Original application filed by State Bank of India for recovery of debt from defendant. Tribunal allowed the application ex-parte, directed recovery of principal sum with 8% simple interest per annum, and issued recovery certificate.
Recovery of Rs. 34,30,286/- plus 8% simple interest per annum from the date of filing till realization.
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-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.1905/2022
DATE OF INSTITUTION: 12.10.2022
DATE OF DECISION: 19th DAY OF JANUARY, 2024
State Bank of India, a body corporate, constituted under the provisions of the State Bank of India, 1955 (23 of 1955) and the successor to State Bank of Patiala under the Acquisition of State Bank of Patiala Order, No. G.S.R. 159(E) dated 22.02.2017 passed by the Central Government under Section 35 of the State Bank of India Act, 1955 (23 of 1955) having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai, one of its Local Head Offices at Sector-17-A, Chandigarh, Branches all over India including one at Chhachhrauli, District Yamunanagar, Haryana, through its Branch Manager, Sh. Ravi Prabh
….. Applicant
Versus
Sh. Suresh Pal s/o Sh. Ramdhan r/o Village Haldari-Gujran, PO Khadri, Tehsil Chhachhrauli, District Yamunanagar, Haryana
.... Defendant
Argued by: Ms Sonia Gupta proxy counsel for Sh. Pawan K. Gupta, Advocate for the applicant bank Defendant ex parte vide order dated 01.11.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank
under Section 19(1) of the Recovery of Debts due to Banks and
Financial Institutions Act, 1993 (hereinafter referred to as
‘the Act’ for brevity), against the defendant for recovery of
OA/1905/2022 STATE BANK OF INDIA VS SURESH PAL 2
Rs.34,30,286/- (Rupees Thirty Four Lakh Thirty Thousand
Two Hundred and Eighty Six Only). It has been filed through Sh. Ravi Prabh, Branch Manager of the applicant bank stated to be competent to institute the Original Application.
The documents related to the mortgage are as under:
OA/1905/2022 STATE BANK OF INDIA VS SURESH PAL 3
ii. Title Search Report of the property, Annexure-A6 (copy).
Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/1905/2022 STATE BANK OF INDIA VS SURESH PAL 4
the applicant bank in relief clause, has claimed rate of interest @10.95% per annum with half yearly rests. In sanction letter dated 01.08.2016, Annexure-A2 (copy), the rate of interest has been mentioned @11% per annum.
This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of mortgaged property,
OA/1905/2022 STATE BANK OF INDIA VS SURESH PAL 5
purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/1905/2022 STATE BANK OF INDIA VS SURESH PAL 6
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the defendant is liable to repay the outstanding loan amount along with interest.
What rate of interest should be granted considering the prevailing economic conditions.
4 provisions across 4 enactments
State Bank of India
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
