The Tribunal allowed the bank's application for recovery of a debt of Rs.1.43 crore against two defendants. The court fixed interest at 8% p.a. and ordered recovery from mortgaged properties or attachment of assets.
Recovery of Rs.1,43,48,977.17 jointly and severally with simple interest @8.00%p.a. Order to issue Recovery Certificate and attachment of assets.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.848/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 14.07.2023
DATE OF DECISION: 25.07.2024
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
….……Defendants
Advocates:
Argued by Sh. S.C. Prajapati, Advocate proxy for Sh. Nitin Grover, Advocate for the applicant Defendants are ex-parte
FINAL ORDER
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vide Application-cum-Appraisal Form dated 03.11.1999 and thereafter approached the applicant bank from time to time for its several renewals/enhancements upto a maximum of Rs.95.00 Lacs vide Loan Applications/Letter Of Renewal dated 02.11.2002, 31.01.2006, 01.10.2008, 10.11.2008, 07.11.2011, 27.03.2012, 31.03.2012 and 13.11.2014, which are Annexures A8, A12, A15, A18, A24, A26, A28, A30, A37 and A38 to this OA. Defendant No.2 stood as guarantor.
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Annexure A9 to this OA; Acknowledgment of debt and security dated 28.07.2005, which is Annexure A10 to this OA; Supplemental agreement dated 31.01.2006, which is Annexure A11 to this OA; Acknowledgment of debt and security dated 24.07.2008, which is Annexure A14 to this OA; Supplemental agreement, Link letter, Acknowledgment of debt and security, Guarantee letter with guarantee agreement all dated 10.11.2008, which are Annexures A17, A19 to A22 to this OA; Acknowledgment of debt and security dated 29.10.2011, which is Annexure A23 to this OA; Letter from the guarantor dated 07.11.2011, which is Annexure A27 to this OA; Supplemental agreement, Link letters and Guarantee covering letter with guarantee agreement all dated 31.03.2012, which are Annexures A29, A31 to A34 to this OA; Acknowledgment of debt and security dated 08.11.2013, which is Annexure A36 to this OA; Letter from guarantor dated 13.11.2014, which is Annexure A39 to this OA; Acknowledgments of debt and security dated 22.09.2016, 13.12.2018 and 04.09.2021, which are Annexures A40 to A42 to this OA; Legal notice dated 12.06.2023 along with postal receipts and track reports, which is Annexure A43 to this OA and Statement of account along with Certificate dated 03.07.2023under Bankers Book Evidence Act, which is Annexure A44 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.1,43,48,977.17p, 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. 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 20.05.2024. 7. In support of the OA, affidavit of Sh. Charanjit Ram, Branch Manager, Canara Bank h as been filed.
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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 @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.
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Rs.1,43,48,977.17p (Rupees One Crore Forty Three Lacs Forty Eight Thousand Nine Hundred Seventy Seven and Seventeen Paisa only) jointly and severally, 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 applicant bank 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 bank 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.
Dated: 25.07.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether to grant uniform simple interest at 8.00%p.a. considering market rates and nature of mortgaged property.
1 provisions across 1 enactments
Canara Bank
Sh. Gurinderjit Singh
Sh. Raghbir Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
