Allowed

Icici Bank Limited v. M/S Gurbachan Singh Malkeet Singh and Others

DRT31 Aug 2023OA/2024/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by ICICI Bank to recover Rs. 42.44 lakhs from three respondents who failed to repay overdraft and ECLGS loans. The court modified the claimed interest rate to 10% per annum and issued a recovery certificate.

What did the court decide?

Recovery of Rs. 42,44,754.34 plus 10% simple interest from date of filing until realization; issuance of Recovery Certificate.

Icici Bank Limited versus M/S Gurbachan Singh Malkeet Singh… — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2024/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.11.2022

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DATE OF DECISION: 31.08.2023

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ICICI Bank Ltd., a Body Corporate, incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking regulation Act, 1949 and having its registered office at Near Chakli Circle, Old Padra Road, Vadodra-390007 and its Corporate Office at ICICI Bank Towers, Bandra Kurla Complex, Mumbai-400051 and having branches all over India and one of its branch offices situated at Plot No.143-A, City Emporium, Industrial Area, Phase-I, Chandigarh-160002 through its authorized signatory, Sh. Vikas Kaundal

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……..Applicant

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Versus

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M/s Gurbachan Singh Malkeet Singh through its proprietor, Nehru

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Mandi, Baghapurana, District Moga, Punjab-143203

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Sh. Gurwinder Singh Brar S/o Sh. Malkeet Singh, Proprietor M/s Gurbachan Singh Malkeet Singh, R/o Patti Joga, Village Rajiana, Tehsil Baghapurana, District Moga, Punjab-143203

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Smt. Rajvir Kaur W/o Sh. Gurwinder Singh Brar, R/o Patti Joga, Village Rajiana, Tehsil Baghapurana, District Moga, Punjab-143203

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….……Defendants

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Advocates:

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Argued by Sh. Manav Singal, counsel proxy for Sh. Rahul Garg, counsel for the applicant Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank

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under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

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Rs.42,44,754.34p (Rupees Forty Two Lacs Forty Four Thousand Seven Hundred Fifty Four and Paisa Thirty Four Only). The Original Application has been filed through Sh. Vikas Kaunda l, Authorized signatory o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 19.03.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its Proprietor defendant No.2 had approached the applicant bank for the grant of Overdraft facility of Rs.35.00 Lacs vide Final Credit Application Form dated 31.07.2018, which is Annexure A3 to this OA and later during COVID-19 crisis, defendant No.1 through its Proprietor defendant No.2 again approached for the financial assistance of Rs.7.00 Lacs under Emergency Credit Line Guaranteed Scheme (ECLGS).

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The applicant Bank sanctioned the Overdraft facility of Rs.35.00 Lacs vide Intimation Letter dated 31.07.2018, which is Annexure A2 to this OA and later sanctioned the loan of Rs.7.00 lacs under Emergency Credit Line Guaranteed Scheme (ECLGS) vide Sanction letter dated 17.07.2020, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.2 had mortgaged his immovable property i.e. land measuring 01 Kanal 09 Marla situated at Village Rajiana-2, Tehsil Baghapurana, District Moga, Punjab vide Transfer Deed No.201819/135/87 dated 13.06.2018 along with its translation, which is Annexure A8 to this OA.

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Documents executed:- Deed of Guarantee dated 31.07.2018, which is Annexure A4 to this OA; Deed of Hypothecation and Deed of Guarantee, which are Annexures A6 and A7 to this OA; Annexure VI-B i.e. Memorandum of Entry and Annexure VII-B i.e. Declaration both dated 31.07.2018, which are Annexures A9 and A10 to this OA; Annexure VI-D i.e. Memorandum of Entry dated 20.07.2020, which is Annexure A11 to this OA; Annexure VII-B i.e.

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Declaration dated 18.07.2020, which is Annexure A12 to this OA; Recall notices and postal receipts dated 14.12.2021, which are Annexures A13 and A14 to this OA and Copies of Statements of accounts, which are Annexures A15 and A16 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.42,44,754.34p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and were proceeded ex-parte on 28.08.2023.

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In support of the OA, affidavit of Sh. Vikas Kaunda l, Authorized signatory, ICICI Bank Ltd. h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.42,44,754.34p (Rupees Forty Two Lacs Forty Four Thousand Seven Hundred Fifty Four and Paisa Thirty Four Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @16.00%p.a. in Overdraft facility and @15.25%p.a. in ECLGS facility with monthly rests from 01.09.2022 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @10.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amounts ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.42,44,754.34p (Rupees Forty Two Lacs Forty Four Thousand Seven Hundred Fifty Four and Paisa Thirty Four Only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amounts. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 08.09.2023.

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Copy of this order be given dasti to the applicant bank and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Dated: 31.08.2023

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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Order dictated, signed and pronounced by me in the open Tribunal.

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Dated: 31.08.2023

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Icici Bank Limited v. M/S Gurbachan Singh Malkeet Singh and Others

Case brief

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Icici Bank Limited v. M/S Gurbachan Singh Malkeet Singh and Others

Case brief

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