Allowed

Union Bank of India v. Sh. Jagdish Singh and Others

DRT9 May 2025OA/500/2023

Case brief

AI extract

What is this about?

Drugs Recovery Tribunal allowed the application filed by Union Bank of India against borrowers for recovery of dues and modified the interest rate to 8% per annum, ordering the issuance of a recovery certificate.

What did the court decide?

Directive to issue Recovery Certificate; Defendants ordered to pay Rs.28,73,595.45p plus interest @8% p.a.; Liberty to enforce claim via sale of mortgaged or personal assets.

Union Bank of India versus Sh. Jagdish Singh and Others — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.500/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.04.2023

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DATE OF DECISION: 09.05.2025

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Union Bank of India (Erstwhile Corporation Bank) a body corporate constituted under The Banking Companies (Acquisition and Transfers of Undertaking) Act 1970 having its Head Office Union Bank at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai and Corporation Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, as per the Gazette of India extra ordinary notification no. G.S.R. dated 04.03.2020 also amalgamation into Union Bank of India as per amalgamation scheme 2020 come into effect on 1^st April, 2020, the Power of recovery from the borrowers vested with the Union Bank of India being transferee bank by virtue of amalgamation scheme as it might have been enforced by or transferor bank, having its central office at Nariman Point Mumbai and one of its Branch SCF 35, New Grain Market, Muktsar (Punjab), through Power Attorney holder Sh. Vinod Kumar.

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……..Applicant

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Versus

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1. Sh. Jagdish Singh S/o Sh. Kikar Singh R/o Village Khappianwali, District Mukatsar, Punjab.

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2. Sh. Kikar Singh S/o Sh. Foja Singh R/o Village Khappianwali, District Mukatsar, Punjab.

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3. Sh. Satnam Singh S/o Sh. Balvir Singh R/o Village Khappianwali, District Mukatsar, Punjab.

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…….Defendants

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Advocates:

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Argued by Sh. Y P Singla, 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

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under Section 19 of the Recovery of Debts Due to Banks and Financial

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2 OA NO.500/2023 UNION BANK OF INDIA VS JAGDISH SINGH AND OTHERS

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Institutions Act, 1993, against the defendants for recovery of Rs.28,73,595.45p (Rupees Twenty Eight Lacs Seventy Three Thousand Five Hundred Ninety Five and Paise Forty Five Only). The Original Application has been filed through Sh. Vinod Kumar, Assistant Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney, which is Annexure A14 to this OA. 2. The brief facts of the OA are that the defendant no.1 had approached the applicant for grant of KCC Limit of Rs.20.50 Lacs vide Application for agriculture credit dated 02.06.2015, which is Annexure A3 to this OA.

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The applicant sanctioned KCC Limit of Rs.20.50 Lacs vide Memorandum of Sanction & Credit Sanction intimation dated 16.06.2015, which are Annexures A4 & A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged their immovable properties i.e. land measuring 36K-13M situated at Village Birvainwali, Hadbast No.131, District Mukatsar, Punjab vide Declaration u/s 4(1) dated 27.05.2015, which is Annexure A2 to this OA. Documents executed:- Declaration Affidavit dated 25.05.2015, which is Annexure A1 to this OA; Hypothecation Agreement, Letter of undertaking, Mortgage Deed, Mortgage Deed-II and Deed Guarantee all dated 16.06.2015, which are Annexures A6 to A10 to this OA; Balance Confirmation dated 05.11.2020, which is Annexure A11 to this OA; Account statement along with certificate under Banker’s Book of Evidence Act which are Annexures A12 & A13 to this OA and ID Proof, which is Annexure A15 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.28,73,595.45p, 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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3 OA NO.500/2023 UNION BANK OF INDIA VS JAGDISH SINGH AND OTHERS

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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 21.04.2025.

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In support of the OA, affidavit of Sh. Vinod 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 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 A15 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 bank. 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.28,73,595.45p (Rupees Twenty Eight Lacs Seventy Three Thousand Five Hundred Ninety Five and Paise Forty Five 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 @11.25%p.a. with half yearly rests from 29.12.2022 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

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4 OA NO.500/2023 UNION BANK OF INDIA VS JAGDISH SINGH AND OTHERS

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.28,73,595.45p (Rupees Twenty Eight Lacs Seventy Three Thousand Five Hundred Ninety Five and Paise Forty 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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 27.05.2025 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: 09.05.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Jagdish Singh and Others

Case brief

What is this about?

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Union Bank of India v. Sh. Jagdish Singh and Others

Case brief

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