The Debt Recovery Tribunal allowed an application filed by Bank of India for recovery of Rs. 38,68,860.60 dues from borrowers. The court noted the non-appearance of respondents and adjusted the claimed interest rate to 9% per annum due to pandemic conditions.
Recovery of Rs. 38,68,860.60 with simple interest at 9% per annum from 20.01.2023.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-2,CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO. 110/2023
DATE OF INSTITUTION: 20.01.2023
DATE OF DECISION: 12th DAY OF JULY, 2023
Bank of India , a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970) having its Head Office at Star House, Plot No. C-5, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai-400051 and a Branch amongst other places known as Chandigarh Main Branch, SCO 81-82, Sector 17-B, Chandigarh-160017, through Sh. Akhilesh Kumar, its Authorised Officer
...Applicant Bank
Versus
…...Defendants
Argued by: Sh. Vikrant Singh, Law Officer for the applicant bank
Defendants ex parte vide order dated 04.03.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (herein after referred to as ‘the
OA/110/2023 BANK OF INDIA Vs M/S P TRAVELOSURE AND ANOTHER 2 Act’ for brevity) against the defendants for recovery of Rs.38,68,860.60/(Rupees Thirty Eight Lacs Sixty Eight Thousand Eight Hundred Sixty and Sixty Paisa Only) . It has been filed through Sh . Akhilesh Kumar, Authorised Officer of the applicant bank stated to be competent to institute the Original Application vide authority letter dated 21.05.2022, Annexure-A1 (copy).
OA/110/2023 BANK OF INDIA Vs M/S P TRAVELOSURE AND ANOTHER 3
CERSAI Asset ID based search report, Annexure-A13 (copy).
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.38,68,860.60/(Rupees Thirty Eight Lacs Sixty Eight Thousand Eight Hundred Sixty and Sixty Paisa Only) is recoverable against the defendants as per statement of account dated 26.10.2016, duly certified under Bankers’ Books Evidence Act, Annexure-A16 (copy).
OA/110/2023 BANK OF INDIA Vs M/S P TRAVELOSURE AND ANOTHER 4
amount sought. From perusal of Annexures-A1 to A16 , it is clear that defendants had approached the applicant bank for availing of the loan facility which was granted to them. It is further clear that the defendants had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.38,68,860.60/- (Rupees Thirty Eight Lacs Sixty Eight Thousand Eight Hundred Sixty and Sixty Paisa Only) from the defendants.
This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, purpose of loan, i.e. business, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant No. 2 being a female, while exercising the discretion vested in this Tribunal, deems it just and appropriate to grant uniform simple interest @9% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/110/2023 BANK OF INDIA Vs M/S P TRAVELOSURE AND ANOTHER 5 11. In the result, the Original Application is allowed with costs declaring that the defendants are liable to pay to the applicant bank a sum of Rs.38,68,860.60/- (Rupees Thirty Eight Lacs Sixty Eight Thousand Eight Hundred Sixty and Sixty Paisa Only) with current and future simple interest @9% per annum w.e.f. 20.01.2023, till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of hypothecated property of the defendants in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. The applicant bank is at liberty to enforce the claim through due process of law.
Announced in the open Tribunal
(M.M. Dhonchak) Presiding Officer
2 issues framed by the court
Whether the applicant bank was entitled to recover the outstanding loan amount from the defaulting borrowers under the Debt Recovery Tribunal Act.
Whether the Tribunal should modify the claimed interest rate from the sanctioned 11.40% to a lower rate considering prevailing market conditions.
3 provisions across 3 enactments
Bank of India
M/s P Travelosure
Smt. Joginder Kaur W/o Sh. Pala Singh
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
