Debts Recovery Tribunal allowed an original application filed by Punjab National Bank for recovery of Rs.25,31,391.09 owed by four respondents. The court ruled ex parte, fixed interest at 8% per annum, and issued a recovery certificate.
Order to repay Rs.25,31,391.09 with 8% simple interest w.e.f. filing date; issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.1657/2022
DATE OF INSTITUTION: 04.08.2022
DATE OF DECISION: 19th DAY OF MAY, 2023
Punjab National Bank, a body corporate and Nationalised Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertaking) Act 5 of 1970, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and amongst others a Branch at Simla, District Kaithal, through Sh. Malkeet Singh Soday, Officer and Attorney holder of the applicant Bank
…..Applicant Bank
Versus
Argued by: Sh. Manish Singla counsel for the applicant bank Defendants ex parte vide order dated 02.02.2023
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.25,31,391.09
(Rupees Twenty Five lacs Thirty One Thousand Three Hundred Ninety One and Nine Paisa only) . The OA has been filed through Sh. Malkeet Singh Soday, Officer of the applicant bank, stated to be
competent to institute the Original Application vide Power of Attorney dated 18.02.2006, Annexure-A1 (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.25,31,391.09 (Rupees Twenty Five lacs Thirty One Thousand Three Hundred Ninety One and Nine Paisa only) is recoverable against the defendants as per statement of account dated 13.07.2022, Annexure-A15 (copy), certified under Bankers’ Book 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.
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 properties, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture 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 @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this final order. It is ordered accordingly.
Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount of Rs.25,31,391.09 from the defendants ex parte.
Whether the Tribunal has the discretion to fix the rate of interest on the recoverable amount.
1 provisions across 1 enactments
Punjab National Bank
Sh. Satyawan
Sh. Dilbag
Sh. Ramesh
Sh. Vikram
M.M. DHONCHAK
As recorded by the court registry
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