Allowed

Canara Bank v. Harjinder Singh and Another

DRT20 Jan 2025OA/623/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed original application filed by Canara Bank against two defendants for recovery of Rs. 1,82,21,714. Court pronounced recovery certificate and fixed interest at 8% p.a.

What did the court decide?

Recovery of Rs. 1,82,21,714.00 jointly and severally with simple interest @ 8% p.a. Recovery Certificate issued. Proceeds from sale of mortgaged or personal assets to discharge dues.

Canara Bank versus Harjinder Singh and Another — Cheque Dishonour | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.623/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.02.2022

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DATE OF DECISION: 20.01.2025

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Canara Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970 as amended by the Banking Laws (amendment) Act, 1985 having its Head Office at 112, J.C. Road, Bangalore and amongst other branches, one at The Mall Road, Main Branch Kapurthala through its Manager, Sh. Sandeep Kumar Gupta.

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……..Applicant

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Versus

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Sh. Harjinder Singh S/o Sh. Sher Singh, R/o Village Nathu Chahal, Tehsil & District Kapurthala

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Sh. Sher Singh S/o Sh. Gurmukh Singh, R/o Village Nathu Chahal, Tehsil & District Kapurthala.

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….……Defendants

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Advocates:

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Argued by Sh. Nand Ram Purohit, Advocate proxy for Sh. Sanjeev 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.1,82,21,714.00 (Rupees One Crore Eighty Two Lacs Twenty One Thousand Seven Hundred Fourteen only). The Original Application has been filed through Sh. Sandeep Kumar Gupta, Manager, who is competent to institute the Original Application vide Power of Attorney dated 04.03.2017, 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 KCC Limit of Rs.45.00 Lacs vide Loan Application dated 06.06.2011, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.45.00 Lacs vide Sanction Letter dated 28.06.2011, which is Annexures A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 49K-04M detailed as a. land measuring 5K-06M situated at Village Passan, Tehsil & District, Kapurthala b. l and measuring 43K-18M situated at Village Rasulpur Kulian, Tehsil & District, Kapurthala vide Registered Mortgaged Deed bearing vasika No. 965 dated 08.06.2011 along with Farad Jamabandi for the year 2013-2014, which are Annexures A3 & A4 to this OA. Documents executed:- Copy of Agreement & Deed of Hypothecation, Copy of Link Letter and Copy of Letter of Attestation all dated 28.06.2011, which are Annexures A6 to A8 to this OA; Copies of Acknowledgments dated 05.06.2014, 21.06.2016 and 11.02.2019, which are Annexures A9 to A11 to this OA; Copy of Notice dated 30.05.2013, which is Annexure A12 to this OA; Copy of Legal Notices dated 24.04.2014 and 22.01.2022, which are Annexures A13 & A14 to this OA and Copy of statement of account dated 18.01.2022, 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.1,82,21,714.00, 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 25.06.2024. 7. In support of the OA, affidavit of Sh. Sandeep Kumar Gupta, Manager , Canara Bank, has been filed. 8. Heard arguments and perused record.

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It was argued by learned proxy 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 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.1,82,21,714.00 (Rupees One Crore Eighty Two Lacs Twenty One Thousand Seven Hundred Fourteen 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 @14.50%p.a. along with penal interest @2.00%p.a. from 01.10.2021 till the realization. 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,82,21,714.00 (Rupees One Crore Eighty Two Lacs Twenty One Thousand Seven Hundred Fourteen 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.

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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 01.03.2025. 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: 20.01.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Canara Bank v. Harjinder Singh and Another

Case brief

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Canara Bank v. Harjinder Singh and Another

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