Allowed

Union Bank of India v. Charanpreet Kaur and others

DRT27 Nov 2024OA/841/2023

Case brief

AI extract

What is this about?

DRT allowed the bank's application for recovery of Rs. 30.30 lakhs. The court directed payment of principal with uniform simple interest at 7.60% p.a., instead of claimed rates, and authorized recovery via secured assets or attachment of personal assets.

What did the court decide?

Recovery of Rs. 30,30,284.21 with costs and simple interest @07.60%p.a. via sale of mortgaged properties or attachment of personal assets. Recovery Certificate issued.

Union Bank of India versus Charanpreet Kaur and others — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.841/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.06.2023

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DATE OF DECISION: 27.11.2024

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Union Bank of India, a Body Corporate with Perpetual Succession constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 (Act No.5 of 1970) having its Registered/Corporate Office At: Union Bank Bhavan, 239, Vidhan Bhawan Marg, Nariman Point, Mumbai 400021, Maharashtra, India and one of its branch situated At: D-7-8, Calibre Market, Rajpura, District Patiala, Punjab-140401, through its Attorney Sh. Parveen Garg, Branch Head of Rajpura Branch.

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……..Applicant

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Versus

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Smt. Charanpreet Kaur wife of Sh. Indresh Oberoi, R/o H.No.96, New Officers Colony, Saidkheri Road, Backside Grain Market, Rajpura Town, Tehsil Rajpura, District Patiala, Punjab-140401.

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Sh. Indresh Oberoi S/o Sh. Harinder Oberoi, R/o H.No.96, New Officers Colony, Saidkheri Road, Backside Grain Market, Rajpura Town, Tehsil Rajpura, District Patiala, Punjab-140401.

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Sh. Satnam Singh S/o Sh. Kaka Singh, R/o H.No.86, Village Bhaterhee Bhapal, Tehsil Rajpura, District Patiala, Punjab- 140401.

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…….Defendants

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Advocates:

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Argued by Sh. Y.P. Singla, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.30,30,284.21p (Rupees Thirty Lacs Thirty Thousand Two Hundred Eighty Four And Paise Twenty One Only). The Original Application has

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been filed through Sh. Parveen Garg, Branch Head o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 20.07.2010, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for grant of Housing Loan of Rs.16.00 Lacs and further for Term Loan of Rs.4.00 Lacs. 3. The applicant sanctioned Housing Loan of Rs.16.00 Lacs vide Sanction Letter dated 29.03.2016, which is Annexure A2 to this OA. Further, applicant sanctioned Term Loan of Rs.4.00 Lacs vide Sanction Letter dated 16.06.2016, which is Annexure A7 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged her immovable properties i.e. Residential House No.96, New Officers Colony, Saidkheri Road, Rajpura Town, Tehsil Rajpura, Distt. Patiala vide Equitable Mortgage of Sale Deed bearing v asika No.5311 dated 3 1.03.2016 along with its translation filed in compliance to order dated 23.10.2024 vide diary no.17881 dated 18.11.2024. Documents executed:-D.P. Note, Housing Loan Agreement, Agreement on Rate of interest & Letter of Continuity dated 29.03.2016, which are Annexures A3 to A6 to this OA; D.P. Note, Housing Loan Agreement, Agreement on Rate of interest, Letter of Continuity, Letter of Guarantee & Supplementary Memorandum all dated 17.06.2016, which are Annexures A8 to A13 to this OA; Demand Notice u/s 13(2) along with postal receipts dated 05.01.2018, which is Annexure A14 to this OA; Possession Notice u/s 13(4) dated 25.09.2018, which is Annexure A15 to this OA and Account Statement along with requisite certificate and Certificate under Banker’s Book Evidence Act, which is Annexures A16 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 loan accounts there was a debit of Rs.30,30,284.21p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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amount, therefore, the applicant 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 19.10.2024.

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In support of the OA, affidavit of Sh. Parveen Garg, Branch Head, Union Bank of India h as been filed.

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Heard 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 had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendants approached applicant 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.30,30,284.21p (Rupees Thirty Lacs Thirty Thousand Two Hundred Eighty Four And Paise Twenty One Only) along with interest from defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.25%p.a. in home loan & interest @7.60%p.a. in Term Loan along with penal interest @2.00%p.a. with monthly rests in both from 08.06.2023 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 property, undertaking of the defendants, quantum of loan and prevalent market rates of

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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 @07.60%p.a. in both 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.

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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.30,30,284.21p (Rupees Thirty Lacs Thirty Thousand Two Hundred Eighty Four And Paise Twenty One Only) jointly and severally, with costs, current and future simple interest @07.60%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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 applicant 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 31.12.2024 15. Copy of this order be given dasti to the applicant 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 . Dated: 27.11.2024

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

Union Bank of India v. Charanpreet Kaur and others

Case brief

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Union Bank of India v. Charanpreet Kaur and others

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