Allowed

Canara Bank v. Gurnam Singh

DRT7 Aug 2024OA/1286/2023

Case brief

AI extract

What is this about?

The TRIBUNAL allowed the Original Application filed by Canara Bank against the defendant for recovery of Rs.33,75,975. The court held the defendant liable to pay the principal amount with uniform simple interest at 8% p.a. and authorized recovery from mortgaged or personal assets.

What did the court decide?

Recovery certificate issued; Defendant liable to pay Rs.33,75,975 with 8% p.a. simple interest; liberty to enforce via sale of mortgaged or personal assets.

Canara Bank versus Gurnam Singh — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1286/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.10.2023

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DATE OF DECISION: 07.08.2024

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Canara Bank, a body corporate and nationalized bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at J. C. Road, Bangalore and amongst other a Branch Office at Kurali, District Rupnagar through its Constituted Attorney and Branch Manager Sh. Davinder Chauhan

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……..Applicant Versus Sh. Gurnam Singh S/o Sh. Nasib Singh Village Badi Jhallian District Rupnagar, Punjab

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….……Defendant

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Advocates:

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Argued by Ms. Parvinder Kaur, Advocate for the applicant Defendant is 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 defendant for recovery of Rs.33,75,975.00 (Rupees Thirty Three Lacs Seventy Five Thousand Nine Hundred and Seventy Five only). The Original Application has been filed through Sh. Davinder Chauhan, Branch Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 20.03.2018, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.20.00 Lacs vide Loan application dated 12.12.2014, which is Annexure A3 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.14.00 Lacs for the 1^st year and to be enhanced upto Rs.20.00 Lacs for the 5^th year vide Sanction Memorandum dated 24.12.2014, which is Annexure A4 to this OA; and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 20L-00M situated at Village Bari Jhallian, Hadbast No. 168, Tehsil Chamkaur Sahib, District Rupnagar, Punjab vide Letter to Sub Registrar for creation of charge bearing vasika no.313 and Declaration u/s 4(1) both dated 18.12.2014 along with their English Translations, which is Annexure A6 to this OA. Documents executed: - Valuation Report, which is Annexure A1 to this OA; Agreement and Deed for Hypothecation for KCC dated 24.12.2014, which is Annexure A5 to this OA; Acknowledgment of Debt and Security dated 25.01.2019 and 18.05.2021 which are Annexures A7 & A8 to this OA; Legal Notice dated 07.08.2023 along with its Postal Receipt, which is Annexure A9 to this OA and Loan Account Statement along with certificate of Banker’s Book of Evidence dated 16.10.2023, which is Annexure A10 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.33,75,975.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 30.05.2024. 7. In support of the OA, affidavit of Sh. Davinder Chauhan, Branch Manager, Canara Bank has been filed. 8. Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A10 to this OA, it is proved that the defendant approached 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. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.33,75,975.00 (Rupees Thirty Three Lacs Seventy Five Thousand Nine Hundred and Seventy Five only) along with interest from the defendant, 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 @11.00%p.a. plus Penal Interest @2%p.a. from 31.03.2023 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 defendant, 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 defendant is liable to pay to the applicant a total sum of Rs.33,75,975.00 (Rupees Thirty Three Lacs Seventy Five Thousand Nine Hundred and Seventy Five only), with costs, current and future

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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 defendant 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 defendant. 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 29.08.2024.

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Copy of this order be given dasti to the applicant bank and be sent to defendant 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: 07.08.2024

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

Canara Bank v. Gurnam Singh

Case brief

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Canara Bank v. Gurnam Singh

Case brief

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