Debts Recovery Tribunal allowed an Original Application filed by Canara Bank for recovery of an outstanding agricultural loan of approximately Rs. 43.72 lakhs from the borrower and guarantor, who appeared ex-parte.
Declarations of liability to pay Rs. 43,72,952 plus 8% p.a. interest; issuance of Recovery Certificate; liberty to proceed under SARFAESI Act.
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.296/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 28.02.2023
DATE OF DECISION: 25.07.2024
Canara Bank, a body corporate and nationalized bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, with its Head Office at 112, J.C. Road, Bangalore and amongst other branches, a branch at Jagraon, Ludhiana, Punjab through its General Power of Attorney Sh. Aman Deep Arora
……..Applicant Versus 1. Sh. Dilbag Singh S/o Sh. Bagh Singh, R/o Village Leelan, Tehsil Jagraon, District Ludhiana, Punjab-142033 (Borrower) 2. Smt. Karamjit Kaur W/o Sh. Mandeep Singh, R/o Village Leelan, Tehsil Jagraon, District Ludhiana, Punjab-142033 (Guarantor) ….……Defendants Advocates: Argued by Ms. Kanchan Sehgal, Advocate for the applicant Defendants are ex-parte
FINAL ORDER
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A10 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.43,72,952.00 (Rupees Forty Three Lacs Seventy Two Thousand Nine Hundred and Fifty Two only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.75%p.a. plus penal interest @2%p.a. from 01.10.2022 till the realization. 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 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.43,72,952.00 (Rupees Forty Three Lacs Seventy Two Thousand Nine Hundred and Fifty Two 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
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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 applicant bank is entitled to recovery of the outstanding loan amount under Section 19 of the RDBFI Act.
What rate of interest should be applicable on the balance amount from the date of filing of the Original Application.
2 provisions across 2 enactments
Canara Bank
Sh. Dilbag Singh
Smt. Karamjit Kaur
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
