Debts Recovery Tribunal allowed the bank's application for recovery ofapproximately 66 lakhs from borrowers sanctioned vehicle and term loans with joint liability and a recovery certificate.
Defendants to pay Rs.65,87,404/- with simple interest @8% p.a. from filing; Issue Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.1325/2022
DATE OF INSTITUTION: 05.08.2022
DATE OF DECISION: 24th OF MARCH, 2023
ICICI Bank Limited , having its registered office at near Chakli Circle, Old Padra Road, Vadodra, Gujrat, inter alia a Branch at Chandigarh, through its Attorney/Authorised Representative, Sh. Mohammad Vajid, Manager
…..Applicant Bank
Versus
1. Sh. Neeraj Rana S/o Sh. Dhanraj Rana, Sole Proprietor of Rana Enterprises, Village Agampur, Tehsil Anandpur Sahib, District Rupnagar
2. Ms Suman W/o Sh. Neeraj Rana R/o Village Agampur, Tehsil Anandpur Sahib, District Rupnagar
…..Defendants
Argued by: Sh. Sumeet Sehgal proxy counsel for Sh. J.S. Sehgal counsel for the applicant bank Defendants ex parte vide order dated 17.01.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.65,87,404/-
(Rupees Sixty Five lacs Eighty Seven Thousand Four Hundred and
Four only) . It has been 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, Annexure-A1 (copy).
OA/1325/2022 ICICI BANK V/S NEERAJ RANA AND OTHERS 2
33,37,851/- and Vehicle Term Loan II of Rs. 35,74,881/- vide preliminary credit application forms dated 26.09.2019, Annexures-A2 and A3 (copy) and they further applied for Guaranteed Emergency Credit Line (GECL) by way of Working Capital Term loan of Rs. 11.82 lacs under Guaranteed Emergency Credit Line (GECL) by Government of India vide preliminary credit application form dated 09.10.2020, Annexure-A9 (copy).
Sixty Five lacs Eighty Seven Thousand Four Hundred and Four only)
is recoverable against the defendants as per statements of accounts and
OA/1325/2022 ICICI BANK V/S NEERAJ RANA AND OTHERS 3
foreclosure statement of loans, Annexures-A14 to A19 (copy), duly certified under Bankers’ Books Evidence Act.
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
In support of contents of the OA, affidavit of evidence of Sh. Mohammad Vajid, Manager of the applicant bank was filed.
OA/1325/2022 ICICI BANK V/S NEERAJ RANA AND OTHERS
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plus 2% penal interest with monthly rests in vehicle loan facilities and @11.25% per annum with monthly rests in Term Loan Facility. In credit facility application form dated 26.09.2019, Annexure-A4 (copy) and sanction letter dated 09.10.2020, Annexure-A10 (copy), the rate of interest has been mentioned @10.1% per annum in Vehicle Term Loan facilities and @9.25% per annum in GECL facility, respectively.
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, nature of mortgaged property, purpose of loan, i.e. purchase of commercial vehicles, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, defendant No.2 being a lady, 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 final order. It is ordered accordingly.
OA/1325/2022 ICICI BANK V/S NEERAJ RANA AND OTHERS
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Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
1 issue framed by the court
Whether the defendants are liable to repay the outstanding loan amount along with interest?
1 provisions across 1 enactments
ICICI Bank Limited
Sh. Neeraj Rana
Ms Suman
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
