Allowed

Union Bank of India v. Kaka Singh and Others

DRT20 Sept 2024OA/427/2022

Case brief

AI extract

What is this about?

This judgment adjudicates a debt recovery proceeding where the bank sought recovery of Rs. 37,74,831. The Tribunal allowed the application, finding the defendants liable to repay the outstanding principal along with adjusted simple interest.

What did the court decide?

Recovery of Rs. 37,74,831.00 jointly and severally, with simple interest at 8.00% p.a. from filing date, via sale of hypothecated properties or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.427/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.01.2022

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DATE OF DECISION: 20.09.2024

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Union Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No. V of 1970 and having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point Mumbai-400021 and the successor of the Corporation Bank, by scheme of amalgamation of Corporation Bank dated 04.03.2020, passed by the Central Government under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) act No. V of 1970, and one of its Branch Office at Bahadurgarh, District Patiala through Sh. Nitin Sharma, Branch Manager, Principal Officer and duly constituted Attorney of applicant.

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……..Applicant

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Versus

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Sh. Kaka Singh S/o Sh. Gulzar Singh, R/o Village H.No. 126, village Kapoori, Tehsil Rajpura, District Patiala, Punjab.

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Sh. Surinder Singh S/o Sh. Gulzar Singh, R/o Village H.No. 126, village Kapoori, Tehsil Rajpura, District Patiala, Punjab.

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Sh. Balwinder Singh S/o Sh. Gulzar Singh, R/o Village H.No. 126, village Kapoori, Tehsil Rajpura, District Patiala, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Amandeep Singh Sobti, 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.37,74,831.00 (Rupees Thirty Seven Lacs Seventy Four Thousand Eight Hundred and Thirty One only). The Original Application has been filed through Sh. Nitin Sharma, Branch Manager of the applicant, who

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is competent to institute the Original Application vide Letter of Authority dated 21.10.2021, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant for the grant of Cash Credit Limit (CCCKL) of Rs.24.00 Lacs vide Loan application dated 20.10.2015, which is Annexure A3 to this OA.

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The applicant sanctioned the Cash Credit Limit (CCCKL) of Rs.24.00 Lacs vide Sanction Letter dated 19.02.2016, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable properties i.e. total land measuring 79 Bighas-17½ Biswa situated at Village Mauja Kapoori, Hadbast No.397, Tehsil Rajpura, District Patiala (Punjab) vide Declaration under section 4(1) dated 0 1.03.2016 and Jamabandi for the year 2010-2011 along with their Translations, which are Annexures A8, A9 & A9A to this OA.

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Documents executed:- Notification dated 04.03.2020, which is Annexure A1 to this OA; D.P. Note, Common Deed of Hypothecation, Guarantee Agreement all dated 05.03.2016, which are Annexures A5 to A7 to this OA; Notice dated 28.04.2021 along with its translations and postal Receipts, which are Annexures A10 & A11 to this OA; Balance Confirmation Letter dated 16.01.2019, which is Annexure A12 to this OA; Statement of Account along with Memoranda Statement of account with certificate, which are Annexures A13 & A14 to this OA and Order of Hon’ble Supreme Court dated 10.01.2022, which is Annexure A15 to this OA.

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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.37,74,831.00, 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 05.09.2024.

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In support of the OA, affidavit of Sh. Nitin Sharma, Branch Manager, Union Bank of India h as been filed. 8. Heard 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 had proved its case. From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the defendants approached applicant 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 applicant. 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.37,74,831.00 (Rupees Thirty Seven Lacs Seventy Four Thousand Eight Hundred and Thirty One 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 @9.65%p.a. plus penal interest @2%p.a. with monthly rests from 01.01.2022 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 @8.00%p.a. in

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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.37,74,831.00 (Rupees Thirty Seven Lacs Seventy Four Thousand Eight Hundred and Thirty One 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 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 applicant 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 14.10.2024. 15. 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. Pronounced by me in the open Tribunal . Dated: 20.09.2024

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

Union Bank of India v. Kaka Singh and Others

Case brief

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Union Bank of India v. Kaka Singh and Others

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