Debts Recovery Tribunal allowed the application filed by State Bank of India for recovery of Rs. 34,57,800/- plus interest @9% p.a. against borrowers who failed to repay an MSME loan secured by hypothecation and mortgage.
Issuance of Recovery Certificate for Rs. 34,57,800/- with interest @9% p.a. from 08.08.2022 till realization.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.1487/2022
DATE OF INSTITUTION: 08.08.2022
DATE OF DECISION: 19th DAY OF MAY, 2023
State Bank of India, a body corporate constituted under the State Bank of India, Act, 1955 (23 OF 1955) and the successor to State Bank of Patiala, under the Acquisition of State Bank of Patiala, Order No. G.S.R. 159 (E) dated 22.02.2017 passed by the Central Government under Section 35 of the State Bank of India, Act, 1955 (23 of 1955), having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai, one of its Local Head Offices at Sector-17A, Chandigarh, having Branches all over India, including one at Kalayat, District Kaithal, Haryana, through its Branch Manager and Principal Officer, Sh. Manoj Kumar Varun
…..Applicant Bank
Versus
…..Defendants
Argued by: Ms Sonia Gupta counsel for the applicant bank Defendants ex parte vide order dated 23.01.2023
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 defendants for recovery of
Rs.34,57,800/- (Rupees Thirty Four lacs Fifty Seven Thousand and Eight Hundred only) . The OA has been filed through Sh. Manoj Kumar Varun, Branch Manager of the applicant bank, stated to be competent to institute the Original Application.
Kaithal, Haryana, fully described in para No. 5 (viii) of the Original Application.
Documents related to mortgage are as under:
iii. Valuation Report dated 13.01.2021, Annexure-A9 (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.34,57,800/(Rupees Thirty Four lacs Fifty Seven Thousand and Eight Hundred only) is recoverable against the defendants as per
statement of account dated 12.07.2022, Annexure-A13 (copy), certified under Bankers’ Books Evidence Act.
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
(Rupees Thirty Four lacs Fifty Seven Thousand and Eight Hundred 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, nature of the mortgaged property, purpose of loan, i.e. business and 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 @9% per annum from the date of filing of the OA till realisation of the amount ordered vide this final order. It is ordered accordingly.
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, applicant bank shall be at liberty to recover the same by attachment and sale of personal assets/property 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 DRT-2, Chandigarh
1 issue framed by the court
Whether the applicant bank is entitled to recover the outstanding dues from the defaulting borrowers.
1 provisions across 1 enactments
State Bank of India
M/s Sadhi Trading Company
Sh. Rajesh Kumar
Sh. Gulab Singh
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
