Allowed

Icici Bank Limited v. Jora Singh and Another

DRT10 Sept 2024OA/1686/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal upheld the bank's application for recovery of Rs. 20,85,811.58p from borrowers who defaulted on a sanctioned Cash Credit Limit. The court adjusted the claimed interest to 8%/p.a. and directed recovery from hypothecated assets or personal assets via due process.

What did the court decide?

Declarations of joint and several liability to pay Rs. 20,85,811.58p plus 8%/p.a. simple interest; direction to issue Recovery Certificate.

Icici Bank Limited versus Jora Singh and Another — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1686/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.09.2022

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DATE OF DECISION: 10.09.2024

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ICICI Bank Ltd., company incorporated under the Companies Act, 1956 and Banking Company within the meaning Regulation Act, 1949, and is having its registered office at Land Mark, Race Course Circle, Vadodara-390007 and inter alia having branch at Golia Kalan, Tehsil Baghanpurana, District Moga, Punjab-142038 through its Manager and Authorized Signatory Sh. Parveen Kumar.

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……..Applicant

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Versus

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Sh. Jora Singh S/o Sh. Naranjan Singh, R/o village Safuwala, Tehsil and District Moga-142048

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Sh. Shinderpal Singh S/o Sh. Jora Singh, R/o village Safuwala, Tehsil and District Moga-142048

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(Borrowers/Mortgagors)

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….……Defendants

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Advocates:

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Argued by Sh. Himendra Pal Singh, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.20,85,811.58p (Rupees Twenty Lacs Eighty Five Thousand Eight Hundred Eleven and Paisa Fifty Eight only). The Original Application has been filed through Sh. Parveen Kumar, Manager and Authorized Signatory of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 09.03.2021, which is

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Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant bank for the grant of Cash Credit Limit (KCC)

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of Rs.15.00 Lacs vide Farmer Finance Facilities Credit Facility Application Form dated 07.06.2016, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Cash Credit Limit (KCC) of Rs.11.75 Lacs for the 1^st year and to be enhanced upto Rs.17.20 Lacs till for the 5^th year vide Sanction Letter dated 30.06.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 & 2 had mortgaged their immovable properties i.e. total land measuring 52K-03M situated at Village Saffueala, Tehsil Nihal Singh Wala, District Moga (Punjab) vide Declarations under Punjab Agricultural Credit Operation and Miscellaneous Provisions (Banks) Act 1978, Section 4 (1) dated 0 5.07.2016 and 02.09.2016 along with their Translations , which are Annexures A5(colly.) & A6 (colly.) to this OA.

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Documents executed:- Deed of Hypothecation dated 30.06.2016, which is Annexure A4 to this OA; Notice dated 07.05.2022 and postal Receipts, which are Annexures A7 & A8 to this OA and Statement of Account along with Certificate regarding the Computer System and the genuineness of the Statement of Account being prepared through Computer System, which is Annexure A9 to this OA.

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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 20,85,811.58p, 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.

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6.	The defendants were served notices to appear before this
Trib	unal but no one appeared on behalf of defendants and they were
proc	eeded ex-parte on 07.08.2024.
7.	In support of the OA, affidavit ofSh. Parveen Kumar, Manager
and	Authorized Signatory, ICICI Bank Ltd.has 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 bank had proved its case. From the perusal of all the Annexures A1 to A9 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.20,85,811.58p (Rupees Twenty Lacs Eighty Five Thousand Eight Hundred Eleven and Paisa Fifty 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 account.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.00%p.a. plus penal interest @2%p.a. with yearly rests from 07.06.2022 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 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.

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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 Rs.20,85,811.58p (Rupees Twenty Lacs Eighty Five Thousand Eight Hundred Eleven and Paisa Fifty Eight only)jointly and severally, with

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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 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 05.10.2024. 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: 10.09.2024

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

Icici Bank Limited v. Jora Singh and Another

Case brief

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Icici Bank Limited v. Jora Singh and Another

Case brief

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