Allowed

Union Bank of India v. Sukhdev Singh and Others

DRT30 Nov 2024OA/928/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application against ex-parte defendants. It directed recovery of the outstanding principal amount along with uniform simple interest at 08.00% p.a. and authorized recovery through sale of mortgaged or personal assets.

What did the court decide?

Recovery certificate issued for principal and interest at 08.00% p.a.; recovery via sale of mortgaged or personal assets if dues remain unsatisfied.

Union Bank of India versus Sukhdev Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.928/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.07.2024

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DATE OF DECISION: 30.11.2024

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Union Bank of India, a body corporate and banking company constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act 1970 with its Head Office at 239, Vidhan Bhawan Marg, Nariman Point Mumbai-400021 and amongst other places Branch at Gill Tehsil and District Moga, Punjab through Sh. Vimal Singh Gautam son of Sh. Ramdas Gautam, Branch Manager, Principal Officer and Constituted Attorney of applicant. (Transferee Bank from Andhra Bank Transferor)

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……..Applicant Versus 1. Sh. Sukhdev Singh son of Sh. Bikkar Singh resident of Village Gill, Tehsil Bagha Purana, District Moga, Punjab. 2. Sh. Jalour Singh son of Sh. Bikkar Singh resident of Village Gill, Tehsil Bagha Purana District Moga, Punjab. 3. Sh. Kuldeep Singh son of Sh. Bikkar Singh resident of Village Gill, Tehsil Bagha Purana District Moga, Punjab through his general attorney defendant No.1.

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Sh. Balwinder Singh son of Sh. Harbans resident of Village Gill Tehsil Baghapurana District Moga, Punjab.

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….……Defendants

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Advocates:

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Argued by Ms. Sonal Chabra, Advocate proxy of Sh. Pankaj Beri, 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

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Rs.35,58,638.28p (Rupees Thirty Five Lacs Fifty Eight Thousand Six Hundred Thirty Eight and Twenty Eight Paisa Only). The Original Application has been filed through Sh. Ramdas Gautam, Branch Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 17.08.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant Nos.1 to 3 had approached the applicant for the grant of KCC Limit of Rs.25.00 Lacs vide Loan Application dated 04.07.2014, which is Annexure A3 to this OA and further approached the applicant for its renewal.

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The applicant sanctioned KCC Limit of Rs.25.00 Lacs vide Sanction Letter dated 31.07.2014, Which is Annexure A4 to this OA and further applicant sanctioned its renewal vide Sanction Letter dated 31.12.2020, which is Annexure A8 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant Nos.1 to 3 had mortgaged their immovable property i.e. total Land Measuring 46Kanal-09Marla situated at Village Gill Tehsil Bagha Purana, District Moga, Punjab vide Registered Mortgage Deed bearing vasika no.1502 dated 23.07.2014 with its translation, which is Annexure A7 to this OA.

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Documents executed:- Gazette Notification dated 04.03.2020, which is Annexure A2 to this OA; Registered GPA by Sh. Kuldeep Singh favouring Sh. Sukhdev Singh bearing vasika No.18 dated 26.05.2014, along with its translation which is Annexure A-2A to this OA; D.P. Note and Composite Agreement, both dated 04.08.2014, which are Annexures A5 & A6 to this OA; DP Note, Letter of Continuity, Composite Agreement, Interest Agreement and Deed of Guarantee all dated 31.12.2020, which are Annexures A9 to A13 to this OA; Notice dated 06.03.2024 along with postal receipts which is Annexure A14 to this OA and Statement of Account with certificate, which is Annexure A15 to this OA.

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The loan account became irregular and was classified as NPA

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and after adjusting debit and credit entries in loan account there was a

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debit of Rs.35,58,638.28p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding 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 28.11.2024.

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

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Heard 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 had proved its case. From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the defendants approached applicant 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 defendant 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 is entitled to recover a sum of Rs.35,58,638.28p (Rupees Thirty Five Lacs Fifty Eight Thousand Six Hundred Thirty Eight and Twenty Eight 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.

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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 @11.85%p.a. with half yearly rests from 01.06.2024 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

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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 @08.00%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.35,58,638.28p (Rupees Thirty Five Lacs Fifty Eight Thousand Six Hundred Thirty Eight and Twenty Eight Paisa Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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 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 08.01.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 30.11.2024.

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

Union Bank of India v. Sukhdev Singh and Others

Case brief

What is this about?

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Union Bank of India v. Sukhdev Singh and Others

Case brief

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