Debt Recovery Tribunal allowed the bank's application for recovery of Rs.48.90 lakhs. The court reduced the claimed interest from 11.95% to 8% per annum. Defendants were held jointly and severally liable, and a recovery certificate was issued.
Defendants held liable to pay Rs.48.90 lakhs plus interest at 8% p.a. from filing date. 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.186/2023
PRESIDED OVER BYMRIDULESH KUMAR SINGH DATE OF INSTITUTION: 13.02.2023
DATE OF DECISION: 22.05.2024
Punjab & Sind Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No V of 1980, having its Head Office at 21, Rajendra Place, New Delhi and branch amongst others one at Nathuwala Jadid, District Moga, Punjab through its Attorney/Authorization, Sh. Balbir Singh, Manager, Punjab and Sind Bank Branch at Nathuwala Jadid, District Moga (Punjab), duly constituted Attorney of the applicant bank duly authorized by the competent authority of the Applicant Bank.
.....Defendant/Borrower
Advocates: Argued by Sh. Amit, Advocate proxy for Sh. Neeraj Madaan, Advocate for the applicant Defendants are ex-parte
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Institutions Act, 1993, against the defendants for recovery of Rs.48,90,482.23p (Rupees Forty Eight Lacs Ninety Thousand Four Hundred Eighty Two and Twenty Three Paise Only). The Original Application has been filed through Sh. Balbir Singh, Manager of the applicant bank, who is competent to institute the Original Application vide Authorization letter dated 22.09.2022 and Power of Attorney dated 04.12.2018, which is Annexure A1 to this OA.
Documents executed:-Demand Promissory Note by defendant no.1- Form no.14-R, Guarantee Agreement by defendant no.2- Form256(RR), Letters of Undertaking regarding conditions and preconditions executed by defendant no.1 and defendant no.2 & 3, Letter of consent related penal rate of interest signed/executed by defendant no.1 form no.201, Letter of Continuity form no.159, Letter of Waiver executed form no.106 all dated 27.09.2012, which are Annexures A4, A5, A8, A9, A11, A12 & A13 to this OA; Hypothecation of Goods to secure-A demand cash credit-Form-312 duly signed by defendant nos.1 to 3, Revised Clauses pertaining to rate of interest-Form No.200 signed by defendant no.1 and Undertaking by defendant no.1 & 2 form
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no.199, which are Annexures A6, A7 and A10 to this OA ; Balance Confirmation Letter in KCC limit dated 02.09.2015, 16.07.2018 & 11.02.2021, which are Annexure A16 & A18 to this OA; Legal Notice dated 19.08.2021 with postal receipts, which is Annexure A19 to this OA and Statement of Account along with interest chart and certificate dated 06.02.2023, which is Annexure A20 to this OA.
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jointly and severally, 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 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 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.48,90,482.23P(Rupees Forty Eight Lacs Ninety Thousand Four Hundred Eighty Two and Twenty Three Paise Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.
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Pronounced by me in the open Tribunal .
Dated: 22.05.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the defendant is liable to pay the recovered amount jointly and severally with simple interest at 8% per annum.
What is the appropriate rate of interest to be granted considering drastic changes in market rates.
Whether a recovery certificate should be issued in view of the ex-parte proceedings.
1 provisions across 1 enactments
Punjab & Sind Bank
Smt. Surinder Kaur
Sh. Parminder Singh
Sh. Sukhdev Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
