This DRAT allowed an original application filed by Canara Bank under the RDDBFI Act to recover Rs. 30.10 lakhs as dues from borrowers and guarantor. The Tribunal granted a Recovery Certificate and ordered uniform simple interest at 10% per annum pending realisation.
Recovery Certificate issued for Rs. 30,10,224/- with simple interest @ 10% p.a. from 03.01.2022.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.39/2022
DATE OF INSTITUTION: 03.01.2022 DATE OF DECISION: 26th DAY OF OCTOBER, 2023
Canara Bank , a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 and the successor to Syndicate Bank vide notification dated 04.03.2020 issued under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, approved a scheme called amalgamation of Syndicate Bank with Canara Bank Scheme, 2019 and w.e.f. 01.04.2020 Syndicate Bank since amalgamated with Canara Bank, having its Head Office at 112, J.C. Road, Bangalore and inter alia having one of its Branches at Panipat-II, District Panipat (Haryana)
….. Applicant
Versus
Argued by: Sh. Loveneet, Law Manager for the applicant bank
OA/39/2022 CANARA BANK Vs M/S GANGOTRI AND OTHERS 2
Defendants ex parte vide order dated 19.05.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19 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.30,10,224/(Rupees Thirty lac Ten Thousand Two Hundred Twenty Four Only) . It has been filed through Sh. Munesh Kumar, Senior Manager of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 24.06.2013, Annexure-A1 (copy).
OA/39/2022 CANARA BANK Vs M/S GANGOTRI AND OTHERS 3
mortgage by defendant No.2 in respect of residential property bearing house No. 256/8, near Sethi Chowk, Chando Mohalla, Panipat, measuring 78 Square Yard situated within Municipal limits of Panipat, fully detailed in para No. 5.5 of the OA.
The documents related to mortgage are as under:
i. Letters dated 12.11.2015 regarding particulars of assets and liabilities, Annexures-A5 and A6 (copy).
ii. Letter dated 05.11.2015 regarding handing over title deeds of properties, Annexure-A7 (copy).
iii. Confirmation letter dated 20.011.2015 regarding deposit of title deeds, Annexure-A8 (copy).
iv. Memorandum of deposit of title deeds, Annexure-A9 (copy).
v. Affidavit dated 05.11.2015 regarding mortgaged property, Annexure-A10 (copy).
vi. Transfer deed dated 10.06.2015, Annexure-A11 (copy).
vii. Registered sale deed dated 28.06.1979, Annexure-A12 (copy).
OA/39/2022 CANARA BANK Vs M/S GANGOTRI AND OTHERS 4
(copy) and notice dated 10.10.2017 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, along with postal receipts, Annexure-A15 (colly) (copy), but to no avail.
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.30,10,224/(Rupees Thirty lac Ten Thousand Two Hundred Twenty Four Only) , is recoverable against the defendants as per statement of account, certified under Bankers’ Books Evidence Act, 1891, 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.
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Annexures-A1 to A19 , 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.30,10,224/- (Rupees Thirty lac Ten Thousand Two Hundred Twenty Four 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 mortgaged property, 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 @10% 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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Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the application under Section 19 of RDDBFI Act for issue of recovery certificate against the borrowers and guarantor is maintainable in view of the default.
Whether the quantum of interest claimed by the bank and allowed by the Tribunal is justified considering the prevailing market rates.
2 provisions across 2 enactments
Canara Bank
M/S Gangotri Handloom and Ors.
M.M. DHONCHAK
As recorded by the court registry
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