Allowed

Icici Bank Limited v. Sukhjit Singh and Another

DRT14 Oct 2024OA/430/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by ICICI Bank Ltd. against two defendants for recovery of Rs. 26,79,414.50 plus interest. The Tribunal reduced the claimed interest rate to 8% p.a. and ordered the issuance of a recovery certificate.

What did the court decide?

Recovery Certificate issued for Rs.26,79,414.50 plus interest @8% p.a. Parties directed to appear before Recovery Officer.

Icici Bank Limited versus Sukhjit Singh and Another — Money Laundering | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.430/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.02.2024

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DATE OF DECISION: 14.10.2024

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ICICI BANK LTD., having its Registered Office at Land Mark, Race Course Circle, Vadodara, 390007, having its Branch Office at Moga, Punjab Also at ICICI BANK LTD, SCO NO. 143, A City Emporium Mall, Industrial Area, Phase-1, Chandigarh- 160002 through its Authorised Representative Mr. Mohd. Vajid.

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……..Applicant

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Versus

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Sh. Sukhjit Singh S/o Sh. Gurdev Singh, R/o House No.138, Village Rattian, Moga, Punjab – 142048.

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Sh. Harjit Singh S/o Sh. Gurdev Singh, R/o House No.218, Store Wali Gali, Village Rattian, Moga, Punjab – 142048.

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….……Defendants

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Advocates:

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Present Ms. Ashmita Goel, Advocate proxy for Sh. Amit Rishi, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.26,79,414.50p (Rupees Twenty Six Lacs Seventy Nine Thousand Four Hundred Fourteen And Fifty Paisa Only). The Original Application has been filed through Mr. Mohammad Vajid, Authorized Signatory o f 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 defendants had approached the applicant for grant of KCC Limit of Rs.25.00 Lacs vide Loan application dated 09.09.2020, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.20.30 Lacs for the 1^st year and to be enhance upto Rs.22.50 Lacs for the 5^th year vide Sanction Letter dated 28.09.2020, 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 & 2 had mortgaged his immovable property i.e. total land measuring 68K-00M detailed as: a. land measuring 30K-01M situated at Village Rattian, Tehsil & District Moga, Punjab b. land measuring 37K-19M situated at Village Khosa Pando, Tehsil & District Moga, Punjab vide Letter to Sub Registrar for Creation of Charge bearing vasika no.266 and Declaration under section 4(1) both dated 05.10.2020, which is Annexure A5 to this OA.

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Documents executed:- Hypothecation Deed dated 30.09.2020, which is Annexure A4 to this OA; Demand Notice dated 20.01.2024 with Postal Receipts, which is Annexures A6 to this OA; Copy of Statement of Account (KCC) along with copy of Certificate under Bankers Book of Evidence, which is Annexure A7 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.26,79,414.50p, 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 notice to appear before this Tribunal but no one appeared on behalf of defendant and they were proceeded ex-parte on 01.10.2024. 7. In support of the OA, affidavit of Mr. Mohd. Vajid, Authorized Signatory, ICICI Bank Ltd. has been filed. 8. Learned proxy counsel present has not advanced any arguments. Perused record.

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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 A7 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.26,79,414.50p (Rupees Twenty Six Lacs Seventy Nine Thousand Four Hundred Fourteen And Fifty Paisa 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 [email protected]%p.a. with half yearly rests from 01.11.2023 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 defendant, quantum of loans 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,79,414.50p (Rupees Twenty Six Lacs Seventy Nine Thousand Four Hundred Fourteen And Fifty Paisa Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan

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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. 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 24.10.2024. 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: 14.10.2024

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

Icici Bank Limited v. Sukhjit Singh and Another

Case brief

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Icici Bank Limited v. Sukhjit Singh and Another

Case brief

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