Debts Recovery Tribunal allowed original application filed by Central Bank of India against borrowers for recovery of Rs.28,56,945.00p. Court reduced claimed interest rate to 8% p.a. and ordered issuance of Recovery Certificate.
Recovery of Rs.28,56,945.00p with simple interest @8.00%p.a.; issue of Recovery Certificate; liberty to enforce claim.
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.794/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 26.05.2023
DATE OF DECISION: 20.02.2025
Central Bank of India, a body corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its head office at Chander Mukhi Building, Nariman Point Mumbai400021 and having one of its branch situated at Central Bank of India Islamia, School, Road, Near Division No.3, Police Chowki, Madhopuri District Ludhiana Punjab through Mrs. Urvashi Sharma, who is presently working as Senior Manager, Central Bank of India Regional Office K.P. Complex, Adj. Hotel Park Plaza, Ferozepur Road, Ludhiana Punjab Constituted Power of Attorney Holder of the applicant and Principal Officer.
……..Applicant
Versus
Advocates:
Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Surinder Nath Sharma, Advocate for Applicant Defendants are ex parte
FINAL ORDER
Section 19 of the Recovery of Debts Due to Banks and Financial
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Institutions Act, 1993, against the defendants for recovery of Rs.28,56,945.00p (Rupees Twenty Eight Lacs Fifty Six Thousand Nine Hundred Forty Five only). The Original Application has been filed through Ms. Urvashi Sharma, Attorney Holder of the applicant, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant for the grant of Term Loan of Rs.25.00 Lacs vide Loan Application dated 03.03.2020, which is Annexure A2 to this OA. 3. The applicant sanctioned the Term Loan of Rs.25.00 Lacs vide sanction letter 28.05.2020, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgage his immovable properties i.e. Plot no.110 Min111, measuring 200Sq yards situated at Meharban, Hadbast No.71, Abadi Known as Aman Enclave, Ludhiana vide Equitable Mortgage of Title Deed bearing Vasika no.2019-20/106/1/23510 dated 20.01.2020, which is Annexure A4 to this OA. Documents executed: Advocate report on title deed, Affidavit by Mrs. Anuradha Devi both dated 06.03.2020, which are Annexures A5 & A6 to this OA; Guarantor consent letter dated 03.03.2020, which is Annexure A8 to this OA; Term loan agreement, Memorandum of deposit of title deed, Supplementary agreement, DP Note, Letter of waiver, Letter of Interest Variation, Form of guarantee for advances and credits generally all dated 29.05.2020, which are Annexure A7, A9, A10 to A14 to this OA; Process note for restructuring, DP Note both dated 24.09.2021, which are Annexures A15 & A16 to this OA; Notice u/s 13(2) dated 01.06.2022, which is Annexure A17 to this OA; Possession notice dated 08.09.2022 which is Annexure A18 to this OA and statements of accounts with certificate, which are Annexures A19 & A20 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.28,56,945.00p, which is recoverable and the defendants were
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| 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. |
| 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded |
| ex-parte on 12.02.2025. |
| 7. In support of the OA, affidavit of Ms. Urvashi Sharma, Attorney Holder, Central Bank of India has been filed. |
| 8. Heard arguments and perused record. |
| 9. It was argued by learned proxy counsel 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 theAnnexures |
| A1 to A20to this OA, it is 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 applicant. The defendants failed to pay back the loan 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.28,56,945.00p (Rupees Twenty Eight Lacs Fifty Six Thousand Nine Hundred Forty 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 @10.30%p.a. along with penal interest @2.00%p.a. with monthly rests from 01.05.2023 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 |
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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.
Pronounced by me in the open Tribunal .
Dated: 20.02.2025
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recovery of the outstanding loan amount and interest from the defendants.
Whether the applicants were entitled to uniform simple interest @8.00%p.a. instead of the claimed rates.
2 provisions across 2 enactments
Central Bank of India
Smt. Anuradha Devi W/o Mr. Manoj Kumar Gupta
Ms. Mahima Gupta D/o Mr. Manoj Kumar Gupta
Mr. Manoj Kumar Gupta S/o Sh. Yamuna Prasad Gupta
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
