Allowed

Union Bank of India, v. Sh. Dinesh Kumar Saini and Another

DRT15 Sept 2023OA/1979/2022

Case brief

AI extract

What is this about?

The Tribunal considered an Original Application filed by Union Bank of India for recovery of Rs.26,81,374 from defendants who defaulted on a housing loan. The defendants appeared ex-parte. The bank proved eligibility for recovery, supported by mortgage documents and demand notices.

What did the court decide?

Deemed liable to pay Rs.26,81,374 with 9.60% p.a. interest; issued Recovery Certificate; liberty to enforce via mortgage sale or asset attachment.

Union Bank of India, versus Sh. Dinesh Kumar Saini and Another — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1979/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.11.2022

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DATE OF DECISION: 15.09.2023

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Union Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 carrying on Banking business and having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai, Maharashtra-400021 and having a Branch office inter-alia at Village Phullanwal, Tehsil and District Ludhiana, Punjab, through its duly authorized person, Sh. Pradeep Kumar, Branch Manager

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……..Applicant

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Versus

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Sh. Dinesh Kumar Saini S/o Sh. Gori Shanker Saini

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Smt. Sunita Devi W/o Sh. Dinesh Kumar Saini,

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Both residents of House No.1706/123, Street No.3, Preet Nagar, New Shimlapuri, Ludhiana, Punjab-141003

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2^nd Address of both : Gomji ki Dhani, Jhajhar, via-Nawalgarh, District Jhunjunu, Rajasthan-333304

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….……Defendants

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Advocates:

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Argued by Sh. R.K. Chauhan, counsel for the applicant Defendants are ex-parte

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FINAL ORDER

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Present Original 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.26,81,374.00 (Rupees Twenty Six Lacs Eighty One Thousand Three Hundred and Seventy Four only). The Original Application has been filed through Sh. Pradeep Kumar, Branch Manager o f the applicant

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bank, who is competent to institute the Original Application vide Authority Letter dated 15.11.2022, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 and his son Late Sh. Pawan Kumar Saini had approached the applicant bank for the grant of Housing Loan of Rs.25.00 Lacs vide Loan application dated 22.02.2021, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Housing Loan of Rs.25.00 Lacs vide Sanction Letter dated 25.02.2021, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant No.1 and his son Late Sh. Pawan Kumar Saini.

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Late Sh. Pawan Kumar Saini had mortgaged his immovable property i.e. Residential House bearing MC No. B-XXIX-1706/123-124, measuring 95 Sq. Yards situated at Village Gill no.-2, Hadbast No.263, Abadi Street No.3, Preet Nagar, New Shimlapuri, Tehsil and District Ludhiana, Punjab vide Registered Sale deed bearing vasika No.202021/103/1/13194 dated 23.03.2021 and Jamabandi for the year 201011 along with their translations, which are Annexures A13 and A14 to this OA. Documents executed:- D.P. Note, Letter of Continuity, Housing Loan Agreement, Interest Agreement, Annexure-1, AD-02A, and Application for Disbursement of loan all dated 17.03.2021, which are Annexures A4 to A10 to this OA; Letter by Phullanwal Branch to BRS Nagar Branch of the applicant Bank regarding creation of equitable mortgage and Memorandum of deposit of title deed dated 09.06.2021, which are Annexures A11 and A12 to this OA; Death Certificate of CoBorrower Sh. Pawan Kumar Saini dated 08.11.2021, which is Annexure A15 to this OA; Legal notice and postal receipts dated 02.03.2022, which is Annexure A16 to this OA; Demand Notice under section 13(2) of SARFAESI Act 2002 and postal receipts dated 11.04.2022, which is Annexure A17 to this OA; Valuation report dated 15.12.2020, which is Annexure A18 to this OA and Statement of account along with the certificate, which is Annexure A19 to this OA.

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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.26,81,374.00, 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.

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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 30.08.2023. 7. In support of the OA, affidavit of Sh. Pradeep Kumar, Branch Manager, Union Bank of India h as been filed. 8. Heard ex-parte arguments and perused record.

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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 A19 to this OA, it is proved that the defendant No.1 and his son Late Sh. Pawan Kumar Saini 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 present 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.26,81,374.00 (Rupees Twenty Six Lacs Eighty One Thousand Three Hundred and Seventy Four 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.60%p.a. with monthly rests from 22.11.2022 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

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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 loans 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 @9.60%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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,81,374.00 (Rupees Twenty Six Lacs Eighty One Thousand Three Hundred and Seventy Four only) jointly and severally, with costs, current and future simple interest @9.60%p.a. in the loan account 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 25.09.2023.

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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.

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Pronounced by me in the Open Tribunal. Dated: 15.09.2023

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

Union Bank of India, v. Sh. Dinesh Kumar Saini and Another

Case brief

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Union Bank of India, v. Sh. Dinesh Kumar Saini and Another

Case brief

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