Allowed

Union Bank of India v. Sh. Surinder Pal Singh and Another

DRT17 May 2024OA/445/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Union Bank of India under Section 19 of the RDBFI Act, 1993, against two borrowers for recovery of Rs.21,59,860.39 along with interest. The defendants, who were mortgagees, were absent. The Tribunal disposed of the application and awarded uniform simple interest at 8% p.a.

What did the court decide?

Recovery of Rs 21,59,860.39 plus simple interest @ 8% p.a. from date of filing, with liberty to attach and sell mortgaged/personal properties. Recovery Certificate issued.

Union Bank of India versus Sh. Surinder Pal Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.445/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.11.2011

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DATE OF DECISION: 17.05.2024

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Union Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai and having its Branch Office inter-alia at Patti, District Tarn Taran, Punjab through its Authorized Officer Sh. Malkeet Singh.

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……..Applicant Versus 1. Sh. Surinder Pal Singh S/o Sh. Iqbal Singh, R/o H.No.184, Village Barwala, Tehsil Patti, District Tarn Taran (Pb) 2. Sh. Gursahib Singh S/o Sh. Iqbal Singh, R/o H.No.184, Village Barwala, Tehsil Patti, District Tarn Taran (Pb) ….……Defendants Advocates: Argued by Sh. Kamal Dev Sharma, Advocate proxy for Sh. Iqbal Mohammed, Advocate for the applicant Defendants are ex-parte

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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 Rs.21,59,860.39p (Rupees Twenty One Lacs Fifty Nine Thousand Eight Hundred sixty and Thirty Nine Paisa only). The Original Application has been filed through Sh. Malkeet Singh, Authorized Officer o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 07.03.2009, 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 bank for the grant of Agriculture Cash Credit

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Limit of Rs.15.00 Lacs vide Loan application dated 11.06.2016, which is Annexure A2 to this OA. Defendant No.2 stood as guarantor. 3. The applicant Bank sanctioned the Union Green Card Limit of Rs.15.00 Lacs vide Sanction dated 27.06.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 109K-6M situated at village Barwala, Tehsil Patti, District Tarn Taran , Punjab vide Declaration Under Section 4.A(1) bearing mortgage no.282 dated 27.06.2016 and Letter to Sub Registrar/Tehsildar for creation of charge dated 21.06.2016, which are Annexures A14 and A18 to this OA.

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Documents executed:- Demand Promissory Note, Hypothecation agreement, Deed of Guarantee, Letter of declaration, Letter of Undertaking from Guarantor, Interest Agreement, and Mortgage Deed all dated 27.06.2016, which are Annexures A4, A5, A6 ,A7, A9, A11 and A13 to this OA; Letter of Undertaking from Borrower, which is Annexure A8 to this OA; Letter of continuity and Simple Loan Agreement, which are Annexures A10 and A12 to this OA; Legal opinion dated 17.06.2016, which is Annexure A15 to this OA; Non Encumbrance certificate with its translation, which is Annexure A16 to this OA; affidavit dated 09.06.2016 with its translation, which is Annexure A17 to this OA; Letter of Confirmation and Demand Promissory Note both dated 18.10.2017, which are Annexures A19 and A20 to this OA; Letter of Confirmation dated 25.05.2021, which is Annexure A21 to this OA; Legal Notice dated 31.10.2021, which is Annexure A22 to this OA; Account Statement and Certificate dated 04.11.2021, which are Annexures A23 and A24 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.21,59,860.39p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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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 21.03.2024. 7. In support of the OA, affidavit of Sh. Malkeet Singh, Authorized Officer, Union Bank of India has been filed. 8. Heard ex-parte 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 A24 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.21,59,860.39p (Rupees Twenty One Lacs Fifty Nine Thousand Eight Hundred sixty and Thirty Nine Paisa 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 @12.15%p.a. plus of penal interest @2%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

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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.21,59,860.39p (Rupees Twenty One Lacs Fifty Nine Thousand Eight Hundred sixty and Thirty Nine Paisa 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 24.05.2024. 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: 17.05.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Surinder Pal Singh and Another

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Union Bank of India v. Sh. Surinder Pal Singh and Another

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