Debts Recovery Tribunal allowed the bank's recovery application againstproprietor and nominee of a defaulting borrower. The tribunal ordered recovery of the principal amount with reduced uniform interest at 7% per annum.
Recovery of Rs. 25,88,869/- with simple interest at 7% per annum w.e.f. 20.08.2022.
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.1558/2022
DATE OF INSTITUTION: 20.08.2022
DATE OF DECISION: 20th DAY OF DECEMBER, 2023
State Bank of India , a body corporate, constituted under the State Bank of India Act, 1955, having its Corporate Centre at Madam Cama Road, Nariman Point, Mumbai, one of its local Head Offices at Delhi and one of its Branches at Mini Secretariat, Sonepat, called as Bal Bhawan Branch, through its Branch Manager and Principal Officer, Sh. Lalit Kumar Verma
…..Applicant
Versus
…..Defendants
Argued by: Sh. Beer Singh Pathania proxy counsel for Ms Neeta Pathania, Advocate for the applicant bank Defendants ex parte vide order dated 16.08.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy
Act, 1993 (hereinafter referred to as ‘the Act’ for brevity),
against the defendants for recovery of Rs. 25,88,869/- (Rupees
OA/1558/2022 STATE BANK OF INDIA Vs M/S SHREE SHYAM ENTERPRISES AND ANOTHER 2
Twenty Five Lac Eighty Eight Thousand Eight Hundred and Sixty Nine Only). It has been filed through Sh. Lalit Kumar Verma, Branch Manager and Principal Officer of the applicant bank stated to be competent to institute the Original Application.
OA/1558/2022 STATE BANK OF INDIA Vs M/S SHREE SHYAM ENTERPRISES AND ANOTHER 3
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.25,88,869/(Rupees Twenty Five Lac Eighty Eight Thousand Eight Hundred and Sixty Nine Only), is recoverable against the defendants as per statements of accounts, certified under Bankers’ Books Evidence Act, 1891, Annexures-A12 and A13 (copy) and calculation sheet, Annexure-A16 (copy).
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/1558/2022 STATE BANK OF INDIA Vs M/S SHREE SHYAM ENTERPRISES AND ANOTHER 4
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
OA/1558/2022 STATE BANK OF INDIA Vs M/S SHREE SHYAM ENTERPRISES AND ANOTHER 5
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, this Tribunal deems it just and appropriate to grant uniform simple interest @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
Eight Thousand Eight Hundred and Sixty Nine Only) with current and future simple interest @7% per annum w.e.f. 20.08.2022 , 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 mortgaged/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. However, the applicant bank is at liberty to enforce the claim through due process of law.
OA/1558/2022 STATE BANK OF INDIA Vs M/S SHREE SHYAM ENTERPRISES AND ANOTHER 6
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the defendant is liable to repay the outstanding loan amount to the bank.
What rate of interest is appropriate for recovery pending realisation.
1 provisions across 1 enactments
State Bank of India
M/s Shree Shyam Enterprises
Smt. Sonu w/o Sh. Dinesh Kumar
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
