The DRT allowed the bank's application for recovery of Rs.22 Lakhs against defaulting borrowers and guarantors. The tribunal adjusted theclaimed interest rate to a uniform 8% p.a. and directed issuance of a Recovery Certificate.
Order declared defendants liable to pay Rs.22,01,146.51 p.a. with 8% p.a. interest; 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.03/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 28.12.2022
DATE OF DECISION: 02.09.2024
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 Railway Road Moga, Tehsil & District Moga, Punjab, through its Attoney Sh. Kanwalpeet Singh Chief Manager, Branch Office at Railway Road, Moga, Tehsil & District Moga, Punjab, duly constituted Attorney of the applicant bank duly authorized by the competent authority of the applicant bank.
……..Applicant Versus 1. Smt. Kamaldeep Kaur W/o Sh. Jagseer Singh, Resident of Village Saffuwala, Tehsil & District Moga, Punjab. (Borrower) 2. Sh. Balwant Singh, S/o Sh. Karam Singh, Resident of Village Jaitu Patti, Saffuwala, Tehsil & District Moga, Punjab. 3. Sh. Jagseer Singh, S/o Sadhu Singh, Resident of Village Thakur Basti, Saffuwala, Tehsil & District Moga, Punjab.
(Guarantors) ….……Defendants Advocates: Argued by Sh. Lovish, Advocate proxy for Sh. Neeraj Madaan, Advocate for the applicant Defendants are ex-parte FINAL ORDER 1. Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.22,01,146.51p (Rupees Twenty Two Lacs One Thousand One Hundred Forty Six and Fifty One Paise only). The Original Application has been filed through Sh. Kanwalpreet Singh, Chief Manager of the applicant bank, who is competent to institute the Original Application
Argued by Sh. Lovish, Advocate proxy for Sh. Neeraj Madaan, Advocate for the applicant Defendants are ex-parte
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vide General Power of Attorney dated 04.12.2018, which is Annexure A1 to this OA.
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therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
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, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while
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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.22,01,146.51p (Rupees Twenty Two Lacs One Thousand One Hundred Forty Six and Fifty One Paise only) 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.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the defendant borrowers and guarantors are liable to repay the outstanding loan amount.
Whether uniform simple interest at 8.00% per annum should be granted instead of the claimed rate.
Punjab & Sind Bank
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
