DRT allowed Bank of India's application for recovery. Court found defendants liable for Rs. 61,56,511/- and ordered simple interest at 10% per annum w.e.f. filing, granting Recovery Certificate.
Issuance of Recovery Certificate for Rs. 61,56,511/- with simple interest at 10% p.a. from filing date; liberty to recover from sale of mortgaged property or personal assets.
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. 419/2023
DATE OF INSTITUTION: 28.02.2023
DATE OF DECISION: 5th DAY OF JUNE, 2023
Bank of India, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act No. V of 1970, having its Head Office at ‘Star House’, C-5, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branches amongst other places at Charkhi-Dadri, through its duly constituted Attorney, Smt. Latika Sabharwal, Chief Manager, Sector -40, Gurgaon, Haryana
…..Applicant Bank
Versus
…..Defendants
Argued by: Sh. Anil Malhotra proxy counsel for Ms Meena Malhotra counsel 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.61,56,511/- (Rupees Sixty One lacs Fifty Six Thousand Five Hundred and Eleven only) . The OA has been filed through Smt. Latika Sabharwal, Chief Manager of the applicant bank, stated to be competent
OA 419/2023 BANK OF INDIA V/S SATISH KUMAR AND ANOTHER 2
to institute the Original Application vide Power of Attorney dated 02.09.2019, Annexure-A1 (copy).
The documents related to mortgage are as under:
i. Registered sale deed dated 13.09.2013, Annexure-A10 (copy).
OA 419/2023 BANK OF INDIA V/S SATISH KUMAR AND ANOTHER 3
ii. Extract of mortgage attendance register, Annexure-A11 (copy).
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.61,56,511/(Rupees Sixty One lacs Fifty Six Thousand Five Hundred and Eleven only) is recoverable against the defendants as per statement of account certified under Bankers’ Books Evidence Act, Annexure-19 (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 419/2023 BANK OF INDIA V/S SATISH KUMAR AND ANOTHER 4
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, 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
OA 419/2023 BANK OF INDIA V/S SATISH KUMAR AND ANOTHER 5
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 final order. It is ordered accordingly.
Five Hundred and Eleven only) with current and future simple interest @10% per annum , w.e.f. 28.02.2023 , till the date of realisation of the amount. The liability of defendants shall be joint as well as several. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendants in execution proceedings, if not sold earlier 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, applicant bank shall be at liberty to recover the same by attachment and sale of personal assets/property of the defendants. The applicant bank is at liberty to enforce the claim through due process of law.
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 amount together with interest from the defendants.
What rate of interest should be granted fit for the case in view of the pandemic affecting businesses.
2 provisions across 2 enactments
Bank of India
Sh. Satish Kumar
Sh. Sant Kumar
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
M.M. DHONCHAK
Parties & counsel
