The DRT allowed the bank's original application for recovery of agricultural loan dues of ₹21,59,599.36p against ex-parte defendants, declaring them liable to pay the amount jointly and severally.
Recovery of Rs.21,59,599.36p with costs and simple interest at 9.65%p.a.; recovery certificate issued.
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.1593/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 17.08.2022
DATE OF DECISION: 07.02.2024
Union Bank of India, a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at: Union Bank Bhawan, 239, Vidhan Bhawan Marg, Nariman Point, Mumbai, Maharashtra-400021 and having one of its Branch situated at G T Road, Jagraon, District Ludhiana through Sh. Ratan Singh, Assistant Manager and Constituted Attorney
……..Applicant
Versus
(Borrower/Mortgagor)
………Defendants
Advocates:
Argued by Ms. Puja Sharma, counsel for the applicant Defendants are ex-parte
FINAL ORDER
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of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 16.11.2018, which is Annexure A1 to this OA.
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amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 06.01.2024. 7. In support of the OA, affidavit of S Sh. Ratan Singh, Assistant Manager, Union Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants 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.21,59,599.36p (Rupees Twenty One Lacs Fifty Nine Thousand Five Hundred Ninety Nine and Thirty Six Paisa only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.65%p.a. along with @2%p.a. penal interest with half yearly rests from 01.07.2022 till the realization.
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 @9.65%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.
Pronounced by me in the Open Tribunal.
Dated: 07.02.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the Original Application under Section 19 RDBFI Act, 1993 is maintainable for recovery of agricultural loan dues.
Whether the defendants are liable to pay the outstanding amount jointly and severally with simple interest.
Whether the rate of interest should be adjusted to uniform simple interest in the loan account.
1 provisions across 1 enactments
Union Bank of India
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
