UNION BANK OF INDIA vs M/S S.S. VENTURES AND OTHERS on 6 June 2025

FINAL ORDER

1. Present Transfer Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.24,40,321.59p (Rupees Twenty Four Lacs Forty Thousand Three Hundred Twenty One & Paise Fifty Nine Only). The Original Application has been filed through Sh. Kapil Goyal, Branch manager, of the applicant bank, who is competent to institute the Transfer Application vide General Power of Attorney dated 26.04.2023, which is Annexure A1 to this TA.

2. The brief facts of the OA that the defendant had approached the applicant bank for the grant of SOD Limit of Rs.15.00 Lacs vide Loan Application dated 18.05.2018, which is Annexure A2 to this TA.

3. The applicant Bank sanctioned the SOD Limit of Rs.15.00 Lacs vide Sanction Letter dated 15.06.2018, which is Annexure A3 to this TA and the terms and conditions were duly accepted by the defendant.

4. Defendant no.3 had mortgaged his immovable properties i.e. House no.80, First Floor, Kailash Enclave, Village Sadhemajra, Hadbast No.12, Derabassi, SAS Nagar(Mohali) Punjab-140507 vide Equitable Mortgage of Sale Deed bearing vasika no.4983 dated 06.03.2017 with its translation, which are Annexures A10 and A10A to this TA Documents executed:-Copy of demand Promissory note, Copy for consent for disclosure, Copy of Composite agreement, Copy of guarantee agreement, Copy of letter of consent, Copy of Undertaking Letter all dated 05.06.2018, which are Annexures A4 to A9 to this TA; Copy of title search report cum legal opinion by the penal advocate dated 16.05.2018,which is Annexure A11 to this TA; Copy of valuation report by the penal dated 23.05.2018, which is Annexure A12 to this OA; Copy of equitable mortgaged by way of memorandum of record of deposit dated 06.06.2018, which is Annexure A13 to this OA; Copy of the CERSAI dated 20.04.2019, which is Annexure A14 to this TA; Copy of the supplementary valuation report by the penal valuer for the aforesaid property dated 20.05.2022 & 01.07.2024, which are Annexures A15 & A16 to this TA; Copy of letter to borrower for submission of renewal documents dated 21.07.2020 along with postal receipts, which is Annexure A17 to this TA; Copy of the aforesaid recall notice dated 10.19.2020, which is Annexure A18 to this TA; Copy of the demand notice dated 20.04.2021, which is Annexure A19 to this TA and Statement of accounts, which is Annexure A20 to this TA.

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.24,40,321.59p which is recoverable and the defendant were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank 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 04.06.2025.

7. In support of the TA, affidavit of Sh. Kapil Goyal, Branch manager, at Union Bank of India, has been filed.

8. Heard arguments and perused record

9. 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 A20 to this TA, 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 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.24,40,321.59p (Rupees Twenty Four Lacs Forty Thousand Three Hundred Twenty One & Paise Fifty Nine Only) along with interest from the defendant, from the date of filing of the present Transfer 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 @10.85%p.a. rests from 01.08.2024 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 @08.00%p.a. in the loan account from the date of filing of the TA 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.24,40,321.59p (Rupees Twenty Four Lacs Forty Thousand Three Hundred Twenty One & Paise Fifty Nine Only) with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of TA 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 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 30.06.2025.

15. Copy of this order be given Dasti to the applicant bank 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: 06.06.2025.

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