Allowed

Icici Bank Limited v. Sh. Malkit Singh and Others

DRT13 Sept 2024OA/180/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application under Section 19 of the RDBFI Act. The Bank was granted permission to recover outstanding dues of Rs. 21 Lakhs from defendants jointly and severally, with interest at 8% p.a., and to enforce sale of mortgaged properties under the SARFAESI Act.

What did the court decide?

Application allowed; Recovery Certificate issued; Defendants ordered to pay sum with 8% p.a. interest; Bank entitled to recover via execution or sale of mortgaged assets.

Icici Bank Limited versus Sh. Malkit Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.180/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.02.2024

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DATE OF DECISION: 13.09.2024

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ICICI Bank Ltd. a body corporate, incorporated under the Companies Act, 1956 and bank within the meaning of the Banking Regulation Act,1949 and having its registered office at Near Chakli Circle, Old Padra Road, Vadodara-390007, and its Corporate office at ICICI Bank Towers, Bandra Kurla Complex, Mumbai-400051 and having branches all over India and one of its branch offices situated at 1^st Floor, Near N.K. Sharma Office, Chandigarh Ambala National Highway, Zirakpur, District S.A.S. Nagar, Punjab through its authorized signatory, Sh. Mohd. Vajid.

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……..Applicant

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Versus

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Sh. Malkit Singh S/o Sh. Jangir Singh, R/o House No.15, Village Kadar Nagar, Munshiwala, Tehsil Sunam, District Sangrur, Punjab 148035.

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Smt. Partap Kaur W/o Sh. Malkit Singh, R/o House No.15, Village Kadar Nagar, Munshiwala, Tehsil Sunam, District Sangrur, Punjab 148035.

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Sh. Joga Singh S/o Sh. Jangir Singh, R/o House No.15, Village Kadar Nagar, Munshiwala, Tehsil Sunam, District Sangrur, Punjab 148035.

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….……Defendants

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Advocates:

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Argued by Sh. Manav Singal, Advocate proxy for Sh. Rahul Garg, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.21,03,390.64p (Rupees Twenty One Lakh Three Thousand Three Hundred Ninety and Sixty Four Paise Only). The Original Application

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has been filed through Sh. Mohd. Vajid, Authorized Signatory of 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 defendant No.1 and 2 had approached the applicant for the grant of KCC Limit of Rs.18.00 Lacs vide Loan Application dated 12.03.2013, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs. 13.00 Lcas for the 1^st year and to be enhanced upto Rs.19,03,330.00 vide Facility Intimation Letter dated 20.03.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e total land measuring 40 Kanal 00 Marla situated at Village Munshiwal, Tehsil Dirba, District Sangrur, Punjab vide Registered Mortgage Deed bearing Vasika No.2608, dated 22.03.2013, along with its translation which is Annexure A6 to this OA.

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Documents executed:- Hypothecation Deed, Deed of Guarantee dated 22.03.2013, which are Annexures A4 & A5 to this OA; Loan Recall Notice dated 24.01.2024 with postal receipts, which is Annexure A7 to this OA and statement of account along with certificate, which is Annexure A8 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 Rs.21,03,390.64 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 03.08.2024. 7. In support of the OA, affidavit of Sh. Mohd. Vajid, Authorized Signatory, ICICI Bank Ltd. has been filed.

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Heard arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A8 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.21,03,390.64 (Rupees Twenty One Lakh Three Thousand Three Hundred Ninety and Sixty Four Paise 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 in relief clause has claimed interest @12%p.a. with half yearly rests from 01.11.2023 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.21,03,390.64 (Rupees Twenty One Lakh Three Thousand Three Hundred Ninety and Sixty Four Paise 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 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. 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 09.10.2024. 15. 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 . Dated:13.09.2024.

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

Icici Bank Limited v. Sh. Malkit Singh and Others

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Sh. Malkit Singh and Others

Case brief

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What did the court decide?

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