The Debts Recovery Tribunal allowed a recovery application by ICICI Bank against two borrowers for an outstanding loan amount of Rs. 29,66,177. The Tribunal deemed 9% per annum interest appropriate instead of the bank's claim of 24%.
Recovery Certificate issued for Rs. 29,66,177 with simple interest at 9% p.a. from 28.03.2022.
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. 586 of 2022
DATE OF INSTITUTION: 28.03.2022
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 Tower, Near Chakli Circle, Old Padra Road, Vadodara-390007 and its Corporate Office at ICICI Bank Towers, Bandra Kurla Complex, Mumbai400051 and having Branches all over India and one of its Branches situated at Ist Floor, Near N. K. Sharma Office, Chandigarh-Ambala National Highway, Zirakpur, District S.A.S Magar, Punjab, through its Authorized Signatory, Sh. Mohamad Vajid
.......Applicant Bank
Versus
......Defendants
Argued by: Sh. Mohamad Vajid, Authorized Signatory for the applicant bank Defendants ex parte vide order dated 02.02.2023
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
OA/586/2022 ICICI BANK Vs MOHIT AND ANOTHER 2
Act’ for brevity) , against defendants for recovery of Rs.29,66,177/(Rupees Twenty Nine lacs Sixty Six Thousand One Hundred and Seventy Seven Only) . The OA has been filed through Sh. Mohamad Vajid, Authorized 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).
OA/586/2022 ICICI BANK Vs MOHIT AND ANOTHER 3
It is further the case of the applicant bank that after adjusting debit and credit entries in loan accounts a sum of Rs.29,66,177/(Rupees Twenty Nine lacs Sixty Six Thousand One Hundred and Seventy Seven Only) is recoverable against defendants as per statements of accounts, Annexures-A11 and A12 (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/586/2022 ICICI BANK Vs MOHIT AND ANOTHER 4
applicant bank. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.29,66,177/- (Rupees Twenty Nine lacs Sixty Six Thousand One Hundred and Seventy Seven Only) from the defendants, from the date of filing the present Original Application, till realization of the amount.
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 vehicle, quantum of loan, 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 @9% per annum from the date of filing of the OA till realization of the amount ordered vide this order. It is ordered accordingly.
OA/586/2022 ICICI BANK Vs MOHIT AND ANOTHER 5
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 defendants in execution proceedings, if not sold earlier under the provisions of the Securitization 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 recover the outstanding loan amount from the defaulting borrowers under the Recovery of Debts Act.
Whether the interest rate claimed by the applicant bank is appropriate given the prevailing circumstances including the pandemic impact.
1 provisions across 1 enactments
ICICI Bank Limited
Sh. Mohit S/o Sh. Suresh Pal
Sh. Suresh Pal S/o Sh. Teja Ram
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
