Allowed

Union Bank of India v. Sh. Ranjit Singh

DRT5 Dec 2023OA/1015/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of Rs.21,44,552.32p (principal) with costs and future interest @7.35%p.a. from three respondents who failed to repay sanctioned housing and property term loans. A recovery certificate is to be issued, and execution proceedings via SARFAESI Act or attachment of assets may follow.

What did the court decide?

Recovery of Rs.21,44,552.32p plus costs and simple interest @7.35%p.a.; issuance of Recovery Certificate under SARFAESI Act.

Union Bank of India versus Sh. Ranjit Singh — Banking and Recovery | DRT (2023)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1015/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 17.06.2022

¶5

DATE OF DECISION: 05.12.2023

¶6

Union Bank of India (erstwhile Andhra Bank), a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and inter-alia one of its Branch Office at SCO-2, Sector 32A, Urban Estate, Ludhiana-141010 (Punjab) through its Attorney and Branch Manager, Sh. Amit Kumar

¶7

……..Applicant

¶8

Versus

¶9

Sh. Ranjit Singh S/o Sh. Ganga Singh, R/o H.No.1706/451, Street No.21, Preet Nagar, New Shimlapuri, Ludhiana- 141003 (Punjab)

¶10

(Borrower/Guarantor)

¶11

Smt. Harjinder Kaur W/o Sh. Ranjit Singh, R/o H.No.1706/451, Street No.21, Preet Nagar, New Shimlapuri, Ludhiana- 141003

¶12

(Co-Applicant/Mortgagor/Guarantor)

¶13

Sh. Jaspreet Singh S/o Sh. Ranjit Singh, R/o H.No.1706/451, Street No.21, Preet Nagar, New Shimlapuri, Ludhiana- 141003

¶14

(Co-Applicant/Guarantor)

¶15

………Defendants

¶16

Advocates:

¶17

Argued by Sh. Chandra Kumar Jha, counsel for the applicant Defendants are ex-parte

¶18

FINAL ORDER

¶19

Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial

¶20

¶21

Institutions Act, 1993, against the defendants for recovery of Rs.21,44,552.32p (Rupees Twenty One Lacs Forty Four Thousand Five Hundred Fifty Two and Paisa Thirty Two only). The Original Application has been filed through Sh. Amit Kumar, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 14.08.2012, which is Annexure A1 to this OA.

¶22

The brief facts of the OA are that the defendants had approached the applicant bank for the takeover of Housing Loan of Rs.4.81 Lacs and for the grant of Property- Term Loan of Rs.15.00 Lacs vide Loan Applications dated 15.10.2018, which are Annexures A2 and A3 to this OA.

¶23

The applicant Bank sanctioned the Housing Loan of Rs.4.81 Lacs and Property- Term Loan of Rs.15.00 Lacs vide Sanction Letters dated 20.11.2018 and 21.11.2018, which are Annexures A4 and A5 to this OA and the terms and conditions were duly accepted by the defendants.

¶24

Defendant No.2 had mortgaged her immovable property i.e. Urban Commercial shop measuring 100.00 Sq. Yards situated at Village Gill no.1, H.B. No.263, Abadi Mohalla Jujhar Nagar, Tehsil and District Ludhiana, Punjab vide Jamabandi for the Year 2010-11 and Sale Deed bearing Vasika No.2072 dated 02.02.2009 along with their translations and Memorandum of deposit of title deeds dated 22.12.2018, which are Annexures A16, A16-T, A17, A17-T and A18 to this OA.

¶25

Documents executed:- Composite agreement, Supplement to the composite agreement, Letter of consent, Undertaking and Letter of declaration all dated 20.11.2018, which are Annexures A6 to A10 to this OA; Composite agreement for housing term loan, Undertaking, Supplement to the composite agreement and Letter of consent all dated 21.11.2018, which are Annexures A11 to A14 to this OA;

¶26

¶27

Undertaking in respect of security of property dated 11.12.2018, which is Annexure A15 to this OA; Composite debit balance confirmation letters dated 17.12.2020, which are Annexures A19 and A20 to this OA; Notice u/s 13(2) of SARFAESI Act dated 07.01.2022, which is Annexure A21 to this OA; Possession notice dated 28.04.2022, which is Annexure A22 to this OA; Publications of possession notice in newspapers dated 30.04.2022, which are Annexures A23 and A24 to this OA; Statements of accounts, which are Annexures A25 and A26 to this OA and Certificate by the Officer In-Charge of the computer system dated 15.06.2022, which is Annexure A27 to this OA.

¶28

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.21,44,552.32p, 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 16.10.2023. 7. In support of the OA, affidavit of Sh. Amit Kumar, Branch Manager, Union Bank of India has been filed. 8. Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A27 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 loans as per terms and conditions of the agreement between the

¶29

¶30

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 Rs.21,44,552.32p (Rupees Twenty One Lacs Forty Four Thousand Five Hundred Fifty Two and Paisa Thirty Two only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

¶31

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @7.35%p.a. in Housing Loan account and @9.80%p.a. in PropertyTerm Loan account along with @2%p.a. penal interest with monthly rests in both, from 01.06.2022 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 @7.35%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.

¶33

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.21,44,552.32p (Rupees Twenty One Lacs Forty Four Thousand Five Hundred Fifty Two and Paisa Thirty Two only) jointly and severally, with costs, current and future simple interest @7.35%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

¶34

¶35

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.

¶36

Parties to appear before Learned Recovery Officer of this Tribunal on 13.12.2023.

¶37

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.

¶38

Pronounced by me in the Open Tribunal. Dated: 05.12.2023

¶39

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

Union Bank of India v. Sh. Ranjit Singh

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sh. Ranjit Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Hdfc Bank Ltd. versus Sh. Sukhmander Singh

Punjab National Bank versus Sh. Prabhjot Singh

The Federal Bank Limited versus Sh. Jaspinder Singh and Others

Punjab National Bank versus M/s Shubham Enterprises

Union Bank of India versus M/s Shri Waheguru Industries

Punjab National Bank versus M/s Hemkunt Auto Fuels