Allowed

Icici Bank Limited, v. Sh Gurdit Singh and Another

DRT16 Jan 2024OA/1086/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's original application for recovery of Rs. 21,18,025 against ex-parte defendants. The court upheld liability for the principal and reduced the interest rate to 10.00% p.a., granting a recovery certificate and directing future recovery via sale of mortgaged assets. Parties to appear for further directions.

What did the court decide?

Application allowed; defendants liable to pay Rs. 21,18,025 + costs + 10.00% simple interest; Recovery Certificate issued; parties directed to appear on 03.02.2024.

Icici Bank Limited, versus Sh Gurdit Singh and… — Contract and Commercial Disputes | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1086/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 08.06.2022

¶5

DATE OF DECISION: 16.01.2024

¶6

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, Gujarat-390007 and having branches all over India and one of its Branch Offices situated at ICICI Bank Limited, S.C.O. No. 237-238, Sector-20, Panchkula, Haryana, through its Authorized Signatory, Sh. Parveen Kumar

¶7

……..Applicant

¶8

Versus

¶9

Sh. Gurdit Singh S/o Sh. Partap Singh R/o Village Jaharkian, Tehsil Sardulgarh, District Mansa-151505

¶10

Sh. Tarjeet Singh S/o Sh. Gurdit Singh R/o Village Jaharkian, Tehsil Sardulgarh, District Mansa-151505

¶11

………Defendants

¶12

Advocates:

¶13

Argued by Sh. Ishmeet Singh, counsel proxy for Sh. Sherry K. Singla, counsel for the applicant (through VC) Defendants are ex-parte

¶14

FINAL ORDER

¶15

Present Original Application was filed under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs.21,18,025.00 (Rupees Twenty One Lacs Eighteen Thousand and Twenty Five only). The Original Application has been filed through Sh. Parveen Kumar, Collection Manager 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.

¶16

¶17

The brief facts of the OA are that the defendants had approached the applicant bank for the grant of KCC Limit of Rs.15.00 Lacs vide Loan Application Form dated 06.07.2018, which is Annexure A2 to this OA.

¶18

The applicant Bank sanctioned the KCC Limit of Rs.15.00 Lacs vide Sanction Letter dated 12.07.2018, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

¶19

Defendants had mortgaged their part and parcel of immovable properties detailed as:-

¶20

a) Land measuring 50 Kanal situated at Village Jaurkian, Tehsil Sardulgarh, District Mansa, Punjab; and b) Land measuring 6 Kanal situated at Village Jagatgarh-Bandra, Tehsil Sardulgarh, District Mansa, Punjab; vide Declaration dated 24.07.2018 under Section 4(1) of the Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A5 to this OA. Documents executed: - Deed of Hypothecation dated 26.07.2018, which is Annexure A4 to this OA; Loan recall notice dated 22.02.2022 along with its postal receipts, which is Annexure A6 to this OA; Statement of account and Certificate under Banker’s Book of Evidence Act, which are Annexures A7 and A8 to this OA.

¶21

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.21,18,025.00, 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.

¶22

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 21.11.2023.

¶23

¶24

In support of the OA, affidavit of Sh. Parveen Kumar, Collection Manager, ICICI Bank Limited h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy 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 A8 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.21,18,025.00 (Rupees Twenty One Lacs Eighteen Thousand and Twenty Five 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.

¶25

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.70%p.a. from the date of filing of this OA till the realization.

¶26

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 defendant, 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 @10.00%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.

¶27

¶28

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.21,18,025.00 (Rupees Twenty One Lacs Eighteen Thousand and Twenty Five only) jointly and severally, with costs, current and future simple interest @10.00%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.

¶29

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 03.02.2024. 15. 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.

¶30

Pronounced by me in the Open Tribunal. Dated: 16.01.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Icici Bank Limited, v. Sh Gurdit Singh and Another

Case brief

What is this about?

What did the court decide?

Icici Bank Limited, v. Sh Gurdit Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Indian Bank versus Sh. Baj Singh

Punjab National Bank, versus Messrs Sunil Steel Industries and Others

Axis Bank Ltd. (earlier known as Uti Bank Ltd.) versus Messrs Vijay K Jairath and Others

Punjab Gramin Bank, versus Sh. Madan Lal

Punjab Gramin Bank versus Sh. Amarjit Singh

Punjab National Bank (erstwhile known as Oriental Bank of Commerce), versus Sh. Hakam Singh