The Debts Recovery Tribunal allowed an ex-parte original application by Union Bank of India against two respondents for recovery of a loan amount. The court granted a uniform simple interest rate and directed issuance of a recovery certificate.
Recovery of Rs.28,59,750.08 plus 8% per annum simple interest from filing date and issuance of Recovery Certificate.
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.384/2023
DATE OF INSTITUTION: 15.02.2023
DATE OF DECISION: 9th DAY OF JUNE, 2023
Union Bank of India (erstwhile known as Andhra Bank) , a body constituted under the Banking Company (Acquisition and Transfer of Undertaking) Act No. V of 1970, having its Head Office at 239, Vidhan Sabha Marg, Nariman Point, Mumbai and having its Branches all over India amongst other places at Sector 12, Panipat, S.C.O 12, HUDA Sector 12, Panipat, Haryana-132103, through Sh. Atul Raj, its Constituted Attorney and Principal Officer
…..Applicant Bank
Versus
…..Defendants
Argued by: Sh. Mukesh Kumar, Senior Manager and GPA holder for the applicant bank Defendants ex parte vide order dated 03.06.2023
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.28,59,750.08/(Rupees Twenty Eight lacs Fifty Nine
OA/384/2023 UNION BANK OF INDIA Vs ARUN MALIK AND ANOTHER
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Thousand Seven Hundred Fifty and Eight Paisa Only) . It has been filed through Sh. Atul Raj, Constituted Attorney of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 19.03.2020, Annexure-A1 (copy).
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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.28,59,750.08/(Rupees Twenty Eight lacs Fifty Nine Thousand Seven Hundred Fifty and Eight Paisa Only) is recoverable against the defendants as per statement of account, Annexure-A8 (copy) certified under Bankers’ Books Evidence Act.
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
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defendants for recovery of the amount sought. From perusal of Annexures-A1 to A8 , it is clear that the defendants had approached the applicant bank for availing of the loan facility which was granted to them. It is further clear that the defendants had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.28,59,750.08/(Rupees Twenty Eight lacs Fifty Nine Thousand Seven Hundred Fifty and Eight 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 facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of the mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, 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.
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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 recovery of the outstanding debt from the borrowers and guarantor.
What rate of interest should be granted on the recoverable amount given the current economic conditions.
1 provisions across 1 enactments
Union Bank of India
Sh. Arun Malik
Sh. Rajender Malik
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
