DRT allowed an application filed by Union Bank of India for recovery of a debt of Rs. 48,83,006.87 from borrowers and guarantors. The Tribunal decreed payment with uniform simple interest at 7.50% per annum.
Recovery of Rs. 48,83,006.87 with costs and simple interest at 7.50% p.a. from date of filing. Recovery Certificate issued.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.177/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 13.01.2022
DATE OF DECISION: 18.11.2023
Union Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai and having a Branch office inter-alia at Civil lines, College Road, Ludhiana, through duly authorized person and attorney holder, Sh. Kuljit Saluja, Branch Manager
……..Applicant
Versus
………Defendants Advocates: Argued by Sh. R.K. Chauhan, counsel for the applicant Defendants are ex-parte
FINAL ORDER
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through Sh. Kuljit Saluja, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.
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of Undertakings by Guarantor/ Defendant no.3 all dated 23.07.2015, which are Annexures A6 to A13 to this OA; D.P. Note, Letter of Continuity, Hypothecation Agreement of Goods and Debts, Agreement of rate of interest, Letter of Undertaking from Borrower, Letter of undertaking not to alienate hypothecated goods, Letter of confirmation, Letter of guarantee by defendant no.3 and Letter of Undertaking from Guarantor/ Defendant no.3 all dated 14.09.2016, which are Annexures A19 to A27 to this OA; D.P. Note, Letter of Continuity, Term Loan Agreement, Interest Agreement, AD-02 and Letter of Undertaking from the Borrower all dated 16.06.2020, which are Annexures A31 to A36 to this OA; D.P. Note, Letter of Continuity and Composite Hypothecation Deed all dated 17.10.2020, which are Annexures A37 to A39 to this OA; Valuation report dated 25.04.2019, which is Annexure A40 to this OA; Debit Balance confirmation letter dated 29.08.2019, which is Annexure A41 to this OA; Notice dated 13.04.2021, which is Annexure A42 to this OA; Demand Notice u/s 13(2) of SARFAESI Act 2002 along with postal receipt dated 04.09.2021, which are Annexures A43 to A46 to this OA; Newspaper publications in Financial Express and Rojana Chardi Kala dated 10.12.2021, which are Annexures A47 and A48 to this OA and Statements of accounts along with the Certificates u/s 65 of Indian Evidence Act, which are Annexures A49 to A54 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.48,83,006.87p, 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 11.07.2023.
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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 @7.50%p.a. in
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all 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 Rs.48,83,006.87p (Rupees Forty Eight Lacs Eighty Three Thousand Six and Paisa Eighty Seven only) jointly and severally, with costs, current and future simple interest @7.50%p.a. in all 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 30.11.2023. 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: 18.11.2023 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recovery of the outstanding loan amount along with interest from the respondents.
What rate of interest the Tribunal shall allow for future recovery pending release of the amount.
2 provisions across 2 enactments
Union Bank of India
M/s Sagar Enterprises
Sh. Diven Dhanda
Sh. Rakesh Dhanda
MRIDULESH KUMAR SINGH
As recorded by the court registry
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