The Tribunal allowed the bank's application for recovery of Rs. 21,54,244.25 owed by a proprietorship concern. Ex-parte proceedings were followed. Interest rate was modified to 8% p.a.
Recovery of Rs. 21,54,244.25 jointly and severally with costs and simple interest @8% p.a. till realization. Recovery from sale of hypothecated properties.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.705/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 20.03.2024
DATE OF DECISION: 14.11.2024
Canara Bank, a body corporate and nationalized bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at J.C. road, Banglore and amongst other a branch office at Sarabha Nagar, Ludhiana, District Ludhiana, Punjab, through its Constituted Attorney and Manager Sh. Srinivas Behera.
……..Applicant
Versus
2. Sh. Harpreet Singh S/o Sh. Sucha Singh, proprietor M/s Happy Enterprises, a proprietorship concern having its registered office at Ward No. 6, Laxmi Colony Kailash Nagar, Ludhiana, district Ludhiana, Punjab.
2nd Address :- House No. 126, Rahon Road VPO Hawas, Basti Jodhewal, Ludhiana, District Ludhiana, Punjab.
………Defendants
Advocates:
Argued by Sh. Aseem Kataria, Advocate for the applicant Defendants are ex-parte
FINAL ORDER
2
Application has been filed through Sh. Srinivas Behera, Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney/ Authority Letter dated 11.08.2023, which is Annexure A1 to this OA.
3
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.
4
Rs.21,54,244.25p (Rupees Twenty One Lacs Fifty Four Thousand Two Hundred Forty Four and Paisa Twenty Five 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 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 applicant 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.
Pronounced by me in the open Tribunal . Dated: 14.11.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the original application for recovery of the outstanding loan amount filed under Section 19 of the RDBFI Act is maintainable.
Whether the Tribunal should modify the claimed interest rates to a uniform simple interest rate.
Whether the defendants are liable to pay the loan amount jointly and severally with interest.
2 provisions across 2 enactments
Canara Bank
M/s Happy Enterprises
Sh. Harpreet Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
