The Debts Recovery Tribunal allowed the bank's original application filed under Section 19 RDDBFI Act. It directed respondents to pay Rs.50,74,425.00 plus interest at 8% p.a. and ordered the issuance of a recovery certificate.
Respondents to pay Rs.50,74,425.00 with costs and interest @8.00%p.a. from filing date; 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.72/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 21.12.2022
DATE OF DECISION: 09.05.2024
Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No. V of 1970, having its Head Office at “Star House”, C-5, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and a Branch Office amongst other places at Kapurthala (Punjab), through its duly constituted attorney, Sh. Ashok Kumar, presently posted as Chief Manager, at Garha Branch, Jalandhar (Punjab)
……..Applicant
Versus
Advocates:
Argued by Sh. Anil Malhotra, Advocate proxy for Ms. Meena Malhotra, Advocate for the applicant Defendants are ex-parte
FINAL ORDER
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Rs.50,74,425.00 (Rupees Fifty Lacs Seventy Four Thousand Four Hundred and Twenty Five only). The Original Application has been filed through Sh. Ashok Kumar, Chief Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 10.06.2020, which is Annexure A1 to this OA.
Documents executed: - D.P. Note, Agreement of loan-cumhypothecation of standing crops, Consolidated/Multipurpose stamp undertaking, Miscellaneous declarations and Deed of guarantee all dated 05.07.2011, which are Annexures A5 to A11 to this OA; Acknowledgments of debts dated 11.10.2013, 27.01.2016 and 27.12.2018, which are Annexures A12, A13 and A15 to this OA; Death certificate of Late Sh. Joginder Singh, which is Annexure A14 to this OA; Legal notice dated 28.02.2020 along with postal receipts, which are Annexures A16 to A20 to this OA; Recall notice dated 10.12.2022 along with postal receipts, which are Annexures A21 to A25 to this OA and Statement of account along with statement of uncharged interest and duly Certified under Banker’s Book of Evidence Act, 1891, which is Annexure A26 to this OA.
| 5. | The loan account became irregular and was classified as NPA and |
|---|---|
| after | adjusting debit and credit entries in loan account there was a debit |
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of Rs.50,74,425.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
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
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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.
Dated: 09.05.2024
2 issues framed by the court
Whether the Applicant Bank is entitled to recover the outstanding dues of Rs.50,74,425.00 from the respondents as joint legal heirs and guarantors.
Whether the Tribunal is justified in varying the claimed pendent elite and future rate of interest to 8% per annum.
2 provisions across 2 enactments
Bank of India
Sh. Jaswant Singh S/o Late Sh. Joginder Singh
Sh. Joga Singh S/o Late Sh. Joginder Singh
Sh. Budh Singh S/o late Sh. Joginder Singh
Sh. Ajit Singh S/o Late Sh. Chanan Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
