Allowed

Union Bank of India v. Gurbachan Singh and Others

DRT25 Sept 2024OA/1043/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Union Bank of India for recovery of Rs.25,16,854.80 against the legal heirs of a deceased borrower and another guarantor. The court granted uniform simple interest and authorized recovery from mortgaged properties under the SARFAESI Act.

What did the court decide?

Liquidated sum of Rs.25,16,854.80 with costs and simple interest @8.00% p.a. is declared payable, recoverable from mortgaged properties or sale of personal assets.

Union Bank of India versus Gurbachan Singh and Others — Specific Performance | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1043/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.08.2023

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DATE OF DECISION: 25.09.2024

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Union Bank of India, (Erstwhile Corporation Bank) a body Corporate Constituted Under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970 having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and one of its Branch Offices at Banur Branch, District Mohali, SAS Nagar, Punjab, through its Asst. Branch Manager, Sh. Sumit Luthra.

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……..Applicant

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Versus

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Sh. Gurbachan Singh son of Sh. Sant Singh Through his legal heirs (i) Sh. Ranjit Singh S/o Sh. Gurbachan Singh, R/o Village Dharamgarh, Sub- Tehsil Banur, District SAS Nagar Mohali, Punjab.

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Sh. Kuldeep Singh S/o Sh. Mangat Ram R/o Village Dharamgarh, Sub- Tehsil Banur, District SAS Nagar Mohali, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Karan Singla, 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.25,16,854.80 (Rupees Twenty Five Lac Sixteen Thousand Eight Hundred Fifty Four and Eighty Paise Only). The Original Application has been filed through Sh. Sumit Luthra, Branch Manager o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 17.07.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 (Since Deceased) had approached the applicant for the grant of KCC Limit of Rs.14.50 Lacs vide Loan application dated 21.08.2017, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.14.50 Lacs vide Sanction Letter dated 18.09.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 (Since Deceased) had mortgaged his immovable properties i.e. total land measuring 32K-0M situated in Village Dharamgarh, Hadbast No.239, Sub- Tehsil Banur, District SAS Nagar Mohali vide Registered Mortgage Deed dated 18.09.2017 and Jamabandi for the year 2018-2019 with their translations, which is Annexure A12 to this OA.

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Documents executed:- Hypothecation Agreement, Demand Promissory Note, Letter of Undertaking, Mortgage Deed, Simple Loan Agreement, Deed of Guarantee, Interest Agreement, Letter of Continuity all dated 20.09.2017, which are Annexures A4 to A11 to this OA; Notice dated 19.11.2022, which is Annexure A14 to this OA and Statement of account along with Banker certificate, which is Annexure A15 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.25,16,854.80, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The legal heirs of deceased defendant no.1 i.e. 1(i) and defendant no.2 were served notices to appear before this Tribunal. Son in Law of defendant no.2 appeared on 22.02.2024 and sought time to engage advocate. Since no one appeared on behalf of defendants, they were proceeded ex-parte on 11.09.2024. 7. In support of the OA, affidavit of Sh. Sumit Luthra, Branch Manager, Union Bank of India h as been filed.

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Heard 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 had proved its case. From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the defendant No.1(since deceased) approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. 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 is entitled to recover a sum of Rs.25,16,854.80 (Rupees Twenty Five Lac Sixteen Thousand Eight Hundred Fifty Four Rupees and Eighty Paise Only) along with interest from the legal heirs of deceased defendant no.1 i.e. 1(i) and defendant no.2, 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 in relief clause has claimed interest @8.50p.a. along with penal interest @2.65%p.a. from 31.05.2023 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 @8.00%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. 11. In the result, the application is allowed declaring that the legal heir of deceased defendant no.1 i.e. 1(i) and defendant no.2 are liable

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to pay to the applicant a total sum of Rs.25,16,854.80 (Rupees Twenty Five Lac Sixteen Thousand Eight Hundred Fifty Four Rupees and Eighty Paise 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 shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the legal heir of deceased defendant no.1 i.e. 1(i) and defendant no.2 in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.10.2024. 15. Copy of this order be given dasti to the applicant and be sent to The legal heir of deceased defendant no.1 i.e. 1(i) and defendan t no.2 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: 25.09.2024

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

Union Bank of India v. Gurbachan Singh and Others

Case brief

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Union Bank of India v. Gurbachan Singh and Others

Case brief

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