The Tribunal allowed the petitioner bank's original application for recovery of a loan settled at Rs. 48,00,418.49 plus future simple interest at 10% per annum, reducing the bank's claimed rate.
Recovery of Rs. 48,00,418.49 with future simple interest at 10% per annum w.e.f. 01.03.2023; Issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.451/2023
DATE OF INSTITUTION: 01.03.2023
DATE OF DECISION: 13th DAY OF JULY, 2023
Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075, through one of its Branches having Office at Baldev Nagar, Ambala City, District Ambala, through its Power of Attorney holder, Sh. Baldev Raj
…..Applicant Bank
Versus
…..Defendants
Argued by: Ms Arpita Sonkar, Manager Law for the applicant bank Defendant ex parte vide order dated 06.06.2023
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.48,00,418.49/-
(Rupees Forty Eight Lacs Four Hundred Eighteen and Forty Nine
OA/451/2023 PUNJAB NATIONAL BANK VS M/S CH ELECTRICALS 2
Paisa only) . The OA has been filed through Sh. Baldev Raj, attorney holder of the applicant bank, stated to be competent to institute the Original Application vide General Power of Attorney dated 04.09.2003, Annexure-A1 (copy).
OA/451/2023 PUNJAB NATIONAL BANK VS M/S CH ELECTRICALS 3
recalled entire outstanding amount vide legal notice dated 27.12.2022, Annexure-A15 (copy) and postal receipt, Annexure-A16 (copy), but to no avail.
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.48,00,418.49/- (Rupees Forty Eight Lacs Four Hundred Eighteen and Forty Nine Paisa only) , is recoverable against the defendants as per statement of account along with interest chart and certified under Bankers’ Books Evidence Act, Annexure-A17 (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/451/2023 PUNJAB NATIONAL BANK VS M/S CH ELECTRICALS
4
Annexures-A1 to A17 , it is clear that the defendants had approached the applicant bank for availing of the loan facility which was granted to them after they 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.48,00,418.49/- (Rupees Forty Eight Lacs Four Hundred Eighteen and Forty Nine 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, 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 final order. It is ordered accordingly.
OA/451/2023 PUNJAB NATIONAL BANK VS M/S CH ELECTRICALS 5
Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the Original Application filed under Section 19(1) of the RDBFI Act for recovery of loan dues is maintainable.
Whether the uniform simple interest rate claimed by the applicant should be modified in view of prevailing market conditions.
1 provisions across 1 enactments
Punjab National Bank
M/s C.H. Electricals
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
