Allowed

Uco Bank v. M/s Brand Villa and Another

DRT28 May 2024OA/304/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of loan dues of Rs.28.50 Lakhs from the proprietors of M/s Brand Villa. The court granted uniform interest at 7.50%p.a. and issued a recovery certificate under the RDDBFI Act, permitting enforcement via SARFAESI Act.

What did the court decide?

Recovery of Rs.28,50,937.00 with interest at 7.50%p.a. The application is allowed and a Recovery Certificate is issued.

Uco Bank versus M/s Brand Villa and Another — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.304/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.01.2022

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DATE OF DECISION: 28.05.2024

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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 SCO 8, Modern Complex, Preet Colony, Zirakpur, Punjab 140603, through Sh. Vijay Khanna, who is presently working as Senior Manager, Branch Constituted Power of Attorney Holder/ Memorandum of the bank and Principal Officer.

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……..Applicant

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Versus

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M/s Brand Villa, DSS No. 273, First Floor, Cabin No.2, Sector20, Panchkula, District Panchkula through its Proprietor Smt. Anjali

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2. Smt. Anjali W/o Sh. Aditya Singh, R/o H.No. 1086, Sector-21B, Chandigarh.

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………Defendants

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Advocates:

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Argued by Sh. Ankit Kamboj, counsel proxy for Sh. Munish Mittal, counsel 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.28,50,937.00 (Rupees Twenty Eight Lacs Fifty Thousand Nine Hundred and Thirty Seven only). The Original Application has been filed through Sh. Vijay Khanna, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Memorandum dated 20.07.2012, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its proprietor i.e. defendant no.2 had approached the applicant bank for the grant of Cash Credit Limit of Rs.20.00 Lacs under UCO Vyapar Samridhi scheme Loan Applications dated 24.09.2019, which is Annexure A2 to this OA and later on for the grant of Term Loan of Rs.3.20 Lacs under Guaranteed Emergency Credit Line (GECL) scheme vide Loan Applications dated 05.06.2020, which is Annexure A12 to this OA.

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The applicant Bank sanctioned the Cash Credit Limit of Rs.20.00 Lacs under UCO Vyapar Samridhi scheme vide Sanction Letters dated 05.10.2019, which is Annexure A11 to this OA and later sanctioned a Term loan of Rs.2.95 Lacs under Guaranteed Emergency Credit Line (GECL) scheme vide Sanction Letters dated 05.10.2019 and 10.06.2020, which is Annexure A15 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had hypothecated its movable properties i.e. Stocks i.e. all tangible moveable stock, including in particular readymade garments, lying at Borrower’s place and/or in transit and/or elsewhere vide Composite Deeds of Hypothecation dated 05.06.2020, which are Annexures A7 and A13 to this OA. Documents executed:- Visit Reports on defendant place of residence and business, which are Annexures A3 & A4 to this OA; Statement of Means dated 24.09.2019, which is Annexure A5 to this OA; Lease Deed dated 09.09.2019, which is Annexure A6 to this OA; Letter of Continuity and Guarantor Agreement both dated 05.10.2019, which are Annexures A9 & A10 to this OA; Demand Promissory Note dated 11.10.2019, which is Annexure A8 to this OA; Agreement related to Term Loan dated 05.06.2020, which is Annexure A14 to this OA; Recall Notice dated 29.06.2021 with postal receipts, which is Annexure A16 to this OA and Statements of accounts with certificate dated 24.03.2017, which are Annexures A17 & A18 to this OA. 5. The loan accounts became irregular and were classified as NPA

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and after adjusting debit and credit entries in both the loan accounts

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there was a debit of Rs.28,50,937.00, 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 28.03.2024.

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In support of the OA, affidavit of Sh. Vijay Khanna, Senior Manager, UCO Bank has been filed.

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Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A18 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, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.28,50,937.00 (Rupees Twenty Eight Lacs Fifty Thousand Nine Hundred and Thirty Seven only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

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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 @9.35%p.a. in Cash Credit Limit and @7.50%p.a. in Term Loan(GECL) with monthly rests in both from 01.01.2022 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 @7.50%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.28,50,937.00 (Rupees Twenty Eight Lacs Fifty Thousand Nine Hundred and Thirty Seven only) jointly and severally, with costs, current and future simple interest @7.50%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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 12.06.2024.

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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.

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Pronounced by me in the open Tribunal.
Dated: 28.05.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Uco Bank v. M/s Brand Villa and Another

Case brief

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Uco Bank v. M/s Brand Villa and Another

Case brief

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