Allowed

Icici Bank Limited v. Kulwinder Singh and Another

DRT24 Oct 2024OA/461/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed ICICI Bank's application for recovery of Rs. 29.36 lakhs from two defendants who failed to repay a cash credit facility. The court upheld the claim, adjusted the interest rate to 8%, and ordered the issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs. 29.36 lakhs with 8% simple interest; issuance of Recovery Certificate; recovery via attachment/sale of assets if dues remain unsatisfied.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.461/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.02.2024

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DATE OF DECISION: 24.10.2024

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ICICI Bank Limited, having its registered office at: Land Mark, Race Course Circle, Vadodara, 390007 having its branch office at: Nawasher, SBS Nagar, Punjab. Also At: ICICI Bank Ltd., SCO No. 143, a city Emporium Mall, Industrial Area, Phase-1, Chandigarh-160002 through its Authorized Representative Sh. Mohd. Vajid

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……..Applicant

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Versus

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Sh. Kulwinder Singh S/o Sh. Jagir Singh, R/o Village Bharatpura, Jattan Jassowal, Hoshiarpur, Punjab-144529

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Sh. Manpreet Singh S/o Sh. Kulwinder Singh, R/o Village Bharatpura, Jattan Jassowal, Hoshiarpur, Punjab-144529

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….……Defendants

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Advocates:

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Argued by Sh. Amit Rishi, 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.29,36,037.12p (Rupees Twenty Nine Lacs Thirty Six Thousand Thirty Seven and Paisa Twelve only). The Original Application has been filed through Sh. Mohd. Vajid, Authorized Representative 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 no.1 & 2 had approached the applicant for the grant of Cash Credit Limit of Rs.24.90 Lacs vide Loan application dated 10.01.2019, which is Annexure A2 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.24.90 Lacs vide Sanction Letter dated 25.01.2019, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. The copy of Sanction Letter is filed in compliance of order dated 20.03.2024 vide diary no.4882 dated 01.04.2024. 4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 36K situated at Village Bharatpur Jattan/293, Tehsil Garhshankar, District Hoshiarpur (Punjab) vide Declaration under section 4 (1) dated 2 8.01.2019 along with its Translations, which is Annexure A5 to this OA.

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Documents executed:- Hypothecation Deed dated 30.01.2019, which is Annexure A4 to this OA; Demand Notice dated 20.01.2024 along with postal Receipts, which is Annexure A6 to this OA and Statement of account along with Certificate under Bankers Book of Evidence, which is Annexure A7 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.29,36,037.12p, 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 21.10.2024. 7. In support of the OA, affidavit of Sh. Mohd. Vajid, Authorized Representative, ICICI Bank Limited h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned 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 A7 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

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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.29,36,037.12p (Rupees Twenty Nine Lacs Thirty Six Thousand Thirty Seven and Paisa Twelve 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 @11.60%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 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.29,36,037.12p (Rupees Twenty Nine Lacs Thirty Six Thousand Thirty Seven and Paisa Twelve 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 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

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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 05.11.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 24.10.2024

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

Icici Bank Limited v. Kulwinder Singh and Another

Case brief

What is this about?

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Icici Bank Limited v. Kulwinder Singh and Another

Case brief

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