Daljeet Singh S/o Sh. Maninder Singh R/o Village Sadarpura, Tehsil Jagraon, District Ludhiana, Punjab.

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….……Defendant

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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.65,84,034.00 (Rupees Sixty Five Lacs Eighty Four Thousand and Thirty Four Only). The Original Application has been filed through Sh. Vikram Singh, Chief Manager o f the applicant, who is competent to institute the Original Application vide Letter of Authority dated 20.06.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Loan of Rs.30.00 Lacs

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vide Loan Application dated 01.07.2013, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Loan of Rs.30.00 Lacs vide Sanction Letter dated 05.07.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant no. 1 had mortgaged his immovable property i.e. Total land measuring 0B-16B-10B situated at Village Mann, Hadbast No. 112, Tehsil Jagraon, District Ludhiana, Punjab vide Registered Mortgage Deed bearing vasika no. 1807 dated 10.07.2013 along with English Translations, which are Annexures A7 & A7T to this OA. Documents executed:- D.P. Note, Hypothecation Agreement, Deed of Guarantee, Acknowledgement of Debt, Consent Letters all dated 19.07.2013, which are Annexures A4 to A6, A8 & A9 to this OA; Recall Notice dated 03.02.2020, 05.03.2020, 19.06.2020, 02.07.2020, 06.08.2020, 09.09.2020 and 01.10.2020, along with Postal Receipts, which is Annexure A10 to this OA; Legal Notice dated 12.03.2024, which is Annexure A11 to this OA and Statement of Account with certificate, 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 the loan account there was a debit of Rs. Rs.65,84,034.00, 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 notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 22.01.2025. 7. In support of the OA, affidavit of through through Sh. Vikram Singh, Chief Manager, Indian Bank h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted,

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the applicant had proved its case. From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendants approached applicant for availing of the loans facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loans 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.65,84,034.00 (Rupees Sixty Five Lacs Eighty Four Thousand and Thirty 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 account. 10. In so far as pendent elite and future rate of interest is concerned the applicant in relief clause has claimed interest @8.55%p.a. plus Penal Interest @2.00%p.a. with yearly rests from 13.03.2024 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 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 @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 defendants are liable to pay to the applicant a total sum of Rs.65,84,034.00 (Rupees Sixty Five Lacs Eighty Four Thousand and Thirty Four 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

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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. 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 13.03.2025. 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: 12.02.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Jagdish Singh and Another

Case brief

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What did the court decide?

Indian Bank v. Jagdish Singh and Another

Case brief

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