Debts Recovery Tribunal allowed an application by ICICI Bank Limited for recovery of Rs. 43,24,492/- and future interest @ 8% p.a. from two defaulting borrowers against whom ex parte orders were passed due to their absence.
Recovery of sum of Rs. 43,24,492/- with simple interest @ 8% per annum w.e.f. 01.07.2022 and issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.1137 /2022
DATE OF INSTITUTION: 01.07.2022
business under the Banking Regulation Act, 1949, incorporated under the Companies Act, 1956 and having its Registered Office at Near Chakli Circle, Old Padra Road, Vadodara-390-007, Gujrat and Branches at different places throughout India, including one Branch at Yamunanagar, through its General Power of Attorney, Sh. Mohammad DATE OF DECISION: 20 th DAY OF SEPTEMBER, 2023 ICICI BANK LIMITED, a Banking Company, carrying on the banking
Vajid, Manager
' ..... Applicant Bank
Versus
..... Defendants
Argued by: Sh. Mohamad Vajid, Manager for the applicant bank Defendant No.1 ex parte vide order dated Defendant No.2 ex parte vide order dated 13.04.2023 22.11.2022
FINAL ORDER
•
and Financial Institutions Act, 1993 (hereinafter referred to Rs.43,24,492/(Rupees Forty Three Lac Twenty Four Thousand Four Hundred and Ninety Two Only). It has been bank under Section 19( 1) of the Recovery of Debts Due to Banks as 'the Act' for brevity), against the defendants for recovery of filed through Sh. Mohammad Vajid, Manager of the applicant bank stated to be competent to institute the Original Application vide
Power of Attorney dated 18.09.2019, Exhibit -Al (copy).
( copy).
In order to secure the aforementioned credit facilities, the Exhibit-AG ( copy). 4. defendants executed unattested deed of hypothecation dated 29.09.2019, Exhibit-A4 (copy) and irrevocable power of attorney dated 29.09.2019 Exhibit-AS (copy). Registration detail of vehicle is
s. It is further the case of the applicant bank that the loan facility was duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank leading to the loan account becoming irregular and it being classified as NPA. The
r
applicant bank recalled the entire outstanding amount vide notices OA/ 1137 /2022 ICICI BANK LIMITED Vs USHA AND ANOTHER 3
and postal receipts dated 23.02.2021, Exhibit-A9 to A12 (copy), but to no avail.
adjusting debit and credit entries in the loan accounts, a sum of against the defendants as per statements of accounts, under Bankers' Books Evidence Act, 1891, Exhibit-Al (copy) and foreclosure statement of the loan Exhibit-AS (copy). It is further the case of the applicant bank that after Rs.43,24,492/(Rupees Forty Three Lac Twenty Four Thousand Four Hundred and Ninety Two Only), is recoverable
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original . Application for issuance of Recovery Certificate.
I
(Rupees Forty Three Lac Thousand Four Hundred and Ninety Two Only) from the .. - - - -· -· ·--· ·-- ··-- -,...,.... ___ ,,,,,. the applicant bank 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 staled 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.43,24,492/Twenty Four defendants.
In so far as pendente lite and future interest is concerned, Exhibit-A3 (copy), rate of interest has been mentioned @11% per 10. the applicant bank in relief clause has not claimed any rate of interest. In credit facility application form dated 29.09.2019,
annum.
No. l being a female, while exercising the discretion vested in this 11. 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. purchase of vehicle, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant 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
OA/ 1137 /2022 ICICI BANK LIMITED Vs USHA AND ANOTHER s
realisation of the amount ordered vide this order. It is ordered
accordingly.
enforce the claim through due process of law.
23.10.2023. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Recovery Officer concerned on
Pronounced in the open Tribunal
DRT-2, Chandigarh (M.M. Dhonchak) Presiding Officer
2 issues framed by the court
Whether the applicant bank is entitled to a recovery certificate for the outstanding loan amount.
What rate of interest on the principal amount is appropriate in the circumstances of the case.
ICICI Bank Limited
Usha w/o Sh. Jasbir
Nikit Choudhary
M. M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
