The Tribunal allowed an application under Section 19 of the RDBFI Act for recovery of dues. It measured the outstanding amount at Rs.41,62,655 plus interest at 8% p.a. and issued a Recovery Certificate.
Recovery of Rs.41,62,655 plus simple interest at 8% p.a.; direct order for issuance of Recovery Certificate.
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.1743/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 22.09.2022
DATE OF DECISION: 02.05.2024
ICICI Bank Ltd., having its Registered Office at Near Chakli Circle, Old Padra Road, Vadodara-390007, Gujarat inter alia having a branch at Froze Gandhi Market, Ludhiana, through its Attorney/Authorized Representative Sh. Mohammad Vajid, Manager
……..Applicant
Versus
(Borrowers)
(Guarantor)
………Defendants
Advocates: Argued by Sh. J.S. Sehgal, Advocate for the Applicant Defendants are ex-parte
FINAL ORDER
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through Sh. Mohammad Vajid, Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 18.09.2019, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant bank for the grant of Commercial Vehicle Loan-I of Rs.29,28,000.00 vide Preliminary Credit Facility Application Forms and Credit Facility Applications forms dated 11.07.2018 which are Annexures A2 to A4 to this OA and later on for Commercial Vehicle Loan-II of Rs.28,97,618.00 vide Preliminary Credit Facility Application Form, which is Annexure A8 to this OA and Credit Facility Applications form dated 25.10.2019 which is Annexure A9 to this OA. Thereafter, defendants also approached for the grant of Term Loan under GECL facility of Rs.10.00 Lacs vide Preliminary Credit Facility Application Forms, Credit Facility Application, which is Annexure A15 to this OA. 3. The applicant Bank sanctioned the Commercial Vehicle Loan-I of Rs.29,28,000.00, Commercial Vehicle Loan-II of Rs.28,97,618.00. Thereafter a Term Loan under GECL facility of Rs.10.00 Lacs vide Sanction Letter dated 22.08.2022, which is Annexure A16 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had hypothecated her movable properties detailed as: - a) Commercial Vehicle namely MTB BLAZO 37 having Chasis No.MA1PHAPHDJ6D97635, Engine No.EFJZD13934 and bearing Registration No.PB13BC9651 vide Deed of Hypothecation dated 11.07.2018 and FOP, which are Annexures A5 and A13 to this OA and b) Commercial Vehicle namely MTB BLAZO 37 having Chasis No.MA1PHAPHDJ6K98996, Engine No.VBJZK22874 and bearing Registration No.PB13BG9851 vide Deed of Hypothecation dated 25.10.2019 and FOP, which are Annexures A10 and A14 to this OA and
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c) Stock of raw materials, goods in-process, semi-finished and finished goods, consumable and such other movable including book debts, bills, whether documentary or clean, both present and future, whether in the possession or under the control of the borrower or not, whether now lying loose or in cases or which are now lying or stored in or about or shall thereafter from time to time during the continuance of these presents be brought into or upon or to be stored or be in or about all the borrower’s factories, premises and godowns situated at Ludhiana or wherever else vide Deed of Hypothecation, which is Annexure A17 to this OA. Documents executed: - Irrevocable power of attorney dated 26.07.2018, which is Annexure A6 to this OA; Deed of guarantee, which is Annexure A7 to this OA; Irrevocable power of attorney, which is Annexure A11 to this OA; and Deed of guarantee dated 25.10.2019, which is Annexure A12 to this OA; Deed of guarantee dated 22.08.2020, which is Annexure A18 to this OA; Loan recall notice dated 01.07.2022 with postal receipts, which are Annexures A19 to 21 to this OA and Statements of accounts and foreclosure of statements of the loans with certificate, which are Annexures A22 to A27 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.41,62,655.00, 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 15.03.2024. 7. In support of the OA, affidavit of Sh. Mohammad Vajid, Manager, ICICI Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record.
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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 all 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
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Rs.41,62,655.00 (Rupees Forty One Lacs Sixty Two Thousand Six Hundred and Fifty Five Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts 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 09.05.2024. 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: 02.05.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount jointly and severally from the borrowers and guarantor.
What rate of interest should be applicable on the outstanding amount towards pendent lite and future period.
Whether a Recovery Certificate should be issued to the applicant bank.
1 provisions across 1 enactments
ICICI Bank Ltd.
Smt. Jasvinder Kaur
Sh. Inderpreet Singh
Sh. Jarnail Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
