The DRT-III, Chandigarh allowed the applicant bank's original application for recovery of Rs.59.46 lakhs from defendants who defaulted on multiple loans, granting uniform simple interest at 8.00%p.a. in lieu of claimed higher rates.
Recovery of Rs.59,46,241.67 with costs and uniform simple interest at 8.00%p.a.; issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.489/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 10.04.2023
DATE OF DECISION: 18.10.2024
UCO Bank, a body corporate, constituted under the Banking Companies Acquisition and Transfer of Undertaking Act 1970, having its Head Office at 10, Brabourn Road, Kolkata and its branches throughout Indian and amongst other branches having a branch office at DMCH, Dandi Swami, Ludhiana, through its constituted attorney Sh. Sourabh Sareen, Branch Manager, UCO Bank, DMCH Branch, Dandi Swami, Ludhiana and who is also the Principal Officer of the plaintiff/applicant bank.
……..Applicant
Versus
………Defendants
Advocates:
Argued by Sh. Varun Verma, counsel for the applicant Defendants are ex-parte
FINAL ORDER
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Institutions Act, 1993, against the defendants for recovery of Rs.59,46,241.67p (Rupees Fifty Nine Lacs Forty Six Thousand Two Hundred Forty One and Paisa Sixty Seven only). The Original Application has been filed through Sh. Sourabh Sareen, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Circular of the bank dated 20.07.2012, which is Annexure A1 to this OA.
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Documents executed:- D.P. Note, Letter of Waiver, Letter of continuity, Hypothecation of Goods to secure a demand Cash Credit, Letter of Guarantee, Draft of letter of deposit of title deed to be obtained from the mortgagor all dated 18.06.2013, 19.04.2014, 23.09.2016 and 04.06.2019 which are Annexures A3 to A7, A10, A12 to A20, A22, A32 to A37 to this OA; Deed of Hypothecation of movable Plant and machinery to secure a Term Loan dated 23.09.2016, 16.10.2018, which are Annexures A21 & A29 to this OA; Demand Promissory Note dated 16.10.2018, 06.01.2020, 05.05.2020, 29.06.2020, 20.01.2022 which are Annexures A24, A26, A39, A45, A48 & A54 to this OA; Letter of Waiver dated 16.10.2018, 06.01.2020, 05.05.2020, 20.01.2022, which are Annexures A25, A27, A40, A46, A49 & A55 to this OA; Agreement relating to Term Loan dated 16.10.2018, 06.01.2020, 05.05.2020, 29.06.2020 which are Annexures A28, A41, A47 & A50 to this OA; Letter of Guarantee dated 16.10.2018, 06.01.2020 and 29.06.2020 which are Annexures A30, A43 & A52 to this OA; Composite Deed of Hypothecation dated 06.01.2020, 29.06.2020 and 20.01.2022, which are Annexures A42, A51 & A56 to this OA; Draft of Letter to obtained from mortgagor (s) for covering increase in limit dated 06.01.2020, which is Annexure A44 to this OA and Certified Statements of accounts, which are Annexures A57 to A63 to this OA.
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defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. 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 06.08.2024.
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
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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 all the loan accounts 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.59,46,241.67p (Rupees Fifty Nine Lacs Forty Six Thousand Two Hundred Forty One and Paisa Sixty Seven only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts 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. 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 29.10.2024. 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: 18.10.2024
| (MRIDULESH KUMAR SINGH) |
|---|
| Presiding Officer, |
| DRT-III, Chandigarh |
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount from the defendants jointly and severally.
Whether interest at 8.00% per annum should be granted in lieu of the claimed pendent lite and future rate of interest.
1 provisions across 1 enactments
UCO Bank
M/s Aryan Trading Company
Sh. Prabhjot Singh
Smt. Sushil Kaur
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
