The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 27.14 Lakhs. The court upheld the liability of the defendant and granted simple interest at 8% per annum pending realization.
Declaration of liability; Recovery Certificate issued; Recovery of principal and interest at 8% p.a.; Enforcement via sale of mortgaged or personal properties.
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.912/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 28.07.2023
DATE OF DECISION: 30.07.2024
Punjab National Bank, a body corporate, constituted by and under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and one of its Branch at Bariwala, Tehsil Bariwala, District Shri Mukstar Sahib and a Circle Sastra Division Fazilka, Tehsil & District Fazilka (Punjab) through its General Power of Attorney holder Sh. Sandeep Kumar Doda, Officer presently posted at its Circle Sastra Office at Fazilka, Punjab 152123.
Versus
….……Defendant
Advocates:
Argued by Sh. Kamal Dev Sharma, Advocate proxy for Sh. Aseem Kataria, Advocate for the applicant
Defendant is ex-parte
FINAL ORDER
the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 14.05.2018, which is
Annexure A1 to this OA.
2
application dated 17.10.2015 and ATL Loan of Rs. 1.00 Lacs vide loan application 04.11.2015.
Documents executed:- Hypothecation Agreements and Letters of Undertaking both dated 04.11.2015, which are Annexures A4 to A7 to this OA; Letters of Balance & Security Confirmation dated 07.11.2017, 01.01.2020, 14.11.2022, 14.11.2022, which are
Annexures A11, A11/A, A12, A12/A, A13, A13/A to this OA; Legal Notice dated 14.06.2023, which is Annexure A14 to this OA and Statements of Accounts with Certificate which are Annexures A15 and A16 to this OA.
3
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 both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.
4
Pronounced by me in the open Tribunal. Dated: 30.07.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the bank is entitled to recover the outstanding loan amount along with interest under Section 19 of the RDBFI Act, 1993.
Whether the Tribunal has the discretion to modify the rate of interest claimed by the applicant.
3 provisions across 3 enactments
Punjab National Bank
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
