The Tribunal allowed an ex-parte application filed by Canara Bank under Section 19 of the RDDBFI Act, 1993 for recovery of Rs. 5.46 crores. The(defendants) were directed to pay the principal amount along with simple interest at 8.00%p.a.
Recovery of Rs.5,46,57,433.53p jointly and severally with simple interest at 8.00%p.a. and issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.682/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 11.05.2023
DATE OF DECISION: 18.05.2024
Canara Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at JC Road, Bangalore, Karnataka and Branch Offices, amongst others at Main Mall, Kapurthala, Punjab through Sh. Charanjit Ram, Power of Attorney holder
……..Applicant
Versus
Advocates:
Argued Sh. R.S. Bhatia, Advocate for the applicant Defendants are ex-parte
FINAL ORDER
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vide Loan Application dated 12.02.2016. Defendant No.2 stood as Guarantor.
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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.5,46,57,433.53p (Rupees Five Crore Forty Six Lacs Fifty Seven Thousand Four Hundred Thirty Three and Fifty Three Paisa only) jointly
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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.
Dated: 18.05.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the application filed under Section 19 of the RDDBFI Act, 1993 for recovery of the outstanding loan amount is to be allowed upon ex-parte hearing.
What rate of interest should be applied to the loan account given the drastic fall in market rates.
2 provisions across 2 enactments
Canara Bank
Sh. Vishal Soni
Sh. Rajinder Kaura
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
