The Debt Recovery Tribunal allowed the bank's application declaring the respondent liable to repay a loan amount with interest. The tribunal reduced the claimed future interest rate to 8% per annum before issuing the recovery certificate.
Declaration of liability to pay Rs.22,56,079.03 with simple interest at 8.00% p.a., and issue of 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.940/2024
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 08.07.2024
DATE OF DECISION: 07.12.2024
Punjab National Bank, a Body Corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act No. V of 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and amongst its branches, one at Circle SASTRA Centre, Chotti Baradari, Patiala, through its General Attorney, Mr. Gurcharan Singh, Senior Manager.
……..Applicant
Versus
Sh. Raghvir Singh S/o Sh. Mahinder Singh, R/o H.No.212, Village Sonta (Sounta), Sub-Tehsil Ghanaur, District Patiala-140702.
….……Defendant
Advocates:
Argued by Sh. Sukhvinder Singh, Advocate proxy for Sh. Jatinder Kumar Sharma, Advocate for Applicant Defendants are ex-parte
FINAL ORDER
2
Documents executed:- Hypothecation Agreement, Supplementary Agreement, Letter of consent and Declaration regarding agricultural land all dated 10.02.2016, which are Annexures A4, A5, A7 & A9 to this OA; Letter of undertaking dated 01.03.2016, which is Annexure A6 to this OA; Letter of consent dated 10.03.2016, which is Annexure A8 to this OA; Copy of affidavit dated 29.01.2016, which is Annexure A11 to this OA; Copy of Balance and security confirmation are dated 09.02.2018, 12.01.2021 & 06.06.2023, which are Annexures A12 to A14 to this OA; Copy of notice with postal receipts dated 09.05.2023, which is Annexure A15 to this OA and Account Statement with computer certificate dated 30.06.2024, which is Annexure A16 to this OA .
3
Annexures A1 to A16 to this OA, it is proved that the defendant approached applicant bank 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 bank is entitled to recover a sum of Rs.22,56,079.03p (Rupees Twenty Two Lacs Fifty Six Thousand Seventy Nine and Three Paisa Only) along with interest from the defendant, 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 defendant, quantum of loans 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.22,56,079.03p (Rupees Twenty Two Lacs Fifty Six Thousand Seventy Nine and Three 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.
4
Accordingly, the applicant bank 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.
Pronounced by me in the open Tribunal . Dated: 07.12.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether the debt recovery tribunal can reduce the claimed interest rate from 9.50% to 8% per annum.
1 provisions across 1 enactments
Punjab National Bank
Sh. Raghvir Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
