DRT allowed an application by ICICI Bank for recovery of Rs. 22,07,290/- from borrowers and guarantor who defaulted on a KCC loan. The tribunal award 7% simple interest w.e.f. filing date.
Recovery of Rs. 22,07,290/- with 7% simple interest w.e.f. 27.01.2022, joint and several liability, liberty to attach/sell mortgaged and personal assets.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO. 162/2022
DATE OF INSTITUTION: 27.01.2022
DATE OF DECISION: 20th DAY OF NOVEMBER, 2023
ICICI Bank Limited, having its registered office at Landmark Race Course Circle, Vadodara-390007 and its Branch at SCO Nos. 237-238, Sector-20, Panchkula (Haryana), through its Authorised Representative, Sh. Parveen Kumar
…..Applicant
Versus
....Defendants
Argued by: Ms Dipti Toni proxy counsel for Sh. Gagadeep Toni Advocate for the applicant bank Defendants ex parte vide order dated 03.08.2023
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.22,07,290/- (Rupees Twenty Two Lac Seven Thousand Two Hundred and Ninety Only) . It has been filed through Sh. Parveen Kumar, Authorised Representative of the applicant bank stated to
OA/162/2022 ICICI BANK LIMITED VS SOM PAL AND OTHERS 2
be competent to institute the Original Application vide Power of Attorney dated 09.03.2021, Annexure-A1 (copy).
OA/162/2022 ICICI BANK LIMITED VS SOM PAL AND OTHERS 3
16.10.2021, Annexures-A7, A8 and A9 (copy) and postal receipts dated 18.10.2021, Annexures-A10 and A11 (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.22,07,290/(Rupees Twenty Two Lac Seven Thousand Two Hundred and Ninety Only), is recoverable against the defendants as per statement of account duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A12 (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/162/2022 ICICI BANK LIMITED VS SOM PAL 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.22,07,290/- (Rupees Twenty Two Lac
Seven Thousand Two Hundred and Ninety 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 mortgaged property, 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 and defendant No. 2 being a female, 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/162/2022 ICICI BANK LIMITED VS SOM PAL AND OTHERS 5
sum of Rs.22,07,290/- (Rupees Twenty Two Lac Seven Thousand Two Hundred and Ninety Only) with current and future simple interest @7% per annum w.e.f. 27.01.2022 , 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 recovery of the outstanding loan amount upon failure of defendants to repay.
What rate of interest should be awarded for pendente lite and future period.
3 provisions across 3 enactments
ICICI Bank Limited
Sompal
Anju
Ramesh Kumar
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
M.M. Dhonchak
Parties & counsel
