Partly allowed

Punjab National Bank v. M/S Shri Joyti Education And Management Trust World

DRAT1 Sept 2023REGULAR APPEAL/16/2021

Case brief

AI extract

What is this about?

In this recovery appeal against a Debts Recovery Tribunal order, the DRAT accepted the respondents' submission that their regular payments warranted a reduction of interest. The tribunal partilly allowed the appeal, directing the respondents to pay the decretal amount plus interest at 9% simple instead of 10% from the original date of NPA, and allowing adjustment of post-decree deposits.

What did the court decide?

Respondents liable to pay Rs.54,90,413/- plus interest at 9% simple from 05.02.2018; accrued interest on deposited amount of Rs.1.86 lakhs treated as interest.

Punjab National Bank versus M/S Shri Joyti Education And… — Banking and Recovery | DRAT (2023)

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IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA

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Appl. No. 16 of 2021

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THE HON’BLE JUSTICE SHRI ANIL KUMAR SRIVASTAVA, CHAIRPERSON

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01.09.2023

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Punjab National Bank having head office at 7, Bhikaji Cama Place, New Delhi – 110066 and carrying on business at Dhenkanal Branch, Karigara Sahi, Main Road, PO Dhenkanal, Dist. Dhenkanal – 759013.

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… Appellant Vs.

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1. M/s. Shree Jyoti Education & Management Trust World, represented by Chairman & Managing Trustee, Shri Tara Prasad Satapathy, having office at Golden Park, PO & Dist. Dhenkanal – 759001.

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1. Sri Tara Prasad Satapathy, residing at Golden Park, PO & Dist. Dhenkanal – 759001.

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1. Mrs. Sujata Pani, wife of Tara Prasad Satapathy, residing at Golden Park, PO & Dist. Dhenkanal – 759001.

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1. Sri Ramesh Chandra Dash, residing at Ratna Bazar, PO & Dist. Dhenkanal – 759001.

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1. Shri Shakti Prasad Satapathy residing at Golden Park, PO & Dist. Dhenkanal – 759001.

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….. Respondents

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For Appellant : Mr. Debasish Chakraborty, ld. Counsel. Ms. S. Pal, ld. Counsel. For Respondents : Mr. Nemani Srinivas, ld. Counsel.

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THE APPELLATE TRIBUNAL :

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Instant appeal has arisen against the judgement and order dated 05.02.2021 passed by learned DRT, Cuttack wherein following order was passed :

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“(i) Originally the O.A. is filed for recovery of Rs.75,56,682.00 along with interest calculated upto 05.05.2018.

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(ii) The applicant bank is entitled interest from 06.05.2018 till 05.02.2021 @ 10% P.A. simple.

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(iii) Interest on the amount of Rs.75,56,682.00 p.a. @ 10% p.a. – Rs.7,55,668.00.

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(iv) Interest per month – Rs.62,972.00 (Rs.7,55,668.00). (v) Interest for 32 months i.e. from 06.05.2018 to 05.02.2021 Rs.62,972.00 x 32 = Rs.20,15,104.00. Total amount payable by the defendants –

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(i) Amount claimed by the applicant bank – 75,56,680.00.

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(ii) Interest calculated @ 10% pa simple – Rs. 20,15,104.00

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(iii) Total amount to be paid - Rs.95,71,784.00 Less, paid by the defendants Rs.93,88,516.00 Balance amount to be paid By the defendants Rs. 1,83,268.00”

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Feeling aggrieved by the order appellant preferred this appeal. From the pleadings of the parties, it would appear that O.A. was filed by the bank for recovery of an amount of Rs.75,56,680.00 at the contractual rate of interest @ 12.9% with quarterly rest. It is further submitted that during the course of proceeding recovery amount was enhanced to Rs.9,39,163.00 which was paid by the defendants from the date of NPA till the date of judgement and order. It appears that erroneously learned DRT arrived at a finding that only Rs.1,83,268.00 was due from the defendant while recording the final judgement.

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As far as merit of the case is concerned there is no dispute on the issue that O.A. was correctly filed for recovery of the amount mentioned in the O.A. In the O.A. an amount of Rs.11,30,765.00 was shown as unapplied interest from 30.06.2017 to 05.05.2010 without giving any detail of calculation. Further, this amount was calculated by the bank at

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the accrued rate of interest between the parties. Hence, no interference is called for as far as this amount is concerned. An amount of Rs.57,90,500.00 is paid by the defendant from the date of NPA till the date of filing the O.A. As per defendant they are liable to make payment of Rs.32,86,236.00 till the date of judgement. However, it is submitted by the learned counsel for the respondent that pendente lite and future interest as awarded by the learned DRT is 10% simple which may be reduced to 05 per cent as the respondents are regularly make payment.

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Amount of Rs.64,25,915.00 was principal amount. Interest claimed is Rs.11,30,765.00. Total Rs.75,56,680.00 pending during proceeding before learned DRT. After impugned judgement an amount of Rs.34,70,236.00 was deposited by the respondents. Accordingly, amount of Rs.40,86,444/- remains due and respondents are liable to pay the amount.

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As far as pendente lite and future interest is concerned since the defendants are regularly making payment, it would be in the interest of justice that interest awarded by the learned DRT is required to be reduced at the rate of 09 per cent simple on an amount of Rs.40,86,444/-. Accordingly, impugned order is liable to be modified to the above extent.

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Learned counsel for the respondents submits that an amount of Rs.1.84 lakhs was deposited by the respondents after passing of the impugned decree wherein bank has earned interest, same may be adjusted towards interest during the period from

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05.02.2021 till today. Learned counsel for the bank opposes the prayer and submits that this amount was deposited in compliance of the impugned decree, but the respondents are liable for making deposit of pendente lite and future interest in accordance with law. Admittedly, an amount of Rs.1.84 lakhs was deposited by the respondents pursuant to the impugned decree dated 05.02.2021. This amount remains with the bank in which they earned accrued interest. Accordingly, it would be in the interest of justice the accrued interest earned on the amount of Rs.1.86 lakhs be treated as interest towards the period from 05.02.2021 till today.

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O R D E R

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Appeal is partly allowed. Respondents are liable to make payment of Rs.54,90,413/- within 30 days from the date of judgement failing which they are liable to make payment on pendente lite and future interest @ 9% simple on the amount of decree from 05.02.2018 till the date of realization.

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File be consigned to record room.

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Copy of the order be supplied to the appellant and the respondents and a copy be also forwarded to the concerned DRT. Copy of the judgement/Final Order be uploaded in the Tribunal’s website.

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Order dictated, signed and pronounced by me in the open Court on this the 1st day of September, 2023.

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(Anil Kumar Srivastava, J) Chairperson

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Dated : 01.09.2023 18 /pkb

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Punjab National Bank v. M/S Shri Joyti Education And Management Trust World

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Shri Joyti Education And Management Trust World

Case brief

What is this about?

What did the court decide?

What the court decided

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