Allowed

Union Bank of India v. Gursewak Singh and Another

DRT5 Aug 2024OA/671/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of Rs.20.55 lakhs outstanding under an agricultural cash credit limit. The court ordered repayment with simple interest at 8% p.a. and authorized enforcement via sale of mortgaged properties or attachment of personal assets.

What did the court decide?

Recovery certificate issued; defendants declared liable for Rs.20,55,070.00 with 8% p.a. simple interest; recovery authorized via sale of mortgaged or personal assets.

Union Bank of India versus Gursewak Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.671/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.04.2023

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DATE OF DECISION: 05.08.2024

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Union Bank of India (Erstwhile Corporation Bank), a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and one of its Branch Offices at SCF-35, New Grai Market, Punjab, through its Branch Manager, Sh. Vinod Kumar

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……Applicant Bank/Plaintiff Versus

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Sh. Gursewak Singh S/o Sh. Bhajan Singh R/o House No.118, Village Gandarh, Tehsil and District, Muktsar, Punjab (Borrower)

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Sh. Sukhdev Singh S/o Sh. Inder Singh R/o House No.118, Village Gandarh, Tehsil and District, Muktsar, Punjab (Guarantor)

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………Defendants

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Advocates:

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Argued by Sh. Ravi Mishra, Advocate proxy for Sh. Karan Singla, Advocate for the applicant bank 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.20,55,070.00 (Rupees Twenty Lacs Fifty Five Thousand Seventy Only). The Original Application has been filed through Sh. Vinod Kumar, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of attorney dated 06.07.2015, 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 Limit (KCC) of Rs.14.50 Lacs vide application dated 11.09.2015, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor.

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The applicant Bank sanctioned the Agriculture Cash Credit Limit (KCC) of Rs.14.50 Lacs vide Sanction letter dated 11.09.2015, which is Annexures A3 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 total land measuring 39K-3M situated in the Revenue Estate of Village Village Gandhar, Tehsil and District, Muktsar, Punjab vide Letter to Joint Sub Registrar bearing Mutation No.284 and Declaration U/s 4(1) both dated 28.08.2015 and Jamanbadi for the year 2009-2010 with its translation, which are Annexures A9 and A10 to this OA.

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Documents executed:- Hypothecation Agreement, Letter of undertaking, Mortgaged Deed, Mortgaged Deed 2 and Deed of Guarantee all dated 11.09.2015, which are Annexures A4 to A8 to this OA; Notice dated 28.04.2023 with postal receipts, which is Annexure A11 to this OA and Account statement along with certificate by banker, which is Annexure A12 to this OA.

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The loan account became irregular and was declared NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.20,55,070.00 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and were proceeded ex-parte on 29.05.2024. 7. In support of the OA, affidavit of Sh. Vinod Kumar, Branch Manager, Union Bank of India, h as 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 A12 to this OA, it is proved that the defendants approached applicant bank for taking the loan facilities which were

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granted to them and they executed all the relevant documents but they did not pay the loan as per terms and conditions of the agreement and their accounts were declared NPA and from the documentary evidence it is proved that bank is entitled to recover a total sum of Rs.20,55,070.00 (Rupees Twenty Lacs Fifty Five Thousand Seventy 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 interest are concerned, the applicant bank has claimed interest @11.25% p.a. with quarterly rests from 01.04.2023 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 properties, 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 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.20,55,070.00 (Rupees Twenty Lacs Fifty Five Thousand Seventy Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in 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

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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 27.08.2024. 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.

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Pronounced by me in the Open Tribunal

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Dated: 05.08.2024

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

Union Bank of India v. Gursewak Singh and Another

Case brief

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Union Bank of India v. Gursewak Singh and Another

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