The Debt Recovery Tribunal allowed the bank's application for recovery of Rs.23.51 lakhs granted by uniform simple interest at 10% p.a. instead of the claimed rate, considering market trends. The application is dispose of.
Recovery Certificate issued; Defendant liable to pay Rs.23,51,463.00 with costs and simple interest at 10% p.a.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1084/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 27.12.2021
DATE OF DECISION: 16.01.2024
Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act 1976, Act No.21 of 1976 having its Head Office, at Jalandhar Road Kapurthala (Pb) and having its branches at different places including one at Bhaddi, Tehsil Balachaur, District SBS Nagar (Pb) through its Constituted Attorney/Manager, Sh. Gagandeep Bains ……..Applicant Versus
Sh. Madan Lal s/o Sh. Ganga Ram, Village Kukkar Suha, PO Makhupur, Tehsil Balachaur, District SBS Nagar (Pb) (Borrower)
….……Defendant
Advocates:
Argued by Sh. Sukhvinder Singh Chaudhary, Advocate proxy for Sh. Bhushan Bhatia, Advocate for the applicant Defendant is ex-parte
FINAL ORDER
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Documents executed: - Loan Agreement dated 12.04.2013, which is
Annexure A4 to this OA; Notice dated 07.01.2019, which is Annexure A6 to this OA; BC Letters dated 05.08.2015, 23.03.2017 and 16.01.2019, which are Annexures A7 to A9 to this OA and Statement of account dated 08.12.2021, which is Annexure A10 to this OA.
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documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.23,51,463.00 (Rupees Twenty Three Lacs Fifty One Thousand Four Hundred Sixty Three only) along with interest from the defendant, 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 defendant, 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 @10.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.
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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 defendant. 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 05.02.2024. 15. Copy of this order be given dasti to the applicant bank and be sent to defendant 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: 16.01.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank was entitled to recovery of the outstanding loan amount from the defendant.
Whether the applicant bank could claim a specific rate of interest given the prevailing market conditions.
2 provisions across 2 enactments
Punjab Gramin Bank
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
