Allowed

Canara Bank v. Sucha Singh and Another

DRT1 Oct 2024OA/348/2022

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed Canara Bank's OA against two defendants for recovery of Rs.29,48,503 with costs. The tribunal reduced claimed interest to 8% p.a. and directed issuance of Recovery Certificate, enabling sale of mortgaged assets for recovery.

What did the court decide?

Declaring defendants liable to pay Rs.29,48,503 with 8% simple interest; issuing Recovery Certificate; liberty to enforce through SARFAESI or attachment of personal assets.

Canara Bank versus Sucha Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.348/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.02.2022

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DATE OF DECISION: 01.10.2024

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Canara Bank, having its Head Office at J.C. Road, Bangalore-560 002(Karnataka) having its Branch Office at Hadiabad District Kapurthala, through its Attorney Holder Sh. Aditya Sharma.

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……..Applicant

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Versus

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Sh. Sucha Singh S/o Sh. Shingara Singh Residence of H.No.207, St. no.2, Near Rakha Jwala Mandir, Near Mansa Devi Nagar, Hadiabad, Tehsil Phagwara, District Kapurthala.

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Sh. Jaswant Singh S/o Sh. Sucha Singh S/o Sh. Shingara Singh Residence of H.No.207, St. no.2, Near Rakha Jwala Mandir, Near Mansa Devi Nagar, Hadiabad, Tehsil Phagwara, District Kapurthala.

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………. Defendants

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Advocates: Argued by Sh. Hemant Nanda, Advocate for the applicant (through VC) 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.29,48,503.00 (Rupees Twenty Nine Lacs Forty Eight Thousand Five Hundred Three Only). The Original Application has been filed through Sh. Aditya Sharma, Attorney Holder o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 27.01.2015, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for grant of KCC Limit of Rs.18.00 Lacs vide Loan Application dated 25.11.2013, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.18.00 Lacs vide Sanction Letter dated 25.11.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 27K-0M situated in Village Malakpur, H.B. No.27, Tehsil Phagwara District Kapurthala vide Registered Mortgaged Deed as per Jamabandi (Mutation) for the year 2012-2013 along with their translation, which are Annexures A5 & A6 to this OA.

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Documents executed:- Hypothecation Agreement, Guarantee Agreement & Guarantee Covering Letter all dated 25.11.2013, which are Annexures A4, A7 & A8 to this OA; Letter of Renewal dated 14.01.2019, which is Annexure A9 to this OA; Acknowledgments of Debt & Security dated 14.07.2016 & 08.04.2019, which are Annexure A10 & A11 to this OA; Recall Notice dated 28.10.2021, which is Annexure A12 to this OA and Statement of Account along with Certificate of Evidence of Banker Book Act, which is Annexure A13 to this OA. 5. 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.29,48,503.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. 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 23.09.2024. 7. In support of the OA, affidavit of Sh. Aditya Sharma, Attorney Holder, Canara Bank h as been filed.

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Heard arguments and perused record.

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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 had proved its case. From the perusal of all the Annexures A1 to A13 to this OA, it is proved that the defendants approached applicant for availing of the loans 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.29,48,503.00 (Rupees Twenty Nine Lacs Forty Eight Thousand Five Hundred Three 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 @18%p.a. with half yearly rests from 01.10.2021 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 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 @08.00%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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

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Rs.29,48,503.00 (Rupees Twenty Nine Lacs Forty Eight Thousand Five Hundred Three Only) jointly and severally, with costs, current and future simple interest @08.00%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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 22.10.2024.

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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: 01.10.2024

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

Canara Bank v. Sucha Singh and Another

Case brief

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Canara Bank v. Sucha Singh and Another

Case brief

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