Allowed

Canara Bank v. Resham Singh

DRT2 Jan 2025OA/804/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of Rs. 23.69 million against the defendant. The court recognized the loan default, unchallenged evidence, and mortgaged assets, ordering recovery with a reduced simple interest rate of 8% per annum.

What did the court decide?

Defendant liable to pay Rs. 23,69,776 plus costs and simple interest at 8% p.a. from filing date; Recovery Certificate issued.

Canara Bank versus Resham Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.804/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.06.2023

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DATE OF DECISION: 02.01.2025 Canara Bank, A body Corporate Constituted Under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at J.C. Road, Bangalore, and inter-alia, Branch Office at Mukandpur, Tehsil Banga, District SBS Nagar (Nawanshahr), Punjab through its attorney and principal officer, Sh. Aakash Sharma, Officer. ……..Applicant Versus

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Sh. Resham Singh S/o Sh. Udham Singh, r/o Village Sadhpur, TehsiBanga, District SBS Nagar (Nawanshahr), Punjab.

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….……Defendant

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Advocates:

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Argued by Sh. Kanwar Ashok Kumar Davesar, Advocate for applicant (through VC) Defendants is 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 defendant for recovery of Rs.23,69,776.00 (Rupees Twenty Three Lac Sixty Nine Thousand Seven Hundred Seventy Six Only). The Original Application has been filed through Sh. Aakash Sharma, Officer, o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 04.02.2019, which is Annexure A1 to this OA. 2. The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Loan of Rs.4.50 Lacs vide Loan Application dated 28.08.2008, which is Annexure A2 to this OA. Further, from time to time defendant approached the applicant for renewal and enhancement of KCC Limit upto Rs.18.50 Lacs vide Loan

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Application dated 02.03.2012, 08.12.2014 and 12.06.2016 which are Annexures A10 & A17 to this OA.

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The applicant sanctioned the KCC Loan of Rs.4.50 Lacs vide Sanction Letter dated 28.08.2008, which is Annexure A3 to this OA and further from time to time applicant renewed and enhanced the KCC Limit upto Rs.18.50 Lacs vide sanction letters dated 02.03.2012, 08.12.2014 & 01.07.2016 which are Annexures A8, A11 & A18 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. total land measuring 14 Kanal 18 Marla 3 Sarsahies situated at Sadhpur, Hadbast No.70, Tehsil Banga, District SBS Nagar, Punjab vide Registered Mortgage Deed bearing vasika No. 1012 dated 25.08.2008 and Letter to Sub Registrar for creation of charge and Declaration U/s 4(1) bearing Sr. No.195/RC dated 16.12.2014 and Sr. No.171/RC dated 04.08.2016 and Jamabadi for the year 2010-11 and year 202021 which are Annexures A4, A5, A12, A13, A14, A19, A20 & A21 to this OA.

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Documents executed:- Agreement and Deed of Hypothecation for Kisan Credit Card dated 28.08.2008, which are Annexure A6 to this OA; Acknowledgement of Debt and Security dated 12.05.2011, which is Annexure A7 to this OA; Acknowledgement of Debt and Security dated 05.09.2013, which is Annexure A9 to this OA; Supplemental Agreement and Link Letter dated 19.12.2014, which is Annexure A15 to this OA; Acknowledgement of Debt and Security dated 17.11.2015, which is Annexure A16 to this OA; Non Encumbrance Certificate dated 13.06.2016, which is Annexure A22 to this OA; Supplemental Agreement, Letter of Renewal and Link Letter dated 22.08.2016, which is Annexure A23 to this OA; Acknowledgement of Debt and Security dated 22.08.2016, 09.08.2018 & 21.11.2020, which are Annexures A24 to A26 to this OA; Legal Notice with Postal Receipts 23.05.2023 which is Annexure A27 to this OA; and Statement of Account with certificate, which is Annexure A28 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.23,69,776.00, which is recoverable and the defendant 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.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 12.04.2024.

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In support of the OA, affidavit of Sh. Aakash Sharma, Officer, Canara Bank h as 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 record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A28 to this OA, it is proved that the defendant 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 applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,69,776.00 (Rupees Twenty Three Lac Sixty Nine Thousand Seven Hundred Seventy Six Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. 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 half yearly rests from 03.06.2023 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

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of the defendant, 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 defendant is liable to pay to the applicant a total sum of Rs.23,69,776.00 (Rupees Twenty Three Lac Sixty Nine Thousand Seven Hundred Seventy Six 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 defendant 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 defendant. 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 03.02.2025. 15. Copy of this order be given Dasti to the applicant and be sent to defendant 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: 02.01.2025

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

Canara Bank v. Resham Singh

Case brief

What is this about?

What did the court decide?

Canara Bank v. Resham Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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