The Debts Recovery Tribunal allowed the Applicant's Original Application for recovery of Rs. 22.57 lakhes against Respondents. The Tribunal directed payment of the principal, costs, and simple interest at 8% p.a. subject to execution proceedings.
Recovery of Rs. 22,57,678.75 jointly and severally with costs and simple interest at 8% p.a. Recovery Certificate issued.
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.1157/2024
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 16.08.2024
DATE OF DECISION: 19.02.2025
Union Bank of India, a body corporate and banking company constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and amongst other places Branch at LIC Building, Jeevan Jyothi, Ground Floor, G.T. Road, Moga, Punjab through Sh. Sukhad Arora, Branch Manager, Principal Officer and Authorized Signatory of applicant.
……..Applicant
Versus
…….Defendants
Advocates:
Argued by Sh. Pankaj Beri, Advocate for the applicant (through VC) Defendants are ex-parte
FINAL ORDER
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Documents executed:-Authority Letter dated 10.07.2024, which is Annexure A1 to this OA; D.P. Note, Take Delivery Letter to DPN, Request for Overdraft Facility, Letter of Undertaking, Common Deed of Hypothecation of Crops & Guarantee Agreement all dated 17.06.2016, which are Annexures A5 to A10 to this OA; Notice dated 29.03.2024, which is Annexure A12 to this OA and Statement of Account duly certified, which is Annexure A13 to this OA.
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proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,57,678.75p (Rupees Twenty Two Lacs Fifty Seven Thousand Six Hundred Seventy Eight and Paise Seventy Five Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.90%p.a. along with penal interest @2%p.a.with half yearly rests from 01.06.2024 till the realization.
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 @08.00%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.22,57,678.75p (Rupees Twenty Two Lacs Fifty Seven Thousand Six Hundred Seventy Eight and Paise Seventy Five Only) jointly and severally, with costs, current and future simple interest @08.00%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
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| prope | rties of the defendants in execution pr | oceedings if not sold earlier |
|---|---|---|
| under | the provisions of the SARFAESI Act, | 2002. If the dues of the |
| applic | ant still remain unsatisfied, it shall | be entitled to recover the |
| same | by attachment and sale of personal | assets of the defendants. |
| The a | pplicant is at liberty to enforce the cla | im through due process of |
| law. | ||
| 12. | Any other application pending stands | disposed of. |
| 13. | Issue Recovery Certificate accordingly | . |
| 14. | Parties to appear before Learned | Recovery Officer of this |
| Tribun | al on 21.03.2025. | |
| 15. | Copy of this order be given dasti to t | he applicant and be sent to |
| defen | dants through registered/speed post | and this order be also |
| uploa consig Pron |
ded on the official website of this ned. ounced by me in the open Tribunal. |
Tribunal and record be |
| Dated | : 19.02.2025 | |
| (MRI | DULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh |
2 issues framed by the court
Whether the Original Application filed under Section 19 of RDBFI Act for recovery of debt is maintainable.
Whether simple interest at 8% per annum should be granted instead of the claimed rate.
2 provisions across 2 enactments
Union Bank of India
Sh. Baljeet Singh
Sh. Balwinder Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
