Allowed

Canara Bank v. Sh. Gurdail Singh and Another

DRT29 Feb 2024OA/371/2022

Case brief

AI extract

What is this about?

The Tribunal considered an application by Canara Bank for recovery of a ₹31 lakh loan along with interest. Finding the defendants liable through documentary evidence, the Tribunal allowed the application and decreed uniform simple interest at 10% per annum from the filing date.

What did the court decide?

Order to pay total sum of Rs.31,57,197.00 with costs and future simple interest at 10% per annum from the date of filing.

Canara Bank versus Sh. Gurdail Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.371/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.12.2021

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DATE OF DECISION: 29.02.2024

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Canara Bank a bank constituted by the banking companies (Acquisition and transfer of undertakings) Act 1970 with its Head Office at 112, J. C. Road, Banglore and Branches amongst other places, one at Personal Banking Branch at Samrala, through its Attorney and Principal Officer Sh. Sachin Kumar, Senior Manager

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……..Applicant Versus 1. Sh. Gurdial Singh S/o Sh. Gurbaksh Singh, R/o Village Jarg, Tehsil Payal, Distt. Ludhiana deceased through his legal representatives. A. Sh. Sadhu Singh S/o Sh. Gurdial Singh, R/o Village Jarg, Tehsil Payal, Distt. Ludhiana. B. Ms. Sarabjit Kaur D/o Sh. Gurdial Singh, R/o Village Jarg, Tehsil Payal, Distt. Ludhiana. C. Sh. Darshan Singh S/o Sh. Gurdial Singh, R/o Village Jarg, Tehsil Payal, Distt. Ludhiana. D. Sh. Jarnail Singh S/o Sh. Gurdial Singh, R/o Village Jarg, Tehsil Payal, Distt. Ludhiana. E. Sh. Kuldeep Kaur D/o Sh. Gurdial Singh, R/o Village Jarg, Tehsil Payal, Distt. Ludhiana. F. Ms. Hardeep Kaur D/o Sh. Gurdial Singh, R/o Village Jarg, Tehsil Payal, Distt. Ludhiana. 2. Sh. Davinder Singh S/o Sh. Sadhu Singh R/o Village Jarg, Tehsil Payal, Distt. Ludhiana ………Defendants

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Advocates: Argued by Sh. Binny Baweja 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.31,57,197.00 (Rupees Thirty One Lacs Fifty Seven Thousand One Hundred and Ninety Seven only). The Original Application has been filed through Sh. Sachin Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 22.07.2014, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no. 1 (since deceased) and defendant no. 2 had approached the applicant bank for the grant of Cash Credit Limit (KCC) of Rs.20.00 Lacs vide Loan Application dated 03.10.2017, which is Annexure A11 to this OA. 3. The applicant Bank sanctioned the Cash Credit Limit (KCC) of Rs.20.00 Lacs vide Sanction Memorandum dated 09.11.2017, which is Annexure A12 to this OA; and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 (since deceased) had mortgaged his immovable properties total land measuring 32B-4B (i.e. 53K-13M) detailed as under:(i) Total land measuring 3B-19B (i.e. 6K 11M) situated at Village Jarg -I H.B. No:186, Tehsil Payal, District Ludhiana, Punjab; (ii) ) Total land measuring 28B-5B (47K-2M) situated at Village Jarg-II H.B.No:186, Tehsil Payal, District Ludhiana, Punjab vide Declaration u/s 4(1) dated 26.10.2017 which Annexures A17 to this OA. Thereafter, Branch Manager got information regarding fraud committed by with the bank on false mortgage of the land by some persons and on enquiry the Branch Manager came to know that defendant no. 1 (since deceased) and defendant no.2 are not the recorded owner of any land

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in village Jarg-II and the defendants in criminal conspiracy with their associates got prepared false Jamabandi by incorporating false mutations and also submitted false and forged NOC of Andhra Bank. Accordingly, the applicant bank moved an application to the SSP against Defendant No. 1(since deceased) and defendant no. 2 and their associates which is Annexure A24 to this OA and the police officials clubbed the same with already registered FIR no.148 dated 14.07.2021 copy of which along with its translation are Annexures A25 & A26 to this OA.

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Therefore, the actual property securing the debt is as under: Land measuring 3B-19B (i.e. 6K 11M) situated at Village Jarg -I H.B. No:186, Tehsil Payal, District Ludhiana, Punjab

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Documents executed: - Legal Search Report, Affidavit of Ownership both dated 16.10.2017, which are Annexures A2 & A3 to this OA; Non Encumbrance Certificate dated 25.09.2017, which is Annexure A4 to this OA; Receipt of Inspection of revenue record, Receipt of Issuance of NEC both dated 22.09.2017, which are Annexures A5 & A6 to this OA; ; Jamabandis for year 2013-14 along with their translation, which are Annexures A7 to A10, A18 to A23, A27 and A28 to this OA; Link Letter, Undertaking Letter, Consent Letter, Hypothecation Agreement all dated 09.11.2017 which are Annexures A13 to A16 to this OA and Statement of Account, which is Annexure A29 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.31,57,197.00, 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 29.12.2023.

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In support of the OA, affidavit of Sh. Sachin Kumar, Senior Manager, Canara Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 A29 to this OA, it is proved that defendant no. 1 (since deceased) and defendant no. 2 had 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 Rs.31,57,197.00 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 bank in relief clause has claimed interest @12.65%p.a. with half yearly rests from 19.12.2021 along with costs.

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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 @10.00%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.31,57,197.00 (Rupees Thirty One Lacs Fifty Seven Thousand One Hundred and Ninety Seven only), jointly and severally, with costs, current and future simple interest @10.00%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.

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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 13.03.2024.

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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.

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Dated: 29.02.2024

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

Canara Bank v. Sh. Gurdail Singh and Another

Case brief

What is this about?

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Canara Bank v. Sh. Gurdail Singh and Another

Case brief

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