Allowed

Canara Bank v. Smt. Sneh Lata Soni

DRT18 May 2024OA/683/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of debt. After an ex-parte hearing, the court held the defendants liable to repay the outstanding loan amount along with accepted interest and costs.

What did the court decide?

Liability declared to pay Rs. 4,12,02,679.62 p.a. with 8% interest; issue of Recovery Certificate; liberty to enforce via SARFAESI Act.

Canara Bank versus Smt. Sneh Lata Soni — Money Laundering | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.683/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.05.2023

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DATE OF DECISION: 18.05.2024

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Canara Bank a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at JC Road, Bangalore, Karnataka and Branch Offices, amongst others at Main Mall, Kapurthala, Punjab through Sh. Charanjit Ram, Power of Attorney holder

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……..Applicant

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Versus

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Smt. Sneh Lata Soni W/o Sh. Rameshwar Lal Soni, R/o Soni Niwas, Ward No.10. Amritsar Road, Kapurthala

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Sh. Vishal Soni S/o Sh. Rameshwar Lal Soni, R/o Soni Niwas, Ward No.10. Amritsar Road, Kapurthala

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….……Defendants

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Advocates:

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Argued Sh. R.S. Bhatia, 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.4,12,02,679.62p (Rupees Four Crore Twelve Lacs Two Thousand Six Hundred Seventy Nine and Sixty Two Paisa only). The Original Application has been filed through Sh. Charanjit Ram, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 20.09.2006, 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 grant of KCC Limit Rs.4.50 Crores vide Loan Application dated 03.11.2015, which is Annexure A2 to this

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OA and later for renewal cum reduction to Rs.2.98 Crores vide Loan application dated 12.06.2018, which is Annexure A9 to this OA. Defendant No.2 stood as Guarantor.

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The applicant Bank sanctioned the KCC Limit of Rs.4.50 Crore vide Sanction Memorandum dated 07.12.2015 and which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Later KCC limit reduced to Rs.2.98 Crores vide Sanction Letter and Letter of Renewal both dated 21.06.2018, which are Annexure A10 and A11 to this OA

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Defendant no.1 had mortgaged her immovable property i.e. Land measuring 432K-3M situated at Village Kapurthala Sharki , Tehsil and District Kapurthala, Punjab vide Declaration U/s 4(1) and Letter to Tehsildar for creation of charge dated 10.12.2015, which are Annexures A14 and A15 to this OA

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Documents executed: - Agreement and Deed of Hypothecation for KCC, Undertaking, Link Letter and Guarantee deed all dated 14.12.2015, which are Annexures A4, A6 to A8 to this OA; BPLR Clause, which is Annexure A5 to this OA; Supplemental Agreement, which is Annexure A12 to this OA; Guarantee deed dated 21.06.2018, which is Annexure A13 to this OA; Legal Notice dated 21.04.2023, which is Annexure A16 to this OA; Balance confirmation letters dated 11.07.2018 and 05.05.2021, which are Annexures A17 and A18 to this OA and Statements of Account along with Certificate, which is Annexure A19 to this OA.

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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.4,12,02,679.62p, 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.

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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 15.05.2024. 7. In support of the OA, affidavit of Sh. Charanjit Ram, Senior Manager, Canara Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 Annexures A1 to A19 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.4,12,02,679.62p (Rupees Four Crore Twelve Lacs Two Thousand Six Hundred Seventy Nine and Sixty Two 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @14.90%p.a. with monthly rests from 01.04.2023 till the realization. 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 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

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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.4,12,02,679.62p (Rupees Four Crore Twelve Lacs Two Thousand Six Hundred Seventy Nine and Sixty Two 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.

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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 28.05.2024.

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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. Pronounced by me in the open Tribunal.

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Dated: 18.05.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Canara Bank v. Smt. Sneh Lata Soni

Case brief

What is this about?

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Canara Bank v. Smt. Sneh Lata Soni

Case brief

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