CANARA BANK vs M/S V Sun Industries and Others on 18 October 2024

FINAL ORDER

1. Present Transfer 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.22,04,677.39p (Rupees Twenty Two Lacs Four Thousand Six Hundred Seventy Seven and Thirty Nine Paise Only). The Transfer

Application has been filed through Sh. Meenu Rani, Officer of the applicant, who is competent to institute the Transfer Application vide General Power of Attorney dated 20.03.2018, which is Annexure A1 to this TA.

2. The brief facts of the TA are that the defendants no. 1 & 2 had approached the applicant for the grant of SOD Limit of Rs.10.00 Lacs vide Loan application dated 17.10.2015, which is Annexure A3 to this TA. Defendants No.3 & 4 stood as guarantors.

3. The applicant sanctioned SOD Limit of Rs.10.00 Lacs vide Sanction Letter dated 17.10.2015 filed in compliance of the order dated 18.09.2024 vide diary no.16234 dated 14.10.2024 and the terms and conditions were duly accepted by the defendants.

4. Defendant no.4 had mortgaged her immovable property i.e. total land measuring 710 Sq yds situated at Tharaj Castings, Village Kanganwal, Hadbast No.45, Tehsil Sahnewal, PO Jugiara, District Ludhiana vide Equitable Mortgage of Title Deed bearing Vasikano.146 dated 10.02.2011, which is Annexure A7 to this TA. Documents executed:- Copy of Notification dated 04.03.2020, which is Annexure A2 to this TA; Composite Hypothecation Agreement, Copy of Demand Promissory note, Guarantee Agreement, Letter of Deposit of Title Deed all dated 19.10.2015, which are Annexures A4 to A6 & A8 to this TA; Copy of Notice 13(2) dated 26.02.2018 along with possession notice dated 02.05.2018 , which is Annexures A9 to this TA; Balance Confirmation Letter dated 25.09.2018, which is Annexure A10 to this TA and Statement of Account with certificate, which is Annexure A11 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.22,04,677.39p, 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 09.08.2024.

7. In support of the TA, affidavit of Sh. Meenu Rani, Officer, Canara Bank 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 A11 to this TA, it is proved that the defendants approached applicant for availing of the loan facility which were 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.22,04,677.39p (Rupees Twenty Two Lacs Four Thousand Six Hundred Seventy Seven And Thirty Nine Paise Only) along with interest from the defendants, jointly and severally, 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 @12.10%p.a. with monthly rests from 01.02.2021 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 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 accounts 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.22,04,677.39p (Rupees Twenty Two Lacs Four Thousand Six Hundred Seventy Seven And Thirty Nine Paise Only) jointly and severally, 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 29.10.2024.

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: 18.10.2024.

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