Allowed

Union Bank of India v. Smt. Khushvinder Kaur

DRT6 Aug 2024OA/1542/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Union Bank of India for recovery of a loan of Rs.23.53 Lacs. With defendants absent, the Tribunal declared them liable for the principal, costs, and fixed simple interest at 8.00% p.a. until realization, permitting recovery via mortgaged properties or asset attachment.

What did the court decide?

Order to pay Rs.23,53,799.36 plus 8% simple interest from filing date; Recovery Certificate issued.

Union Bank of India versus Smt. Khushvinder Kaur — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1542/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.08.2022

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DATE OF DECISION: 06.08.2024

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Union Bank of India, 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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Smt. Khushvinder Kaur W/o Sh. Gobinder Singh R/o H. No. 248, Village Kokari Kalan Shamli, Tehsil & District Moga

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(Borrower/Mortgagor)

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Sh. Surinder Pal Singh S/o Sh. Gobinder Singh R/o H. No. 248, Village Kokari Kalan Shamli, Tehsil & District Moga (Co-Borrower)

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Sh. Jarnail Singh S/o Sh. Hardiyal Singh R/o Patti Usang, Village

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Kokari Kalan, Tehsil & District Moga (Guarantor)

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….……Defendants

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Advocates:

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Argued by 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.23,53,799.36p (Rupees Twenty Three Lacs Fifty Three Thousand Seven Hundred Ninety Nine and Thirty Six Paise only). The Original Application has been filed through Sh. Ratan Singh, Assistant Manager

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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 the defendant nos.1 & 2 had approached the applicant bank for the grant of CCCKL Limit of Rs.18.00 Lacs vide Loan application dated 25.05.2016, which is Annexure A2 to this OA. Defendant no.3 stood as guarantor.

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The applicant Bank sanctioned the CCCKL Limit of Rs.18.00 Lacs vide Sanction Letter dated 25.05.2016, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant Nos.1 & 2 had mortgaged their immovable properties i.e. total land measuring 21K-12½M situated at Village Kokri kalan North, Hadbast No. 36, Tehsil & District Moga, Punjab vide Letter to Sub Registrar for creation of charge bearing vasika no.248 and Declaration u/s 4(1) of Punjab Agricultural Credit Operation and Miscellaneous Provisions (Banks) Act, 1978 both dated 23.05.2016, which is Annexure A11 to this OA.

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Documents executed:- Voter ID Proof of Defendant Nos.1 & 2 in File 3, which is Annexure A3 to this OA; Letter of Undertaking/Declaration, D.P. Note, Delivery Letter to D.P. Note, Common Deed of Hypothecation of crops and Deed of Guarantee all dated 25.05.2016, which are Annexures A5 to A9 to this OA; Acknowledgement of Debt dated 21.11.2018, which is Annexure A12 to this OA; Recall Notice dated 21.04.2020 with postal receipt, which is Annexure A13 to this OA and Statement of account with certificate, which is Annexure A14 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.23,53,799.36p, 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 29.05.2024.

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In support of the OA, affidavit of Sh. Ratan Singh, Assistant Manager, Union Bank of India 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 A14 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.23,53,799.36p (Rupees Twenty Three Lacs Fifty Three Thousand Seven Hundred Ninety Nine and Thirty Six 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 @9.65%p.a. along with 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 @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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,53,799.36p (Rupees Twenty Three Lacs Fifty Three Thousand Seven Hundred Ninety Nine and Thirty Six Paise 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 28.08.2024 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: 06.08.2024

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

Union Bank of India v. Smt. Khushvinder Kaur

Case brief

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Union Bank of India v. Smt. Khushvinder Kaur

Case brief

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