This Debt Recovery Tribunal allowed an original application filed under Section 19 of the RDBFI Act, 1993 for recovery of a vehicle loan debt. The tribunal fixed uniform simple interest at 8% per annum.
Declaration of liability to pay Rs. 24,79,535 with costs and simple interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce via sale of assets.
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.786/2023
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 21.06.2023
DATE OF DECISION: 14.10.2024
Bank of Baroda, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) act, 1970 having its Head Office at Mandvi, Baroda, (Gujarat) India and having one of its branches at Patti Branch, Opposite new Grain Market, Patti143416, Punjab through its Constituted Attorney holder Sh. Kamaldeep Vinayak, Authorized Officer, posted at Bank of Baroda branch Patti branch, Opposite New Grain Market, Patti-143416, Punjab and being an Authorized Signatory of the bank.
……..Applicant
Versus
…..Defendant
Advocates:
Argued by Ms. Ashmita Goel, Advocate proxy for Sh. Iqbal Mohammed, Advocate for the Applicant
Defendant is ex-parte
FINAL ORDER
2
3
the applicant had proved its case. From the perusal of all the Annexure A1 to A10 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. 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 is entitled to recover a sum of Rs.24,79,535.00 (Rupees Twenty Four Lac Seventy Nine Thousand Five Hundred and Thirty Five Only) along with interest from the defendant from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed further interest @10.50%p.a. plus penal interest @2.00%p.a. with monthly rests from 28.05.2023 the realization.
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 @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 defendant is liable to pay to the applicant a total sum of Rs.24,79,535.00 (Rupees Twenty Four Lac Seventy Nine Thousand Five Hundred and Thirty Five Only) 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
4
applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recovery of the outstanding loan amount along with interest from the defendant.
Whether the Tribunal ought to modify the rate of interest claimed by the applicant.
2 provisions across 2 enactments
Bank of Baroda
Sh. Gagandeep Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
Mridulesh Kumar Singh
Parties & counsel
