Allowed

Canara Bank v. Sh. Lal Singh

DRT28 Feb 2025OA/454/2024

Case brief

AI extract

What is this about?

In an ex-parte hearing, the DRT allowed the bank's recovery application against two borrowers for a defaulted KCC loan of Rs.34.30 Lakhs. The court affirmed the liability of the mortgagors to repay the dues with interest at 8% p.a. and authorized recovery via sale of mortgaged properties or attachment of personal assets under the SARFAESI Act.

What did the court decide?

Directing respondents to pay rs.34.30 Lacs plus 8% yearly simple interest from filing date; authorized recovery via sale of mortgaged or personal assets; issued Recovery Certificate.

Canara Bank versus Sh. Lal Singh — Specific Performance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.454/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.03.2024

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DATE OF DECISION: 28.02.2025

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Canara Bank a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) act No. V of 1980, having its Head Office at, Banglore-560002 and branch amongst others one at Banga, SBS Nagar, Punjab-144505 through Sh. Ripu Daman, Senior Manager of the Applicant.

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……..Applicant Versus

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Sh. Lal Singh S/o Sh. Sohan Singh, R/o #7 Village Ladiyan, PO Jandiala, District SBS Nagar-144505.

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Sh. Satnam Singh S/o Sh. Lal Singh, R/o #7 Village Ladiyan, PO Jandiala, District SBS Nagar-144505.

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….…Defendants

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Advocates:

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Argued by Sh. Anirudh Gupta, 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.34,30.099.86p (Rupees Thirty Four Lacs Thirty Thousand Ninety Nine and Eighty Six Paise Only). The Original Application has been filed through Sh. Ripu Daman, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 06.01.2016, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.25.00 Lacs vide Loan Application dated 06.10.2012, which is Annexure A2 to this OA. The defendant again approached the applicant for the renewal of

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the KCC Limit vide Letter of Renewal dated 05.05.2016, which is Annexure A7 to this OA.

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The applicant sanctioned KCC Limit of Rs.25.00 Lacs and also sanctioned the renewal of the KCC Limit vide Sanction Letter dated 07.12.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant no. 1 had mortgaged his immovable property i.e. Total land measuring 31K-11M situated at village Ladiyan, Hadbast No. 34, Tehsil Banga, District SBS Nagar , Punjab vide Registered Mortgage Deed bearing vasika no. 2070 dated 04.12.2012 along with English Translations, which is Annexure A6 to this OA. Documents executed:- Agreement and Deed of Hypothecation of KCC Limit, Deed of Guarantee both dated 07.12.2012, which are Annexures A4 & A5 to this OA; Letter from guarantor for renewal dated 05.05.2016, which is Annexure A8 to this OA; Acknowledgement of Debt dated 11.05.2015, 09.02.2018, 13.01.2021 and 07.12.2023, which is Annexure A9 to this OA; Recall Notice dated 06.05.2023 and 13.10.2023 along with Postal Receipts, which are Annexures A10 & A11 to this OA and Statement of Accounts and Certificate, which are Annexures A12 & A13 to this OA. 5. 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.34,30.099.86p, 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. 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 11.02.2025. 7. In support of the OA, affidavit of through Sh. Ripu Daman, Senior Manager, Canara Bank h as been filed. 8. 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 loans facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendant 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.34,30.099.86p (Rupees Thirty Four Lacs Thirty Thousand Ninety Nine and Eighty Six 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 @10.00%p.a. with yearly rests from 22.02.2024 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 @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.34,30.099.86p (Rupees Thirty Four Lacs Thirty Thousand Ninety Nine and Eighty Six Paise Only) with costs, current and future simple

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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 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.

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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 29.03.2025.

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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. Pronounced by me in the open Tribunal . Dated: 28.02.2025

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

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Canara Bank v. Sh. Lal Singh

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sh. Lal Singh

Case brief

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What did the court decide?

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