Allowed

Union Bank of India v. Sh. Ravinder Kamboj

DRT24 Mar 2025OA/1770/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs.47.19 Lacs under the RDBFI Act. The court deems it just to grant uniform simple interest at 7.40% per annum from the filing date till realization, and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.47,19,492.50p with 7.40% simple interest; Issuance of Recovery Certificate; Enforcement through sale of mortgaged and personal assets.

Union Bank of India versus Sh. Ravinder Kamboj — Specific Performance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1770/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.09.2022

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DATE OF DECISION: 24.03.2025

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Union Bank of I ndia, a body corporate with Perpetual Succession constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970 (Act No. 5 of 1970) having its Registered/Corporate Office at Union bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India and one of its Branch situated at Dharampura Bazar, 4230A/5, Lower Mall Road, Polo Ground Road, Near Budha Dal Complex, Patiala, Punjab-147001, through its Attorney Sh. Sanjeev Kumar, Branch Head.

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……..Applicant

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Versus

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Sh. Ravinder Kamboj son of Sh. Joginder Singh, R/o House No. 9 (Old H.No. 7), Sant Hazara Singh Colony, Sanaur Road, Patiala, Tehsil & Distt. Patiala, Punjab -147001.

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Mrs. Mandeep kaur wife of Sh. Ravinder Kamboj, House No. 9 (Old H.No. 7, Sant Hazara Singh Colony, Sanaur Road, Patiala, Tehsil & Distt. Patiala, Punjab -147001.

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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.47,19,492.50p (Rupees Forty Seven Lacs Nineteen Thousand Four Hundred Ninety Two and Fifty Paise Only). The Original Application has been filed through Sh. Sanjeev Kumar, Branch Head of the applicant, who is competent to institute the Original Application vide 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 defendants had approached the applicant for the grant of Housing Loan of Rs.41.30 Lacs for purchase of ready built house vide Loan application dated 07.09.2019, which is Annexure A3 to this OA.

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The applicant sanctioned Housing Loan of Rs.41.30 Lacs vide Sanction Letter dated 23.09.2019, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable property i.e. Residential House measuring 200 sq. yards (30’x60’=1800 Sq ft) situated at House no. 9 (Old plot no.7), Sant Hazara Singh Colony, Sanaur Road, Tehsil and District Patiala, Punjab vide equitable mortgage of sale deed bearing no. 2019-20/11/1/8481 dated 24.09.2019 filed with IA No. 708/2024 on 06.05.2024 vide diary no. 6907 in compliance to order dated 10.04.2024.

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Documents executed:- Notification dated 04.03.2020, which is Annexure A2 to this OA; Demand Promissory Note, Housing Loan Agreement and Interest Agreement and Letter of continuity, all dated 23.09.2019, which are Annexures A5 to A8 to this OA; Letters of undertaking and Affidavit in lieu of Income tax Clearance Certificate dated 24.09.2019, which are Annexures A9 & A11 to this OA; Declaration by Borrower (Equitable Mortgage) dated 24.09.2019, which is Annexure A10 to this OA; Memorandum of Deposit of Title Deeds dated 26.09.2019, which is Annexure A12 to this OA; Letters dated 12.03.2021, 03.02.2022 and 21.02.2022, which are Annexures A13 to A15 to this OA; Legal notice dated 16.02.2022, which is Annexure A16 to this OA; Notice u/s 13(2) of SARFEASI Act, 2002 dated 08.03.2022, which is Annexure A17 to this OA; Notice for taking possession dated 27.05.2022, which is Annexure A18 to this OA; Possession Notice u/s 13(4) dated 11.08.2022, which is Annexure A19 to this OA and Statement of account with requisite certificate, which is Annexure A20 (Colly) 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 the loan account there was a debit of Rs.47,19,492.50p, which is recoverable and the

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defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank 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 05.03.2024.

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In support of the OA, affidavit of Sh. Sanjeev Kumar, Branch Hea d, 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 bank had proved its case. From the perusal of all the Annexure A1 to A20 to this OA, it is proved that the defendants approached applicant bank 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 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 bank is entitled to recover a sum of Rs.47,19,492.50p (Rupees Forty Seven Lacs Nineteen Thousand Four Hundred Ninety Two and Fifty Paise 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 @7.40%p.a. with monthly rests plus overdue interest @2% p.a. from date of filing this application till the realization.

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The Tribunal is of the considered opinion that sometimes inappropriate 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 which have gone drastically downhill in yester years,

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while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @07.40%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.47,19,492.50p (Rupees Forty Seven Lacs Nineteen Thousand Four Hundred Ninety Two and Fifty Paise Only) jointly and severally, with costs, current and future simple interest @7.40%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 defendants 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 22.04.2025. 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.

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Pronounced by me in the open Tribunal .

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Dated: 24.03.2025

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

Union Bank of India v. Sh. Ravinder Kamboj

Case brief

What is this about?

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Union Bank of India v. Sh. Ravinder Kamboj

Case brief

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