The DRT allowed the bank's application for recovery of an NPA agricultural loan. The court granted the principal amount plus future simple interest at a uniform 8% per annum, ordering the defendants to pay jointly and severally.
Recovery of Rs.28,78,765.74 with simple interest @8% p.a. from 07.08.2023; issuance of Recovery Certificate.
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-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.1132/2023
DATE OF INSTITUTION: 07.08.2023
DATE OF DECISION: 22nd DAY OF DECEMBER, 2023
ICICI Bank Limited , having its registered office at Land Mark, Race Course Circle, Vadodara-390007, having its Branch at Ganaur, Sonipat, Haryana, also at ICICI Bank Limited, S.C.O No. 143, City Emporium Mall, Industrial Area, Phase-I, Chandigarh-160002, through its Authorised Representative, Sh. Parveen Kumar
…..Applicant
Versus
…..Defendants
Argued by: Sh. Saurabh Bhardwaj proxy counsel for Sh. Amit Rishi counsel for the applicant bank Defendants ex parte vide order dated 20.09.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy Act,
1993 (hereinafter referred to as ‘the Act’ for brevity), a gainst the defendants for recovery of Rs.28,78,765.74/- (Rupees Twenty
OA/1132/2023 ICICI BANK Vs RAKESH KUMAR AND OTHERS 2
Eight Lac Seventy Eight Thousand Seven Hundred Sixty Five and
Seventy Four Paisa Only) . It has been filed through Sh. Parveen Kumar, Authorised Representative of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 09.03.2021, Annexure-A1 (copy).
OA/1132/2023 ICICI BANK Vs RAKESH KUMAR AND OTHERS 3
becoming irregular and it being classified as NPA on 30.04.2023. The applicant bank recalled entire outstanding amount vide notice dated 03.06.2023 along with its postal details, Annexure-A7 (colly) (copy), but to no avail.
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.28,78,765.74/- (Rupees Twenty Eight Lac Seventy Eight Thousand Seven Hundred Sixty Five and Seventy Four Paisa Only) , is recoverable against the defendants as per statement of account, certified under Bankers’ Books Evidence Act, 1891, Annexure-A8 (colly) (copy).
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/1132/2023 ICICI BANK Vs RAKESH KUMAR AND OTHERS 4
for availing of the loan facility which was granted to them. It is further clear that the defendants had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.28,78,765.74/- (Rupees Twenty Eight Lac
Seventy Eight Thousand Seven Hundred Sixty Five and Seventy Four Paisa Only) from the defendants.
This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, purpose of loan, i.e. agricultural , present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/1132/2023 ICICI BANK Vs RAKESH KUMAR AND OTHERS 5
Eight Thousand Seven Hundred Sixty Five and Seventy Four Paisa Only) with current and future simple interest @8% per annum w.e.f. 07.08.2023 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendants in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. However, the applicant bank is at liberty to enforce the claim through due process of law.
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount and interest from the defendants.
What rate of interest should apply to the recovered amount considering prevailing economic conditions.
1 provisions across 1 enactments
ICICI Bank Limited
Rakesh Kumar
Ram Mehar
Amit
M.M. Dhonchak
As recorded by the court registry
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