Allowed

Union Bank of India (Erstwhile Corporation Bank), v. Baljeet Singh and Others

DRT26 Jul 2024OA/17/2022

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an application filed by Union Bank of India to recover a loan of Rs. 37.02 Lakhs. The court approved a recovery certificate but modified the interest rate from claimed penal interest to 8.00% p.a. simple interest from the date of filing.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 37.02 Lakhs with 8% simple interest; Bank entitled to recover via sale of mortgaged properties.

Union Bank of India (Erstwhile Corporation Bank), versus… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.17/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.12.2021

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DATE OF DECISION: 26.07.2024

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Union Bank of India (Erstwhile Corporation Bank), a Body Corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and inter alia a Branch Offices at Nabha, District Patiala, Punjab through its Branch Manager, Sh. Sanvijay Singh.

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……Applicant Bank/ Plaintiff (Borrower) (Co-Borrower) (Guarantor) ………Defendants

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Versus

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Sh. Baljeet Singh S/o Sh. Tarvinder Singh, R/o Village Chhajju Bhatt, Tehsil Nabha, Distt. Patiala,

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2.	Sh. Jasbir Singh S/o Sh. Baljeet Singh R/o Village Chhajju Bhatt,
	Tehsil Nabha, Distt. Patiala,
3.	(Co-Borrower) Sh. Sher Singh S/o Piara Singh, R/o Village Bawran Kalan, Tehsil
	Nabha, Distt. Patiala,

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Advocates:

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Argued by Sh. Karan Singla, Advocate for the applicant bank (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. 37,02,334.00 (Rupees Thirty Seven Lacs Two Thousand Three Hundred

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& Thirty Four only). The Original Application has been filed through Sh. Sanvijay Singh, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide Authority Letter dated 26.11.2021, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant nos.1 and 2 had approached the applicant bank for the grant of Agriculture CC Limit (CCKCL) of Rs.23.00 Lacs vide Loan Application dated 22.03.2016. Defendant no.3 stood as guarantor.

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The applicant Bank sanctioned the Agriculture CC Limit (CCKCL) of Rs.23.00 Lacs vide Memorandum for Sanction of Short Term Loan (Crop Loan) dated 22.03.2016, which is Annexures A3 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 total land measuring 40K-00M situated at Village Chhajju Bhatt, Hadbast No.200, Tehsil Nabha Distt. Patiala, v ide Registered Mortgage Deed bearing Vasika No.234 dated 14.03.2016 and as per J amabandi for the year 2012-2013 along with their translation, which are Annexures A10 & A11 to this OA.

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Documents executed: -The Gazette Notification dated 01.04.2020, which is Annexure A1 to this OA; Common Deed of Hypothecation for Agricultural Loans, Demand Promissory Note, Note & Take Delivery Letter to DPN, Letter of Undertaking, Request for overdraft facilities, Guarantee Agreement, all dated 22.03.2016 which are Annexures A4 to A9 to this OA; Acknowledgment of debt along with its translation dated 16.03.2019 which is Annexure A12 to this OA; Notice along with postal receipts dated 06.09.2021 which is Annexure A13 to this OA; Account statement with Banker Certificate which is Annexure A14 to this OA.

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The loan account became irregular and was declared NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 37,02,334.00 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 were proceeded ex-parte on 21.05.2024. 7. In support of the OA, affidavit of Sh. Sanvijay Singh, Branch Manager, Union Bank of India, h as been filed.

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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 A14 to this OA, it is proved that the defendants approached applicant bank for taking the loan facility which was granted to them and they executed all the relevant documents but they did not pay the loan as per terms and conditions of the agreement and their account was declared NPA and from the documentary evidence it is proved that bank is entitled to recover a total sum of Rs. 37,02,334.00 (Rupees Thirty Seven Lacs Two Thousand Three Hundred & Thirty Four 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. 10. In so far as pendent elite and future interest are concerned, the applicant bank has claimed interest @12.30% p.a. (inclusive of penal interest @2%p.a.) with yearly rests from 02.12.2021 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 properties, 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

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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. 37,02,334.00 (Rupees Thirty Seven Lacs Two Thousand Three Hundred & Thirty Four 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.

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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 17.08.2024.

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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 Dated: 26.07.2024

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

Union Bank of India (Erstwhile Corporation Bank), v. Baljeet Singh and Others

Case brief

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Union Bank of India (Erstwhile Corporation Bank), v. Baljeet Singh and Others

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