The Tribunal allowed the bank's application for recovery of a dues of over 22 lakhs against a sole proprietorship and its proprietor following an ex-parte hearing. The court awarded a uniform interest rate of 8% per annum.
Recovery Certificate issued for Rs. 22,83,571.82 with simple interest at 8% per annum from 18.03.2023.
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.2189/2022
DATE OF INSTITUTION: 29.11.2022
DATE OF DECISION: 4TH DAY OF AUGUST, 2023
Punjab National Bank, a body corporate and a nationalised bank, constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertaking) Act No. 5 of 1970, with its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi and amongst others a Branch at Mahendergarh Road, Narnaul, District Mahendergarh, Haryana, through Sh. Prashant Kumar, Chief Manager and Attorney holder presently posted at Circle Sastra Centre, Rewari, Contact No. 8750746897 (Transferee Bank from erstwhile Oriental bank of Commerce)
…..Applicant Bank
Versus
…..Defendants
Argued by: Ms Arpita Sonkar, Manager Law for the applicant bank Defendants ex parte vide order dated 18.03.2023
OA/2189/2022 PUNJAB NATIONAL BANK Vs M/S AM SALES AGENCY AND ANOTHER 2
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.22,83,571.82/- (Rupees Twenty Two Lacs Eighty Three Thousand Five Hundred Seventy One and Eighty Two Paisa Only) . It has been filed through Sh. Prashant Kumar, Chief Manager and Attorney holder of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney, Annexure-A1 (copy).
OA/2189/2022 PUNJAB NATIONAL BANK Vs M/S AM SALES AGENCY AND ANOTHER 3 Annexure-A7 (copy) and term loan agreement dated 13.03.2020, Annexure-A8 (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.22,83,571.82/- (Rupees Twenty Two Lacs Eighty Three
Thousand Five Hundred Seventy One and Eighty Two Paisa
Only), is recoverable against the defendants as per statements of accounts, certified under Bankers’ Books Evidence Act, AnnexuresA11 to A13 (copy).
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
Sh. Prashant Kumar, Chief Manager and Attorney holder of the applicant bank was filed.
OA/2189/2022 PUNJAB NATIONAL BANK Vs M/S AM SALES AGENCY AND ANOTHER 4
Thousand Five Hundred Seventy One and Eighty Two Paisa Only) from the defendants.
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
OA/2189/2022 PUNJAB NATIONAL BANK Vs M/S AM SALES AGENCY AND ANOTHER 5 facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, purpose of loan, i.e. business, 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.
OA/2189/2022 PUNJAB NATIONAL BANK Vs M/S AM SALES AGENCY AND ANOTHER 6
Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2,Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount from the respondents.
What rate of interest should be granted for the pending period.
1 provisions across 1 enactments
Punjab National Bank
M/s AM Sales Agency
Sh. Dharmender
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
