Allowed

Union Bank of India v. Sh. Kashmira Singh

DRT7 May 2025OA/1894/2022

Case brief

AI extract

What is this about?

The DRT allowed the Applicant's application for recovery of Rs. 20,08,515.35 along with interest from respondents who defaulted on a KCC loan. The Tribunal granted uniform simple interest at 8% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for Rs. 20,08,515.35 with simple interest @ 8% p.a.; attached debtors admit-ability directed.

Union Bank of India versus Sh. Kashmira Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1894/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.11.2022

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DATE OF DECISION: 07.05.2025

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Union Bank of India, a body corporate constituted under The Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai 400021 and having a Branch Office interalia at village Ghawaddi, Tehsil and District Ludhiana through duly authorized person Sh. Ashish Kumar, Branch Manager.

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……..Applicant Versus

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Sh. Kashmira Singh S/o Sh. Labh Singh

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Sh. Karnail Singh S/o Sh. Jagir Singh

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Sh. Surjit Singh S/o Sh. Bhagat Singh since deceased through its legal representatives

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a. Sh. Jatinder Singh S/o Late Sh. Surjit Singh

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b. Smt. Surinder Kaur Wd/o Sh. Surjit Singh

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c. Ms. Harjodh Kaur D/o Sh. Surjit Singh

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All residents of Village Bool, Tehsil Dehlon, District Ludhiana

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…….Defendants

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Advocates:

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Argued by Sh. Amod Kumar Thakur, Advocate proxy for Sh. R.K. Chauhan, 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.20,08,515.35p (Rupees Twenty Lacs Eight Thousand Five Hundred Fifteen and Paise Thirty Five Only). The Original Application has been

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2 OA NO.1894/2022 UNION BANK OF INDIA VS KASHMIRA SINGH AND OTHERS

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filed through Sh. Ashish Kumar, Branch Manager 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 defendant no.1 & 2 had approached the applicant for grant of KCC Limit of Rs.15.00 Lacs vide Loan Application dated 16.09.2015 and application cum undertaking, which are Annexures A2 and A3 to this OA.

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The applicant sanctioned KCC Limit of Rs.15.00 Lacs vide Sanction Letter dated 10.11.2015, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants vide term and conditions, which is Annexure A5 to this OA. 4. Defendant No.1 had mortgaged his immovable properties i.e. land measuring 22K-6½M situated at Village Bool, Hadbast No.319, Tehsil Dehlon, District Ludhiana vide Letter to Sub Registrar for creation of charge and Declaration U/s 4(1) dated 19.10.2015 and Jamanbandi for the year 2013-14 with its translation, which are Annexures A17 and A18 to this OA. Documents executed:- D.P. Note, Letter of continuity, Hypothecation Agreement, Simple Loan Agreement, Annexure-I, Undertaking/Declaration, Agreement of ROI, Deed of Guarantee, Annexure II dated 10.11.2015, which are Annexures A6 to A16 to this OA; D.P. Note, Letter of continuity and interest Agreement all dated 09.03.2018, which are Annexures A19 to A21 to this OA; Debit Balance Confirmation dated 05.08.2019 and 28.02.2022, which are Annexures A22 and A23 to this OA; Legal Notice dated 06.04.2021 and 05.11.2022 with postal receipts, which are Annexures A24 and A25 to this OA and Statement of Account duly certified, which are Annexures A26 and A27 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

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3 OA NO.1894/2022 UNION BANK OF INDIA VS KASHMIRA SINGH AND OTHERS

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debit of Rs.20,08,515.35p, 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 defendant no.1, 2 and legal heirs of deceased defendant no.3 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 23.04.2025.

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In support of the OA, affidavit of Sh. Ashish Kumar, 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 A27 to this OA, it is proved that the defendant nos.1 to 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 loans 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.20,08,515.35p (Rupees Twenty Lacs Eight Thousand Five Hundred Fifteen and Paise Thirty Five Only) along with interest from the defendant no.1, 2 and legal heirs of deceased defendant no.3, 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

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4 OA NO.1894/2022 UNION BANK OF INDIA VS KASHMIRA SINGH AND OTHERS

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@8.60%p.a. plus penal interest @2.00%p.a. with half yearly rests from 30.10.2022 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 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 defendant no.1, 2 and legal heirs of deceased defendant no.3 are liable to pay to the applicant a total sum of Rs.20,08,515.35p (Rupees Twenty Lacs Eight Thousand Five Hundred Fifteen and Paise Thirty Five 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 applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant no.1, 2 and legal heirs of deceased defendant no.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. 13. Issue Recovery Certificate accordingly.

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5 OA NO.1894/2022

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UNION BANK OF INDIA VS KASHMIRA SINGH AND OTHERS

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 26.05.2025.

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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: 07.05.2025

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

Union Bank of India v. Sh. Kashmira Singh

Case brief

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Union Bank of India v. Sh. Kashmira Singh

Case brief

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