In a Securitization Application, the Tribunal awarded simple interest at 6% per annum on refunded amounts lying in an interest-bearing account at the bank, directing the respondent to pay the same, and disposed of the application.
Directed the Respondent Bank to pay simple interest at 6% per annum on the refunded amount for the relevant period.
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Court of the Presiding Officer Debts Recovery Tribunal, Jaipur
Item No. 77
Case No. SA/119/2025
RAJNISH KUMAR Vs CANARA BANK
Date: 04.04.2026.
Proceedings through hybrid mode Present:
Shri Tej Pratap Singh, Counsel for the Applicant
Shri Yash Sharma, Counsel for the Respondent Bank/FI
In this matter, it is vehemently argued on behalf of the applicant that they may be granted interest whereas the counsel for the bank submits that at no point of time the bank was failed and they have taken all steps immediately including move to Hon’ble High Court. Further, the matter cannot be resolved and ultimately they were permitted to proceed fresh.
Vide order dated 21.01.2025 the money has already been refunded and now the question is in respect of interest. Money was lying with the bank, they could have very well known that the same in the interest bearing account, the Tribunal feels that reasonable interest can be paid. Let the bank to pay simple interest of 6% for the period for the amount which was lying with them.
In view of the above, this Securitization Application stands disposed of. File be consigned to record, as per rules. Copy of order be uploaded on website.
(Vimal Gupta) Presiding Officer Debts Recovery Tribunal, Jaipur
2 issues framed by the court
Whether interest should be awarded on money refunded to the applicant from an interest-bearing account.
Rate of simple interest to be awarded for the period the amount was lying with the bank.
Rajnish Kumar
Canara Bank
Vimal Gupta
As recorded by the court registry
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