Debts Recovery Tribunal allowed Canara Bank's original application for a recovery certificate against three borrowers defaulting on a KCC loan, adjusting interest to 8% p.a. and ordering joint several liability for execution.
Issuance of Recovery Certificate for Rs.24,60,795.75 plus simple interest at 8% p.a. w.e.f. 01.11.2022 until 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.1995/2022
DATE OF INSTITUTION: 01.11.2022
DATE OF DECISION: 10th DAY OF JANUARY, 2024
Canara Bank , having its Head Office at 112, J.C. Road, Bangalore, Branches all over India and one of its Branches amongst other places at G.T. Road, Babarpur Mandi, District Panipat (Haryana)-132114, through its Branch Manager/Attorney holder, Sh. Kunwar Karan Singh
…..Applicant
Versus
All residents of Village Khotpura, Tehsil and District Panipat, Haryana
Argued by: Sh. S.C. Prajapati proxy counsel for Sh. Nitin Grover counsel for the applicant bank (through VC) Defendants ex parte vide order 10.10.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts due to Banks
and Financia Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.24,60,795.75/- (Rupees Twenty Four Lakh Sixty Thousand
Seven Hundred Ninety Five and Seventy Five Paisa Only) . It
OA/1995/2022 CANARA BANK Vs ISHWAR SINGH AND OTHERS 2
has been filed through Sh. Kunwar Karan Singh, Authorised
Signatory/GPA holder of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 11.06.2018, Annexure-A1 (copy).
The documents relating to the mortgage are as under:
OA/1995/2022 CANARA BANK Vs ISHWAR SINGH AND OTHERS 3
ii. Copy of ‘Jamabandi’ for the years 2014-2015, Annexure-A5 (copy).
iii. Letter dated 15.10.2016 regarding confirmation of mortgage, Annexure-A7 (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.24,60,795.75/- (Rupees Twenty Four Lakh Sixty Thousand Seven Hundred Ninety Five and Seventy Five Paisa Only) , is recoverable against the defendants as per statement of account, certified under Bankers’ Books Evidence Act, 1891, Annexure-A11 (copy).
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/1995/2022 CANARA BANK Vs ISHWAR SINGH AND OTHERS 4
Sh. Kunwar Karan Singh, Authorised Signatory/Attorney holder of the applicant bank was filed.
Four Lakh Sixty Thousand Seven Hundred Ninety Five and Seventy Five Paisa Only) from the defendants.
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
OA/1995/2022 CANARA BANK Vs ISHWAR SINGH AND OTHERS 5
facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of the mortgaged property, purpose of loan, i.e. agriculture , present conditions of economy based on agriculture, quantum of loan, 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.
Sixty Thousand Seven Hundred Ninety Five and Seventy Five Paisa Only) with current and future simple interest @8% per annum w.e.f. 01.11.2022 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendants in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. However, the applicant bank is at liberty to enforce the claim through due process of law.
OA/1995/2022 CANARA BANK Vs ISHWAR SINGH AND OTHERS 6
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to issuance of Recovery Certificate for the outstanding loan amount.
What rate of interest shall apply to the outstanding amount pending realization.
1 provisions across 1 enactments
Canara Bank
Sh. Ishwar Singh
Sh. Inder Singh
Sh. Dharambir Singh
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
