Allowed

Union Bank of India v. Gurshaib Singh and Others

DRT23 Aug 2024OA/335/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Union Bank of India under Section 19 RDBFI Act against the respondents for recovery of a loan of Rs. 23.76 lakhs. The tribunal ex-parte proceedings due to the respondents' absence before it. It granted recovery of the principal amount with adjusted simple interest at 8% p.a.

What did the court decide?

Recovery of Rs. 23,76,271.78 plus costs and simple interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce through sale of mortgaged or personal assets.

Union Bank of India versus Gurshaib Singh and Others — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.335/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 22.11.2021

¶4

DATE OF DECISION: 23.08.2024

¶5

Union Bank of India, a body corporate constituted under the banking companies (Acquisition and Transfer of Undertakings) Act of 1970 having its Head Office at 239-Vidhan Bhawan Marg, Nariman Point, Mumbai. And having its branch office inter-alia at Patti, District Tarn Taran, Punjab through its Authorized Officer, Sh. Malkeet Singh

¶6

……..Applicant

¶7

Versus

¶8

Sh. Gurshaib Singh S/o Sh. Ikbal Singh R/o Village Barwala, Tehsil Patti, District Tarn Taran, Punjab

¶9

Sh. Gursewak Singh S/o Sh. Ikbal Singh R/o Village Barwala, Tehsil Patti, District Tarn Taran, Punjab

¶10

Sh. Surenderpal Singh S/o Sh. Ikbal Singh R/o Village Barwala, Tehsil Patti, District Tarn Taran, Punjab

¶11

….……Defendants

¶12

Advocates:

¶13

Argued by Sh. Shivam Dheer, Advocate proxy for Sh. Iqbal Mohammed, Advocate for the applicant Defendants are ex-parte

¶14

FINAL ORDER

¶15

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.23,76,271.78p (Rupees Twenty Three Lacs Seventy Six Thousand Two Hundred Seventy One and Paisa Seventy Eight only). The Original Application has been filed through Sh. Malkeet Singh, Authorized Officer of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 07.03.2009, which is Annexure A1 to this OA.

¶16

The brief facts of the OA are that the defendants no.1 had approached the applicant bank for the grant of Agriculture Cash Credit

¶17

¶18

Limit of Rs.15.00 Lacs under Union Green Card Limit and further for the renewal of the same vide Loan application dated 10.05.2016, and Letter of Renewal dated 02.05.2018 which are Annexures A2 & A22 to this OA.

¶19

The applicant Bank sanctioned the Agriculture Cash Credit Limit of Rs.15.00 Lacs under Union Green Card Limit vide Sanction Letter dated 25.05.2016, which is Annexure A3 to this OA and further sanctioned its renewal of the same and the terms and conditions were duly accepted by the defendants.

¶20

Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 131K-03M situated at Village Saide Saidoa and Balwala, Tehsil Patti, District Taran Tarn (Punjab) vide Declaration Under Section 4A (1) bearing vasika no.136 dated 2 4.05.2016 and Mortgage Certificate and Non Encumbrance Certificate dated 24.05.2016 along with their Translations, which are Annexures A16, A19 & A21 to this OA and Letter to Sub Registrar for Creation of charge dated 20.05.2016, which is Annexure A18 to this OA.

¶21

Documents executed:- Demand Promissory Note, Proprietorship/Individuals, Hypothecation Agreement, Deed of Guarantee, Letters of Undertaking, Simple loan Agreement, Declaration/undertaking, Letter of Continuity, Interest Agreement, Agreement of Rate of Interest, Mortgage of Deed all dated 25.05.2016, which are Annexures A4 to A15 to this OA; Legal Opinion dated 12.05.2016, which is Annexure A16 to this OA; Affidavit, Demand Promissory Note, Letter of Confirmation all dated 02.05.2017, which are Annexures A20, A23 & A24 to this OA; Legal Notice dated 03.05.2019 & 31.10.2021 along with its translations, which are Annexures A25 & A26 to this OA and Account Statement along with Certificate dated 04.11.2021, which are Annexures A27 & A28 to this OA.

¶22

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.23,76,271.78p, which is recoverable and the defendants

¶23

¶24

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.

¶25

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 18.07.2024.

¶26

In support of the OA, affidavit of Sh. Malkeet Singh, Authorized Officer, Union Bank of India h as been filed.

¶27

Heard ex-parte arguments and perused record.

¶28

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 A28 to this OA, it is proved that the defendants approached applicant bank 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 bank is entitled to recover a sum of Rs.23,76,271.78p (Rupees Twenty Three Lacs Seventy Six Thousand Two Hundred Seventy One and Paisa Seventy Eight 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.

¶29

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.30%p.a. Additional penal interest @2%p.a. with half yearly rests from 01.10.2021 till the realization.

¶30

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

¶31

¶32

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.

¶33

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,76,271.78p (Rupees Twenty Three Lacs Seventy Six Thousand Two Hundred Seventy One and Paisa Seventy Eight 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.09.2024. 15. 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: 23.08.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Gurshaib Singh and Others

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Gurshaib Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Messrs Inder International and Others versus Axis Bank Ltd.

Hdfc Bank Ltd. versus Sh. Jai Dev Suhag

Messrs Global Impex and Others versus Axis Bank Ltd. and Others

Hdfc Bank Limited versus Pankaj Ahlawat

Punjab National Bank versus M/s East Walk Ville

Canara Bank versus M/S Rk Shoes and Another