The DRT allowed the bank's application for recovery of Rs.27,08,547.31. The court issued a recovery certificate and granted simple interest at 8% p.a., authorizing recovery from mortgaged properties or personal assets.
Recovery Certificate issued; Defendants liable to pay Rs.27,08,547.31 with simple interest at 8% p.a. from filing of OA.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.284/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 27.02.2023
DATE OF DECISION: 20.05.2024
Union Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act No V of 1970 and having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point Mumbai-400021 and branch amongst others, one at Sunam, District Sangrur through Shri Aditya Tripathi, Branch Manager, Principal Officer and duly Constituted Attorney of the bank.
……..Applicant
….……Defendants
Advocates:
Argued by Ms. Gitika, Advocate proxy of Sh. P.S. Sobti, Advocate for the applicant (through VC) Defendants are ex-parte
FINAL ORDER
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Documents executed:- D.P. Note, Hypothecation Agreement, Simple Loan Agreement, Declaration/Undertaking, Letter of Continuity and Agreement on Rate of Interest all dated 06.11.2012, which are Annexures A4 to A9 to this OA; D.P. Note, Hypothecation Agreement, Simple Loan Agreement, Declaration/ Undertaking, Letter of Continuity, Agreement on Rate of Interest and Guarantee Agreement all dated 01.08.2015 which are Annexures A14 to A20 to this OA; Legal Notices dated 09.12.2013, 24.06.2014 and 02.05.2018 along with their translations and postal receipt, which are Annexures A23 to A25A to this OA; Balance Confirmation Letter dated
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30.09.2014, 17.06.2016 and 16.02.2018, which are Annexures A26 to A28 to this OA; Account Statement and Memoranda Interest Statement of Account with certificate dated 10.02.2023, which are Annexures A29 & A30 to this OA.
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of filing of the present Original Application till realization of the account.
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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3 issues framed by the court
whether the applicant bank was entitled to a recovery certificate for the outstanding loan amount
what rate of interest should be applicable on the outstanding amount
whether the mortgaged and hypothecated properties could be sold in execution proceedings
2 provisions across 2 enactments
Union Bank of India
Darshan Singh
Sukhwinder Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
