Allowed

Uco Bank v. Ak Yarn Plus and others

DRT9 Sept 2024OA/1114/2023

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank's application under Section 19 RDBFI Act for recovery of approximately Rs. 1.38 Crores, declaring defendants jointly and severally liable. The court reduced the claimed interest rate from 9.60% to 8.00% per annum.

What did the court decide?

Defendants are liable to pay Rs. 1,37,94,895.94 with uniform simple interest @8.00%p.a. from the date of filing of the OA till realization.

Uco Bank versus Ak Yarn Plus and others — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1114/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.09.2023

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DATE OF DECISION: 09.09.2024

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UCO Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act 1970, having its Head Office at No. 10, B.T.M. Sarni, Kolkata and one of its Branch Offices, amongst other places, at Millerganj GT Road Ludhiana through its Chief Manager Sh. Ravi Prakash Gupta.

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……..Applicant

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Versus

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A.K Yarn Plus B-30/571 though its proprietor Sh. Ankit Bansal near Guru Harkrishan Charitable Hospital, Sherpur Kalan, Ludhiana.

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Sh. Ankit Bansal S/o Sh. Yash Pal Bansal, R/o H. No. 727, Sector-B, Near Community Centre, Aggar Nagar, Ludhiana, Punjab-141012

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Smt. Kusum Bansal W/o Sh. Yash Pal Bansal, R/o H. No. 727, Sector-B, Near Community Centre, Aggar Nagar, Ludhiana, Punjab141012

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Sh. Yash Pal Bansal, R/o H. No. 727, Sector-B, Near Community Centre Aggar Nagar, Ludhiana, Punjab-141012

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………Defendants

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Advocates:

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Argued by Sh. Vipul Babuta, counsel for the applicant (through VC) Defendants are ex-parte

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FINAL ORDER

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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.1,37,94,895.94p (Rupees One Crore Thirty Seven Lacs Ninety Four Thousand Eight Hundred Ninety Five and Paisa Ninety Four only). The

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Original Application has been filed through Sh. Ravi Prakash Gupta, Chief Manager o f the applicant bank, who is competent to institute the Original Application vide Bank Circular dated 20.07.2012, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 through its proprietor i.e. defendant no.2 had approached the applicant bank for the grant of Cash Credit Limit of Rs.1.00 Crore and further for the grant of Term Loan of Rs.20.00 Lacs under WCTCL scheme. Thereafter the defendant requested the applicant bank for the grant of Term Loan –II of Rs. 20.00 Lacs under GECL and Term Loan-III of Rs.10.00 Lacs under GECL 1.0. 3. The applicant Bank sanctioned the Cash Credit Limit of Rs.1.00 Crore and Further Sanctioned Term loan of Rs.20.00 Lacs under WCTCL scheme. Thereafter the applicant bank sanctioned Term Loan– II of Rs. 20.00 Lacs under GECL and Term Loan-III of Rs.10.00 Lacs under GECL 1.0 and the terms vide Sanction Letters dated 23.02.2018 and 03.02.2022 which is Annexure A2 to this OA and conditions were duly accepted by the defendants. 4. Defendants No.3 had mortgaged her immovable properties i.e. Residential House No. B30-571 measuring 300 sq. yards situated in the revenue estate of Village Sherpur Kalan, Tehsil and District Ludhiana (Punjab) vide Equitable Mortgaged of Sale Deed bearing vasika No.10824 dated 03.11.2003 along with its translation filed in compliance of order dated 17.05.2024 vide diary no.10587 dated 10.07.2024. Documents executed:- Demand Promissory Note, Letter of Waiver CC, Letter of Continuity CC, Composite Deed of Hypothecation CC, Letter of Guarantee CC all dated 26.02.2018, which are Annexures A3 to A7 to this OA; Request for a loan cash credit facility against security; of Immovable Property dated 09.05.2018, which is Annexure A8 to this OA; Agreement of Term Loan, Demand Promissory Note, Letter of Guarantee, Composite Deed of Hypothecation, Letter covering increase

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in Limits all dated 29.06.2019, 10.06.2020 and 03.02.2022 which are Annexures A9 to A21 to this OA; Notices dated 13.06.2023, which is Annexure A22 to this OA; Notice u/s 13(2) of SARFAESI Act dated 14.07.2023 with postal receipts, which is Annexure A23 to this OA and Statements of accounts (CC, Term Loan I, II & III ) along with the Certificate under Bankers Book of Evidence, which are Annexures A24 to A27 (colly) to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.1,37,94,895.94p, 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.

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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 23.02.2024.

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In support of the OA, affidavit of Sh. Ravi Prakash Gupta, Chief Manager, UCO Bank has been filed.

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Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 A27 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were granted to them and for that they had executed all the relevant 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, all the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.1,37,94,895.94p (Rupees One Crore Thirty Seven Lacs Ninety Four Thousand Eight Hundred Ninety Five and Paisa Ninety Four only) along

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with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

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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 @9.60%p.a. with yearly rests in all from date of filing this OA till the realization.

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The Tribunal is of the considered opinion that sometimes in

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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 al the loan accounts 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.1,37,94,895.94p (Rupees One Crore Thirty Seven Lacs Ninety Four Thousand Eight Hundred Ninety Five and Paisa Ninety Four only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 04.10.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 09.09.2024

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

Uco Bank v. Ak Yarn Plus and others

Case brief

What is this about?

What did the court decide?

Uco Bank v. Ak Yarn Plus and others

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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