DRT allowed an Original Application filed by Union Bank of India against three defendants for recovery of a crop loan amounting to approximately Rs. 37.98 lacs which was classified as NPA.
Order for recovery of Rs. 37,98,817.80 plus interests and costs; directions for Recovery Certificate and subsequent execution proceedings.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.409/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 29.01.2022
DATE OF DECISION: 27.12.2023
Union Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No. V of 1970 and having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point Mumbai-400021 and the successor of Corporation Bank, by Scheme of Amalgamation of Corporation Bank dated 04.03.2020, passed by the Central Government under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act No.5 of 1970, and one of its Branch office at Bahadurgarh, District Patiala through Sh. Nitin Sharma, Branch Manager, Principal Officer and duly constituted Attorney of bank
(Erstwhile Corporation Bank, Branch office at Bahadurgarh, District Patiala)
……..Applicant Versus
Advocates: Argued by Sh. Amandeep Singh Sobti, Advocate for the applicant Defendants are ex-parte FINAL ORDER
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Institutions Act, 1993, against the defendants for recovery of Rs.37,98,817.80p (Rupees Thirty Seven Lacs Ninety Eight Thousand Eight Hundred Seventeen and Eighty Paise only). The Original Application has been filed through Sh. Nitin Sharma, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Letter of Authority dated 21.10.2021, which is Annexure A2 to this OA.
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debit of Rs.37,98,817.80p, 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.
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
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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 @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 defendants are liable to pay to the applicant a total sum of Rs.37,98,817.80p (Rupees Thirty Seven Lacs Ninety Eight Thousand Eight Hundred Seventeen and Eighty Paise only) jointly and severally, 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 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.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount along with interest.
Whether to grant uniform simple interest on the principal amount due.
1 provisions across 1 enactments
Union Bank of India
Sh. Surinder Singh
Sh. Balwinder Singh
Sh. Kaka Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
