Allowed

Union Bank of India v. Sh. Sukhwinder Singh and Others

DRT20 Mar 2024OA/1661/2022

Case brief

AI extract

What is this about?

DRT allowed bank's application ex-parte for recovery of Rs.31.83 lakhs outstanding from two housing loans. Court directed defendants to pay principal with uniform simple interest of 7.55% p.a. and authorized recovery via sale of mortgaged properties.

What did the court decide?

Directing repayment of Rs.31,83,576.61p plus uniform simple interest at 7.55% p.a.; recovery via termination of security and sale of mortgaged properties.

Union Bank of India versus Sh. Sukhwinder Singh… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1661/2022

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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: 20.03.2024

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Union Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, with its Head Office at Union Bank Bhawan, 239, Vidhan Bhawan Marg, Nariman Point, Mumbai, Maharashtra- 400021 and a branch office amongst others branches at Model Town Extn, Ludhiana (erstwhile known as Andhra Bank, Model Town Extn, Branch Ludhiana, now merged with Union Bank of India) through its Branch Manager namely, Sh. Pankaj Kumar of the Applicant Bank

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……..Applicant Versus

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Sh. Sukhwinder Singh S/o Sh. Piyara Lal R/o House no.40, Plot no.3, Gautam Colony, Jagirpur Road, Rahon Road Bajra, Ludhiana- 141007 Second Address : H.No.146, Gautam Colony, Jagirpur Road, Street no.1, Opposite UCO Bank, Ludhiana- 141007

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Sh. Harpreet Singh S/o Sh. Tarlochan Singh R/o Plot no.1, Gautam Colony, Jagirpur Road, Basti Jodhewal, Ludhiana- 141007 (CoObligant/Guarantor)

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Sh. Jagpal Singh S/o Sh. Milkha Singh R/o Village Mangli Tanda, Mattewara, Ludhiana- 141007 (Co-Obligant/Guarantor) ………Defendants

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Advocates: Argued by Sh. Sandesh Arora, counsel 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.31,83,576.61p (Rupees Thirty One Lacs Eighty Three Thousand Five Hundred Seventy Six and Sixty One Paise only). The Original Application has been filed through Sh. Pankaj Kumar, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide Authorization Letter dated 13.07.2002, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants No.1 and 2 had approached the applicant bank for Housing Loan-I of Rs.17.00 Lacs and Housing Loan-II of Rs.10.90 Lacs vide Loan Applications dated 09.07.2019 and 13.07.2020, which are Annexures A2 and A32 to this OA.

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The applicant Bank sanctioned the Housing Loan-I of Rs.17.00 Lacs and Housing Loan-II of Rs.10.90 Lacs vide Sanction Letters along with acknowledgement dated 10.07.2019 and 11.08.2020, which are Annexures A3, A4 and A33 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. House built on plot no.4 min, measuring 111.11 sq. yards, situated at Village Jagirpur, locality known as Gautam Colony, Hadbast no.70, Tehsil and District Ludhiana, Punjab through equitable mortgage of Transfer Deed bearing vasika no.17135 d ated 14.12.2017, along with its translation, which are Annexures A9 and A10 to this OA. Documents executed: - Affidavit of D-1 dated 06.06.2019, which is Annexure A5 to this OA; Offer letter regarding property dated 09.07.2019, which is Annexure A6 to this OA; Memorandum of deposit of title deed dated 10.07.2019, which is Annexure A7 to this OA; Form

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RF-256 dated 09.07.2019, which is Annexure A8 to this OA; Balance Sheets as on 31.03.2017 and 31.03.2018, which are Annexures A11 and A12 to this OA; Applications regarding disbursement of loan amount, which is Annexure A13 (Colly) to this OA; Affidavit executed by Smt. Amar Kaur dated 10.07.2019, which is Annexure A14 to this OA; Non-Encumbrance Certificate dated 06.06.2019, which is Annexure A15 to this OA; Receipt of GLADA dated 26.06.2019, which is Annexure A16 to this OA; Building Sanction Plan letter along with MAP dated 28.06.2019, which is Annexure A17 to this OA; Copies of Aadhar Card, Driving License and PAN Card of D-1, which are Annexures A18 to A20 to this OA; Composite Agreement, Consent for disclosure of information to CIBIL of D-1 and D-2, Undertaking letters, Annexure-I dated 10.07.2019, which are Annexures A21 to A26 to this OA; Aadhar Card and PAN Card of D-2, which are Annexures A27 and A28 to this OA; Valuation report dated 02.07.2019, which is Annexure A29 to this OA; Estimate of cost of proposed construction dated 02.07.2019, which is Annexure A30 to this OA; Legal Search report dated 04.06.2019, which is Annexure A31 to this OA; Affidavit executed by D-1 dated 27.07.2020, which is Annexure A34 to this OA; Letters of Undertaking from Borrower and Guarantor, Letter of Continuity, Housing loan Agreement, Declaration, Form AD-02A, Interest Agreement, Letter of Guarantee, Memorandum of deposit of title deeds, D.P. Note and Standard terms & conditions all dated 20.08.2020, which are Annexures A35 to A45 to this OA; Valuation report dated 23.07.2020, which is Annexure A46 to this OA; Estimate of cost of completion of pending construction dated 10.06.2020, which is Annexure A47 to this OA; Non Encumbrance certificate dated 22.07.2020, which is Annexure A48 to this OA; Legal search report dated 24.07.2020, which is Annexure A49 to this OA; Balance sheets as on 31.03.2019 & 31.03.2020, which are Annexures A50 and A51

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to this OA; Applications regarding disbursement of loan amount, which is Annexure A52 (Colly) to this OA; PAN of D-3, which is Annexure A52-A to this OA; SARFAESI notice along with postal receipts and copy of criminal complaint, which is Annexure A53 (Colly) to this OA; Final recall notice along with postal receipts dated 15.07.2022, which is Annexure A54 (Colly) to this OA; Statements of accounts along with Certificate under Banker’s Book Evidence Act, which are Annexures A55 and A56 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.31,83,576.61p, 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 16.01.2024.

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In support of the OA, affidavit of Sh. Pankaj Kumar, Branch Manager, Union Bank of India has 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 A56 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant

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bank is entitled to recover a sum of Rs.31,83,576.61p (Rupees Thirty One Lacs Eighty Three Thousand Five Hundred Seventy Six and Sixty 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 @7.55%p.a. in Housing Loan-I and @8.30%p.a. in Housing Loan-II with monthly rests along with @2%p.a. penal interest from 01.07.2022 till the date of 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 @7.55%p.a. in both the loan accounts 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.31,83,576.61p (Rupees Thirty One Lacs Eighty Three Thousand Five Hundred Seventy Six and Sixty One Paise only) jointly and severally, with costs, current and future simple interest @7.55%p.a. in both the loan accounts 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

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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 28.03.2024.

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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. Pronounced by me in the Open Tribunal.

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Dated: 20.03.2024

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

Union Bank of India v. Sh. Sukhwinder Singh and Others

Case brief

What is this about?

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Union Bank of India v. Sh. Sukhwinder Singh and Others

Case brief

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