The Debt Recovery Tribunal granted an order allowing the Applicant Recovery of the outstanding loan amount. The court adjusted the interest rate to 8% per annum and authorized recovery via property sale under the SARFAESI Act.
Recovery of Rs. 41,54,031.37 with interest at 8% per annum; Recovery Certificate issued; liberty to enforce through asset sale.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.831/2024
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 02.07.2024
DATE OF DECISION: 10.03.2025
Union Bank of I ndia, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai and having a Branch Offices interalia at, Civil Lines, Collage Road, Ludhiana, through duly authorized person and attorney holder Sh. Kuljit Saluja, Branch Manager.
……..Applicant Versus
Both residents of House no.701, Sector-39, Focal Point Chandigarh Road, Ludhiana.
2nd Address: House no. 245, Street no. 4.1/2, Janta Nagar Colony, Basti Jodhewal, G.T. Road, Ludhiana.
….……Defendants
Advocates:
Argued by Sh. Amod Kumar Thakur, Advocate proxy for Sh. R.K. Chauhan, Advocate for the Applicant Defendants are ex parte
FINAL ORDER
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Documents executed:- I.D. Proof’s of Defendants in file 3, which are Annexures A3 to A4 to this OA; Process-cum-sanction dated 01.09.2014, which is Annexure A5 to this OA; Demand promissory note of Rs. 12 lacs, Housing loan agreement, Agreement on rate interest Letter of undertaking , Letter of Guarantor and Letter of Undertaking from Guarantor all dated 02.09.2014, which are Annexures A7 to A12 to this OA; Jamabandi of the year 2010-2011 along with its Translation dated 09.09.2019, which is Annexure A15 to this OA; Process cum sanction advice dated 21.09.2019 which is Annexure A17 to this OA; Demand promissory Note, letter of Continuity, general term loan agreement, interest agreement, AD-02A, Letter of Undertaking/Declaration, Letter of Undertaking from the borrower, consent for take over penalty, Letter of Confirmation, Memorandum of Entry for extension of mortgage, Application for disbursement of loan and Debit balance confirmation letter all dated
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27.09.2019 which are Annexures A19 to A27, A29, A31 & A34 to this OA; Declaration regarding extension of mortgage dated 26.09.2019, which is Annexure A28 to this OA; Valuation report by 3D studio dated 09.09.2019, which is Annexure A30 to this OA; Application for disbursement of loan dated 30.09.2019, which is Annexure A32 to this OA; Debit balance confirmation letter dated 01.09.2017, which is Annexure A33 to this OA; compromise debit Balance confirmation letter dated 01.09.2022, which is Annexure A35 to this OA; Recall notice dated 20.06.2024, which is Annexure A36 to this OA; Statement of account in Housing Loan Account, Certificates U/s 65-B of Indian Evidence act pertaining to housing Loan Account and Statement of account in term of Loan Account all dated 19.06.2024, which are Annexure A37 to A40 to this OA;
Annexure A1 to A40 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were
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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 loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.41,54,031.37p (Rupees Forty One Lacs Fifty four Thousand Thirty One And Paise Thirty Seven Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.
The Tribunal is of the considered opinion that sometimes inappropriate 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 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 both the loan accounts 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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amount. Accordingly, the applicant bank 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 bank 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.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the evidence sufficiently establishes the quantum and interest rate for recovery of dues?
Whether the Applicant is entitled to issue a Recovery Certificate and enforce the claim through property sale?
3 provisions across 2 enactments
Union Bank of India
Sh. Jagroop Singh
Ms. Baljinder Kaur
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
