The Debt Recovery Tribunal allowed the bank's application for recovery of a loan of Rs.37,38,517.23 denied by the defendants. The court ordained simple interest at 8% p.a. and directed the issuance of a Recovery Certificate.
Declarations of liability to pay Rs.37,38,517.23 with interest at 8% p.a.; Order for 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.1382/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 06.12.2021.
DATE OF DECISION: 20.08.2024.
Canara Bank, (Erstwhile Syndicate Bank) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head Office at 12, JC Road Bangalore and besides other branches, a Branch Office Roopnagar through its Branch Manager and General Power of Attorney Holder Sh. Atul Gupta, which is under the Administrative Control of Circle Office at Sector 34A, 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
Lacs and Term Loan of Rs.2.00 lacs vide Loan Applications dated 02.07.2010, which are Annexure A4 & A5 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 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.
4
Rs.37,38,517.23 (Rupees Thirty Seven Lakh Thirty Eight Thousand Five Hundred Seventeen And Paisa Twenty Three 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: 20.08.2024.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount along with interest from the defendants.
What interest rate is appropriate for the recovery of the loan accounts classified as NPA.
2 provisions across 2 enactments
Canara Bank, (Erstwhile Syndicate Bank)
Sh. Dhian Singh S/o Sh. Sardara Singh
Sh. Harinder Singh S/o Sh. Surmukh Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
