The Tribunal allowed the recovery application filed under the RDBFI Act. The respondent failed to appear. The Tribunal reduced the claimed interest rate and granted uniform simple interest at 8% p.a. from the date of filing.
Recovery of Rs. 24,08,698.00 plus costs and uniform simple interest at 8% p.a. from the date of filing of the Original Application.
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.218/2024
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 23.10.2023
DATE OF DECISION: 18.09.2024
Punjab Gramin Bank, a body corporate constituted under Regional Rural Bank Act 1976, Act No. 21 of 1976 having its Head Office, at Markfed Road Kapurthala(Pb) and having its branches at different places including one at Nurdi Chowk Tarn Taran, Tehsil and Distt. Tarn Taran (Pb) through its Constituted Attorney/Manager Sh. Manish Garg.
……..Applicant Versus Sh. Gurpartap Singh S/o Sh. Ajit Singh R/o Village Palasaur, Tehsil and Distt. Tarn Taran (PB).
….……Defendant
Advocates:
Argued by Sh. Bhushan Bhatia, Advocate for the applicant (through VC) Defendant is ex-parte
FINAL ORDER
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Documents executed:-Loan Agreement dated 25.03.2011, which is Annexure A4 to this OA; Notice dated 23.08.2022, which is Annexure A6 to this OA; Balance and Security Confirmation Letters dated 22.06.2013, 15.06.2016, 15.03.2019 & 29.10.2020, which are Annexures A7, A7/1, A7/2 & A7/3 to this OA and Statement of Account along with Computer Certificate by the office in-charge, which is Annexure A8 to this OA.
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proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,08,698.00 (Rupees Twenty Four Lacs Eight Thousand Six Hundred Ninety Eight Only) along with interest from the defendant, 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 defendant, 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.
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shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. The applicant is at liberty to enforce the claim through due process of law.
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount of Rs. 24,08,698.00 from the respondent under the RDBFI Act.
Whether the interest rate claimed by the applicant should be modified given the drastic fall in market rates.
1 provisions across 1 enactments
Punjab Gramin Bank
Sh. Gurpartap Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
