The DRT allowed the bank's application for recovery of a disputed loan of approximately Rs. 1.23 Crore, modifying the claimed interest rate to 7.50% p.a. and directed issuance of a Recovery Certificate.
Recovery of Rs. 1,23,04,807.47 with simple interest at 7.50% p.a. from the date of filing; issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1763/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 17.08.2022
DATE OF DECISION: 21.03.2024
Punjab National Bank, a body corporate constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and amongst others a branch at Main Branch Sangrur, Punjab through Sh. Abhinandan Modi, Senior Manager and Attorney holder presently posted at Circle SASTRA Centre, Patiala
……..Applicant
Advocates:
Argued by Sh. Manish Singla, counsel for the applicant (through VC) Defendants are ex-parte
2
FINAL ORDER
Later, during COVID-19, the defendants requested for the grant of GECL facility of Rs.24.00 Lacs vide Loan Application, which is Annexure A24 to this OA.
Further, applicant bank sanctioned the CC adhoc Limit of Rs.5.00 Lacs vide Sanction letter dated 18.10.2017, which is Annexure A23 to this OA.
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Later, on request of the defendants, the applicant bank sanctioned the GECL facility of Rs.24.00 Lacs vide Sanction Letter dated 17.06.2020, which is Annexure A25 to this OA.
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amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
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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 @7.50%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.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the debt recovery tribunal was warranted in allowing the applicant bank's original application for recovery of loan amount.
Whether the Tribunal could modify the claimed interest rate in the relief clause.
Whether the defendants are jointly and severally liable for the dues.
2 provisions across 2 enactments
Punjab National Bank
M/s Luxmi Metal Industries
Parveen Kumar Jain
Kusum Lata Jain
Hitesh Jain
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
