Allowed

Icici Bank Limited v. Darshan Singh and Others

DRT22 Jul 2024OA/1055/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's original application under S.19 RDBFI Act, 1993 for recovery of a secured loan. The Tribunal dismissed the defendants' ex-parte defense and granted recovery of the principal sum plus simple interest at 8% p.a. instead of the claimed rate.

What did the court decide?

Recovery of Rs.20,33,816.84 plus simple interest at 8.00% p.a. from date of filing until realization, enforceable via sale of mortgaged or personal assets.

Icici Bank Limited versus Darshan Singh and Others — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1055/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.08.2023

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DATE OF DECISION: 22.07.2024

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ICICI Bank Ltd. having its Registered Office at Land Mark, Race Course Circle, Vadodara, 390007 and having its branch office at SCO 237-238, Sector-20, Panchkula through its Authorized Representative Sh. Parveen Kumar.

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……..Applicant

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Versus

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Sh. Darshan Singh S/o Sh. Diyal Singh, Village Tappa Khera, Near Bus Stand, Malout (Punjab)-152114.

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Sh. Gurinderjit Singh S/o Sh. Darshan Singh, Village Tappa Khera, Near Bus Stand, Malout (Punjab)-152114.

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Sh. Sukhwinder Singh S/o Sarwan Singh, Village Tappa Khera, Near Bus Stand, Malout (Punjab)-152114.

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….……Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate for the applicant (Through VC) Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.20,33,816.84 (Rupees Twenty Lacs Thirty Three Thousand Eight Hundred Sixteen And Eighty Four Paise Only). The Original Application has been filed through Sh. Parveen Kumar, Authorized Representative of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 09.03.2021, which is Annexure A1 to this OA.

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2. The brief facts of the OA are that the defendants had
approached the applicant bank for grant of KCC Limit of Rs.10.90 Lacs vide Loan application dated 15.07.2014, which isAnnexure A2to this
OA and Farmer Financing Facility Final Application Form dated
25.08.2014, which isAnnexure A3to this OA.
3. The applicant Bank sanctioned the KCC Limit of Rs.10.90 Lacs
vide Facility Intimation Letter dated 25.08.2014, which isAnnexure A4to this OA and the terms and conditions were duly accepted by the defendants.
4. Defendant No.1 had mortgaged his immovable properties i.e.
land measuring 32K-19Msituated atVillage Tappa Khera, Tehsil
Malout vide Registered Mortgaged Deed bearing vasika no.1313 dated
19.08.2014, which isAnnexure A7to this OA.
Documents executed:- Deed of Hypothecation dated 25.08.2014,
which isAnnexure A5to this OA; Deed of Guarantee, which is
Annexure A6to this OA; Legal Notice dated 05.06.2023, which is
Annexure A8to this OA; Postal Receipts dated 06.06.2023, which is
Annexure A9to this OA and Statement of account with certificate,
which isAnnexure A10to this OA.
5. The loan account became irregular and was classified as NPA
and after adjusting debit and credit entries in loan account there was a debit of Rs.20,33,816.84 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.
6. The defendants were served notices to appear before this
Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 18.05.2024.
7. In support of the OA, affidavit ofSh. Parveen Kumar, Authorized
Representative, ICICI Bank Ltd.has been filed.
8. Heard ex-parte arguments and perused record.

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It was argued by learned counsel through video conferencing 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 A10 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.20,33,816.84 (Rupees Twenty Lacs Thirty Three Thousand Eight Hundred Sixteen And Eighty Four Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.00% p.a. along with penal interest @2% p.a. from date of filing this OA 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 loan 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 @8.00%p.a. in the loan account from the date of filing of the OA till realization of the amount 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

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Rs.20,33,816.84 (Rupees Twenty Lacs Thirty Three Thousand Eight Hundred Sixteen And Eighty Four Paise Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 09.08.2024.

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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.

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Pronounced by me in the open Tribunal.

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Dated: 22.07.2024

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

Icici Bank Limited v. Darshan Singh and Others

Case brief

What is this about?

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Icici Bank Limited v. Darshan Singh and Others

Case brief

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