Canara Bank v. Pappa
Case brief
What is this about?
The Debts Recovery Tribunal allowed an application filed by a bank to recover a debt of Rs.81,88,624.75p plus interest from the borrowers and guarantors ex-parte. The Tribunal directed payment but modified the interest calculations, disallowing capitalization of penal interest.
What did the court decide?
Defendants to pay total sum of Rs.81,88,624.75p with adjusted interest; bank at liberty to sell mortgaged properties for sufficiency of recovery.
What the court decided
OA No. 06/2023
Fair Order
IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 06TH DAY OF APRIL, 2026 PRESENT: SEEMA SINHA,
[PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER
OA No.06/2023
Between
Canara Bank, Tirunelveli Town II Branch, No.5, S.O, PB, 79, E Car St, Tirunelveli Town, Tirunelveli – 627 006. Rep. By its Branch Manager.
---Applicant Bank
And
- Mrs. Pappa,
- W/o Late S. Madappan, No.1, 1/40, Balapathiramapuram, Melaneelithanallur,
Tirunelveli.
Issues for consideration
2 issues framed by the court
Whether the bank proved its claim for recovery of loan amounts on its own leg?
Whether penal interest can be capitalized and claimed in a debt recovery case?
Parties & counsel
- applicant
Canara Bank, Tirunelveli Town II Branch
- respondent
Mrs. Pappa
- respondent
Mr. Kathiravan
- respondent
Ms. Pongani
- respondent
Mr. Antony Raj
Case details
As recorded by the court registry
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