Allowed

Icici Bank Limited v. Jaspal Singh and Others

DRT11 Sept 2024OA/350/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's application to recover a loan amount of Rs. 24.13 lakh. While recognizing the documents and NPA classification, the court exercised discretion to lower the interest rate from the claimed level to 8.00% p.a. The order authorized recovery from mortgaged properties and sale of personal assets.

What did the court decide?

Declaration of liability to pay Rs. 24,13,806 with simple interest @8% p.a.; authorization to recover via sale of mortgaged/mortgaged properties and personal assets.

Icici Bank Limited versus Jaspal Singh and Others — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.350/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.03.2024

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DATE OF DECISION: 11.09.2024

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ICICI BANK LTD. having its registered office at Near Chakli Circle, Old Padra Road, Vadodara, 390-007, Gujarat Inter Alia having a bank branch at Chabal Kalan, Distt. Tarn Taran, through its attorney / authorized representative Sh. Mohammad Vajid, Manager.

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……..Applicant Versus 1. Sh. Jaspal Singh S/o Sh. Mehma Singh, R/o H.No.6, Village Cheema Kalan, Tehsil and Distt. Tarn Taran.

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Sh. Mehma Singh S/o Sh. Fauja Singh, R/o H.No.6, Village Cheema Kalan, Tehsil and Distt. Tarn Taran. 3. Sh. Harpal Singh S/o Sh. Mehma Singh, R/o H.No.6, Village Cheema Kalan, Tehsil and Distt. Tarn Taran.

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Sh. Kawaljit Singh S/o Sh. Mehma Singh, R/o H.No.6, Village Cheema Kalan, Tehsil and Distt. Tarn Taran.

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….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. J.S. Sehgal, 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.24,13,806.00 (Rupees Twenty Four Lacs Thirteen Thousand Eight Hundred & Six Only). The Original Application has been filed through Sh. Mohammad Vajid, Manager of the applicant bank, 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 bank for the grant of KCC Limit of Rs.29,17,500.00 vide Loan Application dated 05.09.2017, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the OGC Limit of Rs.20.00 Lacs vide Sanction Letter dated 20.09.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.4 had mortgaged his immovable properties i.e. total land measuring 63 Kanal 6 Marla detailed as : a. land measuring 66 Kanal 6 Marla situated at Village Cheema Kalan, Hadbast no.182, Tehsil and Distt. Tarn Taran b. l and measuring 66 Kanal 6 Marla situated at Village Naushera, Hadbast No.177, Tehsil and Distt. Tarn Taran vide Letter to Sub Registrar for creation of charge bearing vasika no.351 and Declaration under section 4(1) both d ated 22.09.2017 with its translation, which is Annexure A5 to this OA. Documents executed:-Hypothecation Deed dated 22.09.2017,which is Annexure A4 to this OA; Copy of the notices dated 14.03.2024 with postal Receipts, which are Annexures A7 to A12 to this OA and statement of account with certificate, which is Annexure A13 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.24,13,806.00 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 02.08.2024.

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In support of the OA, affidavit of Sh. Mohammad Vajid, Manager, ICICI BANK LTD. h as been filed. 8. Heard arguments and perused record. 9. 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 A13 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.24,13,806.00 (Rupees Twenty Four Lacs Thirteen Thousand Eight Hundred & Six 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 [email protected]%p.a. plus penal interest @2.00%p.a. with half yearly rests from 01.02.2024 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.24,13,806.00 (Rupees Twenty Four Lacs Thirteen Thousand Eight Hundred & Six Only)jointly and severally, with 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 07.10.2024

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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: 11.09.2024.

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

Icici Bank Limited v. Jaspal Singh and Others

Case brief

What is this about?

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Icici Bank Limited v. Jaspal Singh and Others

Case brief

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