The Debts Recovery Tribunal fixed the future interest rate at 6% per annum and granted a recovery certificate for Rs. 27,28,662 to State Bank of India against Smt. Inderjeet Kaur for default in repayments, allowing enforcement via sale of mortgaged property.
Recovery Certificate issued for Rs. 27,28,662 with future Simple Interest @6% p.a. w.e.f. 12.10.2022.
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.1907/2022
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 Act, 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, having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai, one of its local head offices at Sector-17, Chandigarh and Branches all over India, including one at Chhachhrauli, District Yamunanagar, Haryana, through its Branch Manager, Sh. Ravi Prabh
….. Applicant
Versus
Smt. Inderjeet Kaur w/o Sh. Karamjeet Singh r/o Village Tihano, 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 Rs.27,28,662/- (Rupees Twenty Seven Lakh Twenty Eight
OA/1907/2022 STATE BANK OF INDIA VS INDERJEET KAUR 2
Thousand Six Hundred and Sixty Two 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 mortgage are as under:
OA/1907/2022 STATE BANK OF INDIA VS INDERJEET KAUR 3
ii. Legal title verification report dated 10.10.2016, nonencumbrance certificate dated 10.10.2016 and affidavit of verification of the property, Annexure-A6 (colly) (copy).
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.27,28,662/(Rupees Twenty Seven Lakh Twenty Eight Thousand Six Hundred and Sixty Two Only), is recoverable against the defendant as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A10 (copy).
Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate. 7. Notice of the Original Application was duly served upon the defendant, but since none appeared on behalf of the defendant, thus, the defendant was proceeded against ex-parte vide order dated 01.11.2023 .
OA/1907/2022 STATE BANK OF INDIA VS INDERJEET KAUR 4
Ravi Prabh, Branch Manager of the applicant bank was filed.
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
OA/1907/2022 STATE BANK OF INDIA VS INDERJEET KAUR 5
affecting businesses, nature of mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and the defendant being a female, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @6% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/1907/2022 STATE BANK OF INDIA VS INDERJEET KAUR 6
on the official website of this Tribunal.
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the relief of recovery certificate should be granted against the defaulting debtor despite agricultural purpose of the loan.
Whether the rate of interest to be allowed on future dues should be modified from the claimed 10.95% to 6% per annum.
1 provisions across 1 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
