State Bank of India v. Sh. Pawan Kumar

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Copy of notification dated 02.05.1987 and 29.10.2005, which are

Annexures A1 & A2 to this OA.

2. The brief facts of the OA are that the defendants had approached the applicant for the grant of House Loan of Rs.22.00 lacs vide Loan applications dated 02.01.2017, which is Annexure A3 to this OA.

3. The applicant sanctioned the House Loan of Rs.22.00 lacs vide Copy of sanction letter dated 11.01.2017, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

4. Defendant no.1 & 2 had mortgaged their immovable properties i.e. All part and parcel of residential property measuring 5.69M situated at Village Baghar PO Haryal, Street Near Army Gate, Tehsil and District Pathankot, Punjab vide Equitable Mortgage of Transfer Deed bearing vasika no.3737 dated 06.10.2016, memorandum of deposit of title deed and creation of Charge dated 11.01.2017 and valuation Report dated 25.11.2019, which is Annexure A6 to this OA. Documents executed: - Letter of arrangement, Copy of the said revival letter both dated 11.01.2017, which are Annexures A5 & A8 to this OA; Statement of Account along with certificate under Banker Books Evidence, which is Annexure A7 to this OA: Legal notice dated 15.01.2019 along with postal receipts, which is Annexure A9 to this OA; Notice u/s 13(2) dated 02.02.2019, which is Annexure A10 to this OA and Possession notice under section 13(4) dated 11.04.2019, which is Annexure A11 to this OA.

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.25,95,814.00p, 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.

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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 30.10.2024.

7. In support of the OA, affidavit of Sh. Harvinder Kumar Arora, Assistant General Manager, State Bank of India, has been filed.

8. Ld. proxy counsel for applicant present has not advanced any argument. Perused record.

9. 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 A11 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.25,95,814.00p (Rupees Twenty Five Lacs Ninety Five Thousand Eight Hundred Fourteen 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 in relief clause has claimed interest @9.15%p.a. along with penal interest @2.00%p.a. with monthly rests from 02.06.2020 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

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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 the loan account 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.25,95,814.00p (Rupees Twenty Five Lacs Ninety Five Thousand Eight Hundred Fourteen 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 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.

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 01.07.2025.

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: 10.06.2025

(MRIDULESH KUMAR SINGH)

Presiding Officer, DRT-III, Chandigarh