Allowed

Union Bank of India v. Rajbir Kaur

DRT14 Feb 2025OA/317/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by Union Bank of India for recovery of Rs. 40,18,433.50 p from respondents defaulting on a housing loan. The court reduced the claimed interest rate to 8.00% p.a. and ordered a recovery certificate to be issued for enforcement against mortgaged assets.

What did the court decide?

Recovery Certificate issued. Order to pay Rs. 40,18,433.50 p with simple interest @8.00% p.a. from OA date till realization, enforceable via sale of mortgaged or personal assets.

Union Bank of India versus Rajbir Kaur — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.317/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.12.2021

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DATE OF DECISION: 14.02.2025

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Union Bank of India, (erstwhile Andhra Bank) a body corporate Constituted under the Banking Companies (Acquisition & Transfer of undertakings) Act, 1970 having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and inter alia a Branch office at Landran, Tehsil Kharar, District Mohali SAS Nagar, Punjab through its Branch Manager Sh. Munish Sharda.

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……..Applicant

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Versus

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Mrs. Rajbir Kaur W/o Mr. Sandeep Singh R/o Village Kirrian PO Harike, District Tarn Taran.

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Mr. Sandeep Singh S/o Mr. Rachpal Singh R/o Village Kirrian PO Harike, District Tarn Taran.

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Sh. Amandeep Singh S/o Mr. Mohan Lal R/o House No.1089, Gillco Heights Gillco Valley Kharar, District Mohali.

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….……Defendants

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Advocates:

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Argued by Sh. Karan Singla, 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.40,18,433.50p (Rupees Forty Lacs Eighteen Thousand Four Hundred Thirty Three & Fifty Paise only). The Original Application has been filed through Sh. Munish Sharda, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 15.09.2015, which is Annexure A2 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.35.00 Lacs vide Loan Application dated 16.05.2018.

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The applicant sanctioned the Housing Loan of Rs.35.00 Lacs vide Sanction Letter dated 16.05.2018, 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 had mortgaged his immovable property i.e Plot no.212, measuring 70 Sq.Yards situated in Village Mata Gujri Avenue Village Bhago Majra, Hadbast no.75, Tehsil Kharar, District Mohali vide Registered Mortgage Deed dated bearing vasika no.1756 dated 16.05.201 8 and jamabandi for the year 2013-2014 with their translations, which are Annexures A6 & A7 to this OA.

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Documents executed:- Notification dated 01.04.2020, which is Annexure A1 to this OA; Composite Agreement and Demand promissory note both dated 16.05.2018, which are Annexures A4 and A5 to this OA; Acknowledgement dated 12.02.2020, which is Annexure A8 to this OA; Notice dated 09.12.2021, which is Annexure A9 to this OA and statement of account along with certificate Under Banker’s Books, which is Annexure A10 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.40,18,433.50p, 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 15.01.2025.

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In support of the OA, affidavit of Sh. Munish Sharda, 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

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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 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.40,18,433.50p (Rupees Forty Lacs Eighteen Thousand Four Hundred Thirty Three & 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 @8.50%p.a with yearly rests from 08.12.2021 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 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 @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 defendants are liable to pay to the applicant a total sum of Rs.40,18,433.50p (Rupees Forty Lacs Eighteen Thousand Four Hundred Thirty Three & Fifty Paise 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

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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 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 17.03.2025.

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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 . Dated: 14.02.2025

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

Union Bank of India v. Rajbir Kaur

Case brief

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Union Bank of India v. Rajbir Kaur

Case brief

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