Allowed

Icici Bank Limited., v. Nirmal Singh and Others

DRT25 Sept 2024OA/2022/2022

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What is this about?

The Debts Recovery Tribunal allowed the bank's recovery application against three defendants who defaulted on a KCC loan. The court directed payment of the principal sum with costs and uniform simple interest at 8% p.a., directing recovery via sale of mortgaged properties or attachment of assets.

What did the court decide?

Recovery certificate issued; defendants jointly and severally liable to pay Rs.20,52,858.00 plus costs and simple interest at 8% p.a.

Icici Bank Limited., versus Nirmal Singh and Others — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2022/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.11.2022

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DATE OF DECISION: 25.09.2024

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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, 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 son of Mr. Som Nath (Employee No.323601).

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……..Applicant

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Versus

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Sh. Nirmal Singh S/o Sh. Kartar Singh resident of House No.18, Village Kotla, Tehsil Rajpura and District Patiala.

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Sh. Gurcharan Singh S/o Sh. Nirmal Singh resident of House No.18, Village Kotla, Tehsil Rajpura and District Patiala.

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Sh. Ajmer Singh S/o Sh. Gurnam Singh resident of H.No.48, Village Kotla, Tehsil Rajpura and District Patiala.

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….……Defendants

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Advocates:

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Argued by Sh. Ishmeet Singh, 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 Rs.20,52,858.00 (Rupees Twenty Lac Fifty Two Thousand Eight Hundred Fifty Eight Only). The Original Application has been filed through Sh. Parveen Kumar, Branch Manager o f the applicant, who is

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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 Defendants had approached the applicant for the grant of KCC Limit of Rs.10.00 Lacs vide Loan application dated 10.06.2015, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.8.74 Lcas for the 1^st year and to be enhanced upto Rs.12,79,500 for the 5^th year vide Sanction Letter dated 27.06.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged the immovable properties i.e. total land measuring 30K-09M situated in Village Kotla/4, Tehsil Rajpura and District Patiala vide Letter to Registrar for creation of charge bearing vasika no.446 dated 25.06.2015 and Declaration U/s 4(1), which is Annexure A6 to this OA. Documents executed:-Deed of Hypothecation, Guarantee Deed both dated 27.06.2015, which are Annexures A4 to A5 to this OA; Copy of Legal Notice dated 07.07.2022, which is Annexure A7 to this OA and Copy of Statement of account along with certificate, which are Annexures A8 to 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.20,52,858.00, 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 27.08.2024. 7. In support of the OA, affidavit of Sh. Parveen Kumar, Branch Manager, ICICI Bank Ltd. h as been filed. 8. 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 A9 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.20,52,858.00 (Rupees Twenty Lac Fifty Two Thousand Eight Hundred Fifty Eight 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 @12.00%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.20,52,858.00(Rupees Twenty Lac Fifty Two Thousand Eight Hundred Fifty Eight Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of

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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 17.10.2024. 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. Pronounced by me in the open Tribunal . Dated: 25.09.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Icici Bank Limited., v. Nirmal Singh and Others

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Icici Bank Limited., v. Nirmal Singh and Others

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