Allowed

Canara Bank v. Surinder Kaur

DRT23 Aug 2024OA/1431/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for recovery of principal dues mortgaged against the respondent borrower. The Court fixed a uniform simple interest rate of 8% per annum and ordered the execution of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 24,50,541.00 with simple interest at 8% p.a. from date of filing till realization, recoverable from mortgaged or personal assets.

Canara Bank versus Surinder Kaur — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1431/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.07.2021

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DATE OF DECISION: 23.08.2024.

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Canara Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head Office at 12, JC Road Banglore and besides other branches, a branch office Desumajra Kharar through its Branch Manager and General Power of Attorney holder Sh. Shiv Kumar, which is under the Administrative Control of Circle Office at Sector 34A, Chandigarh.

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……..Applicant

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Versus

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Smt. Surinder Kaur W/o Sh. Tarlochan Singh, R/o Village Sekhan Majra, Tehsil & District Mohali.

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(Borrower) ….……Defendants

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Advocates:

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Argued by Sh. Kamal Dev Sharma, Advocate proxy for Sh. Sunil Kwatra, 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 defendants for recovery of Rs.24,50,541.00 (Rupees Twenty Four Lacs Fifty Thousand Five Hundred Forty One Only).The Original Application has been filed through Sh. Shiv Kumar, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 22.07.2008 which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.18.00 Lacs vide Loan Application dated 23.09.2015, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.18.00Lacs vide Sanction Memorandum dated 28.09.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. total land measuring 24 Kanal 0 Marla situated at Sekhon Majra, Hadbast no.275, Tehsil and District Mohali vide Declaration U/s 4(1) dated 04.09.2015 and Jamabandi for the year 2011-2012, which is Annexure A7 to A8 to this OA.

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Documents executed:- Agreement and Deed of Hypothecation, Nomination and Letter of Declaration all dated 28.09.2015, which are Annexure A4 to A6 to this OA; Acknowledgement of debt & Security dated 01.09.2018, which is Annexure A9 to this OA; NPA Certificate, which is Annexure A10 to this OA and statement of account with certificate, which is Annexure A11 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.24,50,541.00 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 defendant is served notices to appear before this Tribunal but no one appeared on behalf of defendants and she is proceeded exparte on 18.07.2024.

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In support of the OA, affidavit of Sh. Shiv Kumar, Branch Manager, Canara Bank h as been filed. 8. 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 A11 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was

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granted to her and for that she 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.24,50,541.00 (Rupees Twenty Four Lacs Fifty Thousand Five Hundred Forty One Only) along with interest from the defendant, 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 [email protected]%p.a. plus penal interest @2.00%p.a. with half yearly rests from 01.04.2021 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 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.

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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.24,50,541.00(Rupees Twenty Four Lacs Fifty Thousand Five Hundred Forty One Only)jointly and severally, with costs, current and future 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

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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 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 .

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Dated: 23.08.2024.

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

Canara Bank v. Surinder Kaur

Case brief

What is this about?

What did the court decide?

Canara Bank v. Surinder Kaur

Case brief

What is this about?

What did the court decide?

What the court decided

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