Debt Recovery Tribunal allowed an application under Section 19 of the RDBFI Act for recovery ofRs.24,94,804.45p against borrowers. The Tribunal ordered uniform simple interest at 8%p.a. and directed issuance of a Recovery Certificate for execution.
Directing defendants to repay Rs.24,94,804.45p with interest @8%p.a. and issuing a Recovery Certificate.
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.320/2024
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 21.12.2023
DATE OF DECISION: 22.10.2024
Punjab and Sind Bank, a body corporate constituted under the banking companies (Acquisition and Transfer of Undertakings) Act, 1980 (Act No. 40 of 1980) with its head office at 21, Rajinder Place, New Delhi and branches amongst other places, one at N.G.M. Nabha, District Patiala, through Ms. Sonia Bansal, Senior Manager.
……..Applicant
Advocates:
Argued by Sh. A.B.S., Advocate for the applicant (through VC) Defendants are ex-parte
FINAL ORDER
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for its enhancement to Rs.16.00 Lacs and further for Term Loan of Rs.5.00 Lacs vide Loan applications dated 18.05.2018 and 07.09.2018, which are Annexures A3 & A9 to this OA.
Documents executed:- Forms No. 14, Forms No. 106, Forms No. 199, Letters of Guarantee all dated 18.05.2018 and 07.09.2048, which are Annexures A5 to A8 & A11 to A14 to this OA; B & C Letters dated 07.05.2021 and 01.08.2019, which are Annexures A17 & A18 to this OA; Legal Notice dated 08.11.2023 along with its translations and postal Receipts, which is Annexure A19 to this OA and Account Statement along with Certificate, which are Annexures A20 to A22 to this OA.
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been filed and none appeared on behalf of defendants and they were proceeded ex-parte on 17.10.2024.
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
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both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.
Pronounced by me in the open Tribunal . Dated: 22.10.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recovery of dues from the defendants under Section 19 of the RDBFI Act, 1993.
Whether the defendants are liable to pay interest on the outstanding loan amount.
2 provisions across 2 enactments
Punjab and Sind Bank
Sh. Balbir Singh
Sh. Gurtej Singh
Sh. Kuldeep Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
