The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of Rs. 24,07,730 owed by the defendant on an agricultural loan, reducing the claimed interest rate to 8% per annum pending realization.
Recovery Certificate issued for principal amount with simple interest at 8% per annum from the date of filing.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO. 1193/2022
DATE OF INSTITUTION: 07.07.2022
DATE OF DECISION: 20th DAY OF SEPTEMBER, 2023
Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Offices at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and Branches, amongst others at Branch Office Titoli, Tehsil and District Rohtak (Haryana). Later on, the account has been maintained by Punjab National Bank, Circle Sastra Centre, Zila Vikash Bhawan, Near Canal Rest House, Rohtak (Haryana)-124001, through its Officer Sh. Vinod Kumar Dhingra, who is constituted Attorney and Principal Officer of the Applicant Bank
…..Applicant Bank
Versus
Sh. Rishi Dev s/o Sh. Sube Singh r/o Village and Post Office Titoli, Tehsil and District Rohtak (Haryana)
....Defendant
Argued by: Ms Arpita Sonkar, Manager Law for applicant bank Defendant ex parte vide order dated 17.04.2023
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 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of
Rs.24,07,730/- (Rupees Twenty Four Lac Seven Thousand Seven Hundred Thirty Only) . It has been filed through Sh. Vinod
OA/1193/2022 PUNJAB NATIONAL BANK VS RISHI DEV 2
Kumar Dhingra of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 28.01.2013, Annexure-A1 (copy).
OA/1193/2022 PUNJAB NATIONAL BANK VS RISHI DEV 3
Defendant executed balance and security confirmation letter dated 01.07.2019, Annexure-A8 (copy). The applicant bank recalled entire outstanding amount vide legal notice dated 30.05.2019, under Section 138 of the Negotiable Instruments Act, 1881 and legal notice dated along with postal receipt, Annexure-A7 (colly) (copy), but to no avail.
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.24,07,730/- (Rupees Twenty Four Lac Seven Thousand and Seven Hundred Thirty Only) is recoverable against the defendant as per statement of account duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A9 (copy).
Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/1193/2022 PUNJAB NATIONAL BANK VS RISHI DEV 4
brought on record, the applicant bank had proved its case against the defendant for recovery of the amount sought. From perusal of Annexures-A1 to A9 , it is clear that the defendant had approached the applicant bank for availing of the loan facility which was granted to him. It is further clear that the defendant had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendant 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.24,07,730/- (Rupees Twenty Four Lac Seven Thousand and Seven Hundred Thirty Only) from the defendant.
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, nature of mortgage property, purpose of loan, i.e. agricultural, present condition of economy based on agriculture, quantum of loan, prevalent market rates of interest, which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from
OA/1193/2022 PUNJAB NATIONAL BANK VS RISHI DEV 5
the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
3 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding debt along with interest.
Whether the rate of interest at 10.85% claimed by the applicant bank should be granted.
Whether a Recovery Certificate should be issued against the defendant.
1 provisions across 1 enactments
Punjab National Bank
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
