CANARA BANK vs M/S BIMALS LADIES COLLECTION AND ANOTHER on 22 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.35,16,660.00 (Rupees Thirty Five Lacs Sixteen Thousand Six Hundred Sixty Only). The Transfer Application has been filed through Sh. Anil Angurana, Manager of the applicant, who is competent to institute the Transfer Application vide Authority Letter dated 18.01.2023, which is Annexure A1 to this TA.

2. The brief facts of the TA are that the defendant no.2 had approached the applicant for grant of Housing Loan of Rs.12.80 Lacs for repair and renovation of house and further defendant no.1 through its proprietor i.e. defendant no.2 approached the applicant bank for grant of CC Limit of Rs. 10.50 Lacs. Thereafter, defendant no.1 approached the applicant for its enhancement to Rs.12.50. Later, defendant no.2 had approached the applicant for time to time grant of various credit facilities i.e. Term Loan of Rs.3.00 Lacs and Rs.1.00 Lacs & Rs.2.04 Lacs vide Loan applications dated 27.11.2018, which are Annexures A6 & A10 to this TA.

3. The applicant bank sanctioned the Housing Loan of Rs.12.80 Lacs for repair and renovation of house vide Sanction Letter dated 28.09.2017, which is Annexure A2 to this TA and further applicant sanctioned CC limit to defendant no.1 of Rs.10.50 Lacs. Thereafter, the applicant bank again sanctioned of CC Limit enhancement to Rs.12.50 Lacs vide Sanction Letter dated 06.11.2020, which is Annexure A20 to this TA. Later applicant from time to time sanctioned of various credit facilities i.e. Term Loan of Rs.3.00 Lacs and Rs.1.00 Lacs & Rs.2.04 Lacs. Thereafter, the applicant bank sanctioned the (GECL) of Term Loan of Rs.1.80 Lacs vide Sanction Letter dated 02.11.2021, which is Annexure A25 to this TA and the terms and conditions were duly accepted by the defendants.

4. Defendant No.1 & 2 had mortgaged their immovable properties i.e. total land measuring 10M situated in Village Nadali, H.B. No.11, Tehsil Bholath, District Kapurthala (Punjab) vide Equitable Mortgage of Sale Deeds bearing vasika no.368 & 369 dated 24.05.2016 along with their translations, which is Annexure A5 to this TA. Documents executed:-Housing Loan Agreement dated 03.10.2017, which is Annexure A3 to this TA; Letter Evidencing deposit of title deeds dated 29.09.2017, which is Annexure A4 to this TA; Term Loan Agreement, Housing Loan Agreement & Draft to ledtd to be used where additional limit is granted all dated 27.11.2018, which are Annexures A7 to A9 to this TA; Take delivery letter to DPN, Pronote

& Undertaking Letter all dated 15.05.2020, which are Annexure A11 & A13 to this TA; Agreement cum deed of hypothecation, Letter of undertakings regarding loan advances, Letter of Proprietorship, Offer letter for GECL & Undertaking letter from borrower all dated 03.06.2020, which are Annexures A15 to A19 to this TA; Supplemental Agreement, Pronote & Link letter to be obtained when enhancement is considered all dated 06.11.2020, which are Annexure A21, A23 & A24 to this TA; Letter of Renewal, which is Annexure A22 to this TA; Agreement cum deed of hypothecation, letter of undertakings regarding loan advances, Pronote, Take delivery letter to DPN & Undertaking letter from Borrower all dated 02.11.2021, which are Annexures A26 to A30 to this TA; Balance Confirmation Letters dated 24.06.2020, 01.07.2020 & 14.10.2021, which is Annexure A31 to this TA; Notice along with postal receipts dated 03.10.2022, which is Annexure A32 to this TA and Statement of Account along with Certificate of Evidence of Banker Book Act, which is Annexure A33 to this TA.

5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.35,16,660.00, 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 18.10.2024.

7. In support of the TA, affidavit of Sh. Anil Angurana, Manager, Canara Bank has been filed.

8. Heard arguments and perused record.

9. It was argued by learned proxy 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 A33 to this TA, it is proved that the defendants approached applicant for availing of the loans facilities 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 loans 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 is entitled to recover a sum of Rs.35,16,660.00 (Rupees Thirty Five Lacs Sixteen Thousand Six Hundred Sixty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Transfer Application till realization of the accounts.

10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.75%p.a. in Housing Loan, interest @11.75%p.a. in Top Up Housing Loans and interest @9.40%p.a. in GECL account from 24.01.2023 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 defendants, quantum of loans 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 @07.75%p.a. in all 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.35,16,660.00 (Rupees Thirty Five Lacs Sixteen Thousand Six

Hundred Sixty Only) jointly and severally, with costs, current and future simple interest @07.75%p.a. in all the loan accounts 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 02.11.2024.

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: 22.10.2024

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