Allowed

Uco Bank v. Ashok Kumar Koria and Another

DRT23 Sept 2024OA/256/2024

Case brief

AI extract

What is this about?

In an Original Application filed under Section 19 of the RDBFI Act, 1993, the Tribunal allowed the application of UCO Bank for recovery of Rs. 21,54,390.00 and future dues from two respondents along with interest @ 8.00% p.a., and directed the issuance of a Recovery Certificate following an ex-parte hearing.

What did the court decide?

Directing the issuance of a Recovery Certificate and declaring the respondents liable to pay Rs. 21,54,390.00 with interest @ 8.00% p.a. and costs, recoverable via execution or attachment of assets.

Uco Bank versus Ashok Kumar Koria and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.256/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.02.2024

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DATE OF DECISION: 23.09.2024

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UCO Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at 10-B.T.M., Sarani, Kolkata (A government of India Undertaking) and having one of its Branch situated at Nandi Colony Khanna, District Ludhiana, through Sh. Ram Lal Mahendra, who is presently working as Senior Manager, Branch constituted Power of Attorney holder of the Bank and Principal Officer.

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……..Applicant

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Versus

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Sh. Ashok Kumar Koria S/o Sh. Charan Das, R/o Near Ravi Das Mandir, Mohalla Dharampura Khanna, Tehsil Khanna, District Ludhiana, Punjab.

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Smt. Kanchan Bala W/o Sh. Ashok Kumar Koria, R/o Near Ravi Das Mandir, Mohalla Dharampura Khanna, Tehsil Khanna, District Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Ankit Kamboj, Advocate proxy for Sh. Munish Mittal, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.21,54,390.00 (Rupees Twenty One Lacs Fifty Four Thousand Three Hundred and Ninety only). The Original Application has been filed through Sh. Ram Lal Mahendra, Senior Manager of the applicant, who is competent to institute the Original Application vide Bank Circular dated 20.07.2012, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Housing Loan of Rs.15.00 Lacs vides Loan application, which is Annexure A2 to this OA.

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The applicant sanctioned the Housing Loan of Rs.15.00 Lacs vide Sanction Letter dated 04.05.2016, which is Annexure A13 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged their immovable properties i.e. total land measuring 0k- 3-1/3 M situated within revenue Estate of Khanna Kalan, Tehsil Khanna, District Ludhiana (Punjab) vide Equitable Mortgage of Sale Deed bearing vasika No.393 dated 0 5.05.2016, Nonencumbrance Certificate by Sub Registrar dated 02.05.2016 and Jamabandi for the year 2016-2017 along with their Translations, which are Annexures A5, A5/A, A8, A8/A, A12 & A12/A to this OA.

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Documents executed:- Statement of means, which is Annexure A3 to this OA; Pre Sanctioned Visit Reports, dated 03.05.2016 which is Annexure A4 to this OA; Report of Advocate dated 02.05.2016, which is Annexure A6 to this OA; Confirmation Letter regarding Mortgage dated 06.05.2016, which is Annexure A7 to this OA; Demand Promissory Note, Revival Letter, Loan Agreement all dated 04.05.2016, which are Annexures A9 to A11 to this OA; Report of Advocate dated 02.08.2016, which is Annexure A14 to this OA; Under Certificate dated 29.03.2019 and 31.12.2019, which are Annexures A15 & A17 to this OA; Recall Notice dated 02.12.2019 along with its translations and postal Receipts, which is Annexure A16 to this OA; Deposit of Receipt dated 11.01.201, 02.02.2021 and 05.03.2021, which are Annexures A18 to A20 to this OA; Letter dated 04.10.2023 and 22.11.2023, which are Annexures A21 & A22 to this OA and Statement of Account with certificate dated 24.03.2017, which is Annexure A23 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.21,54,390.00, 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 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 23.08.2024.

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In support of the OA, affidavit of Sh. Ram Lal Mahendra, Senior Manager, UCO Bank h as been filed. 8. Heard 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 had proved its case. From the perusal of all the Annexures A1 to A23 to this OA, it is proved that the defendants approached applicant 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 is entitled to recover a sum of Rs.21,54,390.00 (Rupees Twenty One Lacs Fifty Four Thousand Three Hundred and Ninety 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 in relief clause has claimed interest @8.75%p.a. with monthly rests from 01.01.2024 till the realization. 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

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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.21,54,390.00 (Rupees Twenty One Lacs Fifty Four Thousand Three Hundred and Ninety 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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 15.10.2024.

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Copy of this order be given dasti to the applicant 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 . Dated: 23.09.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Uco Bank v. Ashok Kumar Koria and Another

Case brief

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Uco Bank v. Ashok Kumar Koria and Another

Case brief

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