Allowed

Union Bank of India v. Fauza Singh and Others

DRT5 Sept 2024OA/1259/2023

Case brief

AI extract

What is this about?

This debtor tribunal allowed an application filed by Union Bank of India for recovery of a loan of Rs.23,86,029.78 P from the legal heirs of a deceased borrower. The Tribunal issued a Recovery Certificate and directed recovery of the principal along with future simple interest.

What did the court decide?

Order declaring debt of Rs.23,86,029.78 P and instructing recovery with 8% simple interest via sale of properties and attachment of personal assets and issuance of Recovery Certificate.

Union Bank of India versus Fauza Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1259/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.08.2023

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DATE OF DECISION: 05.09.2024

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Union Bank of India, a Body Corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai and having its branch office inter-alia at Kapurthala, Distt. Kapurthala, Punjab, through its Manager Sh. Sunil Jangra.

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……..Applicant Bank

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Versus

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Sh. Fauza Singh S/o Sh. Tara Singh, R/o Village Jhal Thikriwal,

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Tehsil & District Kapurthala through its legal heirs

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a. Sh. Shingara Singh S/o Sh. Fauja Singh, R/o Village Jhal Thikriwal, Tehsil & District Kapurthala.

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b. Sh. Balkar Singh S/o Sh. Fauza Singh, R/o Village Jhal Thikriwal, Tehsil & District Kapurthala.

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Sh. Shingara Singh S/o Sh. Fauja Singh, R/o Village Jhal Thikriwal, Tehsil & District Kapurthala.

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Sh. Joginder Singh S/o Sh. Gulzar Singh, R/o V.P.O Kanjli Tehsil & District Kapurthala.

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…... Defendants

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Advocates:

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Argued by Sh. Shivam Dheer, Advocate proxy for Sh. Iqbal Mohammed, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

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Rs.23,86,029.78p (Rupees Twenty Three Lacs Eight Six Thousand Twenty Nine And Paise Seventy Eight Only). The Original Application has been filed through Sh. Sunil Jangra, Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 09.03.2018, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1(Since Deceased) had approached the applicant bank for grant of KCC Limit of Rs.9.00 Lacs and Further for its enhancement to Rs.13.50 Lacs. Thereafter approached the applicant bank for renewal of KCC Limit of Rs.13.50 Lacs vide Renewal application and dated 24.04.2019, which is Annexure A14 to this OA.

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Later, defendant no.1 again approached the applicant bank for enhancement of Agriculture Limit(UGC) of Rs.13.50 to Rs.20.00 Lacs vide Loan Applications dated 28.05.2019, which is Annexure A25 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.9.00 Lacs and Further enhanced it to Rs.13.50 Lacs vide sanction Letter dated 28.12.2016, which is Annexure A2 to this OA. Further Applicant Bank renewed the KCC Limit of Rs.13.50 Lacs vide sanction letter, which is Annexure A16 to this OA. Thereafter applicant bank again enhanced it to Rs.20.00 Lacs vide Sanction Letter dated 10.06.2019, which is Annexure A26 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1(Since Deceased) had mortgaged his immovable property i.e. land measuring 24K-0M situated at Village Jhalthikariwal, H.B. No.13 Tehsil & District Kapurthala vide Registered Mortgaged Deed bearing vasika no.5220 dated 04.02.2011 along with its translation and, which is Annexure A11 to this OA Declaration U/s 4(1) dated 30.06.2014, which is Annexure A36 to this OA. Documents executed : - D.P. note, Hypothecation Agreement, Letter of Continuity, Simple loan Agreement, Declaration/Undertaking, Letter

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of Confirmation, Interest Agreement & Consent Clause all dated 28.12.2016, which are Annexures A3 to A10 to this OA; Title Report and Affidavit dated 01.02.2011, which are Annexures A12 and A13 to this OA; Application cum undertaking for UGC, which is Annexure A15 to this OA. D.P. note, Hypothecation Agreement, Deed of Guarantee, Letter of Continuity, Simple loan Agreement, Interest Agreement, Undertakings all dated 24.04.2019, which are Annexures A17 to A24 to this OA; D.P. note, Hypothecation Agreement, Deed of Guarantee, Letter of Continuity, Simple loan Agreement, Declaration, Interest Agreement, Undertaking all dated 10.06.2019, which are Annexures A27 to A35 to this OA; Legal Search Report dated 10.06.2019, which is Annexure A37 to this OA; Mutation Certificate dated 06.06.2019, which is Annexure A38 to this OA; Debt Balance Confirmation Letter dated 03.08.2012, 06.07.2015, 08.11.2017 & 03.04.2019, which are Annexures A39 to A42 to this OA; Legal Notice dated 16.01.2012 & 10.07.2023 with postal receipts, which is Annexure A43 to this OA; Account Statement along with Computer Certificate dated 21.08.2023, which are Annexures A44 & A45 to this OA. 5. 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.23,86,029.78p which is recoverable and the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b) and defendant nos.2 and 3 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 were proceeded ex-parte on 29.07.2024. 7. In support of the OA, affidavit of Sh. Sunil Jangra, 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 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 A45 to this OA, it is proved that the defendant no.1 (Since Deceased) approached applicant bank for taking the loan facility which was granted to him and he executed all the relevant documents but they did not pay the loan as per terms and conditions of the agreement and their accounts were declared NPA and from the documentary evidence it is proved that bank is entitled to recover a total sum of Rs.23,86,029.78p(Rupees Twenty Three Lacs Eight Six Thousand Twenty Nine And Paise Seventy Eight Only) along with interest from the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b) and defendant nos.2 and 3, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.25%p.a. along with penal interest @2%p.a. with monthly rests from 30.06.2023 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 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 both 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. 11. In the result, the application is allowed declaring that the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b) and defendant nos.2

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and 3 are liable to pay to the applicant a total sum of Rs.23,86,029.78p (Rupees Twenty Three Lacs Eight Six Thousand Twenty Nine And Paise Seventy Eight Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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 legal heirs of deceased defendant no.1 i.e. 1(a), 1(b) and defendant nos.2 and 3. 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.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 30.09.2024.

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Copy of this order be given dasti to the applicant bank and be sent to the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b) and defendant nos.2 and 3 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 Dated: 05.09.2024

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

Union Bank of India v. Fauza Singh and Others

Case brief

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Union Bank of India v. Fauza Singh and Others

Case brief

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