DRT-2, Chandigarh allowed ICICI Bank's original application for recovery of Rs. 28,18,796.89 from two defaulting respondents. The court exercised discretion to grant simple interest at 8% per annum instead of the claimed rate, and issued a recovery certificate.
Recovery certificate issued for Rs. 28,18,796.89 with simple interest @ 8% per annum w.e.f. 14.10.2022.
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.1938/2022
DATE OF INSTITUTION: 14.10.2022
DATE OF DECISION: 8th DAY OF JUNE, 2023
ICICI Bank Limited , Company incorporated under the Companies Act, 1956 and a Banking Company within the meaning of Banking Regulation Act, 1949 and is having its Registered Office at Land Mark, Race Course Circle, Vadodara-390007 and inter-alia having Branch at 16/753, Opposite Hotel Jai Vilas, Dabwali Road, Sirsa, Haryana-125055, through its Manager and Authorized Signatory, Sh. Parveen Kumar
…..Applicant Bank
Versus
…..Defendants
Argued by: Sh. Parveen Kumar, Manager and Authorized Signatory for the applicant bank Defendants ex parte vide order dated 05.06.2023
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
OA/1938/2022 ICICI BANK Vs NAVEEN KUMAR AND ANOTHER
2
Rs.28,18,796.89/(Rupees Twenty Eight lacs Eighteen Thousand Seven Hundred Ninety Six and Eighty Nine Paisa Only) . It has been filed through Sh. Parveen Kumar, Manager 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/1938/2022 ICICI BANK Vs NAVEEN KUMAR AND ANOTHER
3
account was declared as NPA because it became irregular. The applicant bank recalled the entire outstanding amount vide legal notice dated 07.07.2022, Annexure-A6 (copy) and dispatch details, Annexure-A7 (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.28,18,796.89/(Rupees Twenty Eight lacs Eighteen Thousand Seven Hundred Ninety Six and Eighty Nine Paisa Only) is recoverable against the defendants as per statement of account dated 02.07.2022, Annexure-A8 (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/1938/2022 ICICI BANK Vs NAVEEN KUMAR AND ANOTHER
4
A8 , it is clear that the defendants had approached 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 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.28,18,796.89/- (Rupees Twenty Eight lacs Eighteen Thousand Seven Hundred Ninety Six and Eighty Nine 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. agricultural, present conditions of economy based on agriculture, quantum of loan and 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/1938/2022 ICICI BANK Vs NAVEEN KUMAR AND ANOTHER
5
Announced 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 against the defendants.
Whether interest rate claimed by the applicant is permissible or needs modification.
2 provisions across 2 enactments
ICICI Bank Limited
Sh. Naveen Kumar
Sh. Amar Singh
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
