The Debt Recovery Tribunal allowed the bank's application for recovery of Rs.28,75,029/- along with interest granted at 8% per annum from the date of filing, permitting recovery from sale of secured assets.
Recovery of principal Rs.28,75,029/- with simple interest @8% per annum from 09.03.2022 till realization, and liberty to recover amount from sale of properties.
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.483/2022
DATE OF INSTITUTION: 09.03.2022
DATE OF DECISION: 13th DAY OF JULY, 2023
IDBI Bank Limited, Company registered under the Companies Act, 1956 (1 of 1956) and a Company within the meaning of Section 2(20) of the Companies Act, 2013 and a Banking Company within the meaning of Section 5(c) of the Banking Regulation Act, 1949 (10 of 1949) having its registered office at IDBI Tower, W.T.C. Complex, Cuffe Parade, Mumbai-400005 and a Branch amongst others at Village Satrod, Hisar, through Smt. Onika Mehta Khera, BH/AGM and authorised signatory of IDBI Bank Limited
…..Applicant Bank
Versus
Sh. Mahavir S/o Sh. Nand Roop R/o Village and Post Office, Muzadpur, Tehsil Hansi, District Hisar-125033
…..Defendant
Argued by: Sh. Deepak Sharda, Assistant General Manager for the applicant bank
Defendant ex parte vide order dated 13.10.2022
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 defendant for recovery of
Rs.28,75,029/- (Rupees Twenty Eight Lacs Seventy Five
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Thousand and Twenty Nine Only) . It has been filed through Smt. Onika Mehta Khera, Branch Head/AGM of the applicant bank stated to be competent to institute the Original Application vide Delegation of Powers, Annexure-A1 (copy).
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the financial discipline of the applicant bank and resultantly, the loan account became irregular it was declared as NPA on 30.11.2021. The defendants executed balance confirmation letters dated 29.04.2015 and 19.09.2017, Annexures-A9 and A10 (copy) and acknowledgement of debt-cum-revival letters dated 19.09.2017, 31.05.2018 and 11.05.2021, Annexures-A11 to A13 (copy). The applicant bank recalled the entire outstanding amount vide recall letter dated 10.12.2021, Annexure-A14 (copy), but to no avail.
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.28,75,029/- (Rupees Twenty Eight Lacs Seventy Five Thousand and Twenty Nine Only) is recoverable against the defendant as per statement of account, certified under Bankers’ Books Evidence Act, Annexure-A15 (copy).
Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
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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 conditions of economy based on agriculture, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yesteryears, while
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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
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 recover the outstanding loan amount of Rs.28,75,029/- from the respondent as debtor.
What rate of interest should be granted for the period pending recovery given the economic conditions.
1 provisions across 1 enactments
IDBI Bank Limited
Sh. Mahavir
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
