The Debts Recovery Tribunal allowed the bank's recovery application against borrowers who failed to repay agricultural loans secured by property. The court awarded recovery of the principal with reduced simple interest at 8% annually.
Order for Recovery Certificate enforced; decree for Rs.23,14,005.16 plus simple interest @8% p.a. w.e.f. 07.11.2022.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.2150/2022
DATE OF INSTITUTION: 07.11.2022
DATE OF DECISION: 1st DAY OF AUGUST, 2023
Punjab National Bank , a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act 1970, having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi110075, through one of its Branches having office at Naneola, Tehsil and District, Ambala, Haryana, through its Power of Attorney Holder, Sh. Baldev Raj
…..Applicant Bank
Versus
Both Rs/o V.P.O Naneola, Tehsil and District, Ambala, Haryana
…..Defendants
Argued by: Ms Arpita Sonkar, Manager Law, GPA Holder for the applicant bank Defendants ex parte vide order dated 18.02.2023
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.23,14,005.16/- (Rupees Twenty Three Lacs Fourteen Thousand Five and Sixteen Paisa Only) . It has been filed
OA/2150/2022 PUNJAB NATIONAL BANK Vs PIYUSH VATS AND ANOTHER 2 through Sh. Baldev Raj, Power of Attorney Holder of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 04.09.2003, Annexure-A1 (copy).
The documents relating to the mortgage are as under:
OA/2150/2022 PUNJAB NATIONAL BANK Vs PIYUSH VATS AND ANOTHER
3
ii. Declaration dated 28.08.2017 under section 4(1) of the Haryana Agriculture Credit Operation and Miscellaneous Provisions (Banks) Act, 1973, Annexure-A12 (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.23,14,005.16/- (Rupees Twenty Three Lacs Fourteen Thousand Five and Sixteen Paisa Only) is recoverable against the defendants as per interest chart, Annexure-A18 (copy) and statement of account dated 11.10.2022, Annexure-A17 (copy) duly certified under Bankers’ Books Evidence Act, Annexure-A19 (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/2150/2022 PUNJAB NATIONAL BANK Vs PIYUSH VATS AND ANOTHER 4
Sh. Baldev Raj, Authorised Officer of the applicant bank was filed.
the applicant bank in relief clause has claimed rate of interest @10.45% per annum plus penal interest @2% per annum. In supplementary agreement dated 29.08.2017, Annexure-A8 (copy), rate of interest has been mentioned @10.45% per annum.
This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are
OA/2150/2022 PUNJAB NATIONAL BANK Vs PIYUSH VATS AND ANOTHER
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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. agriculture, present conditions of economy based on agriculture, 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/2150/2022 PUNJAB NATIONAL BANK Vs PIYUSH VATS AND ANOTHER 6
Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
1 issue framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount along with interest against the defaulting borrowers.
1 provisions across 1 enactments
Punjab National Bank
Smt. M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
