An N.A. under the RDBFI Act, 1993 for recovery of agricultural loan dues. The applicant bank proved the loan, documents, and default. The court allowed the application ex-parte, reduced interest to 7% p.a., and directed issuance of a recovery certificate.
Recovery of Rs. 34,17,812.19 with 7% simple interest from filing date, and issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO. 572/2023
DATE OF INSTITUTION: 28.03.2023
DATE OF DECISION: 12th DAY OF OCTOBER, 2023
Union Bank of India , a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Central Office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021 and its substitution being Transferee Bank to the then Applicant Bank, i.e. erstwhile Corporation Bank by Virtue of order of the Central Government Published in the Gazette Notification No. 133 GSR 154(E) dated 04.03.2020, Transferor Bank 2, i.e. Corporation Bank have been Amalgamated with Union Bank of India under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 having one its Branches at Polytechnic Chowk, Opposite Sector 7, Hissar Road, Urban Estate, Ambala City, Haryana-134003, through its Branch Manager-cum-Principal Officer, Sh. Jeetendra Kumar
…..Applicant Bank
Versus
....Defendants
OA/572/2023 UNION BANK OF INDIA VS JASWINDER SINGH AND ANOTHER 2
Argued by: Sh. Satish Kumar, Senior Manager with Authority Letter for the applicant bank Defendants ex parte vide order dated 21.06.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.34,17,812.19/(Rupees Thirty Four Lac Seventeen Thousand Eight Hundred Twelve and Nineteen Paisa Only) . It has been filed through Sh. Jeetendra Kumar, Branch Manager-cumPrincipal Officer of the applicant bank stated to be competent to institute the Original Application vide letter dated 14.02.2023 of authority, Annexure-A1 (copy).
OA/572/2023 UNION BANK OF INDIA VS JASWINDER SINGH AND ANOTHER 3
undertaking dated 30.11.2017 regarding terms and conditions, Annexure-A6 (copy).
Declaration dated 22.11.2017 under section 4(1) of the Haryana Agriculture Credit Operations and Miscellaneous Provisions (Banks) Act, 1973, Annexure-A7 (copy).
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.34,17,812.19/(Rupees Thirty Four Lac Seventeen Thousand Eight Hundred Twelve and Nineteen Paisa Only), is
OA/572/2023 UNION BANK OF INDIA VS JASWINDER SINGH AND ANOTHER 4
recoverable against the defendants as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, AnnexureA9 (colly) (copy).
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/572/2023 UNION BANK OF INDIA VS JASWINDER SINGH AND ANOTHER 5
parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.34,17,812.19/(Rupees Thirty Four Lac Seventeen Thousand Eight Hundred Twelve and Nineteen Paisa Only) from the defendants.
This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of the mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant No. 2 being a female, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
Thousand Eight Hundred Twelve and Nineteen Paisa Only)
OA/572/2023 UNION BANK OF INDIA VS JASWINDER SINGH AND ANOTHER 6
with current and future simple interest @7% per annum w.e.f. 28.03.2023 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendants in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. However, the applicant bank is at liberty to enforce the claim through due process of law.
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan dues from the defendants in view of non-repayment and default.
Whether the court should modify the rate of interest claimed from 10% to 7% simple interest.
1 provisions across 1 enactments
Union Bank of India
Jaswinder Singh
Manpreet Kaur
M.M. Dhonchak
As recorded by the court registry
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