Allowed

Canara Bank v. Sh. Ranjit Singh Alias Ranjeet Singh

DRT24 Feb 2025OA/1194/2024

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed Canara Bank's original application for recovery of an outstanding loan of Rs.23,15,046.10 from three borrowers. The Tribunal directed the recovery of the principal sum with simple interest at 8% p.a. by sale of mortgaged properties or attachment of personal assets.

What did the court decide?

Recovery certificate issued; Defendants directed to pay Rs.23,15,046.10 jointly and severally with simple interest @8.00% p.a., recoverable from sale of mortgaged properties or personal assets.

Canara Bank versus Sh. Ranjit Singh Alias Ranjeet Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1194/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.09.2024

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DATE OF DECISION: 24.02.2025

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Canara Bank, a body corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970 with its Head Office at JC Road, Bangalore, and amongst other a Branch Office amongst at Raikot, Ludhiana through Sh. Gurvinder Singh, Branch Manager, Power of Attorney holder.

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……..Applicant Versus

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Sh. Ranjit Singh @ Ranjeet Singh S/o Sh. Darbag Singh R/o House No.142, Village Andlu, Tehsil Jagraon, District Ludhiana Punjab-141108.

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Sh. Gulzara Singh S/o Sh. Sucha Singh R/o Village Andlu, Tehsil Jagraon, District Ludhiana Punjab-141108.

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Sh. Avtar Singh Grewal S/o Sh. Ranjit Singh R/o Village Andlu, Tehsil Jagraon, District Ludhiana Punjab-141108.

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….…Defendants

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Advocates: Argued by Sh. R.S. Bhatia, Advocate for the applicant Defendant 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.23,15,046.10p (Rupees Twenty Three Lacs Fifteen Thousand Forty Six And Ten Paise Only). The Original Application has been filed through Sh. Gurvinder Singh Branch Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 29.06.2023, 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 the grant of KCC Limit of Rs.15.00 Lacs vide Loan application dated 23.04.2019, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.15.00 Lacs vide Sanction Memorandum dated 23.04.2019, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant no.1 & 2 had mortgaged their immovable property i.e. total land measuring 23 Kanal 8Marla 7.5 Sirsahi situated at Village Andlu, Hadbast no.200, Tehsil Raikot, District Ludhiana, Punjab vide Declaration under section 4(1) dated 22.04.2019, which is Annexure A6 to this OA. Documents executed:- Copy of agreement, Copy of guarantee both dated 22.04.2019 , which are Annexures A4 & A5 to this OA; Copy of Letter dated 22.04.2019, which is Annexure A7 to this OA; Copy of Notice dated 27.12.2023, which is Annexure A8 to this OA; Copy of BC Letter dated 18.04.2022, which is Annexure A9 to this OA and Statement of Accounts along with Banker’s Book Certificate, which is Annexure A10 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.23,15,046.10p, 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. 6. 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 05.02.2025. 7. In support of the OA, affidavit of Sh. Gurvinder Singh Branch Manager, Canara Bank h as been filed. 8. Heard arguments and perused record.

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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 A10 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to her and for that she 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 is entitled to recover a sum of Rs.23,15,046.10p (Rupees Twenty Three Lacs Fifteen Thousand Forty Six And Ten paise Only) jointly and severally, along with interest from the defendants, 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 @13.20%p.a. along with penal interest @2.00%p.a. from with monthly rests from 01.09.2024 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 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 @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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,15,046.10p (Rupees Twenty Three Lacs Fifteen Thousand Forty

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Six And Ten paise 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 28.03.2025. 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: 24.02.2025

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

Canara Bank v. Sh. Ranjit Singh Alias Ranjeet Singh

Case brief

What is this about?

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Canara Bank v. Sh. Ranjit Singh Alias Ranjeet Singh

Case brief

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