The Debt Recovery Tribunal allowed the bank's application for recovery of Rs.33,08,421 under Section 19 RDBFI Act, reducing claimed interest to 8% p.a. and ordered issuance of Recovery Certificate.
Recovery of Rs.33,08,421 plus costs and interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce via sale of mortgaged or attachment of personal assets.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1676/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 03.09.2022
DATE OF DECISION: 10.09.2024
Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its head office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and a branch amongst at SBS Nagar, Ludhiana, through General Power of Attorney holder Sh. Vineet Dhingra, Branch Manager and Constituted Attorney.
……..Applicant
Versus
Sh. Santokh Singh S/o Sh. Sham Prakash, R/o House No. 174, Village Kaile, Tehsil Raikot, District Ludhiana, Punjab (Borrower/ Mortgagor)
….……Defendant
Advocates:
Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Pooja Sharma, Advocate for the applicant Defendant is ex-parte
FINAL ORDER
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b. Total land measuring 4K-8M situated at Village Pakhowal, Tehsil Raikot, District Ludhiana Punjab vide Registered Mortgage Deed bearing vasika no. 5298 dated 22.03.2011 along with its English Translation, which are Annexures A6 & A6T to this OA.
Documents executed: - Voter I.D. Proof of Defendant, which is Annexure A3 to this OA; Hypothecation Agreement dated 21.04.2011, which is Annexure A5 to this OA; Affidavit dated 30.03.2011, which are Annexures A7, A8 & A8T to this OA; Balance and Security Confirmation letter dated 20.03.2014 and 20.03.2021, which are Annexures A9 & A10 to this OA; Legal Notice dated 11.12.2014, 22.02.2018 and 05.08.2022 with postal receipts, which are Annexures A11 to A13 to this OA; Statement of account with certificate, which is Annexure A14 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.33,08,421.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
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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
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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.
Pronounced by me in the open Tribunal. Dated: 10.09.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recovery of outstanding dues and interest along with costs and execution from sale of mortgaged property under Section 19 of the RDBFI Act.
Whether to grant uniform simple interest rate considering current market conditions.
1 provisions across 1 enactments
Punjab National Bank
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
