Allowed

Icici Bank Limited v. Parteek Verma and Another

DRT20 Dec 2024OA/1478/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of Rs.22,53,308.00 from two defendants who failed to repay commercial vehicle loans and GECL. The court granted a uniform interest rate of 8% p.a. and directed issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.22,53,308.00 with 8% p.a. simple interest ordered; Recovery Certificate issued; attachment and sale of assets permitted.

Icici Bank Limited versus Parteek Verma and Another — Company and Corporate | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1478/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.08.2022

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DATE OF DECISION: 20.12.2024

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ICICI BANK LTD, having its Registered Office at near Chakli Circle, Old Padra Road, Vadodara, 390007, Gujarat Inter Alia having bank Branch at Feroze Gandhi Market, Ludhiana through its Attorney/Authorised Representative Sh. Mohammad Vajid, Manager.

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……..Applicant

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Versus

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Sh. Parteek Verma S/o Sh. Yashpal Verma, R/o H.No. 8, Ward No.1-A, Janta Nagar, Dhuri-148024

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Sh. Ashish Verma S/o Sh. Yashpal Verma, R/o H.No. 8, Ward No.1A, Janta Nagar, Dhuri-148024

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….……Defendants

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Advocates:

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Argued by Sh. Sumeet Sehgal, Advocate Proxy for Sh. J.S. Sehgal, Advocate for 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 defendant for recovery of Rs.22,53,308.00 (Rupees Twenty Two Lacs Fifty Three Thousand Three Hundred Eight Only). The Original Application has been filed through Sh. Mohammad Vajid, Authorised Representative o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 18.09.2019, 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 grant of Commercial Vehicle Loan of Rs.27,75,376.00 vide Preliminary Credit Facility application and Credit Facility application both dated 17.01.2019, which are Annexures A2 and A3 to this OA and further for GECL of Rs.3.87 Lacs vide

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Preliminary Credit Facility application dated 15.09.2020, which is Annexure A7 to this OA.

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The applicant sanctioned Commercial Vehicle Loan of Rs.27,75,376.00 and further sanctioned the GEL of Rs.3.87 Lacs vide Sanction Letter dated 15.09.2020, which is Annexure A8 to this OA, and the terms and conditions were duly accepted by the defendants.

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Defendants had Hypothecated their movable property i.e. vehicle namely U-2518 T BSIV bearing engine no.JWPZ157467, Chasis no. MB1HTLHD1KPJG5220 and Registration no. UK08CB5499 vide FOP, which is Annexure A6 to this OA. Documents executed:- Hypothecation Deed and Irrevocable Power of Attorney both dated 17.01.2019, which are Annexures A4 and A5 to this OA; Hypothecation Deed dated 16.09.2020, which is Annexure A9 to this OA; Copy of notice dated 29.01.2022 with postal receipts, which are Annexures A10 to A15 to this OA and Statements of Accounts and Foreclosure with certificate, which are Annexures A16 to A19 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.22,53,308.00 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.

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The defendants were served notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 17.12.2024. 7. In support of the OA, affidavit of Sh. Mohammad Vajid, Authorised Representative, ICICI Bank Ltd. h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy 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

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Annexures A1 to A19 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.22,53,308.00 (Rupees Twenty Two Lacs Fifty Three Thousand Three Hundred Eight Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @14.52%p.a. in Vehicle Loan and interest @11.25%p.a. in GECL Loan with monthly rests from 19.01.2022 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 defendant, quantum of loans 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 both the loan accounts 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.22,53,308.00 (Rupees Twenty Two Lacs Fifty Three Thousand Three Hundred Eight Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount.

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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 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.

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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 07.02.2025

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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 .

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Dated: 20.12.2024

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

Icici Bank Limited v. Parteek Verma and Another

Case brief

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Icici Bank Limited v. Parteek Verma and Another

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