Allowed

Union Bank of India v. Satish Kumar Gupta and Others

DRT24 Jan 2025OA/252/2022

Case brief

AI extract

What is this about?

In the absence of the respondents, the Tribunal considered the documentary evidence filed by Union Bank of India. The Tribunal allowed the application, directing the respondents to pay a specific debt amount along with uniform simple interest.

What did the court decide?

Direction to respondents to jointly and severally pay Rs. 1,07,29,738.66 with costs and simple interest at 6.80% p.a. on sale of mortgaged properties or other assets.

Union Bank of India versus Satish Kumar Gupta and… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.252/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.12.2021

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DATE OF DECISION: 24.01.2025

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Union Bank of India, a body constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Act No.5 of 1970) carrying on Banking business and having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and one of its Branch Office at Union Bank of India, Dera Bassi, Hans Raj Sharma Bhawan, Chandigarh-Ambala Highways, Dera Bassi, District SAS Nagar through its Manager and General Attorney Sh. Naresh S/o Sh. Jagdeesh.

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……..Applicant

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Versus

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Sh. Satish Kumar Gupta son of Sh. Chaman Lal Gupta, resident of House No.24, Street No.2, Adarsh Nagar, Dera Bassi, District SAS Nagar.

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Sh. Pardeep Kumar son of Sh. Chaman Lal Gupta, resident of House No.24, Street No.2, Adarsh Nagar, Dera Bassi, District SAS Nagar.

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Sh. Raman Kumar son of Sh. Chaman Lal Gupta, resident of House No.24, Street No.2, Adarsh Nagar, Dera Bassi, District SAS Nagar.

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Sh. Vinod Kumar son of Sh. Chaman Lal Gupta, resident of House No.24, Street No.2, Adarsh Nagar, Dera Bassi, District SAS Nagar.

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…….Defendants

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Advocates:

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Argued by Sh. Ravi Mishra, Advocate for the 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.1,07,29,738.66p (Rupees One Crore Seven Lacs Twenty Nine Thousand Seven Hundred Thirty Eight and Paise Sixty Six Only). The Original Application has been filed through Sh. Naresh, Branch Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 26.10.2016, 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 grant of Housing Loan under Union Home Scheme of Rs.75.23 Lacs and OD Limit under Union Cash Scheme of Rs.5.00 Lacs vide Loan Application, which is Annexure A2 to this OA. 3. The applicant sanctioned Housing Loan under Union Home Scheme of Rs.75.23 Lacs and OD Limit under Union Cash Scheme of Rs.5.00 Lacs vide Credit Sanction Intimation and Sanction Letter dated 29.08.2015 & 24.04.2020, which are Annexures A3 & A15 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged their immovable properties i.e. total property measuring 0Bigha-08Biswa (400 Sq. Yards) situated Village Sheikhpura Khurd, H.B. No.15, Tehsil Dera Bassi, District SAS Nagar vide Registered Mortgaged Deed bearing v asika No.1644 dated 08.06.2009 along with its translation, which is Annexure A21 to this OA. Documents executed:-Consent for take over penalty, Letter of continuity, Agreement on rate of interest, Housing loan agreement, Letter of undertaking from the borrower & D.P. Note all dated 29.08.2015, which are Annexures A4 to A9 to this OA; Memorandum of deposit of title deed dated 04.09.2015, which is Annexure A10 to this OA; Memorandum of Entry, Affidavits & Declaration all dated 19.08.2016, which are Annexures A11 to A14 to this OA; D.P. Note,

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Letter of continuity, General term loan agreement, Letter of undertaking, & Agreement all dated 24.04.2020, which are Annexures A16 to A20 to this OA; Acknowledgement of Debts dated 28.08.2018 & 26.04.2020, which are Annexures A22 & A23 to this OA; Notice u/s 13(2) of SARFAESI Act dated 06.04.2021, which is Annexure A24 to this OA and Account Statements along with Certificate by the officer Incharge of the Computer System, which is Annexures A25 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.1,07,29,738.66p, 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 26.06.2024.

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In support of the OA, affidavit of Sh. Naresh, 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 counsel through Video

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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 A25 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a

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sum of Rs.1,07,29,738.66p (Rupees One Crore Seven Lacs Twenty Nine Thousand Seven Hundred Thirty Eight and Paise Sixty Six Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @8.40%p.a. in Union Home Scheme and @6.80%p.a. in Union Cash Scheme along with penal interests @2%p.a. in both from 01.10.2021 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 loans 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 @06.80%p.a. in the loan accounts 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.1,07,29,738.66p (Rupees One Crore Seven Lacs Twenty Nine Thousand Seven Hundred Thirty Eight and Paise Sixty Six Only) jointly and severally, with costs, current and future simple interest @06.80%p.a. in the loan accounts 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

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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 06.03.2025. 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: 24.01.2025

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

Union Bank of India v. Satish Kumar Gupta and Others

Case brief

What is this about?

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Union Bank of India v. Satish Kumar Gupta and Others

Case brief

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