DRT allowed the bank's application for recovery of Rs.23,26,344/- outstanding on an NPA loan account. The court fixed a uniform simple interest rate at 8% p.a. and directed issuance of a recovery certificate.
Recovery certificate issued directing defendant to pay Rs.23,26,344/- plus 8% simple interest with liberty for execution under SARFAESI Act.
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.782/2022
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 25.04.2022
DATE OF DECISION: 29.08.2024
Punjab National Bank, a body corporate and nationalized Bank under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst other a Branch office at Ajitwal, District Moga through its Constituted Attorney and Senior Manager Sh. Sandeep Kumar posted at Circle Office, Moga.
……..Applicant
Versus
Phula Singh, Tehsil & Distt. Moga.
….……Defendant
Advocates:
Argued by Sh. Sonal Chabra, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant Defendant is ex-parte
FINAL ORDER
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Documents executed:- Amalgamation Notification dated 04.03.2020, which is Annexure A2 to this OA; Agreement of Hypothecation dated 21.10.2011, which is Annexure A5 to this OA; Legal Notice dated 07.02.2022 with postal receipt, which is Annexure A6 to this OA and Statement of account duly certificate, which is Annexure A7 to this OA.
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granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.23,26,344.00 (Rupees Twenty Three Lacs Twenty Six Thousand Three Hundred & Fourty Four Only) along with interest from the defendant, jointly and severally, from the date of filing of the present Original Application till realization of the account.
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 defendant, 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 @08.00%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 is entitled to recover the outstanding loan amount from the defendant.
Whether the uniform simple interest rate should be granted considering current market rates.
1 provisions across 1 enactments
Punjab National Bank
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
