Allowed

Union Bank of India v. Sh. Gurdeep Singh and Another

DRT19 Mar 2024OA/1361/2022

Case brief

AI extract

What is this about?

Union Bank of India approached DRT-III, Chandigarh under Section 19 RDDBFI Act, 1993 for recovery of Rs.21,36,290.42p from borrowers who defaulted on an agricultural loan. Defendants appeared ex-parte. The Tribunal allowed the application, ordered payment with 10%p.a. simple interest, and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.21,36,290.42p with 10% per annum simple interest; issuance of Recovery Certificate.

Union Bank of India versus Sh. Gurdeep Singh and Another — Specific Performance | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1361/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.05.2022

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DATE OF DECISION: 19.03.2024

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Union Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Nariman Point Mumbai and having its branch office inter-alia at Roopnagar Branch, District Roopnagar, Punjab, through its Manager, Sh. Avtar Singh

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……..Applicant

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Versus

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Sh. Gurdeep Singh S/o Sh. Hakam Singh, R/o Village Paprala,

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Tehsil and District Roopnagar (Punjab)

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Sh. Karam Singh S/o Sh. Hakam Singh, R/o House No.2, Village Paprala, VPO Roopnagar, Tehsil and District Roopnagar (Punjab)

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….……Defendants

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Advocates:

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Argued by Sh. Tejinder Singh, 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 Rs.21,36,290.42p (Rupees Twenty One Lacs Thirty Six Thousand Two Hundred Ninety and Forty Two Paise only). The Original Application has been filed through Sh. Avtar Singh, Manager of the applicant bank, who is competent to institute the Original Application vide Letter of Authority dated 27.04.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant bank for the grant of Agricultural Loan under Union Green Card Limit of Rs.15.00 Lacs vide Loan application dated 13.03.2017, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Agricultural Loan under Union Green Card Limit of Rs.15.00 Lacs vide Sanction Letter dated 23.03.2017, which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable property i.e. land measuring 10 Bighe 08 Biswe situated at Village Lakhmipur, Hadbast No.186, Tehsil and District Rupnagar, Punjab vide Declaration u/s 4(1) under Punjab Agriculture Credit Operation & Miscellaneous dated 22.03.2017, Title Search Report dated 22.03.2017 and Non Encumbrance Certificate dated 21.03.2017, which are Annexures A15 to A17 to this OA. Documents executed:- D.P. Note, Hypothecation Agreement, Deed of Guarantee, Simple Loan Agreement, Letter of Continuity, Mortgage Deed, Declaration/Undertaking, Interest Agreement, Undertakings and Letter of Confirmation all dated 23.03.2017, which are Annexures A4 to A14 to this OA; Debt Balance Confirmation Letter dated 27.09.2021, which is Annexure A18 to this OA; Legal Notice dated 29.04.2022, which is Annexure A19 to this OA; Account Statement dated 09.05.2022, which is Annexure A20 to this OA and Certificate dated 10.05.2022, which is Annexure A21 to this OA.

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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.21,36,290.42p, 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.

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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 19.02.2024.

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In support of the OA, affidavit of Sh. Avtar Singh, Manager, Union Bank of India h as been filed.

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Heard ex-parte 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 A21 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility 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 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.21,36,290.42p (Rupees Twenty One Lacs Thirty Six Thousand Two Hundred Ninety and Forty Two Paise only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of 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 @10.50%p.a. along with @2%p.a. penal interest with half yearly rests from the date of filing of the original application 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 loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @10.00%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.21,36,290.42p (Rupees Twenty One Lacs Thirty Six Thousand Two Hundred Ninety and Forty Two Paise only) jointly and severally, with costs, current and future simple interest @10.00%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 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. 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 30.03.2024. 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: 19.03.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Gurdeep Singh and Another

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sh. Gurdeep Singh and Another

Case brief

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