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The Federal Bank Limited versus Jaspal Singh — Company and Corporate | DRT (2025)

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DRT
2025
The Federal Bank Limited versus Jaspal SinghThe Federal Bank Limited v. Jaspal Singh

Allowed

The Federal Bank Limited v. Jaspal Singh

DRT20 Feb 2025OA/800/2024

What the court decided

AI extract

Outcome

Allowed

Issue for consideration

Whether the defendants are liable to repay the outstanding loan amount of Rs.39,12,251.00 with interest to the applicant.

A

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

ORIGINAL APPLICATION NO.800/2024

PRESIDED OVER BYMRIDULESH KUMAR SINGH

DATE OF INSTITUTION: 18.06.2024

DATE OF DECISION: 20.02.2025

The Federal Bank Limited, a banking company registered under the Companies Act and having its Registered Office at Alwaye, Ernakulam, District and having one of its branches amongst other places at Room No. 7-8, Ground Floor, Opposite Khalsa School, NH-21, Kurali, District SAS nagar Mohali (Punjab) through its Branch Manager/Principal Head and General Power of Attorney Holder Sh. Madhav Kaushal.

……..Applicant Versus 1. Sh. Jaspal Singh S/o Sh. Mahinder Singh, R/o Saheri, Tehsil Morinda, District Rupnagar, Punjab-140101 2. Smt. Baljit Kaur W/o Sh. Charanjit Singh, R/o Saheri, Tehsil Morinda, District Rupnagar, Punjab-140101 ….…Defendants Advocates: Argued by Sh. S.C. Prajapati, Advocate proxy for Sh. Nitin Grover, Advocate for the Applicant Defendants are ex parte FINAL ORDER 1. 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.39,12,251.00 (Rupees Thirty Nine Lacs Twelve Thousand Two Hundred and Fifty One Only). The Original Application has been filed through Sh. Madhav Kaushal, Branch Manager/Principal Head of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 17.04.2021, which is Annexure A1 to this OA.

Issues for consideration

3 issues framed by the court

AI extract

1.
Whether the defendants are liable to repay the outstanding loan amount of Rs.39,12,251.00 with interest to the applicant.
2.
Whether the applicant is entitled to a Recovery Certificate and to recover dues through sale of mortgaged properties.
3.
Whether the rate of interest should be reduced from the claimed 18.90% to 8%.

Statutes considered

1 provisions across 1 enactments

AI extract

Recovery of Debts Due to Banks and Financial Institutions Act19

Parties & counsel

AI extract

applicant
The Federal Bank Limited
respondent
Sh. Jaspal Singh
respondent
Smt. Baljit Kaur

Coram

AI extract

Case details

As recorded by the court registry

Court: DRT
Decided on: 20 Feb 2025 · February
Case no.: OA/800/2024
CNR: 040330010802024

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Cite this judgement

The Federal Bank Limited v. Jaspal Singh, OA/800/2024 (DRT), decided on 20 February 2025.

The Debt Recovery Tribunals publishes no neutral citation for this judgement — cite it by case number and date of decision.

Statutes1

Recovery of Debts Due to Banks and Financial Institutions Act19

View all statutes

Bench / Coram

Mridulesh Kumar Singh

Parties & counsel

A compact analysis

This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.

The brief facts of the OA are that the defendants had approached the applicant for the grant of FKCC Limit of Rs.22.00 Lacs

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and further for the renewal of the exiting limit vide Application dated 28.09.2018, which are Annexures A6 to A8 to this OA.

The applicant sanctioned FKCC Limit of Rs.22.00 Lacs and also sanctioned the renewal of the exiting limit vide Sanction Letter dated 07.07.2017, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant.

Defendant no.1 had mortgaged his immovable property i.e. Total land measuring 28K-9½M situated in village Seheri, Hadbast no.40, Tehsil Morinda District Rupnagar , Punjab vide Declaration under section 4 (1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) dated 05.07.2017 along with English Translations and Jamabandi of the year 2014-2015, which are Annexures A4 & A5 to this OA.

Documents executed:- Order dated 23.09.2021, which is Annexure A1/A to this OA; Agreement for Agriculture Loan dated 10.07.2017, which is Annexure A3 to this OA; Application for Continuation of overdraft, Agreement for Agriculture Loan, Security Delivery Letter, Demand Promissory Note, Letter of set off, Undertaking all dated 03.12.2018, which are Annexures A9 to A14 to this OA; Balance Confirmation letter dated 07.01.2021, which is Annexure A15 to this OA; Recall Notice dated 23.08.2022 and 20.02.2023 along with Postal Receipts, which are Annexures A16 to A18 to this OA and Account Statement, which is Annexure A19 to this OA.

The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.39,12,251.00, 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.

The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant no.1 and they were proceeded ex-parte on 03.02.2025. Sh. Nitish Sharma, Advocate

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appeared for defendant no.1 and filed his Memo of Appearance on 24.10.2024 but thereafter, neither he filed Power of Attorney nor appeared for defendant no.2. Due to the non-appearance defendant no.2 also proceeded ex-parte on 03.02.2025.

In support of the OA, affidavit of through Sh. Madhav Kaushal, Branch Manager/Principal Head, Federal Bank Limited has 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, the applicant had proved its case. From the perusal of all the Annexures A/1A, A1 to A19 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were granted to him and for that he 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, 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.39,12,251.00 (Rupees Thirty Nine Lacs Twelve Thousand Two Hundred and Fifty One 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. 10. In so far as pendent elite and future rate of interest is concerned the applicant in relief clause has claimed interest @14.90%p.a. plus Penal Interest @4.00%p.a. compounded half yearly rests from 11.06.2024 till the realization.

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

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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 all 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.39,12,251.00 (Rupees Thirty Nine Lacs Twelve Thousand Two Hundred and Fifty One Only) with costs, current and future simple interest @8.00%p.a. in all 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 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.

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 24.03.2025. 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: 20.02.2025

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

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Mridulesh Kumar Singh

Topic

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