The Debts Recovery Tribunal allowed an application filed by Punjab National Bank against defendants for recovery of a loan. The Tribunal deemed it appropriate to grant a uniform simple interest rate of 8% per annum instead of the claimed rate.
Recovery of Rs. 41,42,378.40p with simple interest at 8% p.a. jointly and severally from the defendants.
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.554/2023
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 28.02.2023
DATE OF DECISION: 23.01.2025
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 amongst others a Branch at Overlock Road, Ludhiana, Punjab through Sh. Amit Thind, Deputy Manager and attorney holder presently posted at Circle SATSRA Center, Ludhiana, Site No.5, Ferozepur Road, Ludhiana, Punjab
……..Applicant
Versus
Advocates:
Argued by Sh. Manish Singla, Advocate for the applicant Defendants are ex-parte
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FINAL ORDER
Documents executed:- Overdraft Agreement and Agreement of Guarantee dated 03.06.2006, which are Annexures A4 and A5 to this OA; Letters for deposit of Title Deed dated 03.06.2006, which are Annexures A7 and A8 to this OA; Valuation Report dated 13.03.2019, which is Annexure A9 to this OA; Balance & Security Confirmation Letter dated 03.10.2007, 11.06.2009, 18.04.2012, 11.03.2015, 08.03.2018 and 13.01.2021, which are Annexures A12
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to A17 to this OA; Notice dated 16.12.2019, which is Annexure A18 to this OA and Statement of Account along with Bank Certificate, which is Annexure A19 to this OA.
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jointly and severally, from the date of filing of the present Original Application till realization of the accounts.
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 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.
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2 issues framed by the court
Whether the bank is entitled to recover the outstanding sum from the defendants jointly and severally?
What rate of interest should be granted considering prevailing market rates?
1 provisions across 1 enactments
Punjab National Bank
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
