Debts Recovery Tribunal allowed the bank's application for recovery of an NPA loan of Rs.25,21,403/- from co-borrowers and a guarantor who appeared ex-parte and reduced the claimed interest rate to 10% p.a.
Order for recovery of Rs.25,21,403/- with 10% simple interest; permission for execution via SARFAESI Act.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.2131/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 30.07.2022
DATE OF DECISION: 28.12.2023
IDBI Bank Limited, a company within the meaning of the Companies Act, 2013 and a banking Company within the meaning of Section 5(c) under the Banking Regulation Act 1949 having its registered office at IDBI Tower, WTC Complex, Cuffe Parade, Colaba, Mumbai and having one of its branch office at Triputi, 644, Opposite Gurudwara Kashmirian District Patiala (Punjab) through Sh. Alok Khanna posted as Branch Head/ Assistant General Manager and being an authorized signatory of the bank.
……..Applicant
Versus
………Defendants
Advocates:
Argued by Sh. Jiteshwar Malhi, counsel proxy for Sh. D.P. Garg, counsel for the applicant Defendants are ex-parte
FINAL ORDER
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through Sh. Alok Khanna, Assistant General Manager of the applicant bank, who is competent to institute the Original Application vide Delegation of Power, which is Annexure P/A to this OA.
Documents executed:- Demand Promissory note, Letter of Authority, Deed of Hypothecation, Common Guarantee Deed all dated 26.02.2015, which are Annexures A3, A4, A6 and A7 to this OA; End use confirmation of funds dated 31.03.2015, which is Annexure A5 to this OA; Acknowledgement of Debt cum Revival letter all dated 18.01.2018, which are Annexures A10 & A11 to this OA; Statement of Account, which is Annexure A12 to this OA; Recall Notice to Borrower dated 08.06.2022, which is Annexure A13 to this OA and Recall Notice to Guarantor dated 27.06.2022, which is Annexure A14 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.25,21,403/- which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it
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just and appropriate to grant uniform simple interest @10.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.
Pronounced by me in the Open Tribunal. Dated: 28.12.2023
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recovery of the stated outstanding amount along with interest from the defendants jointly and severally.
Whether the Tribunal can modify the claimed interest rate to a uniform simple interest rate in the exercise of its discretion.
2 provisions across 2 enactments
IDBI Bank Limited
Sh. Ram Singh S/o Balvir Singh
Sh. Gurwinder S/o Sh. Ram Singh
Sh. Gurmeet Singh S/o Sh.Jaspal Singh
Mridulesh Kumar Singh
As recorded by the court registry
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