Allowed

Icici Bank Limited v. Mehal Singh and Others

DRT1 Oct 2024OA/1131/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed ICICI Bank's application against three defendants jointly and severally liable to pay Rs.26,96,451.99 plus interest. The tribunal granted a uniform simple interest rate of 08% p.a. instead of the claimed rate. Recovery certificate issued for enforcement proceedings.

What did the court decide?

Recognition of debt of Rs.26,96,451.99 plus 8% p.a. simple interest; issuance of Recovery Certificate; liberty to recover from sale of mortgaged and personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1131/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.08.2023

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DATE OF DECISION: 01.10.2024

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ICICI Bank Ltd. having its registered office at ICICI Bank Tower, New Chakli Circle, Old Padra Road, Vadodara-390007 and having its branch office at Patti, Tarn Taran, Punjab and also at ICICI Bank Ltd, SCO No. 143, A City Emporium Mall, Industrial Area, Phase-1 Chandigarh160002 through its Authorized Representative Mr. Parveen Kumar. ……..Applicant Bank Versus

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Sh. Mehal Singh S/o Sh. Avtar Singh, R/o Village Seeto Nouabad, Patti, Tarn Taran, Punjab-143416.

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Sh. Jaswinder Singh S/o Sh. Mehal Singh, R/o Village Seeto Nouabad, Patti, Tarn Taran, Punjab-143416.

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Ms. Arswinder Kaur W/o Sh. Mehal Singh, R/o Village Seeto Nouabad, Patti, Tarn Taran, Punjab-143416.

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………. Defendants

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Advocates:

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Argued by Sh. Amit Rishi, 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.26,96,451.99p (Rupees Twenty Six Lacs Ninety Six Thousand Four Hundred Fifty One And Paise Ninety Nine Only). The Original Application has been filed through Mr. Parveen Kumar, Authorized Representative o f the applicant, who is competent to institute the

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Original Application vide General Power of Attorney dated 09.03.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.25.00 Lacs vide Loan Application dated 07.06.2018, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.23.00 Lacs vide Sanction Letter dated 23.07.2018, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 105K-17M situated at Sito Nau Abad, H.B. No.191, Tehsil Patti, District Tarn Taran, Punjab vide Declaration under Section 4 (1) bearing vasika no.248 dated 2 6.07.2018, which is Annexure A5 to this OA. Documents executed:-Deed of Hypothecation dated 26.07.2018, which is Annexure A4 to this OA; Demand Notice dated 03.06.2023 along with postal receipts, which is Annexure A6 to this OA and Statement of Account along with Certificate under Bankers Book of Evidence, which is Annexure A7 to 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.26,96,451.99, 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 23.09.2024. 7. In support of the OA, affidavit of Mr. Parveen Kumar, Authorized Representative, ICICI Bank Ltd. h as 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 A7 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 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 is entitled to recover a sum of Rs.26,96,451.99 (Rupees Twenty Six Lacs Ninety Six Thousand Four Hundred Fifty One And Paise Ninety Nine 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 @11.70%p.a. with half yearly rests from 30.04.2023 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 @08.00%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

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Rs.26,96,451.99 (Rupees Twenty Six Lacs Ninety Six Thousand Four Hundred Fifty One And Paise Ninety Nine Only) jointly and severally, with costs, current and future simple interest @08.00%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 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 22.10.2024.

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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.

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Pronounced by me in the open Tribunal . Dated: 01.10.2024

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

Icici Bank Limited v. Mehal Singh and Others

Case brief

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Icici Bank Limited v. Mehal Singh and Others

Case brief

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