Allowed

Uco Bank v. Baljit Singh and Another

DRT26 Nov 2024OA/13/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the original application filed by UCO Bank for recovery of Rs. 23,24,060.52 from the respondents. It accepted the documentary evidence of loan agreements and mortgages as unrebutted. The order granted uniform simple interest at 8% p.a. and directed issuance of a recovery certificate.

What did the court decide?

Declaratory that respondents are liable to pay Rs. 23,24,060.52 with costs and interest at 8% p.a.; Order to issue Recovery Certificate.

Uco Bank versus Baljit Singh and Another — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.13/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.12.2023

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DATE OF DECISION: 26.11.2024

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UCO Bank, a body corporate constituted under the Banking Companies Acquisition and Transfer of Undertakings Act 1970, having its Head Office at 10, Brabourn Road, Kolkata and its Branches throughout India and amongst other Branches having a Branch Office at Bhundri, Ludhiana, through its constituted attorney Sh. Ritesh Bhardwaj, Branch Manager, UCO Bank, Bhundri Branch, Ludhiana and who is also the principal officer of the applicant.

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……..Applicant Versus

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Sh. Baljit Singh S/o Sh. Gajjan Singh, Manjit Colony, Near Gurudwara Sahib, VPO Hambran, Tehsil and District, Ludhiana141110.

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Smt. Amarjit Kaur w/o Sh. Baljit Singh, Manjit Colony, Near Gurudwara Sahib, VPO Hambran, Tehsil and District, Ludhiana141110.

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……… .Defendants

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Advocates:

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Argued by Sh. Ashok Kumar Verma, Advocate proxy for Sh. Varun Verma, Advocate for the applicant None for defendant no.1 Defendant no.2 already 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.23,24,060.52p (Rupees Twenty Three Lacs Twenty Four Thousand Sixty And Paise Fifty Two Only). The Original Application has been filed through Sh. Ritesh Bhardwaj, Branch Manager of the applicant, who is

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competent to institute the Original Application vide Circular Letter dated 20.07.2012, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for grant of Home Loan of Rs.20.00 Lacs vide Loan Application dated 24.08.2012, which is Annexure A2 to this OA. Further, defendant no.1 & 2 had again approached the applicant for grant of Term Loan of Rs.1.80 Lacs vide Application for loan under “UCO Pensioner” Scheme dated 24.11.2021, which is Annexure A10 to this OA. Further, defendant no.1 & 2 had again approached the applicant for grant of Term Loan of Rs.10.00 Lacs vide Loan Application dated 19.12.2022, which is Annexure A16 to this OA. 3. The applicant sanctioned Term Loan of Rs.18.39 Lacs vide Sanction Letter dated 05.09.2012, which is Annexure A3 to this OA. Further, applicant bank sanctioned for Term Loan of Rs.1.80 Lacs vide Sanction Letter dated 24.11.2021, which is Annexure A11 to this OA. Thereafter, applicant sanctioned for home Loan top up of Rs.10.00 Lacs and the terms and conditions were duly accepted by the defendants.

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Defendant no.2 had mortgaged her immovable properties i.e. House Property measuring 150 Sq. yards situated at Village Hambran, H.B. No.2, Tehsil and District, Ludhiana vide Equitable mortgage of Sale Deed bearing v asika No.9677 dated 1 3.09.2012 along with its translation, which is Annexure A7 to this OA.

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Documents executed:-Demand Promissory Note, Revival Letter & Loan Agreement all dated 11.09.2012, which are Annexure A4 to A6 to this OA; Letter of deposit of title deed along with other relevant documents dated 23.09.2012, which is Annexure A8 to this OA; S- 14(under certificate of posting) dated 02.08.2021, which is Annexure A9 to this OA; Demand Promissory Note, Letter of Waiver, Agreement relating to Term Loan & Letter of Guarantee all dated 24.11.2021, which are Annexure A12 to A15 to this OA; D.P. Note, Revival

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Letter, Letter of Waiver & Loan Agreement all dated 19.12.2022, which are Annexures A17 to A20 to this OA; Draft of Letter to be obtained from the mortgagor for covering increase in limit dated 09.12.2022, which is Annexure A21 to this OA; Certified Statement of Accounts, which are Annexures A22 to A24 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in all loan accounts there was a debit of Rs.23,24,060.52p, 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. 6. The defendants were served notices to appear before this Tribunal. No one appeared on behalf of defendant no.2 and he was proceeded ex parte on 19.11.2024. Sh. Ashwani Kumar, Advocate appeared on behalf of defendant no.1 and filed his Power of Attorney but did not filed WS within stipulated period of time. Therefore, opportunity to file WS by defendant no.1 was closed and defense was struck off on 19.11.2024.

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In support of the OA, affidavit of Sh. Ritesh Bhardwaj, Branch Manager, UCO Bank h as been filed. 8. Heard arguments of Ld. Counsel for applicant. None appeared for defendants for arguments. Perused record. 9. It was argued by learned proxy 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 A24 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which was 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as

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NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,24,060.52p (Rupees Twenty Three Lacs Twenty Four Thousand Sixty And Paise Fifty Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @12.95%p.a. along with penal interest @2%p.a. with monthly rests from 13.12.2023 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 loans 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 @08.00%p.a. in all 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.23,24,060.52p (Rupees Twenty Three Lacs Twenty Four Thousand Sixty And Paise Fifty Two Only) jointly and severally, with costs, current and future simple interest @08.00%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 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 still remain unsatisfied, it shall be entitled to recover the same by attachment and

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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 24.12.2024. 15. Copy of this order be given dasti to the applicant 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 . Dated: 26.11.2024

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

Uco Bank v. Baljit Singh and Another

Case brief

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Uco Bank v. Baljit Singh and Another

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