Debts Recovery Tribunal allowed an application by Canara Bank to recover Rs.22.50 lakh from heirs of deceased borrower Ricky Bindra, granting uniform simple interest of 7.50% p.a. and ordering issuance of Recovery Certificate.
Order to pay Rs.22,50,660.38 p with 7.50% p.a. interest, costs, and issuance of Recovery Certificate for enforcement.
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.464/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 26.11.2021
DATE OF DECISION: 06.10.2023
Canara Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970 having its registered Head Office at J.C. Road, Bangalore and having its branches all over India and interalia a branch office at BRS Nagar Branch, Ludhiana, through its duly constituted attorney Ms. Garima Gupta, Authorized Officer
……..Applicant
All residents of H.No.337, I Block, BRS Nagar, Ludhiana, District Ludhiana (Pb)
………Defendants
Advocates:
Argued by Sh. Iqbal Mohammed, counsel for the applicant Defendants are ex-parte
FINAL ORDER
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Rs.22,50,660.38p (Rupees Twenty Two Lacs Fifty Thousand Six Hundred Sixty and Thirty Eight Paisa only). The Original Application has been filed through Ms. Garima Gupta, Authorized Officer of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 25.10.2017, which is Annexure A1 to this OA.
Documents executed:- Agreement, Letter of undertaking and Letter of Proprietorship all dated 12.01.2018, which are Annexures A5 to A7 to this OA; Letters of Undertaking dated 04.07.2019 and 09.07.2019, which are Annexures A11 and A15 to this OA; Pronote, Demand
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Promissory note, Particulars of Hypothecated Machinery, Clause of loan agreement, Letter of undertakings and Pre-approved offer letter all dated 16.06.2020, which are Annexures A18 and A19/A to A20 to this OA; Acknowledgement of debt dated 04.11.2020, which is Annexure A21 to this OA; Death Certificate dated 11.06.2021, which is Annexure A22 to this OA; Recall notice dated 01.10.2021, which is Annexure A23 to this OA; Demand notice dated 22.10.2021, which is Annexure A24 to this OA; Account statements, which are Annexures A25 to A28 to this OA and Certificate of Account statements, which is Annexure A29 to this OA.
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as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.22,50,660.38p (Rupees Twenty Two Lacs Fifty Thousand Six Hundred Sixty and Thirty Eight Paisa only) along with interest from the defendants, jointly and severally, 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 defendants, 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 @7.50%p.a. in all the loan accounts 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 defendants are liable to pay to the applicant a total sum of Rs.22,50,660.38p (Rupees Twenty Two Lacs Fifty Thousand Six Hundred Sixty and Thirty Eight Paisa only) jointly and severally, with costs, current and future simple interest @7.50%p.a. in all the loan accounts 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 defendants in execution proceedings if not sold earlier under the
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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 of the defendants. 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 13.10.2023. 15. Copy of this order be given dasti to the applicant bank and be sent to defendants 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: 06.10.2023
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount along with interest from the respondents under the RDBFI Act 1993.
Whether the Tribunal can exercise discretion to grant uniform interest rates despite varied claims in the relief clause.
2 provisions across 2 enactments
Canara Bank
M/s Akaal Videos through its Prop. Late Sh. Ricky Bindra
Kawal Bindra
Paramjit Kaur
Jasmeet Bindra
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
