The Debts Recovery Tribunal allowed the Bank of India's application for recovery of Rs. 21 lakhs against the defendants. The court modified the claimed interest rate to 8% p.a. and ordered the issuance of a recovery certificate.
Recovery Certificate issued; Defendants ordered to pay Rs. 21,61,727.00 jointly and severally with 8% simple interest p.a.
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.428/2022
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 12.10.2021
DATE OF DECISION: 22.04.2025
Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head Office at “Star House”, C-5, G-Block, 2nd Floor, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and one of its branches at Pohir Branch, District Ludhiana through Sh. Vinod Kumar, Chief Manager & Constituted Attorney presently posted as Chief Manager, Bank of India, Asset Recovery Department, Zonal Office, Rakh Bagh, Ludhiana.
……..Applicant Versus
………. Defendants
Advocates: Argued by Sh. R V Mehra, Advocate for the applicant (through VC) Defendants are ex-parte
FINAL ORDER
2 OA NO.428/2022
BANK OF INDIA VS SUKHWINDER SINGH AND ANOTHER
3 OA NO.428/2022
BANK OF INDIA VS SUKHWINDER SINGH AND ANOTHER
Conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A28 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,61,727.00 (Rupees Twenty One Lacs Sixty One Thousand Seven Hundred Twenty Seven Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.80%p.a. with half yearly rests from 11.10.2021 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 loans and prevalent market rates of
4 OA NO.428/2022 BANK OF INDIA VS SUKHWINDER SINGH AND ANOTHER
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 accounts 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.21,61,727.00 (Rupees Twenty One Lacs Sixty One Thousand Seven Hundred Twenty Seven Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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 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.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
5
OA NO.428/2022
BANK OF INDIA VS SUKHWINDER SINGH AND ANOTHER
2 issues framed by the court
Whether the applicant is entitled to recovery certificate for the outstanding amount from the defendants.
What rate of interest should be awarded as pendent lite and future interest.
2 provisions across 2 enactments
Bank of India
Sh. Sukhwinder Singh
Sh. Jaspal Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
