Allowed

Bank of India v. M/S J.S.K.S and Sons

DRT19 Feb 2025OA/937/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the original application filed by Bank of India against its borrowers for recovery of Rs. 1.27 crores. The court declared the defendants jointly liable to repay the principal amount along with simple interest at 8% per annum and directed the issuance of a recovery certificate for execution proceedings.

What did the court decide?

Recovery of Rs. 1,27,64,140.33 plus costs and simple interest @8% p.a.; Issuance of Recovery Certificate.

Bank of India versus M/S J.S.K.S and Sons — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.937/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.07.2024

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DATE OF DECISION: 19.02.2025

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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, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office amongst other places at Jagraon, district Ludhiana, through Sh. Rajesh Kumar, Branch Manager, Authorized by Applicant.

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……..Applicant

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Versus

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M/s J.S.K.S. & Sons, is a partnership Firm, situated at Opposite Indian Overseas Bank, Lajpat Rai College Road, Jagraon, District Ludhiana through its partners Sh. Sudeep Singh S/o Late Sh. Kamaljeet Singh and Smt. Gurpreet Kaur W/o Sh. Sudeep Singh

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Sh. Sudeep Singh S/o Late Sh. Kamaljeet Singh, Partner R/o Opposite Indian Overseas Bank, Lajpat Rai College Road, Jagraon, District Ludhiana.

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Smt. Gurpreet Kaur W/o Sh. Sudeep Singh, Partner R/o Opposite Indian Overseas Bank, Lajpat Rai College Road, Jagraon, District Ludhiana.

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Sh. Manjit Singh S/o Late Sh. Kamaljeet Singh, Partner R/o Opposite Indian Overseas Bank, Lajpat Rai College Road, Jagraon, District Ludhiana.

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………Defendants

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Advocates:

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Argued by Ms. Puja Sharma, Advocate for the applicant (through VC ) 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.1,27,64,140.33p (Rupees One Crore Twenty Seven Lacs Sixty Four Thousand One Hundred Forty and Paisa Thirty Three only). The Original Application has been filed through Sh. Rajesh Kumar, Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 21.06.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its proprietor i.e. defendant no.2 had time to time approached the applicant for the grant of Cash Credit Limit of Rs.50.00 Lacs, Term Loan-I of Rs.67.00 Lacs and Term Loan–II of Rs.3.00 Lacs vide Application Form dated 29.01.2022, which is Annexure A3 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.50.00 Lacs, Term Loan-I of Rs.67.00 Lacs and Term Loan–II of Rs.3.00 vide Sanction Letter dated 18.06.2022, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

¶20

Defendants had mortgaged their immovable properties i.e.

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(i) Commercial property measuring 35 Sq. yards having MCJ No. 1516 and part of property no. B-IV-410 situated at Lajpat Rai Road, Jagroan, District Ludhiana, Punjab vide Equitable Mortgage of Title Deed bearing vasika no. 2022-23/20/1/1258 dated 25.07.2022 along with its English Translations, which are Annexure A14 and A14T to this OA.

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(ii) Commercial property measuring 85 Sq. yards having MCJ No. 1517 & 1518 and part of property no. B-IV-410 situated at Lajpat Rai Road, Jagroan, District Ludhiana, Punjab vide Equitable Mortgage of Title Deed bearing vasika no. 2022-23/20/1/1259 dated 25.07.2022 along with its English Translations, which are Annexure A15 and A15T to this OA.

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(iii) House Bearing MCJ NO. 501/38B, New Property No. B-XIX-895 Land measuring 178 Sq. yards Shastri Nagar, Jagraon District Ludhiana, Punjab vide Equitable Mortgage of Title Deed bearing vasika no. 2019-20/20/1/2472 dated 23.10.2019 along with its English Translations filed in compliance of order dated 07.12.2024 vide diary no. 721 dated 06.01.2025

¶25

Documents executed:- Partnership Deed dated 29.01.2022, which is Annexure A2 to this OA; D.P. Note, Loan cum Hypothecation Agreement, Letter of Declaration, Undertaking and Authority, RBLR Agreement, Deed of Guarantee, Acknowledgement by borrower for confirming the deposit of title deed and extension of charge over housing loan all dated 24.06.2022, which are Annexures A5 to A13, A16 and A17 to this OA; Recall Notices dated 17.03.2023 and 03.08.2023 with Postal Receipts, which is Annexure A18 to this OA; Statements of accounts, which are Annexures A19 to A21 to this OA Demand Notice dated 11.01.2024, which is Annexure A22 to this OA; and Possession Notice dated 20.03.2024, which is Annexure A23 to this OA.

¶26

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.1,27,64,140.33p, 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.

¶27

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 05.12.2024. Today Sh. Manish Luthra, advocate appeared for defendants and filed an IA no.272/2025 vide diary no.2577 for recalling of order to proceeded ex-parte. The said IA was dismissed after hearing.

¶28

In support of the OA, affidavit of Sh. Rajesh Kumar, Branch Manager, Bank of India has been filed.

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Heard arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 A23 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 applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, both the 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 Rs.1,27,64,140.33p (Rupees One Crore Twenty Seven Lacs Sixty Four Thousand One Hundred Forty and Paisa Thirty Three only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

¶31

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. plus penal interest @2.00%p.a. with monthly rests in all from 29.05.2024 till the realization.

¶32

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 @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.

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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.1,27,64,140.33p (Rupees One Crore Twenty Seven Lacs Sixty Four Thousand One Hundred Forty and Paisa Thirty Three only) jointly and severally, 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.

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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 21.03.2025.

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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: 19.02.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. M/S J.S.K.S and Sons

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S J.S.K.S and Sons

Case brief

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