Allowed

Icici Bank Limited v. Messrs Mty Traders and Others

DRT23 Sept 2024OA/191/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by ICICI Bank for recovery of dues from M/s MTY Traders and associates. The court decreed the fiat and fixed the interest rate at 8% per annum, granting a recovery certificate and authorizing enforcement under SARFAESI.

What did the court decide?

Recovery of Rs.29,71,882.00 with costs and simple interest at 8% p.a.; issuance of Recovery Certificate; entitlement to sell hypothecated assets.

Icici Bank Limited versus Messrs Mty Traders and Others — Specific Performance | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.191/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.02.2024

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DATE OF DECISION: 23.09.2024

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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 ICICI Bank Tower, New 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 Natinal Highway, Zirakpur, District S.A.S. Nagar, Punjab through its authorized signatory, Mohd Vajid.

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……..Applicant Bank Versus

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M/s MTY Traders through its proprietor, Village and Post Office Aggampur, Tehsil Anandpur Sahib, District Rupnagar, Punjab140108.

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Sh. Nutan Kumar S/o Roshan Lal, proprietor M/s MTY Traders R/o Village and Post Office Aggampur, Tehsil Anandpur Sahib, District Rupnagar, Punjab-140108.

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Smt. Poonam Rani W/o Sh. Natun Kumar R/o Village and Post Office Aggampur, Tehsil Anandpur Sahib, District Rupnagar, Punjab-140108.

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………. Defendants

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Advocates:

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Argued by Sh. Rahul Garg, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

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Rs.29,71,882.00 (Rupees Twenty Nine Lacs Seventy One Thousand Eight Hundred Eighty Two Only). The Original Application has been filed through Sh. Mohd Vajid, Authorized Signatory o f the applicant, who is competent to institute the Original Application vide General 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 the grant of Term Loan of Rs.52.80 Lacs vide Preliminary Credit Facility Application Form, which is Annexure A2 to this OA.

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The applicant sanctioned Term Loan of Rs.52.80 Lacs vide Credit Facility Application Form dated 27.03.2021, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 hypothecated its movable assets i.e. equipment machinery i.e. Kobelco SK220 Hydraulic Excavator bearing Machine Serial No.YQ15511455 & Engine No.JOSETA53394 vide Tax Invoice dated 31.03.2021, which is Annexure A5 to this OA. Documents executed:-Deed of Hypothecation dated 27.03.2021, which is Annexure A4 to this OA; Loan Recall Notice dated 30.10.2023, which is Annexure A6 to this OA and Statement of Account along with certificate, which is Annexure A7 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.29,71,882.00, 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. 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 22.08.2024.

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In support of the OA, affidavit of Sh. Mohd Vajid, Authorized Signatory, ICICI Bank Ltd. h as been filed.

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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 had proved its case. From the perusal of all the Annexures A1 to A7 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 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 is entitled to recover a sum of Rs.29,71,882.00 (Rupees Twenty Nine Lacs Seventy One Thousand Eight Hundred Eighty Two 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 @24.00%p.a. with monthly rests from 31.10.2023 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 @08.00%p.a. in 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.

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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.29,71,882.00 (Rupees Twenty Nine Lacs Seventy One Thousand Eight Hundred Eighty Two Only) jointly and severally, with costs, current and future simple interest @08.00%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 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 15.10.2024.

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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 . Dated: 23.09.2024

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

Icici Bank Limited v. Messrs Mty Traders and Others

Case brief

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Icici Bank Limited v. Messrs Mty Traders and Others

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