Indian Overseas Bank vs Sh. Manjeet Singh AND ANOTHER on 29 May 2024

FINAL ORDER

1. Present Transfer 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 Rs.32,26,714.79p (Rupees Thirty Two Lacs Twenty Six Thousand Seven Hundred Fourteen and Paisa Seventy Nine only). The Transfer Application has been filed through Sh. Kuljeet Singh, Manager of the applicant bank, who is competent to institute the Transfer Application vide Power of Attorney dated 04.09.2015, which is Annexure A1 to this TA.

2. The brief facts of the TA are that the defendants no.1 had approached the applicant bank for the grant of KCC Limit of Rs.30.00

Lacs vide Loan application dated 15.11.2013, which is Annexure A2 to this TA. Defendant No.2 stood as guarantor vide Guarantor’s Statement dated 13.12.2013, which is Annexure A3 to this TA

3. The applicant Bank sanctioned the KCC Limit of Rs.30.00 Lacs vide Credit Sanction Advice (Sanction Letter) dated 13.12.2013, which is Annexure A10 to this TA and the terms and conditions were duly accepted by the defendants.

4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 52K-8M situated at Village Lehal, Tehsil Payal, District Ludhiana (Punjab) vide Registered Mortgaged Deed bearing vasika No.938 dated 03.12.2013 and Jamabandi for the year 2008- 2009 along with their Translations, which are Annexures A5 & A6 to this TA. Documents executed:- Guarantee For Cash Credits, Letter of Hypothecation, Demand Promissory Note and Demand Promissory Note Delivery Letter all dated 13.12.2013, which are Annexures A4, A7 to A9 to this TA; Legal Notice sent by applicant bank through its counsel dated 09.03.2021 with Postal Receipts, which are Annexures A11 to A13 to this TA; Statement of Account with Certified u/s 65-B of Indian Evidence act, which are Annexures A14 and A15 to this TA and Revival Letters dated 14.06.2016 and 04.05.2019, which are Annexures A16 & A17 to this TA.

5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.32,26,714.79p, 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. Defendant No.1 appeared through his counsel who filed his Power of Attorney but did not file WS, hence opportunity to file WS was closed and defense was struck off and both the defendants were proceeded ex-parte on 30.03.2024.

7. In support of the TA, affidavit of Sh. Kuljeet Singh, Manager, Indian Overseas Bank has been filed.

8. Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A17 to this TA, it is proved that the defendants approached applicant bank for availing of the loan facility which was 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.32,26,714.79p (Rupees Thirty Two Lacs Twenty Six Thousand Seven Hundred Fourteen and Paisa Seventy Nine only) along with interest from the defendants, jointly and severally, from the date of filing of the present Transfer 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 @13.25%p.a. along with penal interest @2%p.a. with yearly rests from 01.03.2021 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 @8.00%p.a. in the loan account from the date of filing of the TA 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.32,26,714.79p (Rupees Thirty Two Lacs Twenty Six Thousand Seven Hundred Fourteen and Paisa Seventy Nine 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 TA 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 13.06.2024.

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: 29.05.2024

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