The Debt Recovery Tribunal allowed an Original Application filed under the RDBFI Act for recovery of a defaulted KCC agricultural loan of Rs. 31,33,548 with future interest at 10% p.a., as defendants were absent.
Declarations of liability to pay Rs. 31,33,548 with interest at 10% p.a.; issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.176/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 25.11.2022
DATE OF DECISION: 20.02.2024
ICICI bank Limited, a banking company incorporated under the Companies Act, 1956 and a Banking Company within the meaning of Banking Regulation Act, 1949, and is having its registered office at Land Mark, Race Course Circle, Vadodara-390007 and inter alia having branch at Johari Complex, Showroom No. 3, Ghagga Road, Samana, District Patiala, Punjab-147101, through its Manager and authorized signatory Sh. Parveen Kumar.
……Applicant
Versus
……Defendants
Advocates:
Argued by Sh. Himender Pal Singh, counsel for the applicant Defendants are ex-parte
FINAL ORDER
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bank, who is competent to institute the Original Application vide Power of Attorney dated 09.03.2021, 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 KCC Facility of Rs.24,90,000.00 vide Loan Application dated 20.06.2017 for agriculture loan, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Facility of Rs.24,90,000.00 vide Loan Application dated 28.06.2017 for agriculture loan, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged his immovable properties i.e. total land measuring 26 Kanal-00 Marla situated in the area of Village Faizgarh, Tehsil Nabha, District Patiala, Punjab vide Declaration under Section 4(1) of Punjab Agriculture Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 along with detail of the mortgaged property, w hich is Annexure A5 (colly) to this OA and letter dated 05.07.2017 to the Registrar Nabha District Patiala for creation of charge on land, which is Annexure A6 to this OA. Documents executed: - Hypothecation Deed dated 28.06.2017, which is Annexure A4 to this OA, loan recall notice dated 11.04.2022 and postal receipts, which are Annexures A7 and A8 to this OA and Statement of account with certificate, which is Annexure A9 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.31,33,548.00, 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 23.01.2024.
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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 @10.00%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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2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount and interest from the defendants?
What is the appropriate rate of interest to be granted in the loan account?
2 provisions across 2 enactments
ICICI Bank Limited
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
