Allowed

Canara Bank v. Parteek Jain

DRT4 Apr 2024OA/1451/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a housing loan default of Rs. 29,26,236.16 from three respondents despite their absence. The Tribunal decreed the sum with interest and empowered the bank for execution under SARFAESI.

What did the court decide?

Recovery of Rs. 29,26,236.16 p with simple interest @ 7.25% p.a. from date of filing; issuance of Recovery Certificate; liberty to enforce through sale of assets.

Canara Bank versus Parteek Jain — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1451/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.07.2022

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DATE OF DECISION: 04.04.2024

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Canara Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act-V of 1970, having its Head Office at 112, J.C. Road, Bangluru, Karnataka and amongst other places SME Branch, Cheema Chowk, Ludhiana (erstwhile known as Syndicate Bank) through its Senior Manager, Sh. Vinod Kumar.

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……..Applicant Versus

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Sh. Parteek Jain S/o Sh. Parveen Jain R/o Nirmal Raj, Villa Street No. 3, Grewal Atta Chaki, New Karmsar Colony, Ludhiana-141007 (Borrower) 2^nd Address:- House No. 8093, Street No.1, New Shastri Nagar, Basti Jodhewal, Ludhiana-141007

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Smt. Pooja Jain W/o Sh. Parteek Jain R/o Nirmal Raj, Villa Street No. 3, Grewal Atta Chaki, New Karmsar Colony, Ludhiana-141007

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(Co-Borrower) 2^nd Address:- House No. 8093, Street No.1, New Shastri Nagar, Basti Jodhewal, Ludhiana-141007

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Smt. Harpal kaur W/o Sh. Vijay Kumar R/o House No.14, Ward No.1, Guru Har Rai Nagar, Post Office Bagga Kalan, Ludhiana141008(Guarantor) ….……Defendants

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Advocates:

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Argued by Sh. Sandesh Arora, Advocate for the applicant (through VC) 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.29,26,236.16p (Rupees Twenty Nine Lacs Twenty Six Thousand Two Hundred Thirty Six and Sixteen Paisa only). The Original Application has been filed through Sh. Vinod Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 07.05.2004, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants had approached applicant bank for the grant of Housing Loan under OSL-SYND Niwas Construction-MCLR Scheme of Rs.25.00 Lacs vide Loan application dated 04.12.2017, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Housing Loan of Rs.25.00 Lacs vide Sanction letter dated 14.12.2017, 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. residential plot measuring 93 sq. yards situated at Village Taraf Saidan, H.B No. 172 Karamsar Colony, Tehsil and Distt. Ludhiana, Punjab through equitable mortgage of Sale Deed bearing vasika no.12578 along with its translation, which are Annexures A9 and A10 to this OA. Documents executed: - Housing Loan Agreement dated 14.12.2017, which is Annexure A4 to this OA; Letter handing over title deed dated 08.11.2017, which is Annexure A5 to this OA; Confirmation of deposit deeds dated 14.12.2017, which is Annexure A6 to this OA; Title Search Report dated 08.11.2017, which is Annexure A7 to this OA; Non Encumbrance Certificate, which is Annexure A8 to this OA; Sanction Plan of the Property, which is Annexure A11 to this OA; Affidavit dated 08.11.2017, which is Annexure A12 to this OA; Application for Disbursement of Loan amount, Letter, Jamabandi and True Translation, which are Annexures A13 and A14 to this OA; Completion Certificate dated 16.06.2020, which is Annexure A15 to this OA; Request/ Reminder, which is Annexure A16 to this OA; Notice U/s 13(2) dated 30.12.2021 along with postal receipts, which is Annexure A17 to this

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OA; Legal Notice dated 23.07.2022 along with postal receipts, which is Annexure A18 this OA; Account Statement, which is Annexure A19 this OA; Valuation Report dated 06.11.2017, which is Annexure A20 this OA and Certificate under Banker’s Book Evidence Act, 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.29,26,236.16p, 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 18.03.2024.

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In support of the OA, affidavit of Sh. Vinod Kumar, Senior Manager, Canara Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through video conferencing 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.29,26,236.16p (Rupees Twenty Nine Lacs Twenty Six Thousand Two Hundred Thirty Six and Sixteen Paisa only) along with interest from 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 @7.25%p.a. with monthly rests along with additional penal interest @2%p.a. in the loan account from 01.07.2022 till the realization. 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 @7.25%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.29,26,236.16p (Rupees Twenty Nine Lacs Twenty Six Thousand Two Hundred Thirty Six and Sixteen Paisa only) jointly and severally, with costs, current and future simple interest @7.25%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 12.04.2024.

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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.

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Pronounced by me in the open Tribunal.

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Dated: 04.04.2024

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

Canara Bank v. Parteek Jain

Case brief

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Canara Bank v. Parteek Jain

Case brief

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