The DRT allowed the bank's recovery application against a non-appearing defendant. The court affirmed the liability to pay a principal sum but reduced the claimed interest rate to 8% p.a. and directed issuance of a Recovery Certificate.
Recovery Certificate issued for Rs. 24,88,338 with future interest at 8% p.a. Defendant to appear before Recovery Officer.
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.956/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 07.06.2024
DATE OF DECISION: 10.12.2024
Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi110075 and inter alia one of its Branch Office at Khanauri, District Patiala, (Punjab) represented through its General Power of Attorney holder Mr. Mithun Chakravarti, Manager of the Applicant Bank presently posted at Circle SASTRA Centre, 2nd Floor, SCO 146, Opposite Improvement Trust Complex, Chotti Baradari, Patiala, Punjab-147001.
……..Applicant
Versus
Smt. Kanwaljit Kaur wife of Sh. Kuldeep Singh, resident of H.No.34, Village Sagra, Tehsil Patran, District Patiala.
….……Defendant
Advocates:
Argued by Sh. Amrit Singh Kang, Advocate for the applicant (through VC) Defendant is ex-parte
FINAL ORDER
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b. land measuring 29K-00M situated at Village Taipur, Tehsil Patran, District Patiala, Punjab
vide Declaration u/s 4(1) bearing Sr. No.1437-A, dated 15.12.2017 and Letter to Registrar for creation of charge along with their English Translations, which is Annexure A5 to this OA.
Documents executed: - Hypothecation Agreement, dated 16.02.2017, which is Annexure A4 to this OA; Balance and Security Confirmation Letter dated 28.09.2018 and 09.09.2021, which is Annexures A6 to this OA; Notice dated 21.05.2024 along with Postal Receipt, which is Annexure A7 to this OA and Statement of account with certificate, which is Annexure A8 to this OA.
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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 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 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: 10.12.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recovery of the outstanding loan amount under Section 19 of the RDBFI Act, 1993.
Whether the Tribunal should modify the claimed pendent lite interest rate to a uniform simple interest rate.
2 provisions across 2 enactments
Punjab National Bank
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
