Debts Recovery Tribunal allowed the applicant bank's application for recovery of Rs. 48.90 lakh plus interest against borrowers and guarantors who failed to repay sanctioned loans, granting interest at 9% per annum.
Recovery certificate issued for Rs. 48,90,345.27 plus simple interest at 9% per annum w.e.f. 25.01.2023.
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. 207/2023
DATE OF INSTITUTION: 25.01.2023
DATE OF DECISION: 9th DAY OF OCTOBER, 2023
Indian Overseas Bank , a Banking Company wholly owned by Government of India under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Central office at 763, Anna Salai, Chennai and a Branch at various places in India including a Branch at 1-C, 47-48, Market No.1, NIT Faridabad, Haryana, through its General Power of Attorney-cum-Branch Manager, Sh. Vikram Khera
…..Applicant Bank
Versus
Plot No.305, Sector-24, Faridabad (Haryana)-121001
IIIrd Address:
Plot No.357, Sector-24, Faridabad (Haryana)-121001
IInd Address:
Plot No.305, Sector-24, Faridabad (Haryana)-121001
IIIrd Address:
OA/207/2023 INDIAN OVERSEAS BANK VS M/S RATTAN SPIRIT PRIVATE LIMITED AND OTHERS 2
Plot No.357, Sector-24, Faridabad (Haryana)-121001
IVth Address:
House No.456, Sector-9, Faridabad (Haryana)-121006
Vth Address:
House No.115, Near Dauji Mandir, Prem Patli Banchari
(Haryana)-121106
IInd Address:
Plot No.305, Sector-24, Faridabad (Haryana)-121001
IIIrd Address:
Plot No.357, Sector-24, Faridabad (Haryana)-121001
IVth Address:
16, Mukhya Gram Peeprali, Gudamalani Barmer, Rajasthan344031
Vth Address:
95, Gudelya Dhara, Peeprali, Gudamalani Barmer, Rajasthan344031
VIth Address:
C-303, OSHO Palav Co-operative Housing Society, Kasturi Park, Navghar Bhayandar, East Thane, Maharashtra-401105
VIIth Address:
202, Rajput Palace, R.N.P. Park, Jesal Park Road Bhayandar, East
Thane, Maharashtra-401107
....Defendants
OA/207/2023 INDIAN OVERSEAS BANK VS M/S RATTAN SPIRIT PRIVATE LIMITED AND OTHERS 3
Argued by: Sh. Imran Azmi, Chief Manager for the applicant Bank (through VC) Defendants ex parte vide order dated 15.04.2023
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), a gainst the defendants for recovery of Rs.48,90,345.27/- (Rupees Forty Eight Lac Ninety Thousand Three Hundred Forty Five and Twenty Seven Paisa Only) . It has been filed through Sh. Vikram Khera, General Power of Attorney-cum-Branch Manager of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 31.03.2010, Annexure-A1 (copy).
OA/207/2023 INDIAN OVERSEAS BANK VS M/S RATTAN SPIRIT PRIVATE LIMITED AND OTHERS 4
Annexure-A6 (copy) and guarantee agreement dated 27.09.2019, Annexure-A7 (copy).
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of
Rs.48,90,345.27/- (Rupees Forty Eight Lac Ninety Thousand Three Hundred Forty Five and Twenty Seven Paisa Only) is recoverable against the defendants as per statements of accounts, duly certified under Bankers’ Books Evidence Act, 1891, AnnexureA10 (colly) (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/207/2023 INDIAN OVERSEAS BANK VS M/S RATTAN SPIRIT PRIVATE LIMITED AND OTHERS 5
defendants, thus, defendants were proceeded against ex parte vide order dated 15.04.2023.
OA/207/2023 INDIAN OVERSEAS BANK VS M/S RATTAN SPIRIT PRIVATE LIMITED AND OTHERS 6
(copy), the rate of interest has been mentioned @10.35% per annum for both the facilities.
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, purpose of loan, i.e. business, 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 @9% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/207/2023 INDIAN OVERSEAS BANK VS M/S RATTAN SPIRIT PRIVATE LIMITED AND OTHERS 7
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.
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 loan amount from the respondents.
Whether recovery interest should be fixed at 9% per annum from the date of filing of the application.
Whether the respondents are liable to pay the principal amount with future simple interest.
1 provisions across 1 enactments
Indian Overseas Bank
M/s Rattan Spirit Private Limited
Sh. Pawan Kumar
Sh. Prema Ram
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
