The Tribunal allowed the bank's application for recovery of Rs. 25.06 lakh from the deceased borrower's heirs. It fixed interest at 5% per annum and clarified that heirs' liability is limited to the inherited estate value.
Directing defendants to pay Rs. 25,06,413 plus simple interest at 5% p.a. from filing of Application till realization.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO. 391/2022
DATE OF INSTITUTION: 17.02.2022
DATE OF DECISION: 21st DAY OF DECEMBER, 2023
Central Bank of India , a body corporate constituted under the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Central Office at Chander Mukhi, Nariman Point, Mumbai, amongst Branches all over India, one at Indri, District Karnal, Haryana, through Sh. Subhash Chand Sirohi, Principal Officer and Attorney Holder of the bank
…..Applicant
Versus
Sh. Balwan Singh s/o Sh. Singh Ram since deceased through his Legal Heirs:
.....Defendants
Argued by: Sh. Gaurav Thakur proxy counsel for Sh. Rajan Chawla counsel for the applicant bank Defendants ex parte vide order dated 29.08.2023
FINAL ORDER
OA/391/2022 CENTRAL BANK OF INDIA VS SALINDER DEVI AND OTHERS 2
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.25,06,413/- (Rupees Twenty Five Lac Six Thousand Four Hundred and Thirteen Only) . It has been filed through Sh. Subhash Chand Sirohi, Principal Officer and Attorney Holder of the applicant bank stated to be competent to institute the Original Application vide power of attorney dated 08.12.2011, Annexure-A1 (copy).
OA/391/2022 CENTRAL BANK OF INDIA VS SALINDER DEVI AND OTHERS 3
(copy) and form of guarantee for advances and credits generally, Annexure-A10 (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.25,06,413/-
(Rupees Twenty Five Lac Six Thousand Four Hundred and Thirteen Only), is recoverable against the defendants as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A13 (colly) (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/391/2022 CENTRAL BANK OF INDIA VS SALINDER DEVI AND OTHERS 4
OA/391/2022 CENTRAL BANK OF INDIA VS SALINDER DEVI AND OTHERS 5
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. agricultural , present condition of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, death of the borrower and defendant Nos. 1, 2 and 3 being females, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @5% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/391/2022 CENTRAL BANK OF INDIA VS SALINDER DEVI AND OTHERS 6
under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. The applicant bank is at liberty to enforce the claim through due process of law. However, it is clarified here that there should not be any ambiguity that the liability of the defendants by virtue of their being the legal heirs of the deceased borrower shall remain confined only to the extent of the estate of the deceased borrower if it is inherited by legal heirs and not beyond that. The recovery proceedings shall proceed only after the Recovery Officer is fully satisfied on the aspect of the estate being inherited by the Legal Representatives/Heirs and the liability being incurred accordingly .
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
3 issues framed by the court
Whether the Original Application for recovery of debt against the legal heirs of the deceased borrower should be allowed.
What rate of interest should be granted on the outstanding loan amount considering the specific facts and circumstances.
Whether the liability of the legal heirs is confined to the extent of the inherited estate.
1 provisions across 1 enactments
Central Bank of India
Smt. Salinder Devi
Ms Mandeep Devi
Ms Karnail Devi
Sh. Gaurav Kumar
M.M. Dhonchak
As recorded by the court registry
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