The Debts Recovery Tribunal issued a recovery certificate against borrowers and guarantors for a default of Rs.46.52 lakhs, allowing claim but reducing interest to 8% p.a. pending realization.
Recovery certificate issued for Rs.46,52,854.00 plus 8% p.a. simple interest from date of filing, with liberty to attach/sell mortgaged or personal assets.
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.136/2024
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 22.12.2023
DATE OF DECISION: 27.08.2024
Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at “Star House” C-5, Block-G, Bandra-Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office amongst other places, at Samrala, District Ludhiana (Punjab), through its duly Constituted Attorney Sh. Suresh Kumar, Chief Manager.
| ……..Applicant Versus |
|
|---|---|
| 1. | Sh. Anupinder Singh Kooner S/o Sh. Rajwant Singh, R/o Village |
| Chakli Adal, Sub-Tehsil Machhiwara, Tehsil Samrala, District | |
| Ludhiana-(Punjab)-141115 (Borrower) |
|
| 2. | Sh. Bhupinder Singh S/o Sh. Jagtar Singh, R/o Village Sherpur, Sub-Tehsil Machhiwara, Tehsil Samrala, District Ludhiana-(Punjab)- |
| 141121 (Guarantor) |
|
| ….……Defendants | |
| Ad Ar Ad De |
vocates: gued by Sh. Anil Malhotra, Advocate proxy for Ms. Meena Malhotra, vocate for the applicant**(through VC)** fendants are ex-parte FINAL ORDER |
| 1. | Present Original Application was instituted by the applicant bank |
| un |
der Section 19 of the Recovery of Debts Due to Banks and Financial |
| In | stitutions Act, 1993, against the defendants for recovery of |
| Rs | .46,52,854.00 (Rupees Forty Six Lacs Fifty Two Thousand Eight |
| Hu | ndred And Fifty Four Only). The Original Application has been filed |
| th | roughSh. Suresh Kumar, Chief Manager of the applicant bank, who |
| is | competent to institute the Original Application vide Notarized copy of |
| Po OA |
wer of Attorney dated 20.02.2023, which isAnnexure A1to this . |
2
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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.
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
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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 both 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.46,52,854.00 (Rupees Forty Six Lacs Fifty Two Thousand Eight Hundred And Fifty Four Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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 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.
Pronounced by me in the open Tribunal . Dated: 27.08.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicants bank is entitled to recover the outstanding debt of Rs.46,52,854.00 along with interest from the defendants jointly and severally.
Whether the claimed interest of 12.70% p.a. should be allowed or reduced.
2 provisions across 2 enactments
Bank of India
Sh. Anupinder Singh Kooner
Sh. Bhupinder Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
