Allowed

Union Bank of India v. Khushwinder Singh and Another

DRT9 Sept 2024OA/422/2022

Case brief

AI extract

What is this about?

Union Bank of India approached the Debts Recovery Tribunal for recovery of a loan of Rs.21.87 lakhs sanctioned under the Green Card Scheme from two borrowers. The defendants defaulted, and the account was classified as NPA. The tribunal allowed the application, granted interest at 8% per annum, and directed issuance of a Recovery Certificate.

What did the court decide?

Application allowed; Recovery Certificate issued; Defendants directed to pay Rs.21,87,801.80 p with 8% simple interest.

Union Bank of India versus Khushwinder Singh and Another — Cheque Dishonour | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.422/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.12.2021

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DATE OF DECISION: 09.09.2024

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Union Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai and having a branch office inter alia at village Phullanwal, Tehsil and District Ludhiana through duly authorized person Sh. Pradeep Kumar, Branch Manager.

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……..Applicant

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Versus

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Sh. Khushwinder Singh son of Sh. Chamkaur Singh resident of village Thakarwal, Tehsil and district Ludhiana. (Borrower)

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Sh. Bhupinder Singh Garcha son of Sh. Ram Singh Garcha resident of village Thakarwal, Tehsil and District Ludhiana. (Guarantor)

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….……Defendants

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Advocates:

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Argued by Sh. Amod Kumar Thakur, Advocate proxy for Sh. R.K. Chauhan, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.21,87,801.80p (Rupees Twenty One Lacs Eighty Seven Thousand Eight Hundred One and Eighty Paise Only). The Original Application has been filed through Sh. Pradeep Kumar, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide Authority Letter dated 21.10.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant No.1 had approached the applicant bank for the grant of KCC Limit under Union

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Green Card Scheme of Rs.16.00 Lacs vide Loan Application dated 09.06.2016, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit under Union Green Card Scheme of Rs.16.00 Lacs vide Sanction Letter dated 23.06.2016, 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 property i.e. Agricultural land measuring 40Kanal 9 Merla detailed as under:i. Land measuring 6 Kanal 11½ Merla situated at Village Lopo Patti Hemu, Hadbast No.99, Tehsil Badhni Kalan, District Moga. ii. Land measuring 16 Kanal 15½ Merla situated at Village Bode, Hadbast No. 165, Tehsil Badhni Kalan, District Moga. iii. Land measuring 17 Kanal 2 Merla situated at Village Lopo Patti Malde, Hadbast No.99, Tehsil Badhni Kalan, District Moga. vide Letter to Sub Registrar for creation of charge bearing vasika no.708 dated 03.06.2016 and Declaration U/s 4(1) along with Jamanbandi for the year 2011-12 and their translations, which are Annexures A12 to A15 to this OA. Documents executed:- Demand Promissory Note, Letter of Continuity, Hypothecation Agreement, Annexure-I, Interest Agreement, Deed of Guarantee and Annexure II all dated 23.06.2016, which are Annexures A4 to A8 and A10 to A11 to this OA; Affidavit by Khushwinder Singh dated 13.05.2016, which is Annexure A9 to this OA; Debit Balance Confirmation & Acknowledgment dated 30.05.2019, which is Annexure A16 to this OA; Notice dated 19.02.2020, which is Annexure A17 to this OA; Legal notice dated 26.05.2021 along with postal receipts, which are Annexures A18 to A20 to this OA; and Statement of account along with Certificate, which are Annexures A21 and A22 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.21,87,801.80p, which is recoverable and the defendants

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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 05.08.2024.

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In support of the OA, affidavit of Sh. Pradeep Kumar, Branch Manager, Union Bank of India h as been filed.

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Heard arguments and perused record. 9. 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 A22 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.21,87,801.80p (Rupees Twenty One Lacs Eighty Seven Thousand Eight Hundred One and Eighty 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 @9.85%p.a. along with penal interest @2%p.a. with half yearly rests from 01.12.2021 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.21,87,801.80p (Rupees Twenty One Lacs Eighty Seven Thousand Eight Hundred One and Eighty 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 04.10.2024. 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: 09.09.2024

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

Union Bank of India v. Khushwinder Singh and Another

Case brief

What is this about?

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Union Bank of India v. Khushwinder Singh and Another

Case brief

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