Debts Recovery Tribunal allowed a bank's original application for recovery of Rs. 70.13 lakhs along with future simple interest @7% p.a. against borrowers and guarantor cited as defendants, who were absent in ex-parte proceedings.
Recovery certificate issued for Rs. 70,13,461.60 plus simple interest @7% per annum w.e.f. 17.08.2022.
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.1528/2021
DATE OF INSTITUTION: 17.08.2022
DATE OF DECISION: 23rd DAY OF JUNE, 2023
ICICI Bank Limited , having its Registered Office at Landmark, Race Course Circle, Vadodara-390007, having its Branch at S.C.O 237-238, Sector-20, Panchkula, through its Authorised Representative, Sh. Mohamad Vajid
…..Applicant Bank
Versus
…..Defendants
Argued by: Sh. Mohamad Vajid, Authorised Signatory for the applicant bank Defendants ex parte vide order dated 24.01.2023
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.70,13,461.60/- (Rupees Seventy lacs Thirteen Thousand
OA/1528/2022 ICICI BANK Vs AMANDEEP SINGH AND OTHERS 2
Four Hundred Sixty One and Sixty Paisa Only) . It has been filed through Sh. Mohamad Vajid, Authorised Representative 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/1528/2022 ICICI BANK Vs AMANDEEP SINGH AND OTHERS 3
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.70,13,461.60/- (Rupees Seventy lacs Thirteen Thousand Four Hundred Sixty One and Sixty Paisa Only) is recoverable against the defendants as per statement of account dated 03.03.2022, Annexure-A7 (copy) 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.
OA/1528/2022 ICICI BANK Vs AMANDEEP SINGH AND OTHERS 4
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.70,13,461.60/- (Rupees
Seventy lacs Thirteen Thousand Four Hundred Sixty One and Sixty 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, nature of the mortgaged property, purpose of loan, i.e. Housing, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and 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 @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/1528/2022 ICICI BANK Vs AMANDEEP SINGH AND OTHERS 5
a sum of Rs.70,13,461.60/- (Rupees Seventy lacs Thirteen Thousand Four Hundred Sixty One and Sixty Paisa Only) with current and future simple interest @7% per annum w.e.f. 17.08.2022 , till the date of realisation of the amount. 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. The applicant bank is at liberty to enforce the claim through due process of law.
Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether to grant the relief of recovery certificate for an unrebutted loan claim.
Whether to modify the claimed interest rate to a uniform simple interest rate of 7% per annum.
2 provisions across 2 enactments
ICICI Bank Limited
Amandeep Singh
Komal
Ram Kumar
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
