The DRT allowed the bank's application for recovery of Rs.27,22,067 from borrowers who failed to repay a commercial vehicle loan. The court issued a recovery certificate and fixed simple interest at 8% p.a.
Issuance of Recovery Certificate; Declaration of liability to pay Rs.27,22,067 with 8% simple interest p.a.
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.140/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 30.01.2023
DATE OF DECISION: 25.07.2024
ICICI Bank Ltd, having its registered office at Near Chakli Circle, Old Padra Road, Vadodara, 390-007, Gujrat Inter Alia having a bank branch at Patiala, through its Attorney/Authorized representative Sh. Mohammad Vajid, Manager
……..Applicant Versus
(Borrowers)
Advocates:
Argued by Sh. J.S. Sehgal, Advocate for Applicant Defendants are ex-parte
FINAL ORDER
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Documents executed:- Irrevocable Power of Attorney, which is Annexure A5 to this OA; Statement of account and foreclosure statement of the loan, which are Annexures A7 & A8 to this OA and Notice dated 11.03.2022 with postal receipt, which are Annexure A9 to A12 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.27,22,067.00 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. 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 05.07.2024. 7. In support of the OA, affidavit of Sh. Mohammad Vajid, Manager of the applicant Bank has been filed. 8. Heard ex parte arguments and perused record. 9. It was argued by learned counsel 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 Annexure A1 to A12 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
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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.27,22,067/(Rupees Twenty Seven Lakh Twenty Two Thousand Sixty Seven 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.
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 Rs Rs.27,22,067.00 (Rupees Twenty Seven Lakh Twenty Two Thousand Sixty Seven 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
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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 16.08.2024. 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. Pronounced by me in the open Tribunal . Dated: 25.07.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the respondent borrowers are liable to repay the outstanding loan amount along with interest.
What rate of interest should be applicable for the pendent lite and future period.
Whether a recovery certificate should be issued in favour of the applicant bank.
2 provisions across 2 enactments
ICICI Bank Ltd
Sh. Jasvinder Singh
Sh. Gurmail Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
