Allowed

Icici Bank Limited v. Ajaib Singh and Another

DRT3 Aug 2024OA/1982/2022

Case brief

AI extract

What is this about?

The DRT-III, Chandigarh allowed the applicant bank's original application under Section 19 of the RDBFI Act, 1993. The court declared the defendants liable to pay Rs. 21,97,418.00 with costs and fixed uniform simple interest at 8% p.a., deviating from the bank's claim of 11.70% due to prevailing market conditions. Recovery of dues shall proceed via hypothecated properties or personal assets.

What did the court decide?

Declaration of liability to pay Rs. 21,97,418.00 jointly and severally with costs and future simple interest at 8.00% p.a., with entitlement to recover from hypothecated or personal assets.

Icici Bank Limited versus Ajaib Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1982/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.11.2022

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DATE OF DECISION: 03.08.2024

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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, Near Chakli Circle, Old Padra Road, Vadodara, Gujarat-390007 and having branches all over India and one of its Branch Offices situated at ICICI Bank Ltd., SCO No.237-238, Sector 20, Panchkula, Haryana through its Authorized Signatory Sh. Parveen Kumar

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……..Applicant

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Versus

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Sh. Ajaib Singh S/o Sh. Gurcharan Singh, R/o Village Kapial, Tehsil Bhawanigarh, District Sangrur-148026

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Smt. Karamjit Kaur W/o Sh. Ajaib Singh, R/o Village Kapial, Tehsil Bhawanigarh, District Sangrur-148026

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Defendants/Borrowers

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Advocates:

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Argued by Sh. Ishmeet Singh, Advocate proxy for Sh. Sherry K. Singla, 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.21,97,418.00 (Rupees Twenty One Lacs Ninety Seven Thousand Four Hundred and Eighteen only). The Original Application has been filed through Sh. Parveen Kumar, Authorized Signatory of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 09.03.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 had approached the applicant bank for the grant of KCC Limit of Rs.13.00 Lacs vide Loan Application dated 12.05.2017, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.11.00 Lacs for the 1^st year and to be enhanced upto Rs.16.10 Lacs for the 5^th year vide Sanction Letter dated 17.05.2017, 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. land measuring 15 Biswa situated at Village Kapial, Tehsil Bhawanigarh, District Sangrur, Punjab vide Letter to sub-Registrar for creation of charge, Non encumbrance certificate and Declaration u/s 4(1) bearing vasika no.119 dated 19.05.2017, which is Annexure A5 to this OA.

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Documents executed:- Deed of hypothecation dated 22.05.2017, which is Annexure A4 to this OA; Legal notice dated 07.07.2022, which is Annexure A6 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.21,97,418.00, 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.

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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 09.07.2024. 7. In support of the OA, affidavit of Sh. Parveen Kumar, Authorized Signatory, ICICI Bank Ltd., has been filed. 8. Heard ex-parte 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 bank 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 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.21,97,418.00 (Rupees Twenty One Lacs Ninety Seven Thousand Four Hundred and Eighteen 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 @11.70%p.a. from 03.07.2022 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.21,97,418.00 (Rupees Twenty One Lacs Ninety Seven Thousand Four Hundred and Eighteen only) jointly and severally, with costs,

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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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 26.08.2024.

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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.

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Pronounced by me in the open Tribunal. Dated: 03.08.2024

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

Icici Bank Limited v. Ajaib Singh and Another

Case brief

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Icici Bank Limited v. Ajaib Singh and Another

Case brief

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