The Debt Recovery Tribunal allowed a recovery application filed under the RDBFI Act. The court declared the defendants jointly and severally liable for Rs. 20,54,311, reducing the interest rate to 8% p.a., and power of acquisition and sale of properties.
The defendants to pay Rs.20,54,311 with simple interest at 8% p.a.; 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.601/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 29.03.2023
DATE OF DECISION: 30.05.2024
Union Bank of India (erstwhile Corporation Bank) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and one of its Branch Offices at SCF-35, New Grain Market, Muktsar, Punjab through is Branch Manager, Sh. Vinod Kumar
……..Applicant Versus 1. Sh. Balwinder Singh S/o Sh. Gurdev Singh, R/o H.No.159, School Wali Firni, Gurudwara Wali Gali, Muktsar, Punjab (Borrower) 2. Sh. Samsher Singh S/o Sh. Gurdev Singh, R/o H.No.81, Village Vadhai Part-1, Tehsil -2, District Muktsar, Punjab (Guarantor) ……Defendants Advocates: Argued by Sh. Ravi Mishra, counsel proxy for Sh. Karan Singla, counsel for the Applicant Defendants are ex-parte FINAL ORDER 1. Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.20,54,311.00 (Rupees Twenty Lacs Fifty Four Thousand Three Hundred and Eleven only). The Original Application has been filed through Sh. Vinod Kumar, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 06.07.2015, which is Annexure A1 to this OA.
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the applicant bank had proved its case. From the perusal of all the Annexures A1 to A11 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.20,54,311.00 (Rupees Twenty Lacs Fifty Four Thousand Three Hundred and Eleven 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 @11.25%p.a. with quarterly rests from 01.03.2023 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.20,54,311.00 (Rupees Twenty Lacs Fifty Four Thousand Three Hundred and Eleven 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 14.06.2024. 15. Copy of this order be given dasti to the applicant bank and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the Open Tribunal.
Dated: 30.05.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the defendants are liable to repay the outstanding loan amount along with interest to the bank.
Whether to adjust the interest rate claimed by the applicant bank.
2 provisions across 2 enactments
Union Bank of India
Sh. Balwinder Singh
Sh. Samsher Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
