The Tribunal allowed the bank's application under Section 19 of the RDBFI Act for recovery of a loan of Rs.35.49 lakhs. The defendant appeared ex-parte. The debt was acknowledged via a mortgage. The Tribunal deputed the interest rate to 10% p.a. and issued a Recovery Certificate.
Recovery of Rs.35,49,127.00 with simple interest at 10% p.a.; Issue 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-III, CHANDIGARH
ORIGINAL APPLICATION NO.389/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 02.02.2022
DATE OF DECISION: 13.10.2023
Canara Bank, having its Head Office at J.C. Road, Bangalore-560002 (Karnataka) and having its Branch Office at Jagraon, District Ludhiana, through its Attorney holder, Sh. Ravi Goyal
……..Applicant
Versus
Smt. Jasvir Kaur W/do Sh. Jeet Singh, R/o Village Gidderwindi, Tehsil Jagraon, District Ludhiana, Punjab
………Defendant
Advocates:
Argued by Sh. Hemant Nanda, counsel for the applicant Defendant is ex-parte
FINAL ORDER
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Documents executed:- Agreement dated 23.06.2017, which is Annexure A4 to this OA; Acknowledgment of debt and security dated 08.05.2020, which is Annexure A6 to this OA; Recall notice dated 12.02.2021, which is Annexure A7 to this OA and Statement of account alongwith Certificate of Bankers Book Evidence Act, which is Annexure A8 to this OA.
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parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.35,49,127.00 (Rupees Thirty Five Lacs Forty Nine Thousand One Hundred and Twenty Seven only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.
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 defendant, 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 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.35,49,127.00 (Rupees Thirty Five Lacs Forty Nine Thousand One Hundred and Twenty Seven only) with costs, current and future simple interest @10.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets
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of the defendant. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 21.10.2023. 15. Copy of this order be given dasti to the applicant bank and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the Open Tribunal. Dated: 13.10.2023
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the bank is entitled to recover the outstanding loan amount of Rs.35,49,127.00 from the defendant.
Whether the Tribunal ought to grant simple interest at 10.00% p.a. instead of the claimed 18.00% p.a.
3 provisions across 3 enactments
Canara Bank
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
