The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 27,09,973.00 against a defaulting borrower. The court modified the claimed interest rate to 8% p.a. and directed the issuance of a Recovery Certificate.
Defendant declared liable to pay Rs. 27,09,973.00 with interest at 8% 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.1650/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 01.08.2022
DATE OF DECISION: 23.07.2024
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 (Punjab) and having its branches at different places including one at Rahon, District SBS Nagar (Punjab) through its Constituted Attorney/Manager Sh. Chetan Bhatti.
……..Applicant Versus
Sh. Dalvir Ram S/o Sh. Shadi Ram, Village Bairsal, Tehsil and District SBS Nagar (Punjab)
….……Defendant
Advocates:
Argued by Sh. Bhushan Bhatia, Advocate for the applicant Defendant is ex-parte
FINAL ORDER
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Annexures A1 to A15 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant 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.27,09,973.00 (Rupees Twenty Seven Lacs Nine Thousand Nine Hundred and Seventy 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 @8.00%p.a. in all 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 defendant is liable to pay to the applicant a total sum of Rs.27,09,973.00 (Rupees Twenty Seven Lacs Nine Thousand Nine Hundred and Seventy Three only), with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing
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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 defendant 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 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 13.08.2024. 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: 23.07.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the defendant is liable to repay the outstanding loan amount to the applicant bank.
What rate of interest should apply to future dues in this case.
1 provisions across 1 enactments
Punjab Gramin Bank
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
