Allowed

Canara Bank v. Smt. Manjit Kaur and Others

DRT29 May 2024OA/1206/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank application unopposed. The court ordered the respondent defendants to pay Rs.24.85 lakhs plus costs and future simple interest at 8% p.a., allowing recovery via sale of mortgaged properties or attachment of personal assets.

What did the court decide?

Recovery of Rs.24,85,472 with interest at 8% p.a., costs, and power to attach/sale mortgaged or personal assets. Issued Recovery Certificate.

Canara Bank versus Smt. Manjit Kaur and Others — Execution and Attachment | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1206/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 12.05.2022

¶5

DATE OF DECISION: 29.05.2024

¶6

Canara Bank, having its Head Office at 112, J.C. Road, Bangalore and having branches all over India and one of its branches amongst other places Branch at Sultanpur Road, Kapurthala, District Kapurthala (Punjab), through its Authorized Person/GPA holder Sh. Sandeep Kumar Gupta

¶7

……..Applicant

¶8

Versus

¶9

Smt. Manjit Kaur W/o late Sh. Dalwinder Singh

¶10

Sh. Kuldeep Singh S/o late Sh. Dalwinder Singh

¶11

Sh. Johan Singh S/o late Sh. Dalwinder Singh

¶12

Ms. Jasmeet Dhot D/o late Sh. Dalwinder Singh

¶13

All are R/o Village Brindpur, P.O. Sheikhupur, District Kapurthala (Punjab)

¶14

Sh. Jaswinder Singh S/o Sh. Sucha Singh, R/o Village Brindpur,

¶15

P.O. Sheikhupur, District Kapurthala (Punjab)

¶16

………Defendants

¶17

Advocates:

¶18

Argued by Sh. Omkar Gupta, counsel for the applicant Defendants are ex-parte

¶19

FINAL ORDER

¶20

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.24,85,472.00 (Rupees Twenty Four Lacs Eighty Five Thousand Four Hundred and Seventy Two only). The Original Application has been filed through Sh. Sandeep Kumar Gupta, officer of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 04.03.2017, which is Annexure A1 to this OA.

¶21

¶22

The brief facts of the OA are that Late Sh. Dalwinder Singh had approached the applicant bank for the grant of KCC Limit of Rs.16.00 Lacs vide Loan Application dated 19.07.2016, which is Annexure A2 to this OA.

¶23

The applicant Bank sanctioned the KCC Limit of Rs.16.00 Lacs vide Sanction Memo dated 19.07.2016, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

¶24

Late Sh. Dalwinder Singh had mortgaged the immovable property of defendant no.5 i.e. total land measuring 17 Kanal 03 Marla situated at Village Bahui, H.B. No.132, Tehsil and District Kapurthala, Punjab vide Letter to Tehsildar for creation of charge and Declaration u/s 4(1) bearing mutation no.1617 dated 05.07.2016 and Jamabandi for the year 2012-13 along with its translation, which are Annexures A5 and A6 to this OA . The property was mortgage by Late Sh. Dalwinder Singh through Power of Attorney of defendant no.5 bearing vasika no.99 dated 30.06.2016 with its translation, which is Annexure A3 to this OA Documents executed:- Agreement and deed of hypothecation of KCC dated 19.07.2016, which is Annexure A7 to this OA; Legal notice dated 10.05.2017 along with postal receipt, which is Annexure A8 to this OA; Acknowledgment of debt and security dated 19.06.2019, which is Annexure A9 to this OA; Notice dated 23.03.2022 with postal receipt, which is Annexure A10 to this OA; Legal notices dated 02.05.2022 and 29.04.2022, which is Annexures A11 and A12 to this OA and Statement of account with certificate under Banker’s Book of Evidence Act, 1891, which is Annexure A13 to this OA. 5. 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.24,85,472.00, 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.

¶25

¶26

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 30.03.2024.

¶27

In support of the OA, affidavit of Sh. Sandeep Kumar Gupta, officer, Canara Bank has been filed.

¶28

Heard ex-parte arguments and perused record. 9. It was argued by learned 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 A13 to this OA, it is proved that Late Sh. Dalwinder Singh a pproached applicant bank 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 bank. Late Sh. Dalwinder Singh and defendant no.5 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.24,85,472.00 (Rupees Twenty Four Lacs Eighty Five Thousand Four Hundred and Seventy Two only) along with interest from Legal heirs of late Sh. Dalwinder Singh i.e. defendant nos.1 to 4 and Defendant no.5, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.85%p.a. with half yearly rests from 01.04.2022 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 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

¶30

¶31

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 defendants are liable to pay to the applicant a total sum of Rs.24,85,472.00 (Rupees Twenty Four Lacs Eighty Five Thousand Four Hundred and Seventy Two 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 Legal heirs of late Sh. Dalwinder Singh i.e. defendant nos.1 to 4 and Defendant no.5, jointly and severally 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 13.06.2024. 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: 29.05.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Canara Bank v. Smt. Manjit Kaur and Others

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. Manjit 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

Punjab National Bank versus Sh. Mukhtiar Singh

Uco Bank versus M/s Brand Villa and Another

Axis Bank Ltd. versus Sh. Karamjit Singh and Others

Hdfc Bank Ltd. versus Sh. Kabal Singh

Punjab National Bank versus Sh. Surinder Singh

Canara Bank versus Sh. Gurdial Singh