Allowed

Union Bank of India v. Inderjit Singh and Others

DRT17 Oct 2024OA/652/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's Original Application for recovery of Rs. 21.65 lakhs. The court upheld the liability of the defendants but modified the interest rate to 8% per annum. A Recovery Certificate was issued.

What did the court decide?

Recovery of Rs. 21,65,453.00 with uniform simple interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce via SARFAESI Act.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.652/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.04.2022

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DATE OF DECISION: 17.10.2024

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Union Bank of India (erstwhile Corporation Bank), a body constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Act No.5 of 1970) carrying on Banking business and having its Central office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and one of its Branch Office at New Grain Market, Gaushala Road, Sangrur, District Sangrur, Punjab through its Senior Branch Manager Sh. Aman Goyal.

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……..Applicants

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Versus

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Sh. Inderjit Singh S/o Sh. Gaja Singh, R/o Village Mauran, Tehsil Sunam, District Sangrur-148028.

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Smt. Sukhveer Kaur W/o Inderjit Singh, R/o Village Mauran, Tehsil Sunam, District Sangrur-148028.

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Sh. Buta Singh S/o Sh. Ajaib Singh, R/o Village Mauran, Tehsil

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Sunam, District Sangrur-148028.

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….……Defendants

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Advocates:

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Argued by Ms. Neha Arora, Advocate proxy for Sh. Ajay Singla, Advocate for 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.21,65,453.00 (Rupees Twenty One Lacs Sixty Five Thousand Four Hundred Fifty Three Only). The Original Application has been filed through Sh. Aman Goyal, Senior Branch Manager o f the applicant, who

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is competent to institute the Original Application vide General Power of Attorney dated 01.01.2015, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for the grant of KCC Limit of Rs.18.00 Lacs vide Loan application dated 05.03.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned CC Limit of Rs.18.00 Lacs vide Sanction Letter dated 03.05.2014, 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. total land measuring 28K-00M, situated at Village Mauran, Tehsil Sunam, District Sangrur vide Registered Mortgage deed bearing Vasika No. 133 dated 17.04.2014 and Jamabandi of the year 2009-2010 with its translation, which are Annexures A10 & A11 to this OA. Documents executed:-Common deed of hypothecation of crops and stocks, Demand Promissory Note, Take Delivery Letter to DPN, Guarantee Agreement, Request for overdraft facilities/ Cash Credit Limit, Letter of Undertaking, Letter of Authorization, Deed of Simple Mortgage all dated 03.05.2014, which are Annexures A3 to A9 and A12 to this OA; Acknowledgments of Debt dated 20.02.2017 and 27.11.2019, which are Annexures A13 & A14 to this OA; Notice dated 17.03.2022 with postal receipts, which is Annexure A15 to this OA and Account Statement along with certificate, which is Annexure A16 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.21,65,453.00 which is recoverable and the 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.

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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 09.10.2024.

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In support of the OA, affidavit of Sh. Aman Goyal, Senior Branch Manager, Union Bank of India h as been filed. 8. Heard arguments and perused record.

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It was argued by learned proxy 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 A16 to this OA, it is proved that the defendant 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 bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,65,453.00 (Rupees Twenty One Lacs Sixty Five Thousand Four Hundred Fifty Three Only) along with interest from the defendant, 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. along with penal interest @2.00% with half yearly rests from 01.04.2022 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 defendant, 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 @08.00%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 defendant is liable to pay to the applicant a total sum of Rs.21,65,453.00 (Rupees Twenty One Lacs Sixty Five Thousand Four Hundred Fifty Three Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. 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 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 28.10.2024. 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.

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Pronounced by me in the open Tribunal . Dated: 17.10.2024.

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

Union Bank of India v. Inderjit Singh and Others

Case brief

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Union Bank of India v. Inderjit Singh and Others

Case brief

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