Indian Bank vs SH. GURBAJ SINGH AND ANOTHER on 19 March 2024

FINAL ORDER

1. Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

Hundred Five only). The Original Application has been filed through Sh. Gagandeep Singh, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Authority Letter dated 22.11.2022, which is Annexure A1 to this OA.

2. The brief facts of the OA are that the defendant no.1 had approached the applicant bank for the grant of ‘Akshay Krishi’ Kisan Credit Card (KCC) Scheme of Rs.15.00 Lacs vide Loan application dated 24.04.2017, which is Annexure A2 to this OA.

3. The applicant Bank sanctioned the ‘Akshay Krishi’ Kisan Credit Card (KCC) Scheme of Rs.15.00 Lacs vide Sanction Letter dated 05.06.2017, which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendants.

Later the applicant bank renewed the KCC limit vide Renewal application cum Sanction dated 16.11.2017, which is Annexure A9 to this OA and also sanctioned a short term crop loan of Rs.3.00 Lacs.

4. Defendant No.1 had mortgaged his immovable properties i.e. total agriculture land measuring 10K-09M situated at Village Daburji, Tehsil and District Kapurthala, Punjab vide Declaration u/s 4(1) dated 25.05.2017; Jamabandi and Lien Report dated 25.05.2017, which are Annexures A6 to A8 to this OA. Documents executed: - Agreement for Hypothecation and Deed of Guarantee both dated 05.06.2017, which are Annexures A4 & A5 to this OA; Disposal of Proceeds Letter and Undertaking Letter to be given by Borrower both dated 16.11.2017, which are Annexures A10 and A11 to this OA; Legal Notice dated 01.12.2022, which is Annexure A12 to this OA; Acknowledgment of Debt dated 30.04.2020, which is Annexure A13 to this OA and Statement of account, which is Annexure A14 to this OA.

5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.28,90,805.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank 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 19.02.2024.

7. In support of the OA, affidavit of Sh. Gagandeep Singh, Branch Manager, Indian Bank has been filed.

8. Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendants approached applicant bank 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 bank is entitled to recover a sum of

Hundred Five 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 bank in relief clause has claimed interest @12.25%p.a. along with @2%p.a. penal interest with monthly rests from 03.03.2023 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 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 @10.00%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

Hundred Five only) jointly and severally, with costs, current and future simple interest @10.00%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 bank 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 bank 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 30.03.2024.

15. Copy of this order be given dasti to the applicant bank 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: 19.03.2024

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