The Debt Recovery Tribunal allowed the bank's application for recovery of a defaulted KCC loan. The court held the borrowers liable for the principal amount and modified the future interest rate from 12% to 8% per annum.
The defendants are liable to pay Rs. 41,95,575 with costs and simple interest at 8% p.a. A Recovery Certificate was issued.
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-III, CHANDIGARH
ORIGINAL APPLICATION NO.1092/2022
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 22.12.2021
DATE OF DECISION: 22.10.2024
ICICI Bank Ltd., a Body Corporate, incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulations Act, 1949 and having its registered office at Near Chakli Circle, Old Padra Road, Vododara, 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.
……..Applicant Versus 1. Sh. Jaswant Singh S/o Sh. Bachan Singh
All residents of H.No.8, Village Barindpur, Tehsil & District Kapurthala-144601
Advocates:
Argued by Sh. Ishmeet Singh, Advocate proxy for Sh. Sherry K. Singla, Advocate for the applicant Defendants are ex parte
FINAL ORDER
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Hundred Seventy Five Only). The Original Application has been filed through Sh. Parveen Kumar, Authorized Signatory o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 09.03.2021, which is Annexure A1 to this OA.
b. l and measuring 11 Kanal 0 Marla situated at Ladhewal, Tehsil & District Kapurthala vide Letter to Tehsildar for Creation of Charge vide Declaration U/s 4(1) dated 30.06.2015, w hich is Annexure A6 to this OA. Documents executed:- Deed of Hypothecation dated 29.06.2015,
which is Annexure A4 to this OA; Guarantee Deed, which is Annexure A5 to this OA; Legal Notice dated 21.09.2021, which is Annexure A7 to this OA and Statement of Account with Certificate, which are Annexures A8 & A9 to this OA.
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amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.
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
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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 Rs.41,95,575.00p (Rupees Forty One Lac Ninety Five Thousand Five Hundred Seventy Five 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 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. 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 02.11.2024. 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: 22.10.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding defaulted loan amount from the joint and several borrowers.
Whether the Tribunal should modify the claimed future interest rate.
2 provisions across 2 enactments
ICICI Bank Ltd.
Jaswant Singh
Harwinder Singh
Harjit Kaur
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
