The Debts Recovery Tribunal allowed the applicant's application for recovery of dues of Rs.33,89,780.00p from the defendants, declaring them liable jointly and severally and granting a fixed rate of simple interest.
Recovery certificate issued for Rs.33,89,780.00p plus costs and simple interest at 8% p.a. from OA filing date until realization.
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.963/2023
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 26.07.2023
DATE OF DECISION: 23.10.2024
Indian Bank, (erstwhile Allahabad Bank), on the basis of Amalgamation Scheme dated 04.03.2022, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970 having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai, Tamil Nadu, 600014 and having its Zonal Office at Chandigarh, and amongst other branches a branch at Patiala through its Chief Manager Mr. Nehil Jindal duly constituted and authorized signatory.
……..Applicant
Versus
Advocates:
Argued by Ms. Deepika Mittal, Advocate for the applicant Defendants are ex parte
FINAL ORDER
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Documents executed:- D.P. Note dated 27.03.2019, which is Annexure A4 to this OA; Consent Clause to be Executed by Borrower dated 26.03.2019, which is Annexure A5 to this OA; Declaration by the Borrower dated 06.11.2019, which is Annexure A6 to this OA; Letter of Mortgagor Confirming Deposit of Title Deeds by Borrower dated 13.11.2019, which is Annexure A7 to this OA; ADV -85, which is Annexure A8 to this OA; ADV-42s dated 26.03.2019, which are Annexures A9 and A10 to this OA; Recall Notice dated 20.11.2020, which is Annexure A14 to this OA; Legal Notice dated 28.10.2022 with postal receipts, which is Annexure A15 to this OA; Acknowledgment of Debt dated 17.03.2020, which is Annexure A16 to this OA; Letter dated 29.08.2020, which is Annexure A17 to this OA; Voucher dated 28.09.2022, which is Annexure A18 to this OA; Notice U/S 13(2) dated 21.12.2022 with postal receipts, which is Annexure A19 to this OA and Account Statement with certificate, which is Annexure A20 to this OA.
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debit of Rs.33,89,780.00p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.
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
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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.33,89,780.00p (Rupees Thirty Three Lac Eighty Nine Thousand Seven Hundred Eighty 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 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.
Pronounced by me in the open Tribunal . Dated: 23.10.2024.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding dues jointly and severally from the defendants.
What is the appropriate rate of interest to be granted on the loan account from the date of filing of the OA till realization.
3 provisions across 2 enactments
Indian Bank
Sh. Sohan Lal S/o Sh. Kaku Ram
Sh. Deepak Kumar S/o Sh. Kaku Ram
Sh. Joginder Singh S/o Sh. Mawa Singh
Mridulesh Kumar Singh
As recorded by the court registry
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