Allowed

Union Bank of India v. Angrej Kaur and Others

DRT11 Sept 2024OA/1020/2023

Case brief

AI extract

What is this about?

Original Application filed under Section 19 of RDBFI Act, 1993 for recovery of outstanding agricultural loan. Defendants absent. Court allowed application, fixed uniform interest at 8.00%p.a., directed recovery from hypothecated properties or other assets, and issued Recovery Certificate.

What did the court decide?

Recovery of Rs.33,75,464.50 plus costs and uniform simple interest @8.00%p.a. from filing date till realization; Recovery Certificate issued.

Union Bank of India versus Angrej Kaur and Others — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1020/2023

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 25.07.2023

¶5

DATE OF DECISION: 11.09.2024

¶6

Union Bank of India (erstwhile Corporation Bank), a body constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Act No. 5 of 1970), carrying on Banking business and having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and one of its Branch Office at Mata Modi Road, Near Aggarsen Chowk, Sunam, District Sangrur-148028 through its authorized signatory Sh. Aditya Tripathi, Branch Manager.

¶7

……Applicant Bank

¶8

Versus

¶9

Smt. Angrej Kaur W/o Sh. Jiwa Singh R/o Village Kotra Amru, Tehsil Sunam, District Sangrur.

¶10

Sh. Jagsir Singh S/o Sh. Jiwa Singh R/o Village Kotra Amru, Tehsil Sunam, District Sangrur.

¶11

…..Borrower/Defendant

¶12

Sh. Sirmanjit Singh S/o Sh. Nihal Singh R/o Village Kotra Amru, Tehsil Sunam, District Sangrur.

¶13

……Guarantor/Defendant

¶14

Advocates:

¶15

Argued by Sh. Pradeep Sharma, Advocate proxy for Sh. Ajay Singla, Advocate for the applicant bank Defendants are ex-parte

¶16

FINAL ORDER

¶17

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.33,75,464.50p (Rupees Thirty Three Lacs Seventy Five Thousand Four Hundred Sixty Four And Paise Fifty Only). The Original Application has been filed through Sh. Aditya Tripathi, Branch Manager o f the

¶18

¶19

applicant bank, who is competent to institute the Original Application vide Power of attorney dated 07.06.2010, which is Annexure A1 to this OA.

¶20

The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant bank for the grant of Term Loan (Agriculture Credit) of Rs.22.00 Lacs vide application dated 17.11.2015, which is Annexures A2 to this OA. 3. The applicant Bank sanctioned the Term Loan (Agriculture Credit) of Rs.22.00 Lacs vide Sanction letter dated 17.11.2015, which is Annexures A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No. 1 had mortgaged his immovable property total land measuring 35K-12M situated at Village Kotra Amru, H.B. No.25, Tehsil Sunam, District Sangrur vide Letter to Sub Registrar for creation of charge bearing vasika no.501 and Declaration U/s 4(1) along with Jamabandi year 2013-2014 and their translations, which are Annexures A8, A9, A10 & A11 to this OA.

¶21

Documents executed: - Deed of hypothecation for Agriculture Loan, Demand Promissory Note, Take Delivery Note to DPN, Deed of Guarantee & Self Declaration all dated 17.11.2015, which are Annexures A4 to A7 to this OA; Acknowledgment of debt dated 22.08.2018 which is Annexure A12 to this OA; Notice dated 25.06.2021 along with translation and postal receipts, which is Annexure A13 to this OA and Account statement along with Certificate, which is Annexure A14 to this OA.

¶22

The loan account became irregular and was declared NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.33,75,464.50 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.

¶23

¶24

The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and were proceeded ex-parte on 01.08.2024.

¶25

In support of the OA, affidavit of Sh. Aditya Tripathi Branch Manager, Union Bank of India, h as been filed.

¶26

Heard ex-parte arguments and perused record.

¶27

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 A14 to this OA, it is proved that the defendants approached applicant bank for taking the loan facility which was granted to them and they executed all the relevant documents but they did not pay the loan as per terms and conditions of the agreement and their account was declared NPA and from the documentary evidence it is proved that bank is entitled to recover a total sum of Rs.33,75,464.50 (Rupees Thirty Three Lacs Seventy Five Thousand Four Hundred Sixty Four And Paise Fifty 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.

¶28

In so far as pendent elite and future interest are concerned, the applicant bank has claimed interest @9.65% p.a. along with penal interest @2%p.a. with half yearly rests from 01.07.2023 till the realization.

¶29

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 properties, 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 @8.00%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.

¶30

¶31

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,75,464.50 (Rupees Thirty Three Lacs Seventy Five Thousand Four Hundred Sixty Four And Paise Fifty Only) jointly and severally, with costs, current and future simple interest @8.00%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.

¶32

Parties to appear before Learned Recovery Officer of this Tribunal on 07.10.2024.

¶33

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.

¶34

Pronounced by me in the Open Tribunal Dated: 11.09.2024

¶35

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

Union Bank of India v. Angrej Kaur and Others

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Angrej Kaur and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of India versus Joginder Singh and Others

Indian Bank versus Kumba Singh and Another

Union Bank of India versus Gurpreet Singh and Another

Punjab National Bank versus Kuldeep Singh and Another

Punjab National Bank versus Balwant Singh and Others

Icici Bank Limited versus Jaspal Singh and Others