Allowed

Union Bank of India, v. Sh. Banta Singh and Others

DRT15 Dec 2023OA/96/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of Rs. 20,60,042.62 along with interest. It exercised discretion on the rate of interest and ordered enforcement through Saleable Assets or attachment proceedings.

What did the court decide?

Declaration of liability to pay Rs. 20,60,042.62 plus costs and simple interest at 8.60%p.a.; direction to file Recovery Certificate and enforce recovery from mortgaged or personal assets.

Union Bank of India, versus Sh. Banta Singh and Others — Execution and Attachment | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.96/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.01.2023

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DATE OF DECISION: 15.12.2023

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Union Bank of India, a body corporate, constituted under Banking Companies (Acquisition & 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 Village Jassowal, Tehsil and District Ludhiana, though duly authorized person, Sh. Ram Charit, Branch Manager

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……..Applicant

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Versus

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Sh. Banta Singh S/o Sh. Bakhtaur Singh

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Sh. Harjinder Singh S/o Sh. Ranjit Singh

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Both residents of Village Bihla, Post office Dolon Kalan, Tehsil and District Ludhiana

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Sh. Karnail Singh S/o Sh. Modan Singh resident of Village Assi Kalan, Tehsil and District Ludhiana

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………Defendants

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Advocates:

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Argued by Sh. Amod Kumar Thakur, Advocate proxy for Sh. R.K. Chauhan, Advocate 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.20,60,042.62p (Rupees Twenty Lacs Sixty Thousand Forty Two and Paisa Sixty Two only). The Original Application has been filed through Sh. Ram Charit, Branch Manager o f the applicant bank, who is

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competent to institute the Original Application vide Power of Attorney dated 17.04.2015, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant bank from time to time for the grant of Cash Credit Limit of Rs.5.00 Lacs under Union Green Card Scheme for Agricultural purpose and later for the renewals and also for the enhancement of the limit to Rs.15.00 Lacs vide Loan Applications dated 11.10.2006, 12.06.2009, 14.05.2012 and 05.03.2016, which are Annexures A2, A11, A19 and A28 to this OA.

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The applicant Bank sanctioned/renewed the Cash Credit Limit of Rs.5.00 Lacs under Union Green Card Scheme and further enhanced the limit to Rs.15.00 Lacs vide Sanction Letters dated 13.10.2006, 23.06.2009, 14.05.2012 and 30.04.2016, which are Annexures A3, A12, A20 and A29 to this OA; in which the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable properties i.e.

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(i) land measuring 08K-00M situated at Village Bihla, Hadbast no.284, Tehsil and District Ludhiana, Punjab v ide Registered Mortgage Deed bearing vasika no.16830 dated 02.11.2006 along with its translation, which is Annexure A10 to this OA; and

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(ii) land measuring 14K-12M situated at Village Bihla, Hadbast no.284, Tehsil and District Ludhiana, Punjab vide Declaration u/s 4(1) dated 23.05.2016 and Jamabandi for the year 2014-15 along with their translations, which are Annexures A39 and A40 to this OA.

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Documents executed: - D.P. Note, Letter of Continuity, Hypothecation agreement, Consent clause from borrower, Deed of Guarantee, Consent clause by Guarantor all are dated 06.11.2006, which are Annexures A4 to A9 to this OA; D.P. Note, Letter of Continuity, Hypothecation agreement, Annexure-I, Deed of Guarantee and Annexure-II all are dated 23.06.2009, which are Annexures A13 to A18 to this OA; D.P. Note, Letter of Continuity, Hypothecation agreement, Annexure-I, Agreement on rate of interest, Deed of

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Guarantee and Annexure-II all are dated 14.05.2012, which are Annexures A21 to A27 to this OA; D.P. Note, Letter of Continuity, Hypothecation agreement, Simple loan agreement, Interest agreement, Annexure-I, Declaration/Undertaking, Deed of Guarantee and Annexure-II all are dated 02.07.2016, which are Annexures A30 to A38 to this OA; Debit balance confirmation dated 27.11.2018, which is Annexure A41 to this OA; Composite Debit balance confirmation dated 03.04.2020, which is Annexure A42 to this OA; Notices to defendants and the postal receipts dated 21.02.2022, 14.07.2022, 18.07.2022, 06.08.2022 and 18.11.2022, which are Annexures A43 to A47 to this OA; Legal notices and the postal receipts dated 06.06.2022 and 02.12.2022, which are Annexures A48 and A49 to this OA and Statement of Account along with the certificate, which are Annexures A50 and A51 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.20,60,042.62p, 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 10.11.2023.

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In support of the OA, affidavit of Sh. Ram Charit, Branch Manager, Union Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy 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 A51 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant

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documents in favour of the bank. The 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.20,60,042.62p (Rupees Twenty Lacs Sixty Thousand Forty Two and Paisa Sixty Two 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 @8.60%p.a. along with @2%p.a. penal interest with half yearly rests from 01.01.2023 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 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 @8.60%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.20,60,042.62p (Rupees Twenty Lacs Sixty Thousand Forty Two and Paisa Sixty Two only), jointly and severally, with costs, current and future simple interest @8.60%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

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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 26.12.2023. 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: 15.12.2023

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

Union Bank of India, v. Sh. Banta Singh and Others

Case brief

What is this about?

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Union Bank of India, v. Sh. Banta Singh and Others

Case brief

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