INDIAN OVERSEAS BANK vs M/s Samkit International and others on 21 December 2024

FINAL ORDER

1. Present Transfer 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.4,92,66,640.00 (Rupees Four Crore Ninety Two Lacs Sixty Six Thousand Six Hundred Forty Only). The Transfer Application has been filed through Sh. Deepak Kumar Jha, Chief Manager of the applicant, who is competent to institute the Transfer Application vide Power of Attorney dated 28.01.2012, which is Annexure A1 to this TA.

2. The brief facts of the OA are that the defendants had approached the applicant bank for the grant of CC Limit of Rs.1.25 Crore and Term Loan of Rs.1.35 Crore and further for enhancement of CC Limit to Rs.2.00 Crore. Thereafter defendants again approached the applicant for enhancement of CC limit to Rs.2.50 Crore. Later Defendants again approached the applicant for reduction of CC Limit to Rs.1.25 Crore. Thereafter from time to time defendants approached the applicant for various enhancements of CC Limit upto Rs.3.75 Crore. Later on, Defendants again approached the applicant for grant of WCTL I of Rs.36.60 Lacs and WCTL II of Rs.31.00 Lacs vide Loan application dated 30.05.2020 and 01.12.2021, which are Annexure A69 and A78 to this TA

3. The applicant Bank sanctioned CC Limit of Rs.1.25 Crore and Term Loan of Rs.1.35 Crore and further enhanced the CC Limit to Rs.2.00 Crore vide sanction letter dated 18.05.2013 and 21.08.2014, which are Annexure A2 and A14 to this TA. Thereafter applicant again sanctioned the enhancement of CC limit to Rs.2.50 Crore vide Sanction Letter dated 28.09.2015, which is Annexure A25 to this TA. Later from time to time applicant sanctioned the various enhancements of CC Limit upto Rs.3.75 Crore vide sanction Letter dated 09.01.2017, 09.04.2018, 20.03.2020 and 04.02.2022, which are Annexure A37, A49, A60 and A86 to this TA. Further applicant sanctioned the of WCTL I of Rs.36.60 Lacs and WCTL II of Rs.31.00 Lacs vide sanction Letter dated 23.07.2020 and 22.12.2021, which are Annexure A70 and A79 to this TA and the terms and conditions were duly accepted by the defendants.

4. Defendant no.2 had mortgaged her immovable property i.e. Land Measuring 166.66 Sq. Yards situated at Street no.4, New Madopuri, Backside Baba Balaknath Mandir, Village Taraf Saidan, Hadbast no.172, Tehsil and District Ludhiana vide Equitable Mortgage of Sale Deed Bearing Vasika no.5112 dated 06.06.2013 with its translation, which are Annexures A20 & A21 to this TA. Documents executed:- Demand Promissory Notes, Letters of Continuity, Deeds of Hypothecation of Books Debts, Letters of Hypothecation, Agreement of Guarantee and Letter of Consent all dated 18.05.2013, which are Annexures A3 to A13 to this TA; Demand Promissory Note, Letter of Continuity, Deed of Hypothecation of Books Debts and Letter of Hypothecation dated 13.08.2013, which are Annexures A15 to A19 to this TA; Letter of Creation of Charge dated 26.08.2014, which is Annexure A22 to this TA; Agreement of Guarantee and consent Cum Authorization Letter both dated 25.08.2014, which are Annexures A23 & A24 to this TA; Demand Promissory Note, Letter of Continuity, Deed of Hypothecation of Books Debts, Letters of Hypothecation, Supplementary deed of Hypothecation, Letter of Undertaking, Agreement of Guarantee and Letter of Consent all dated 30.09.2015, which are Annexures A26 to A34 to this TA; Confirmation Letter for Supplementary Mortgage dated 01.10.2015, which is Annexure A35 to this TA; Undertaking dated 18.05.2016, which is Annexure A36 to this TA; Demand Promissory Note, Letter of Continuity, Deed of Hypothecation of Books Debts, Letters of Hypothecation, Letter of Undertaking, Letter from the existing borrowers at the time of enhancement, Letter of Acknowledgement, Agreement of Guarantee and Confirmation Letter for Supplementary Mortgage, all dated 09.01.2017, which are Annexures A38 to A48 to this TA; Demand Promissory Note, Letter of Continuity, Deed of Hypothecation of Books Debts, Letters of Hypothecation, Letter of Undertaking, Agreement of Guarantee and Confirmation, Letter for Supplementary Mortgage and Letter of Consent all dated 12.04.2018, which are Annexures A50 to A59 to this TA; Demand Promissory Note, Letter of Continuity, Deed of Hypothecation of Books Debts, Letters of Hypothecation, Letter of Undertaking, Agreement of Guarantee and Confirmation Letter for Supplementary Mortgage all dated 20.03.2020, which are Annexures A61 to A68 to this TA; Demand Promissory Note, Letter of Authority, Term Loan Agreement, Letter of Hypothecation, Letter of Undertaking, Agreement of Guarantee and Confirmation Letter for Supplementary Mortgage dated 24.07.2020, which are Annexures A71 to A77 to this TA; Demand Promissory Note, Letter of Authority, Term Loan Agreement, Letter of Hypothecation, Letter of Undertaking, Agreement of Guarantee and Confirmation Letter for Supplementary Mortgage dated 22.12.2021, which are Annexures A80 to A85 to this TA; Demand Promissory Note, Letter of Continuity, Deed of Hypothecation of Books Debts, Letters of Hypothecation, Letters of Undertaking, Agreement of Guarantee and Confirmation Letter for Supplementary Mortgage all dated 11.02.2022, which are Annexures A87 to A96 to this TA; Demand Notice dated 19.01.2023 along with original postal receipts, which are Annexures A97 to A102 to this TA and Statements of Accounts with certificates, which are Annexures A103 to A105 to this TA.

5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all loan accounts there was a debit of Rs.4,92,66,640.00, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 12.12.2024.

7. In support of the OA, affidavit of Sh. Deepak Kumar Jha, Chief Manager, Indian Overseas Bank has been filed.

8. Heard arguments and perused record.

9. It was argued by learned 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 A1 to A105 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, 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.4,92,66,640.00 (Rupees Four Crore Ninety Two Lacs Sixty Six Thousand Six Hundred Forty On) along with interest from the defendants, jointly and severally, from the date of filing of the present Transfer 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 @13.45%p.a. in CC Limit and interest @11.25%p.a. in both WCTL from 12.05.2023 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 @8.00%p.a. in all the loan accounts 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.4,92,66,640.00 (Rupees Four Crore Ninety Two Lacs Sixty Six Thousand Six Hundred Forty 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 TA 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 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 10.02.2025.

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: 21.12.2024.

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