Debts Recovery Tribunal allowed an original application by State Bank of India to recover Rs. 33,56,604/- along with interest from borrowers and guarantor who defaulted on a secured housing loan.
Recovery of Rs.33,56,604/- with simple interest at 8% p.a. from 30.01.2023 and issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO. 213/2023
DATE OF INSTITUTION: 30.01.2023
DATE OF DECISION: 12th DAY OF OCTOBER, 2023
State Bank of India , a body corporate constituted under State Bank of India Act, 1955 (Act No.23 of 1955), having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Offices at Sector 5, Panchkula, Haryana, having its Branch at Mini Secretariat, Kurukshetra Branch, District Kurukshetra, Haryana, through its Branch Manager, Anu Suneja
…..Applicant Bank
Versus
Argued by: Sh. Divjot Singh Rekhi, Nodal Officer for the applicant bank 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
OA/213/2023 STATE BANK OF INDIA Vs RAJ KUMAR AND ANOTHER 2
Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.33,56,604/(Rupees Thirty Three Lac Fifty Six Thousand Six Hundred
Four Only) . It has been filed through Anu Suneja, Branch Manager of the applicant bank stated to be competent to institute the Original Application vide Gazette Notification dated 02.05.1987, AnnexureA1 (copy).
The documents relating to the mortgage are as under:
OA/213/2023 STATE BANK OF INDIA Vs RAJ KUMAR AND ANOTHER 3
ii. Letter dated 05.06.2009 by mortgagor to the bank evidencing deposit of title deed along with previous title deeds, Annexure-A8 (colly) (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.33,56,604/- (Rupees Thirty Three Lac Fifty Six Thousand Six Hundred Four Only) is recoverable against the defendants as per statement of account, certified under Bankers’ Books Evidence Act, 1891, Annexure-A12 (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/213/2023 STATE BANK OF INDIA Vs RAJ KUMAR AND ANOTHER 4
defendants, thus, the defendants were proceeded against ex-parte vide order dated 15.04.2023 .
Anu Suneja, Branch Manager of the applicant bank was filed.
OA/213/2023 STATE BANK OF INDIA Vs RAJ KUMAR AND ANOTHER 5
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. housing, 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 @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/213/2023 STATE BANK OF INDIA Vs RAJ KUMAR AND ANOTHER 6
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
1 issue framed by the court
Whether the Defendant's failure to repay the housing loan entitles the Applicant Bank to recover the principal amount under Section 19(1) of the RD & B Act.
2 provisions across 2 enactments
State Bank of India
Raj Kumar
Rattan Singh
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
M.M. Dhonchak
Parties & counsel
