Debts Recovery Tribunal allowed an application filed by ICICI Bank for a recovery certificate against borrowers and guarantors failing to repay an overdraft facility, confirming the principal amount and granting 9% annual interest.
Recovery certificate issued for Rs.39,34,320.42 with 9% simple interest from 25.01.2022 until realization.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.202/2022
DATE OF INSTITUTION:25.01.2022
DATE OF DECISION: 24th DAY OF MARCH, 2023
ICICI Bank Limited , a body corporate, incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulations Act, 1949, having its registered office at Near Chakli Circle, Old Padra Road, Vadodara-390007 and its corporate office at ICICI Bank Towers, Bandra Kurla Complex, Mumbai-400051 and Branches all over India and one of its Branches situated at Plot No 143-A, City Emporium, Industrial Area, Phase1, Chandigarh-160002, through its authorized signatory, Sh. Deepak Ahuja
....Applicant Bank
Versus
.....Defendants
Argued by: Sh. Sukhwinder Singh proxy counsel for Sh. D.K. Singal counsel for the applicant bank Defendants ex parte vide order dated 05.01.2023
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.39,34,320.42p (Rupees Thirty Nine lacs Thirty Four Thousand Three Hundred Twenty and Forty Two Paisa Only) . It has been filed
OA/202/2022 ICICI BANK Vs M/S JOGI RAM AND ORS
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through Sh. Deepak Ahuja, authorised signatory of the applicant bank stated to be competent to institute the Original Application vide power of attorney dated 06.02.2018, Annexure-A1 (copy).
The documents relating to the mortgage are as under:
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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.39,34,320.42p (Rupees Thirty Nine lacs Thirty Four Thousand Three Hundred Twenty and Forty Two Paisa Only) is recoverable against the defendants as per statement of account, Annexure-A12 (copy) along with certificate under Banker’s 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.
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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.39,34,320.42p
(Rupees Thirty Nine lacs Thirty Four Thousand Three Hundred Twenty and Forty Two 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 mortgage property, purpose of loan, i.e. business, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, defendant No. 3 being a lady, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @9% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
Rs.39,34,320.42p (Rupees Thirty Nine lacs Thirty Four Thousand Three Hundred Twenty and Forty Two Paisa Only) with current and future simple interest @9% per annum w.e.f. 25.01.2022 , till the date
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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 propertyof 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 the applicant bank is entitled to a recovery certificate for the outstanding loan amount.
What uniform rate of interest should be granted on the outstanding principal.
1 provisions across 1 enactments
ICICI Bank Limited
M/s Jogi Ram Raja Ram
Sh. Rajbir Singh
Smt. Kailashwati Devi
M.M. DHONCHAK
As recorded by the court registry
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