The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of an outstanding agricultural loan, granting recovery against the defendant's mortgaged and personal assets while capping future interest at 8% per annum.
Recovery Certificate issued for Rs.29,85,048 with 8% annual interest from filing date on mortgaged and personal assets.
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. 1888/2022
DATE OF INSTITUTION: 06.10.2022
DATE OF DECISION: 19th DAY OF SEPTEMBER, 2023
State Bank of India , a body corporate constituted under the State Bank of India Act, 1955, having its corporate office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Offices at Sector 17-A, Chandigarh, having Branches all over India and one of its Branches at Ranwar, Tehsil and District Karnal, through its Branch Manager and Principal Officer, Sh. Dharuva Chand Kumar
…..Applicant Bank
Versus
Sh. Rajesh Lather s/o Sh. Ishwar Singh r/o Village and Post Office Phoosgarh, Block 1, Tehsil and District Karnal, Haryana
....Defendant
Argued by: Sh. Divjot Singh Rekhi, Nodal Officer for the applicant bank
Defendant ex parte vide order dated 20.05.2023
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.29,85,048/(Rupees Twenty Nine Lac Eighty Five Thousand and Forty Eight Only) . It has been filed through Sh. Dharuva Chand Kumar, Branch Manager and Principal Officer of the
OA/1888/2022 STATE BANK OF INDIA VS RAJESH LATHER 2
applicant bank stated to be competent to institute the Original Application.
The documents related to mortgage are as under:
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It is further the case of the applicant bank that after adjusting debit and credit entries in loan account, a sum of Rs.29,85,048/(Rupees Twenty Nine Lac Eighty Five Thousand and Forty Eight Only), is recoverable against defendants as per statements of accounts dated 03.10.2022, certified under Bankers’ Book Evidence Act, 1891, Annexures-A14 and A15 (copy).
Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
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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
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facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan 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 order. It is ordered accordingly.
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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 recovery of the outstanding loan amount from the defendant under Section 19(1) of the RDBFI Act.
What rate of interest should be granted for future claims on the outstanding amount.
Whether the recovery can be enforced against the mortgaged and personal assets of the defendant.
1 provisions across 1 enactments
State Bank of India
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
