Allowed

Canara Bank v. Sh. Bohar Singh and Another

DRT23 Apr 2024OA/1456/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal applied Section 19 RDBFI Act to allow an ex-parte application by Canara Bank seeking recovery of Rs. 47.53 lakhs. The Tribunal fixed interest at 10% p.a. directing recovery from mortgaged and personal assets under SARFAESI provisions.

What did the court decide?

Order allowed; defendants to pay Rs. 47,53,147.31 with costs and 10.00% p.a. interest; Recovery Certificate issued; enforcement against mortgaged and personal assets directed.

Canara Bank versus Sh. Bohar Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1456/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.08.2022

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DATE OF DECISION: 23.04.2024

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Canara Bank, a Body Corporate constituted under the Banking Companies (Acquisition and transfer of Undertakings) Act No. V of 1980, having its Registered Head Office at, J.C. Road, Bangalore and having its Branches all over India and inter-alia a Branch Office at Gandhi Road, Moga, District Moga, 142001 through its Senior Manager Sh. Abhinav Sood duly constituted attorney and Principal Officer of the Bank

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……..Applicant Versus 1. Sh. Bohar Singh S/o Sh. Jageer Singh, R/o Village Mundi Jamal, Tehsil Dharamkot, District Moga-142043 (Borrower) 2. Sh. Jangir Singh S/o Sh. Jodh Singh, R/o Village Mundi Jamal, Tehsil Dharamkot, District Moga-142043

(Guarantor)

….……Defendants

Advocates:

Argued by Sh. Vikas Goel, Advocate for the applicant Defendants are ex-parte FINAL ORDER 1. 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.47,53,147.31p (Rupees Forty Seven Lacs Fifty Three Thousand One Hundred Forty Seven and Thirty One Paise only). The Original

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Application has been filed through Sh. Abhinav Sood, Senior Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 27.01.2015, 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 KCC Limit of Rs.28.00 Lacs vide Loan Application dated 23.12.2015, which is Annexure A4 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.28.00 Lacs vide Sanction Letter dated 23.12.2015, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable property i.e. land measuring 80K-02M situated at Village Mundi Jamal, Tehsil Dharamkot, District Moga, Punjab vide Declaration u/s 4(1) and letter to Tehsildar both dated 08.12.2015 for creating charge bearing mortgage no.1094 both dated 09.12.2015 with translation, which is Annexure A3 to this OA.

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Documents executed:- Legal Report dated 08.12.2015, which is Annexure A2 to this OA; Agreement and deed of hypothecation, Guarantee Agreement and Guarantee Covering Letter all dated 23.12.2015, which are Annexures A6 to A8 to this OA; Collector rate, which is Annexure A9 to this OA; Acknowledgments of debt and security dated 17.12.2018 and 08.11.2021, which are Annexures A10 and A11 to this OA and Statement of account along with certificate dated 30.06.2022, which is Annexure A12 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.47,53,147.31p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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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 13.03.2024.

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In support of the OA, affidavit of Sh. Abhinav Sood, Senior Manager, Canara Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 A12 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.47,53,147.31p (Rupees Forty Seven Lacs Fifty Three Thousand One Hundred Forty Seven and Thirty One 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 @11.95%p.a. plus penal interest @2%p.a. with half yearly rests from 01.07.2022 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

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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 @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.

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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.47,53,147.31p (Rupees Forty Seven Lacs Fifty Three Thousand One Hundred Forty Seven and Thirty One 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 30.04.2024.

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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: 23.04.2024

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

Canara Bank v. Sh. Bohar Singh and Another

Case brief

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Canara Bank v. Sh. Bohar Singh and Another

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