Allowed

Union Bank of India v. Gurpreet Singh and Another

DRT10 Sept 2024OA/724/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of a loan of Rs.21,36,867.01p. The respondents were found jointly and severally liable to repay the principal amount with costs and future simple interest at 8% per annum from the date of filing until realization.

What did the court decide?

Defendants liable to pay Rs.21,36,867.01p with simple interest @8% p.a. from date of filing till realization; Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.724/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.05.2022 DATE OF DECISION: 10.09.2024 Union Bank of India, a body corporate, constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai and having a branch office inter-alia at village Phullanwal, Tehsil and District Ludhiana, through duly Authorized Person and Principal Officer Sh. Pradeep Kumar, Branch Manager.

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Versus	……..Applicant
1. Sh. Gurpreet Singh S/o Sh. Gurcharan Singh, Kalan, Tehsil and District Ludhiana, Punjab.	R/o Village Lalton Borrower
2. Sh. Satwant Singh S/o Sh. Shiv Dayal Singh, Kalan, Tehsil and District Ludhiana, Punjab.	R/o Village Lalton Guarantor ….……Defendants

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Advocates:

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Argued by Sh. Amod Kumar Thakur, counsel proxy for Sh. R.K. Chauhan, counsel for the applicant Defendants are ex-parte

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FINAL ORDER 1. 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.21,36,867.01p (Rupees Twenty One Lacs Thirty Six Thousand Eight Hundred Sixty Seven and Paisa One only). The Original Application has been filed through Sh. Pradeep Kumar, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Authority Letter dated 06.05.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant bank for the grant of Cash Credit Limit of Rs.15.00 Lacs under Union Green Card Scheme vide Application Form for Agricultural Credit dated 04.01.2018, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Cash Credit Limit of Rs.15.00 Lacs under Union Green Card Scheme vide Sanction Letter dated 25.01.2018, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 5Bigha-13Biswa-12Biswasi situated at Village Akalgarh, Hadbast No. 292, Tehsil and District Ludhiana (Punjab) vide Declaration u/s 4 of Punjab Agricultural Credit Misc. Provisions Banks Act 1978 bearing vasika no. 225 dated 2 5.01.2018 and Jamabandi for the year 2010-2011 along with their Translations, which are Annexures A14 & A15 to this OA. Documents executed:- Affidavit by borrower dated 18.01.2018, which is Annexure A3 to this OA; Demand Promissory Note, Letter of Continuity, Hypothecation Agreement, Simple loan Agreement, Annexure-I, Interest Agreement, Declaration/Undertaking, Deed of guarantee by Satwant Singh, Annexure-II all dated 05.02.2018, which are Annexures A5 to A13 to this OA; Legal Notice dated 29.06.2021 and 18.04.2022 along with its translations and postal Receipts, which are Annexures A16 to A19 to this OA and Statement of Account along with Certificate under section 65-B of Indian Evidence Act, which are Annexures A20 & A21 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.21,36,867.01p, 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 31.07.2024.

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In support of the OA, affidavit of Sh. Pradeep Kumar, Branch Manager, Union Bank of India h as been filed.

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Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A21 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.21,36,867.01p (Rupees Twenty One Lacs Thirty Six Thousand Eight Hundred Sixty Seven and Paisa One 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 rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.40%p.a. plus Penal Interest @2.00%p.a. with half yearly rests from 09.05.2022 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 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

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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.21,36,867.01p (Rupees Twenty One Lacs Thirty Six Thousand Eight Hundred Sixty Seven and Paisa One 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 05.10.2024.

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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 . Dated: 10.09.2024

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

Union Bank of India v. Gurpreet Singh and Another

Case brief

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Union Bank of India v. Gurpreet Singh and Another

Case brief

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