Allowed

Canara Bank v. Simranjit Singh

DRT5 Sept 2024OA/806/2023

Case brief

AI extract

What is this about?

The Tribunal decided an Original Application filed by Canara Bank against an NPA loan account. The bank claimed Rs. 45.39 Lakhs plus interest. The Tribunal allowed the application, declaring the respondent liable to pay the principal with costs and reduced uniform simple interest, permitting recovery via mortgage sale or attachment of personal assets.

What did the court decide?

Declaration that respondent is liable to pay applicant Rs. 45,39,803.34 with costs and simple interest @ 8% p.a. from filing date; recovery from sale of mortgaged properties or attachment of personal

Canara Bank versus Simranjit Singh — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.806/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.06.2023

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DATE OF DECISION: 05.09.2024

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Canara Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 40 of 1970 having its heads office at 112, J.C. Road, Bangalore and having its business through one of its branches at Phase-7, Mohali, Distt. Mohali through Branch Manager of the Branch of Bank and duly constituted attorney.

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……..Applicant

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Versus

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Sh. Simranjit Singh S/o Sh. Nirmal Singh R/o House No.137, Guru Teg Bahadur Nagar, Kharar, Tehsil Kharar, Distt. Mohali.

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……Defendant

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Advocates:

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Argued by Sh. Rajeev Bhardwaj, Advocate for the applicant (through VC) Defendant is ex-parte

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FINAL ORDER

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Present Original Application was instituted on 21.03.2017 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.45,39,803.34p (Rupees Forty Five Lacs Thirty Nine Thousand Eight Hundred Three And Paise Thirty Four Only) The Original Application has been filed through Ms. Rekha Mehra, Manager of the applicant bank, who is competent to institute the Original Application vide Authority Letter dated 06.09.2022, which is

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Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of Kisan Credit Card Limit of Rs.20.00 Lacs and further defendant had approached the applicant bank for its enhancement from Rs.20.00 lacs to Rs.30.00 Lacs vide Loan

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applications dated 29.07.2014 and 14.09.2016, which are Annexures A2 & A11 to this OA.

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The applicant Bank sanctioned the Kisan Credit Card Loan of Rs.20.00 Lacs vide Sanction Memorandum dated 21.07.2014 and 26.07.2014, which are Annexures A4 and A5 to this OA and further applicant bank sanctioned the KCC Loan for its enhancement from Rs.20.00 lacs to Rs.30.00 Lacs vide Sanction Letter dated 14.09.2016, which is Annexure A12 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. total land measuring 15Bigha-19Biswa situated at Village Gharuan, H.B. No.377, Tehsil Kharar, District Mohali vide Registered Mortgaged Deed bearing vasika no.2725 dated 24.07.2014 along with its translation, which is Annexure A8 to this OA and Declaration under Section 4(1) bearing vasika no.410 dated 15.09.2016, which is Annexure A14 to this OA. Documents executed:-Assessment Form, which is Annexure A3 to this OA; Agreement & Deed of Hypothecation dated 26.07.2014, which is Annexure A6 to this OA & Letter of Renewal, which is Annexure A7 to this OA; Lien Verification Report dated 10.09.2015, which is Annexure A9 to this OA; Copy of Govt. Rate List along with its translation, which is Annexure A10 to this OA; Supplemental Agreement dated 26.07.2016, which is Annexure A13 to this OA;; Copy of Acknowledgement of Debts dated 28.03.2017, 23.12.2019, 01.11.2019 & 22.02.2022, which are Annexures A15 to A18 to this OA; Copies of Notice dated 22.02.2022 & 04.03.2022, which are Annexures A19 & A20 to this OA and Statement of account along with Certificate dated 27.04.2023, which are Annexures A21 & A22 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.45,39,803.34p, which is recoverable and the defendant was served recall notices but they did not repay the outstanding amount,

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therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal. Defendant appeared in person before Registrar on 05.01.2024 but thereafter did not filed Power of Attorney of any counsel. Since no one appeared on behalf of defendant, he was proceeded ex-parte on 29.07.2024. 7. In support of the OA, affidavit of Ms. Rekha Mehra, Manager, Canara Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 A22 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he 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 bank is entitled to recover a sum of Rs.45,39,803.34 (Rupees Forty Five Lacs Thirty Nine Thousand Eight Hundred Three And Paise Thirty Four Only) along with interest from the defendant, 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 @11.00%p.a. along with penal interest @2%p.a. with half yearly 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

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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 @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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.45,39,803.34 (Rupees Forty Five Lacs Thirty Nine Thousand Eight Hundred Three And Paise Thirty Four Only) 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 defendant 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 defendant. 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 30.09.2024.

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Copy of this order be given dasti to the applicant bank and be sent to defendant 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 . Dated: 05.09.2024

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

Canara Bank v. Simranjit Singh

Case brief

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What did the court decide?

Canara Bank v. Simranjit Singh

Case brief

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