The Debts Recovery Tribunal approved an application by Canara Bank to recover Rs. 29,19,408 from the defendants. The Tribunal fixed the interest rate at 8% per annum and directed recovery from mortgaged/sale properties or personal assets.
Recovery of Rs. 29,19,408 with simple interest @8% p.a. to be realized from mortgaged properties or personal assets.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.666/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 10.05.2023
DATE OF DECISION: 05.06.2024
Canara Bank, a body corporate, constituted under Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at J.C. Road Bangalore, and inter alia a Branch Office at Banur, Tehsil & District –SAS Nagar (Mohali), Punjab through its attorney and Principal Officer, Sh. Rahul Sharma, Manager.
……..Applicant
….……Defendants Advocates: Argued by Sh. Kanwar Ashok Kumar Davesar, Advocate for the applicant Defendants are ex-parte 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.29,19,408.00 (Rupees Twenty Nine Lacs Nineteen Thousand Four Hundred and Eight only). The Original Application has been filed through Sh. Rahul Sharma, Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 01.10.2016, which is Annexure A1 to this OA.
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for KCC dated 30.05.2019, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor.
Documents executed:- Agreement & Deed of hypothecation, Guarantee Agreement with Guarantee Covering Letter both dated 25.06.2019, which are Annexures A7 & A8 to this OA; Acknowledgement of Debt & Security dated 23.05.2022, which is Annexure A9 to this OA; Legal Notice dated 01.04.2023 along with postal Receipts, which is Annexure A10 to this OA and Statement of Account Certified under Banker Books Evidence Act 1891, which is Annexure A11 to this OA.
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| 8. Heard |
ex-parte arguments and perused record. |
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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 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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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank was entitled to recover the outstanding loan amount from the defendants jointly and severally.
Whether the Tribunal could exercise discretion to fix a uniform simple interest rate considering market conditions.
1 provisions across 1 enactments
Canara Bank
Sh. Jodvir Singh
Sh. Sukhwinder Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
