Allowed

Icici Bank Limited v. Harbans Singh and Others

DRT25 Sept 2024OA/1059/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by ICICI Bank Ltd. for recovery of Rs. 23,01,984 from three defendants jointly and severally. The Tribunal granted recovery of the principal with interest at a reduced uniform rate of 8% per annum from the date of filing until realization, directing recovery from mortgaged properties and allowing enforceable recovery certificates.

What did the court decide?

Recovered Rs. 23,01,984 jointly and severally with 8% simple interest p.a. from date of filing; Recovery Certificate issued.

Icici Bank Limited versus Harbans Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1059/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.07.2023

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DATE OF DECISION: 25.09.2024

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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 ICICI Bank Tower, Near Chakli Circle, Old Padra Road, Vadodara, Gujarat – 390007 and having branches all over India and one of its Branch offices situated at ICICI Bank Ltd., SCO No.237-238, Sector-20, Panchkula, Haryana through its authorized Signatory Sh. Parveen Kumar son of Mr. Som Nath (Employee No.323601).

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……..Applicant

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Versus

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Sh. Harbans Singh S/o Sh. Nachhatar Singh resident of Village Chalela, Tehsil and District Patiala.

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Sh. Nachhatar Singh S/o Sh. Arjan Singh resident of H.No.321, Chalela, Tehsil and District Patiala.

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Sh. Bhupinder Singh S/o Sh. Amar Singh resident of H.No.35, Bhuri Majra, Tehsil Rajpura, District Patiala.

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….……Defendants

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Advocates:

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Argued by Sh. Ishmeet Singh, Advocate 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.23,01,984.00 (Rupees Twenty Three Lac One Thousand Nine Hundred & Eighty Four Only). The Original Application has been filed through Sh. Parveen Kumar, Branch Manager o f the applicant, who is

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competent to institute the Original Application vide Power of Attorney dated 09.03.2021, which isAnnexure A1to this OA.
2. The brief facts of the OA are that the Defendants had
approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan application dated 11.06.2015, which isAnnexure A2to this OA.
3. The applicant sanctioned the KCC Limit of Rs.15.65 Lacs for the
1^styear and to be enhanced upto Rs.22,91,100.00 for the 5^thyear vide Sanction Letter dated 11.06.2015, which isAnnexure A3to this
OA and the terms and conditions were duly accepted by the
defendants.
4. Defendant No.1 & 2 had mortgaged the irimmovable properties i.e. total land measuring 32K-0Msituated in Village Amampura, Tehsil
and District Patiala (Punjab) vide Letter to Registrar for creation of
Charge and Declaration U/s 4(1) dated 29.06.2015,which is
Annexure A6to this OA.
Documents executed:-Deed of Hypothecation, Guarantee Deed both dated 30.06.2015, which areAnnexures A4 to A5to this OA; Copy of
Legal Notice dated 03.06.2023, which isAnnexure A7to this OA and
Copy of Statement of account along with certificate, which are
Annexures A8 to A9to 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.23,01,984.00, which is recoverable and the defendants
were served recall notices but they did not repay the outstanding
amount, therefore, the applicant 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 27.08.2024.
7. In support of the OA, affidavit ofSh. Parveen Kumar, Branch
Manager, ICICI Bank Ltd.has been filed.
8. Heard arguments and perused record.

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.23,01,984.00 (Rupees Twenty Three Lac One Thousand Nine Hundred & Eighty 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 account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00%p.a. rests from 01.06.2023 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,01,984.00 (Rupees Twenty Three Lac One Thousand Nine Hundred & Eighty Four Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the

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date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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 applicant 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 17.10.2024. 15. Copy of this order be given dasti to the applicant 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. Pronounced by me in the open Tribunal . Dated: 25.09.2024.

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

Icici Bank Limited v. Harbans Singh and Others

Case brief

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Icici Bank Limited v. Harbans Singh and Others

Case brief

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