Allowed

Union Bank Of India v. Smt. Geeta

DRT6 Oct 2023OA/9/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under Section 19 of the RDB Act, 1993, directing the non-appearance defendant to repay Rs. 45,35,090 along with future interest. The order authorized recovery via execution against mortgaged properties under the SARFAESI Act or attachment of personal assets.

What did the court decide?

Recovery of Rs.45,35,090 with future simple interest @9.65%p.a. via sale of mortgaged properties or attachment of personal assets.

Union Bank Of India versus Smt. Geeta — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.9/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.07.2021

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DATE OF DECISION: 06.10.2023

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Union Bank Of India (in which Corporation Bank amalgamated w.e.f. 01.04.2020), a body corporate and Nationalized Bank under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and amongst others a Branch Office at Near LIC Lane, Opposite Power House, Dhangu Road, Pathankot, Punjab-145001 through its Branch Manager, Sh. Maninder Singh Gill/ Authorized Officer

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……..Applicant Versus Smt. Geeta W/o Sh. Kamaljit Singh, R/o Behind Gurkirat Palace, Bhadroya, Saili Road, Tehsil and District Pathankot, Punjab

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………Defendant

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Advocates:

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Argued by Sh. Sumeet Sehgal, counsel for the applicant Defendant is 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 defendant for recovery of Rs.45,35,090.00 (Rupees Forty Five Lacs Thirty Five Thousand and Ninety only). The Original Application has been filed through Sh. Maninder Singh Gill, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Authorization Letter dated 31.05.2021, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of CC Limit of Rs.30.00 Lacs vide Loan Application dated 16.10.2014, which is Annexure A3 to this OA.

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The applicant Bank sanctioned the CC Limit of Rs.30.00 Lacs vide Sanction Letter dated 16.10.2014, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged her immovable properties i.e. total agricultural land measuring 171 Kanals 19 Marlas, detailed below: (i) Land Measuring 43 Kanals 02 Marlas situated at Village Bard Sudal, Tikka Karoon, Tehsil Dhar Kalan, Hadbast No.409, Pathankot, Punjab vide Registered Mortgage Deed No.234 dated 11.06.2014 along with its translation, which are Annexures A11 and A12 to this OA;

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(ii) Land Measuring 54 Kanals 19 Marlas situated at Village Thara Jhikla, Tika Sukret, Hadbast No.399, Tehsil Dhar Kalan, District Pathankot, Punjab vide Declaration U/s 4(1) dated 21.02.2017, which is Annexure A13 to this OA; and

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(iii) Land Measuring 73 Kanals 18 Marlas situated at Village Hara Tika Manget, Hadbast No.394, Tehsil Dhar Kalan, District Pathankot, Punjab vide Declaration U/s 4(1) dated 21.02.2017, which is Annexure A14 to this OA.

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Documents executed: - Gazette Notification dated 04.03.2020, which is Annexure A1 to this OA; Hypothecation Agreement, Demand Promissory Note, Take Delivery Letter to D.P.N and Request for Overdraft Facilities/ Cash Credit Limit all dated 16.10.2014, which are Annexures A5 to A8 to this OA; Acknowledgments of Debt/Liability by the Borrower dated 10.05.2017 and 20.11.2019, which are Annexures A9 and A10 to this OA; Jamabandi for the year 2010-11 dated 17.04.2017 and 03.04.2017, which are Annexures A15 and A16 to this OA; Notice and its Postal receipts dated 05.03.2019, which are Annexures A17 and A18 to this OA and Statement of account, 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 debit of Rs.45,35,090.00, which is recoverable and the defendant was served recall notice but she did not repay the outstanding amount,

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therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and she was proceeded ex-parte on 12.09.2023. 7. In support of the OA, affidavit of Sh. Maninder Singh Gill, Branch Manager, Union Bank of India has 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 approached applicant bank for availing of the loan facility which was granted to her and for that she had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.45,35,090.00 (Rupees Forty Five Lacs Thirty Five Thousand and Ninety only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendente lite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.65%p.a. along with @2%p.a. penal interest from 02.06.2021 till the realization.

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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 defendant, 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 @9.65%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 defendant is liable to pay to the applicant a total sum of Rs.45,35,090.00 (Rupees Forty Five Lacs Thirty Five Thousand and Ninety only) with costs, current and future simple interest @9.65%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 defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law.

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12.	Any other application pending stands disposed of.
13.	Issue Recovery Certificate accordingly.
14.	Parties to appear before Learned Recovery Officer of this
Tribu	nal on 13.10.2023.
15.	Copy of this order be given dasti to the applicant bank and be
sent	to defendant through registered/speed post and this order be also
uploa	ded on the official website of this Tribunal and record be
consi	gned.
Pron	ounced by me in the open Tribunal.
Date	d: 06.10.2023
	(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank Of India v. Smt. Geeta

Case brief

What is this about?

What did the court decide?

Union Bank Of India v. Smt. Geeta

Case brief

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