Allowed

Canara Bank v. Abhinandan and Another

DRT24 Jan 2025OA/348/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Canara Bank for recovery of housing loan dues of Rs. 22,36,925.02 against absent defendants. The tribunal recovered interest and directed issuance of a recovery certificate.

What did the court decide?

The defendants are declared liable to pay Rs.22,36,925.02 with costs and simple interest @08.00%p.a. A Recovery Certificate is issued and parties to appear before the Recovery Officer.

Canara Bank versus Abhinandan and Another — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.348/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.02.2023

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DATE OF DECISION: 24.01.2025

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Canara Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at 112, J.C. Road, Bangalore and inter-alia, Branch Office at Ghiala Pathankot District Pathankot Punjab through its Power Attorney Holder Sh. Vivek Abrol, Manager Canara Bank, Ghiala Pathankot.

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……..Applicant Versus

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Sh. Abhinandan son of Karam Chand, Resident of House No.164, Mohala Kabir Nagar, Ward no.5, Post Office Sujanpur, Pathankot, District Pathankot-145023.

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Smt. Tripta Devi wife of Sh. Karam Chand Resident of House No.164, Mohala Kabir Nagar, Ward no.5, Post Office, Sujanpur, Pathankot, District Pathankot-145023.

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….……Defendants

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Advocates:

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Argued by Sh. Satish Jaswal, 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.22,36,925.02p (Rupees Twenty Two Lacs Thirty Six Thousand Nine Hundred Twenty Five and Paisa Two Only). The Original Application has been filed through Sh. Vivek Abrol, Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 06.03.2023, 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.20.00 Lacs vide Loan application dated 23.11.2020, which is Annexure A2 to this OA. 3. The applicant sanctioned Housing Loan of Rs.20.00 Lacs vide Sanction Letter dated 22.12.2020, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants no.1 had mortgaged his immovable property i.e. Residential Plot measuring 5.79 Marla situated at Village Khadawar, Hadbast No.225, Tehsil & District Pathankot vide Equitable Mortgage of Sale Deed bearing vasika no.2019-20/44/1/435 dated 22.04.2019 and Jamabandi for the year 2014-2015 along with their translations, which are Annexures A8 to A11 to this OA. Documents executed:-Housing Loan Agreement dated 30.12.2020, which is Annexure A4 to this OA; Letter execution of document & Certificate of compliance dated 25.06.2021, which are Annexures A5 & A6 to this OA; Letter deposit title deed & Encumbrance Certificate dated 30.12.2020, which are Annexures A7 & A12 to this OA and Statement of Account along with Certificate under Section 2 of the Banker’s Book Evidence Act as Amended, which is Annexure A13 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 debit of Rs.22,36,925.02p, which is recoverable and the defendants was 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and he was proceeded ex-parte on 16.01.2025.

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In support of the OA, affidavit of Sh. Vivek Abrol, Manager, Canara Bank h as been filed.

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Heard arguments and perused record.

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It was argued by learned 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 A13 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to him and for that he 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 is entitled to recover a sum of Rs.22,36,925.02p (Rupees Twenty Two Lacs Thirty Six Thousand Nine Hundred Twenty Five and Paisa Two Only) along with interest from the defendants, 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 @8.90%p.a. with half yearly rests from 24.01.2023 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 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 defendants is liable to pay to the applicant a total sum of Rs.22,36,925.02p (Rupees Twenty Two Lacs Thirty Six Thousand Nine Hundred Twenty Five and Paisa Two Only) 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 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.

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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 06.03.2025.

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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: 24.01.2025

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

Canara Bank v. Abhinandan and Another

Case brief

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Canara Bank v. Abhinandan and Another

Case brief

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