DRT allowed the bank's recovery application under Section 19 RDBFI Act. The court granted a uniform simple interest rate of 8% p.a. and ordered recovery from mortgaged and personal assets.
Recovery of Rs.30,72,314.00 with costs and simple interest @ 8% p.a. from filing till realization, enforceable via sale of mortgaged or personal assets.
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.290/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 23.02.2022
DATE OF DECISION: 29.07.2024
Indian Bank (erstwhile Allahabad Bank) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai-600014 and a branch amongst at BRS Nagar, Ludhiana through its duly constituted Attorney Sh. Nepal Singh, Branch Manager
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 defendants for recovery of Rs.30,72,314.00 (Rupees Thirty Lakhs Seventy Two Thousand Three Hundred Fourteen only) The Original Application has been filed through Sh. Nepal Singh, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 29.01.2003 which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 had approached the applicant bank for the grant of KCC Limit of Rs.15.00
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Lacs vide Loan Application dated 28.09.2013, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor.
Annexure A3A to this OA.
Documents executed:- Voter I.D. of Defendant No.1 in file 3, which is Annexure A4 to this OA; DP note, Hypothecation Agreement, Deed of Guarantee & consent letter all dated 11.10.2013, which are Annexure A4A, A5, A6 & A8 to this OA; D.P. Note, Supplementary agreement both dated 26.03.2018, which are Annexure A9 & A10 to this OA; Acknowledgement of debt dated 29.11.2018, which is Annexure A11 to this OA; Recall notice dated 12.02.2020, 10.07.2020, and 16.01.2021 with postal receipt, which are Annexure A12 to A14 to this OA; Legal notices dated 14.07.2020 and 31.01.2022, which are Annexure A15 and A16 to this OA and Statement of account with certificates, which is Annexure A17 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.30,72,314.00 which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
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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 defendants, 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
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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.30,72,314.00 (Rupees Thirty Lakh Seventy Two Thousand Three Hundred Fourteen only) jointly and severally, 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.
Pronounced by me in the open Tribunal . Dated: 29.07.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
1 provisions across 1 enactments
Indian Bank (erstwhile Allahabad Bank)
Sh. Balwinder Singh
Sh. Kulwinder Singh
Mridulesh Kumar Singh
As recorded by the court registry
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