Debts Recovery Tribunal allowed an application filed by Canara Bank for recovery of Rs.33,36,548.00 against two borrowers who failed to repay a KCC loan. The court adjusted the future interest rate to 8% p.a. and issued a recovery certificate.
Recovery of Rs.33,36,548.00 with costs and future simple interest @8% p.a. issued via Recovery Certificate.
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.845/2023
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 14.07.2023
DATE OF DECISION: 19.09.2024
Canara Bank, having its head office at 112, J.C. Road Bangalore and having branches all over India and one of its branches amongst other places at Kapurthala Main Branch, The Mall Road, Kapurthala, District Kapurthala (Punjab)-144601, through its Branch Manager/General Attorney Holder Sh. Charanjit Ram
……..Applicant
Versus
Both resident of Village Brindpur, Tehsil & District Kapurthala (Punjab)
…..Defendants
Advocates:
Argued by Sh. S.C. Prajapati, Advocate proxy for Sh. Nitin Grover, Advocate for Applicant Defendants are ex-parte
FINAL ORDER
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Annexures A1 to A13 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.33,36,548.00 (Rupees Thirty Three Lakh Thirty Six Thousand Five Hundred Forty Eight Only) along with interest from the defendants, 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 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,36,548.00 (Rupees Thirty Three Lakh Thirty Six Thousand Five Hundred Forty Eight Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of
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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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 11.10.2024. 15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 19.09.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount along with interest from the joint and several liability of the defendants.
Whether the Tribunal should modify the claimed future interest rate from 11% to 8% per annum.
Whether a Recovery Certificate should be issued against the defendants for the sanctioned amount.
2 provisions across 2 enactments
Canara Bank, through Branch Manager Sh. Charanjit Ram
Mr. Gulzar Singh s/o Sh. Amar Singh
Mr. Balkar Singh s/o Sh. Amar Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
