The allowable application for recovery of debts. The tribunal declared the defendants liable to pay the outstanding sum with simple interest at 8% per annum and issued a Recovery Certificate.
Recovery Certificate in favour of the applicant bank for Rs. 59,99,882/- plus simple interest at 8% per annum from 03.03.2023 to the date of realisation.
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.443/2023
DATE OF INSTITUTION: 03.03.2023
DATE OF DECISION: 8th DAY OF JUNE, 2023
ICICI Bank Limited , 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 ICICI Bank Towers, Near Chakli Circle, Old Padra Road, Vadodara-390007 and its Corporate Office at ICICI Bank Towers, Bandra Kurla Complex, Mumbai-400051 and having Branches all over India and one of its Branches situated at 1st Floor, Near N. K. Sharma Office, ChandigarhAmbala National Highway, Zirakpur, District S.A.S. Nagar, Punjab through its Authorized Signatory, Sh. Mohamad Vajid
…..Applicant Bank
Versus
Argued by: Sh. Mohamad Vajid, Manager for the applicant bank Defendants ex parte vide order dated 03.06.2023
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 Rs.59,99,882/- (Rupees Fifty Nine lacs Ninety Nine Thousand
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Eight Hundred and Eighty Two Only) . It has been filed through Sh. Mohd Vajid, Authorised Signatory of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 18.09.2019, Annexure- A1 (copy).
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.59,99,882/- (Rupees Fifty Nine lacs Ninety Nine Thousand
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Eight Hundred and Eighty Two Only) is recoverable against the defendants as per statements of accounts dated 23.06.2022, Annexures-A7 and 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.
Annexures-A1 to A8 , it is clear that the defendants had approached the applicant bank for availing of the loan facilities which were 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
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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.59,99,882/- (Rupees Fifty Nine lacs Ninety Nine Thousand Eight Hundred and Eighty Two 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, purpose of loan, i.e. purchase of commercial vehicles, 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 @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
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future simple interest @8% per annum w.e.f. 03.03.2023 , 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 the applicant bank is entitled to recovery of the outstanding loan amount via issuance of a Recovery Certificate.
What interest rate should be applicable to the decretal amount.
1 provisions across 1 enactments
ICICI Bank Limited
Paramjeet
Sharmila
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
