The Debt Recovery Tribunal allowed the applicant's application for recovery of Rs. 28.55 million granted by Canara Bank to the respondents under a KCC facility. The court deputed a simple interest rate of 8% per annum instead of 11.20% and issued a Recovery Certificate.
Recovery of Rs. 28,55,605.97 with interest @ 8% p.a.; Issue of Recovery Certificate.
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.1228/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 23.02.2022
DATE OF DECISION: 19.11.2024
Canara Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970, having its Head Office at 12, JC Road Bangalore, and besides other branches, a branch office Kurali, through Smt. Jyoti Lakra, Sr. Manager/General Power of Attorney holder of the Canara Bank, Branch Desumajra, Kharar Distt. Mohali which is under the Administrative Control of Circle Office at Sector 34-A, Chandigarh.
……..Applicant
Versus
….……Defendants
Advocates:
Argued by Sh. Kamal Dev Sharma, Advocate proxy for Sh. Sunil Kwatra, Advocate for the applicant Defendants are ex-parte
FINAL ORDER
2
vide Loan Application dated 18.08.2015, which is Annexure A1A to this OA.
3
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 @8.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.28,55,605.97p (Rupees Twenty Eight Lac Fifty Five Thousand Six Hundred Five and Ninety Seven Paisa only) jointly and severally, with
4
costs, current and future simple interest @8.00%p.a. inthe loan accountfrom the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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 provisions of the SARFAESI Act, 2002. If the dues of the applicant 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 12.12.2024. 15. Copy of this order be given dasti to the applicant 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: 19.11.2024.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recovery of the outstanding loan amount as per the terms of the agreement.
Whether the Tribunal should modify the claimed interest rate considering current market rates.
1 provisions across 1 enactments
Canara Bank
Smt. Jaswinder Kaur
Sh. Dalbir Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
