The DRT allowed the bank's application for recovery of a loan of Rs.22.32 Lakhs. The court reduced the claimed interest to 8% p.a. and directed recovery from the defendants' mortgaged or personal assets.
Directed recovery of Rs.22,32,404 plus costs and simple interest at 8% p.a. from the sale of mortgaged or personal assets of the defendants.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.458/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 30.03.2023
DATE OF DECISION: 15.07.2024
ICICI Bank Ltd., having its Registered Office at Near Chakli Circle, Old Padra Road, Vadodara-390007, Gujarat inter alia having a bank branch at Feroz Gandhi Market, Ludhiana, Punjab through its attorney/authorized Representative Sh. Mohammad Vajid, Manager ……..Applicant Versus
(Borrowers)
….……Defendants
Advocates:
Argued by Sh. J.S. Sehgal, Advocate for the applicant Defendants are ex-parte
FINAL ORDER
2
Annexures A2 and A3 to this OA and further for the grant of GECLWorking Capital Limit of Rs.12.00 Lacs vide Preliminary Credit Facility Application Form dated 29.08.2020, which is Annexure A7 to this OA. 3. The applicant Bank sanctioned the Vehicle Term Loan of Rs.22.22 Lacs for purchase of TATA SIGNA 4018.S and Rs.5.00 Lacs for its body making and further sanctioned GECL-Working Capital Limit of Rs.12.00 Lacs vide Sanction Letter, which is Annexure A8 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his movable property i.e. Vehicle namely TATA SIGNA 4018.S CR BS-IV having Chasis No.MAT447261JAJ21056, Engine No.81E84484503 and bearing Registration No.PB04AA8659 vide Deeds of hypothecation dated 17.10.2018 and 29.08.2020 and FOP dated 31.01.2023, which are Annexures A4, A6 and A9 to this OA. Documents executed:- Irrevocable power of attorney dated 17.10.2018, which is Annexure A5 to this OA; Notice dated 28.12.2022 along with its postal receipts, which are Annexures A10 to A13 to this OA and Statement of account along with Foreclosure statements of loans with certificate, which are Annexures A14 to A19 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.22,32,404.00, 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 15.05.2024. 7. In support of the OA, affidavit of Sh. Mohammad Vajid, Manager, ICICI Bank Ltd. h as been filed.
3
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 all 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.
4
Pronounced by me in the open Tribunal . Dated: 15.07.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the bank was entitled to recover the outstanding loan amount due from the borrowers.
Whether the Tribunal should modify the rate of interest claimed by the bank.
2 provisions across 2 enactments
ICICI Bank Ltd.
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
