Debts Recovery Tribunals and Appellate Tribunals
Smt Kamlesh Sood vs The Baghat Urban Cooperative Bank on 16 March 2020
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DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
MA No.107/2018 SMT.KAMLESH SOOD VS. THE BHAGAT URBAN CO-OPERATIVE BANK LTD.
16.03.2020 Item No.52
Present: Adv. Ashwani Sharma & Adv.Mayank Sharma, Counsel Counsel for the Applicant.
Adv.Yogesh Jain, Counsel for respondent bank.
In this case an Award was passed by arbitrator alongwith an interest @ 13.50%, but it has not been specifically mentioned that whether it is simple interest or compound interest. On this issue Hon’ble Himachal Pradesh High Court has given directions to this Tribunal to decide the dispute regarding interest on the award passed by the arbitrator whether it is simple interest or compound interest. I have heard the arguments of both the Ld. Counsels. Counsel for applicant has argued that when it is not specifically mentioned that what interest should be charged than only simple interest should be charged. On the other hand side counsel for respondent bank has stated that as per loan documents the borrower had agreed to paid compound interest on this amount. I have heard the arguments of both the Ld. Counsels and perused the file & documentary evidence annexed by. It is clear that arbitrator has passed an award alongwith interest @ 13.50%. But it has not been specifically mentioned that whether it will be simple or compound interest. It is well settled principal of law that when it is not specifically mentioned that what kind of interest shall be charged than only simple interest can be charged in those circumstances and since this amount has been calculated in the shape of an award passed by an arbitrator therefore the documents signed by the borrower at the time to taking loan cannot be considered at this stage as far as compound interest is concerned. Since the order of arbitrator is silent on interest part whether it is simple interest or compound interest. Therefore, in my view respondent bank is entitled to get recover this amount alongwith only simple interest @ 13.50%.
DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
Therefore, as per mentioned above reason this MA is disposed of with the directions that respondent bank will charge interest @13.50% as simple interest on the amount passed by the arbitrator as an award. In view of above, this MA is disposed off. The copy of this order be given to the parties as per rules and thereafter file be consigned to record room.
(Sanjeev Mago) Presiding Officer DRT-I, Chandigarh (Additional Charge)
Manoj 16.03.2020