Allowed

Union Bank of India v. Hardhian Singh and Others

DRT4 Sept 2024OA/42/2022

Case brief

AI extract

What is this about?

DRT-III Chandigarh allowed an Original Application filed by Union Bank of India for recovery of Rs.45.50 lakhs from borrowers and guarantor under Section 19 RDBFI Act. The court decreed payment with costs and reduced interest rate to 8% per annum, ordered issuance of Recovery Certificate, and permitted enforcement via sale of mortgaged properties or attachment of assets.

What did the court decide?

Recovery of Rs.45,50,357.49p jointly and severally along with costs and simple interest @8% p.a. Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.42/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH DATE OF INSTITUTION: 28.12.2021 DATE OF DECISION: 04.09.2024
Union Bank of India, (In which Corporation Bank amalgamated w.e.f.
01.04.2020), a body corporate and nationalized Bank under the
provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai 400021 and amongst other a Branch Office at Ward no.7, Near Bus Stand, Chandigarh Road, Kurali, Punjab
through its Branch Manager, Ms. Annapurna Chakraborty/Authorized Officer. ……..Applicant Versus
1. Sh. Hardhian Singh S/o Sh. Ujagar Singh, R/o Village-Gopalpur, Tehsil-Chamkaur Sahib, District-Roopnagar, Punjab. (Borrower)
2. Sh. Harbhagwandeep Singh S/o Sh. Hardhian Singh, R/o Village Gopalpur, Tehsil-Chamkaur Sahib, District-Roopnagar, Punjab. (Co-Borrower)
3. Sh. Inderjit Singh S/o Sh. Randhir Singh, R/o House no.13, Village-Nathmalpur, Tehsil-Chamkaur Sahib, District-Rupnagar, Punjab. (Guarantor) ….……Defendants
Advocates: Present Sh. Kamal Dev Sharma, Advocate proxy for Sh. Sumeet Sehgal, Advocate for the applicant Defendants are ex-parte FINAL ORDER
1. 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

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Rs.45,50,357.49p (Rupees Forty Five Lacs Fifty Thousand Three Hundred Fifty Seven and Forty Nine Paise Only). The Original Application has been filed through Ms. Annapurna Chakraborty, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Authority Letter dated 23.11.2021, which is Annexure A2 to this OA.

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The brief facts of the OA are that defendant No.1 & 2 had approached the applicant bank for the grant of KCC Limit of Rs.35.00 Lacs vide Loan Application dated 25.06.2014, which is Annexure A3 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.35.00 Lacs vide Sanction Letter dated 16.07.2014, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable property i.e. land measuring 49K-08M situated at Village Gopalpur, Hadbast No.234, Tehsil-Chamkaur Sahib, District, Roopnagar, Punjab vide registered Mortgage Deed bearing vasika no.712 dated 15.07.2014 along with its Punjabi to English Translation, which are Annexures A15 and A16 to this OA.

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Documents executed:- Gazette notification dated 04.03.2020, which is Annexure A1 to this OA; Common Deed of Hypothecation for Agricultural Loan, Deed of Guarantee Agreement, Demand Promissory Note, Take Delivery Letter to D.P.N., Letter of Undertaking/Declaration from the borrowers/ Request for Overdraft Facilities/Cash Credit Limit all dated 16.07.2014, which are Annexures A5 to A10 to this OA; Acknowledgments of Debt/Liability by the borrower and Guarantors dated 16.12.2016, 03.06.2017 and 21.10.2019, which are Annexures A11 to A14 to this OA; Notices dated 20.05.2021 with postal receipts, which are Annexure A17 to A20 to this OA and Statement of account along with Certificate, which is Annexure A21 to this OA.

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The loan account became irregular and was classified as NPA

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and after adjusting debit and credit entries in loan account there was a

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debit of Rs.45,50,357.49p, 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 26.07.2024.

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In support of the OA, affidavit of Ms. Annapurna Chakraborty, Branch Manager, Union Bank of India h as been filed.

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Learned proxy counsel present has not advanced any arguments. Perused record.

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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 A21 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.45,50,357.49p (Rupees Forty Five Lacs Fifty Thousand Three Hundred Fifty Seven and Forty Nine Paise 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 bank in relief clause has claimed interest @9.65% plus penal interest @2%p.a. from 23.11.2021 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

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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 @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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.45,50,357.49p (Rupees Forty Five Lacs Fifty Thousand Three Hundred Fifty Seven and Forty Nine Paise 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.

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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 27.09.2024.

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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: 04.09.2024

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

Union Bank of India v. Hardhian Singh and Others

Case brief

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Union Bank of India v. Hardhian Singh and Others

Case brief

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