Allowed

Union Bank of India v. Atma Singh and Others

DRT6 Jan 2025OA/1267/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant’s application for recovery of Rs.28,57,707.00p from the defendants, who were legal heirs and lenders. The court granted a recovery certificate, fixed simple interest at 8% p.a., and authorized sale of mortgaged or personal assets for satisfaction of dues.

What did the court decide?

Recovery certificate issued; defendants ordered to pay Rs.28,57,707.00p plus simple interest @8.00%p.a.; sale of mortgaged or personal assets authorized for recovery.

Union Bank of India versus Atma Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1267/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.10.2023

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DATE OF DECISION: 06.01.2025

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Union Bank of India, a body corporate constituted under the Banking Companies, (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at Union Bank Bhawan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021 and one of its branches at Jagraon, District Ludhiana, through Sh. Arvind Pawar, Branch Manager, Union Bank of India, Jagraon Branch, Jagraon, District Ludhiana its Principal Officer, And Constituted Attorney.

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……..Applicant

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Versus

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1. Sh. Atma Singh (deceased) S/o Sh. Gian Singh @ Sh. Dhyan Singh.

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A. Smt. Dalip Kaur Widow of Sh. Atma Singh.

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B. Smt. Sukhdev Kaur W/o Sh. Harbans Singh (daughter).

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C. Smt. Mandeep Kaur W/o Sh. Amarjit Singh (daughter).

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All residents of House No.53, Village Vare, Tehsil Dharamkot, District Moga.

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2. Sh. Chamkaur Singh S/o Sh. Atma Singh (son) residents of House No.53, Village Vare, Tehsil Dharamkot, District Moga.

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3. Sh. Gurdev Singh S/o Sh. Harman Singh R/o Village Swaddi Khurd, Tehsil Jagraon, District Ludhiana.

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….……Defendants

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Advocates:

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Argued by Sh. R.V Mehra, Advocate for Applicant (through VC) 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.28,57,707.00p (Rupees Twenty Eight Lacs Fifty Seven Thousand

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Seven Hundred and Seven only). The Original Application has been filed through Sh. Arvind Pawar, Branch Manager, who is competent to institute the Original Application vide Photostat Copy of Power of Authority dated 17.08.2022, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant nos.1 (since deceased), 2 and 3 had approached the applicant for the grant of Union Green Card Limit of Rs.20.00 Lacs vide Photostat Copy of Loan Application dated 12.05.2017, which is Annexure A2 to this OA.

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The applicant sanctioned the Union Green Card Limit of Rs.20.00 Lacs vide Photostat Copy of Sanction Letter dated 02.06.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 (Since deceased) had mortgaged his immovable properties i.e. total land measuring 49 Kanal-15 Marla situated at Village Vare, Tehsil Dharamkot, District Moga vide P hotostat Copy of Declaration u/s 4(1) bearing vasila no.436 dated 02.06.2017 along with its Translation, which is Annexure A11 to this OA.

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Documents executed:-Photostat Copy of Demand Promissory Note, Photostat Copy of Hypothecation agreement, Photostat Copy of Simple Loan Agreement, Photostat Copy of Letter of consent, Photostat Copy of Interest agreement, Photostat Copy of Letter of Declaration/Undertakings) Photostat Copy of Letter of continuity, Photostat Copy of the said agreement of Guarantee all dated 19.06.2017, which are Annexures A4 to A10, A12, A13 to this OA; Photostat Copy of Letter of balance confirmation dated 27.01.2019, 18.07.2022 & 01.11.2022, which are Annexures A14 to A16 to this OA; Photostat Copy of Legal Notice dated 18.02.2023 with postal receipts, which are Annexures A17 to A20 to this OA and Certified copy of the statement of union green card account with certificate, which is Annexure A21 to this OA.

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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.28,57,707.00p, which is recoverable and the defendants were

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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 legal heirs of deceased defendant nos.1 i.e. 1(A), 1(B), 1(C) and defendant nos. 2 and 3 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 02.01.2025.

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In support of the OA, affidavit of Sh. Arvind Pawar, Branch Manager , Union Bank of India, has been filed. 8. Heard 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 had proved its case. From the perusal of all the Annexures A1 to A21 to this OA, it is proved that the defendant nos.1 (since deceased), 2 and 3 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 applicant. 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.28,57,707.00p (Rupees Twenty Eight Lacs Fifty Seven Thousand Seven Hundred and Seven 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.75%p.a. with half yearly rests from 01.10.2023 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 interest

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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.

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In the result, the application is allowed declaring that the legal heirs of deceased defendant nos.1 i.e. 1(A), 1(B), 1(C) and defendant nos. 2 and 3 are liable to pay to the applicant a total sum of Rs.28,57,707.00p (Rupees Twenty Eight Lacs Fifty Seven Thousand Seven Hundred and Seven 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 shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the legal heirs of deceased defendant nos.1 i.e. 1(A), 1(B), 1(C) and defendant nos. 2 and 3 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 legal heirs of deceased defendant nos.1 i.e. 1(A), 1(B), 1(C) and defendant nos. 2 and 3. 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 12.02.2025.

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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. Pronounced by me in the open Tribunal .

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Dated: 06.01.2025.

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

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Union Bank of India v. Atma Singh and Others

Case brief

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Union Bank of India v. Atma Singh and Others

Case brief

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