Allowed

Canara Bank v. Sh. Vajinder Singh

DRT3 Jan 2025OA/853/2023

Case brief

AI extract

What is this about?

The Deputy President allowed the applicant's original application for recovery of a NPA loan. The court convicted the defendant of liability for Rs. 59,50,478.00 and ordered issuance of a Recovery Certificate, reducing the claimed interest rate from 11% to 8% per annum.

What did the court decide?

Decree for payment of Rs. 59,50,478.00 with simple interest at 8% p.a. Recovery Certificate issued.

Canara Bank versus Sh. Vajinder Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.853/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.07.2023

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DATE OF DECISION: 03.01.2025

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Canara Bank, having its Head Office at 112, J. C. Road, Bangalore, and having branches all over India and one of its branches amongst other places at Kapurthala Main Branch, The Mall Road, Kaputhala, District Kapurthala (Punjab)-144601, through its Branch Manager/General Attorney holder Sh. Charanjit Ram.

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……..Applicant Versus

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Sh. Vajinder Singh S/o Sh. Pritam Singh, resident of Village Mitha, PO Khera Dona District Kaputhala (Punjab)-144601.

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….……Defendants

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Advocates: Present Sh. Anup Prajapati, Advocate proxy for Sh. Nitin Grover, Advocate for Applicant 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.59,50,478.00 (Rupees Fifty Nine Lac Fifty Thousand Four Hundred Seventy Eight Only). The Original Application has been filed through Sh. Charanjit Ram, Branch Manager o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 20.09.2006, 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 Limit of Rs.29.00 Lacs vide Loan Application dated 23.06.2009, which is Annexure A2 to this OA and further from time to time defendant approached the applicant for its

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several renewals vide request letters dated 14.07.2012, 17.05.2015 and 27.12.2018, which are Annexures A6, A11 & A15 to this OA.

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The applicant sanctioned the KCC Limit of Rs.29.00 vide Sanction Letter dated 24.06.2022, which is Annexure A3 to this OA and further from time to time applicant sanctioned its several renewals vide Renewal Sanction Letters and Letters of Renewal dated 14.07.2012 17.05.2015 and 27.12.2018 which Annexures A7, A8, A12, A13, A16 & A17 to this OA 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 71 Kanal 07 Marla situated at Village Mitha, Tehsil and District Kapurthala, Punjab vide Registered Mortgage Deed bearing vasika no.1944 dated 28.07.2009 along with its translation which is Annexure A4 to this OA.

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Documents executed:- Agreement and Deed of Hypothecation for Kisan Credit Card dated 16.07.2009 which is Annexure A5 to this OA; Acknowledgement of Debt and Security dated 14.04.2012 and 30.07.2014 which are Annexures A9 & A10 to this OA; Acknowledgement of Debt and Security dated 21.12.2016 which is Annexure A14 to this OA; Supplemental Agreement dated 27.12.2018 which is Annexure A18 to this OA; Link Letter to SDM dated 27.12.2018 which is Annexure A19 to this OA; Acknowledgement of Debt and Security dated 01.02.2019 & 23.11.2021 which are Annexures A20 & A21 to this OA; Legal Notice dated 12.06.2023 which is Annexure A22 to this OA and Statement of Account with certificate, which is Annexure A23 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.59,50,478.00, which is recoverable and the defendant 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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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 05.06.2024. 7. In support of the OA, affidavit of Sh. Charanjit Ram, Branch Manager, Canara Bank h as been filed. 8. Learned proxy counsel present has not advanced any arguments. Perused record 9. 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 A23 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.59,50,478.00 (Rupees Fifty Nine Lac Fifty Thousand Four Hundred Seventy Eight 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 @11.00%p.a. with half yearly rests from 03.07.2023 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 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

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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.59,50,478.00 (Rupees Fifty Nine Lac Fifty Thousand Four Hundred Seventy Eight 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 05.02.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 03.01.2025.

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

Canara Bank v. Sh. Vajinder Singh

Case brief

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Canara Bank v. Sh. Vajinder Singh

Case brief

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