Allowed

Union Bank of India v. M/S Connecting World Trade Pvt. Ltd. and Others

DRT23 Oct 2024OA/666/2022

Case brief

AI extract

What is this about?

In a debt recovery matter, the Tribunal allowed the bank's application ex-parte after establishing the loan agreement and default. The sum of Rs. 42,16,742 was declared recoverable with future interest fixed at 8% per annum from the date of the application.

What did the court decide?

Recovery of Rs. 42,16,742 jointly and severally. Future simple interest fixed at 8% per annum. Issue of Recovery Certificate.

Union Bank of India versus M/S Connecting World Trade Pvt… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.666/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.05.2022

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DATE OF DECISION: 23.10.2024

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Union Bank of India, having its Head Office at239, Vidhan Bhawan Marg, Nariman Point, Mumbai-21 Having its Branch Office at: Union Bank of India, SCO No.64/65, Sector -17 B (Main), Chandigarh (U.T) through its Attorney Holder Sh. Vivek Kumar, Branch Manager.

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……..Applicant

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Versus

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M/s Connecting World Trade Private Limited, Through its Directors SCF 47, Second Floor, Phase -7, Industrial Area, Mohali, Punjab160055.

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Second Address: SCO No. Main Centre, Sector-7C, Chandigarh160019

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Smt. Jagdish Kaur W/o Sh. Daljinder Singh Director M/s Connecting World Trade Private Limited, House No.1169, 1^st Floor, Sector-42 B, Chandigarh-160036

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Smt. Surinder Kaur Director M/s Connecting World Trade Private Limited, House No.1169, 1^st Floor, Sector-42 B, Chandigarh-160036

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Sh. Parminder Singh S/o Sh. Daljinder Singh House No.1825, 1^st Floor, Phase -5 Mohali-160059

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Sh. Lakhvir Singh S/o Sh. Harminder Singh House No.HL-184, Phase-1,Sec-55 Mohali-160055

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Sh. Harvinder Singh Jawandha S/o Sh. Kanwaljit Singh H.No.4544, Near Army Law Institute, Sector-68, Mohali-160062.

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….……Defendants

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Advocates:

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Argued by Sh. Ravinder Kumar, 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.42,16,742.00 (Rupees Fourty Two Lac Sixteen Thousand Seven Hundred and Fourty Two Only). The Original Application has been filed through Sh. Vivek Kumar, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 30.12.2013, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of Cash Credit Limit of Rs.35.00 Lac & Inland/Import LC of Rs.8.00 Lac vide Loan applications to this OA.

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The applicant Bank sanctioned the Cash Credit Limit of Rs.35.00 Lac & Inland/Import LC of Rs.8.00 Lac vide Sanction Letter dated 23.10.2017 & 20.05.2019, which are Annexures A2 & A18 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged his immovable properties i.e. total land measuring 3 Biswa 6Biswasis situated in Village Mouza Chandi Mandir, Hadbast No.391, Tehsil & District Panchkula vide Sale Deed bearing Deed No.1611 dated 19.09.2016, with its translations, which is Annexure A29 to this OA.

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Documents executed:-Board Resolution, Interest Agreement, Demand Promissory Note, Letter of Undertaking From Borrowers, Hypothecation Agreement of Goods & Debts, Composite Hypothecation Deed, Letter of Confirmation, Letter of Continuity, Letter of General Lien & Sett off, Letter of Undertaking Note to Alienate Hypothecated Goods, Letter of Undertaking from Directors, Letter of Undertaking from Guarantor, Letters of Guarantee Executed by Guarantors all dated 24.10.2017, which are Annexures A3 to A15 to this OA; Vetting Report, Memorandum of entry along Affidavit both dated 25.10.2017, which are Annexures A16 & A32 to this OA; Loan Limits renewal Request Application dated 29.03.2019, which is Annexure A17 to this OA;

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Board resolution, Interest Agreement, Demand Promissory Note, Letter of Undertaking From Borrowers, Hypothecation Agreement of Goods & Debts, Letter of Continuity, Letter of General Lien & Set off, Letter of Undertaking Note to Alienate Hypothecated Goods, Letter of Undertaking from Directors, Letter of Undertaking from Guarantor, Letters of Guarantee Executed by Guarantors all dated 27.05.2019, which are Annexures A19 & A28 to this OA; Title Search Report dated 27.09.2017, which is Annexure A30 to this OA; Balance Confirmation Letter dated 06.11.2019, which is Annexure A33 to this OA; Demand Notice dated 07.06.2021, which is Annexure A34 to this OA and Statement of accounts along with Memorandum and Certificate, which is Annexure A35 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.42,16,742.00, 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.

¶29

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 19.10.2024.

¶30

In support of the OA, affidavit of Sh. Vivek Kumar, Branch Manager, U nion Bank of India Bank h as been filed. 8. Heard arguments and perused record.

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It was argued by learned 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 Annexure A1 to A35 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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, accounts of the defendants were classified as

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NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.42,16,742.00 (Rupees Fourty Two Lac Sixteen Thousand Seven Hundred and Fourty Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all the accounts.

¶34

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest@1Yr Mclr + 0.90%per annum rests from 01.05.2022 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 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 accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶36

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.42,16,742.00 (Rupees Forty Two Lac Sixteen Thousand Seven Hundred and Forty Two 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.11.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 23.10.2024

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

Union Bank of India v. M/S Connecting World Trade Pvt. Ltd. and Others

Case brief

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Union Bank of India v. M/S Connecting World Trade Pvt. Ltd. and Others

Case brief

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