Allowed

Union Bank of India, v. Sh. Avtar Singh and Others

DRT15 Jul 2024OA/1517/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs. 29,18,863.96p. The court found the defendants jointly and severally liable to repay the loan amount with future simple interest at 8% per annum, directing recovery from mortgaged properties.

What did the court decide?

Recovery of Rs.29,18,863.96p jointly and severally with interest @8% p.a. from date of OA filing; Recovery Certificate issued.

Union Bank of India, versus Sh. Avtar Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1517/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.08.2022 DATE OF DECISION: 15.07.2024 Union Bank of India, a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at: Union Bank Bhawan, 239, Vidhan Bhawan Marg, Nariman Point, Mumbai, Maharashtra-400021 and having one of its Branch situated at G.T. Road, Jagroan, District Ludhiana through Sh. Ratan Singh, Assistant Manager and Constituted Attorney

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……..Applicant

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Versus

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1. Sh. Avtar Singh S/o Late Sh. Jeet Singh legal heir to the estate of Late Sh. Jeet Singh, R/o H.No.133, Village Maliana, Tehsil and District Moga (Co-Borrower)

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1. Sh. Jagsir Singh S/o Late Sh. Jeet Singh legal heir to the estate of Late Sh. Jeet Singh, R/o H.No.133, Village Maliana, Tehsil and District Moga

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1. Smt. Sukhjinder Kaur W/o Sh. Surjit Singh, R/o Village Rasoolpur, Tehsil and District Moga legal heir to the estate of Late Sh. Jeet Singh, R/o H.No.133, Village Maliana, Tehsil and District Moga

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1. Smt. Chhinder Kaur W/o Sh. Bachittar Singh, R/o Village Datta, Kot Ise Khan, Tehsil and District Moga legal heir to the estate of Late Sh. Jeet Singh, R/o H.No.133, Village Maliana, Tehsil and District Moga Late Sh. Jeet Singh S/o Sh. Rattan Singh (Borrower/Mortgagor since deceased) through defendant Nos.1 to 4, known legal heirs to the estate of deceased, R/o H.No.133, Village Maliana, Tehsil and District Moga

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1. Sh. Sukhjinder Singh Dhaliwal S/o Sh. Mander Singh, R/o H.No.139, Village Maliana, Tehsil and District Moga (Guarantor) ….……Defendants

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Advocates: Argued by Ms. Sonal Chabra, Advocate proxy for Ms. Puja Sharma, 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.29,18,863.96p (Rupees Twenty Nine Lacs Eighteen Thousand Eight Hundred Sixty Three and Ninety Six Paisa only). The Original Application has been filed through Sh. Ratan Singh, Assistant Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 16.11.2018, which is Annexure A1 to this OA.

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The brief facts of the OA are that late Sh. Jeet Singh and defendant No.1 had approached the applicant bank for the grant of ‘Union Green Card’ Limit (KCC) of Rs.20.00 Lacs vide Application Form dated 14.07.2017 and Application-cum-undertaking form, which are Annexures A2 and A4 to this OA.

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The applicant Bank sanctioned the ‘Union Green Card’ Limit (KCC) Limit of Rs.20.00 Lacs vide Sanction Letter dated 17.08.2017, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants.

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Late Sh. Jeet Singh had mortgaged his immovable property i.e. land measuring 43 Kanal 15 Marla situated at Village Maliana, Tehsil and District Moga, Punjab vide Letter to sub-Registrar for creation of charge bearing vasika no.100/RC dated 17.08.2017 and Declaration u/s 4(1), which are Annexures A11 and A12 to this OA. Documents executed:- Voter ID proof of defendants in File 3, which is Annexure A3 to this OA; Declaration/undertaking dated 02.09.2017, which is Annexure A6 to this OA; Letter of continuity, which is Annexure A7 to this OA; D.P. note, Hypothecation agreement and Deed of guarantee all dated 02.09.2017, which are Annexures A8 to A10 to this OA; Affidavit dated 29.08.2017, which is Annexure A13 to this OA; Interest agreement dated 21.09.2017, which is Annexure A14 to this OA; Consent letter dated 02.09.2017, which is Annexure

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A15 to this OA; Simple Debit Balance confirmation letters dated 16.06.2021, which is Annexure A16 to this OA; Legal notice dated 20.02.2021, 24.12.2021 and 07.07.2022 along with postal receipts, which are Annexures A17 to A19 to this OA and Statement of account along with Certificate, which is Annexure A20 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.29,18,863.96p, 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 15.05.2024.

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In support of the OA, affidavit of Sh. Vishnu Gupta, Senior 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 A20 to this OA, it is proved that the Late Sh. Jeet Singh, defendant Nos.1 and 5 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 present 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.29,18,863.96p (Rupees Twenty Nine Lacs Eighteen Thousand Eight Hundred Sixty Three and Ninety Six Paisa only) along with interest from the defendants, jointly and severally,

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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 @10.40%p.a. with half yearly rests together with @2%p.a. penal interest 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 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 defendants are liable to pay to the applicant a total sum of Rs.29,18,863.96p (Rupees Twenty Nine Lacs Eighteen Thousand Eight Hundred Sixty Three and Ninety Six Paisa 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 02.08.2024. 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: 15.07.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India, v. Sh. Avtar Singh and Others

Case brief

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Union Bank of India, v. Sh. Avtar Singh and Others

Case brief

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