The Debts Recovery Tribunal allowed the bank's application to recover a loan principal of Rs. 49.47 Lakhs granted to the defendants, confirming liability and ordering recovery through hypothecated properties.
Recovery of Rs.49,47,103.10 with 8% p.a. simple interest from sale of mortgaged properties.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.818/2024
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 26.06.2024
DATE OF DECISION: 08.11.2024
Indian Overseas Bank, a body corporate and nationalized Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 with its Head Office at 763, Anna Salai, Chennai-600002 and amongst others at branch at New Grain Market, Muktsar, Tehsil and District Sri Muktsar Sahib Punjab 152026 through its Branch Manager, Principal officer and Constituted Attorney Sh. Gaurav Sharma.
……..Applicant Versus
………. Defendants
Advocates:
Argued by Ms. Sonal Chabra, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant (through VC) Defendants are ex-parte
FINAL ORDER
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who is competent to institute the Original Application vide Power of Attorney dated 09.01.2017, which is Annexure A1 to this OA.
Documents executed:-Agreement of Term Loan and Hypothecation, Term Loan Agreement, Letter of Undertaking & Guarantee Deed all dated 11.01.2019, which are Annexures A4 to A7 to this OA; Confirmation Letter of Deposit of Title Deeds dated 14.01.2019, which is Annexure A9 to this OA; Valuation Report dated 13.11.2018, which is Annexure A10 to this OA; Revival Letters dated 10.01.2022 & 21.10.2022, which is Annexure A11 to this OA; Demand Notice U/s 13(2) of SARFAESI Act dated 12.03.2024, which is Annexure A12 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A13 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 of Rs.49,47,103.10p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 30.10.2024.
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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 @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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Pronounced by me in the open Tribunal . Dated: 08.11.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether the applicant is entitled to recover the outstanding loan amount along with interest from the jointly and severally liable defendants.
2 provisions across 2 enactments
Indian Overseas Bank
Sh. Balraj Singh
Sh. Natha Singh
Smt. Malkeet Kaur
Mridulesh Kumar Singh
As recorded by the court registry
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