Allowed

Uco Bank v. Sh. Gurjinder Singh

DRT22 Aug 2024OA/1300/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of dues approx. Rs. 21 Lakhs from a borrower who failed to repay Mudra and KCC loans. The court declared the defendant liable, adjusted interest rate to 8% p.a., and directed issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 20,87,970.37p plus costs and uniform simple interest at 8% p.a. from date of application till realization; issuance of Recovery Certificate.

Uco Bank versus Sh. Gurjinder Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1300/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.10.2023

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DATE OF DECISION: 22.08.2024

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UCO Bank, a body corporate and a nationalized Bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its Head Office at 10-B.T.M., Sarani, Kolkata and amongst others having one of its Branch at Dera Bassi Tehsil and District SAS Nagar Mohali, Punjab through its Branch Manager and Authorized Officer Sh. Varun Verma.

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……..Applicant

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Versus

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Sh. Gurjinder Singh, S/o Sh. Balbir Singh, R/o Village Lehli, PO Lalru, Tehsil Derabassi, Distt. SAS Nagar Mohali.

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….……Defendant

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Advocates:

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Argued by Sh. Kamal Dev Sharma, Advocate proxy for Sh. Sunil Kumar, 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.20,87,970.37p (Rupees Twenty Lacs Eighty Seven Thousand Nine Hundred Seventy and Thirty Seven Paise Only). The Original Application has been filed through Sh. Varun Verma, Authorized officer of the applicant bank, who is competent to institute the Original Application vide Circular bearing No.CHO/LAW/7/2012-13 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 had approached the applicant bank for the grant of Term Loan (Mudra Agriculture

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Limit) of Rs.15.00 Lacs and later for KCC (Animal Husbandry Loan) of Rs.10.00 Lacs vide Loan applications dated 24.05.2022 & 01.07.2022, which are Annexures A2 & A7 to this OA.

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The applicant Bank sanctioned the Term Loan under (Mudra Agriculture Limit) of Rs.10.00 Lacs and further for KCC (Animal Husbandry Loan) of Rs.8.00 Lacs and Rs.2.00 Lacs vide Sanction Letters dated 09.06.2022 and 04.08.2022, which are Annexures A3 & A8 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant had mortgaged his immovable property total land measuring 06 Bigha 12 Biswas situated at Village Jalalpur, hadbast no. 217, Tehsil Derabassi, Distt. SAS Nagar Mohali vide Declaration under Section 4(1) dated 26.07.2022 along with Jamabandi for the year 2020-2021 and their translation, which are Annexures A12 & A13 to this OA. Documents executed:-Demand Promissory Notes, Letters of waiver and Hypothecation Cum-Agreements all dated 20.06.2022 & 16.08.2022, which are Annexures A4 to A6 & A9 to A11 to this OA; Legal Notice dated 08.05.2023, which is Annexure A14 to this OA and Statement of account along with Certificate under Banker’s Book Evidence Act, which are Annexures A15 to A17 to this OA. 5. 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.20,87,970.37p, which is recoverable and the defendant was 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 16.07.2024.

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In support of the OA, affidavit of Sh. Varun Verma, Authorized officer, UCO Bank h as been filed.

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Heard ex-parte arguments and 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 bank had proved its case. From the perusal of all the Annexures A1 to A17 to this OA, it is proved that the defendant 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 defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts 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.20,87,970.37p (Rupees Twenty Lacs Eighty Seven Thousand Nine Hundred Seventy and Thirty Seven Paise Only) along with interest from the defendant, jointly and severally, from the date of filing of the present Original Application till realization of all the account.

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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 @10.35%p.a. along with @2%p.a. for Rs.10.00 Lacs, interest @9.45%p.a. along with @2%p.a. for Rs.8.00 Lacs and interest @9.45%p.a. along with @2%p.a. for Rs.2.00 Lacs with monthly rests from 31.08.2023 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

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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 defendant is liable to pay to the applicant a total sum of Rs.20,87,970.37p (Rupees Twenty Lacs Eighty Seven Thousand Nine Hundred Seventy and Thirty Seven Paise Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the all 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 13.09.2024.

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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 . Dated: 22.08.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Uco Bank v. Sh. Gurjinder Singh

Case brief

What is this about?

What did the court decide?

Uco Bank v. Sh. Gurjinder Singh

Case brief

What is this about?

What did the court decide?

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