The Tribunal allowed the applicant bank's application for recovery of Rs.46.56 Lakhs arising from an agricultural loan account. It declared defendants jointly and severally liable, reduced interest to 10% p.a., and directed issuance of a recovery certificate.
Declaration of liability to pay Rs.46,56,602.00 with 10% p.a. interest; issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.478/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH DATE OF INSTITUTION: 22.03.2022 DATE OF DECISION: 24.08.2023 Indian Bank (erstwhile Allahabad Bank), a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah Chennai-600014 and a Branch amongst at G.T. Road, Moga through its duly constituted attorney Sh. Surinder Kumar, Senior Manager ……..Applicant Versus 1. Sh. Kulwinder Singh S/o Sh. Harchand Singh, R/o H.No.72, Village Patti-Beena, VPO Kokri Phula Singh, Tehsil and District Moga, Punjab (Borrower/Mortgagor) 2. Sh. Surjit Singh S/o Sh. Sudagar Singh, R/o Village Patti Beena, VPO Kokri Phula Singh Wala, Tehsil and District Moga, Punjab (Guarantor) ….……Defendants Advocates: Argued by Ms. Puja Sharma, counsel for the applicant Defendants are ex-parte FINAL ORDER 1. 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, against the defendants for recovery of Rs.46,56,602.00 (Rupees Forty Six Lacs Fifty Six Thousand Six Hundred and Two Only). The Original Application has been filed through Sh. Surinder Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.
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Documents executed:- Acknowledgment Letter, D.P. Note, Hypothecation Agreement, Deed of guarantee and Consent Letter all dated 11.07.2014, which are Annexures A3/A, A4/A, A5, A6 and A8 to this OA; I.D. Proofs of Defendant no.1 in File 3, which is Annexure A4 to this OA; D.P. Note dated 29.07.2015, which is Annexure A8/A to this OA; Acknowledgment of debt dated 06.08.2018, which is Annexure A9 to this OA; Recall notices dated 16.04.2018 and 18.03.2020 along with translations, which are Annexures A10 and A11 to this OA; Legal Notice dated 28.12.2021 along with its translation, which are Annexures A12 and A12/T to this OA and Statement of account, which is Annexure A13 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.46,56,602.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
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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 loans 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 @10.00%p.a. in
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the loan account from the date of filing of the OA till realization of the amounts ordered vide this final order. It is ordered accordingly.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
Order dictated, signed and pronounced by me in the open Tribunal. Dated: 24.08.2023
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the defendant borrowers and guarantor are liable to repay the outstanding agricultural loan amount.
Whether uniform simple interest @10.00%p.a. should be granted instead of the claimed pendent elite interest.
Whether the tribunal is entitled to utilise its discretion to fix interest rates conveniently.
1 provisions across 1 enactments
Indian Bank (erstwhile Allahabad Bank)
Sh. Kulwinder Singh
Sh. Surjit Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
