Supreme Court rules suspense account interest recoverable as debt
The case concerns a dispute between Punjab National Bank (PNB) and a charitable trust regarding the recovery of a loan classified as a non-performing asset (NPA). The core issue is whether interest accumulated in a suspense account after NPA classification is recoverable as part of the 'debt' and whether the High Court's calculation of the outstanding dues was correct.
Appellant: Punjab National Bank (PNB); Respondents: M/s. Shree Jyoti Education and Management Trust World and Tara Prasad Satpathy (Managing Trustee); Bench: Justice Sanjay Kumar.
- Allowed the appeals filed by PNB.
- Set aside the orders dated 11.01.2024 and 14.05.2024 passed by the Division Bench of the Orissa High Court.
- Restored the order dated 01.09.2023 passed by the Debts Recovery Appellate Tribunal (DRAT), Kolkata.
- Held that PNB is entitled to claim interest maintained in a separate suspense account in addition to the outstanding principal.
- Directed that the rate of pendente lite and future simple interest be scaled down to 9% per annum on the decretal amount of ₹54,90,413/- from 05.02.2018 till the date of realization.
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Document details
| Official title | Interest Accumulated In Suspense Account After NPA Classification Remains Recoverable As Part Of "Debt" : Supreme Court |
| Source body | Supreme Court of India — orders & judgments |
| Reference number | — |
| Status | closed (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |