The Tribunal allowed the applicant bank's original application filed under the RDBFI Act for recovery of outstanding vehicle loans. The Tribunal reduced the claimed interest rate to 8% and directed the issuance of a recovery certificate.
Recovery of Rs.74,17,751.44 plus costs and 8% simple interest; issuance of Recovery Certificate.
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.48/2024
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 10.01.2024
DATE OF DECISION: 23.07.2024
| 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 Towers, Near |
| Chakli Circle, Old Padra Road, Vadodara-390007, and its corporate |
| office at ICICI Bank Towers, Bandra Kurla Complex, Mumbai-400051 |
| and having branches all over India and one of its branch offices |
| situated at 1st Floor, Near N.K. Sharma Office, Chandigarh Ambala |
| National Highway, Zirakpur, District SAS Nagar, Punjab through its |
| Authorised Signatory, Mohammed Vajid ……..Applicant Versus |
| 1. Nexus International, 3889, Vijay Public High School, Model House, Ludhiana-141002, Punjab, through its proprietor Sh. Arjun Pahwa Borrower |
| 2. Sh. Arjun Pahwa S/o Sh. Pawan Kumar Pahwa, R/o H.No.3889, Vijay Public High School, Model House, Ludhiana-141002, Punjab Co-Borrower |
| 3. Sh. Pawan Kumar Pahwa, S/o Sh. Suraj Parkash Pahwa, R/o H. No. 3889, Vijay Public High School, Model House, Ludhiana-141002, |
| Punjab proprietor of Pahwa Transport Company Co-Borrower ….……Defendants |
| Advocates: |
| Argued by Sh. Gurnam Singh, Advocate proxy for Sh. Rajiv Sharma, Advocate for the applicant Defendants are ex-parte FINAL ORDER |
| 1. 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 |
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Rs.74,17,751.44p (Rupees Seventy Four Lacs Seventeen Thousand Seven Hundred Fifty One and Forty Four Paise only). The Original Application has been filed through Sh. Mohammed Vajid, Authorised Signatory of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 18.09.2019, which is Annexure A1 to this OA.
are Annexures A2 to A5 to this OA.
MAT632114NPGR1796;
vide Agreements for FOP, which is Annexure A6 to this OA.
Documents executed:- Loan Recall Notice dated 24.02.2023 and 18.07.2023 with postal receipts, which is Annexure A7 to this OA and Statements of Accounts along with Banker Books Evidence, which are Annexures A8 to A10 to this OA;
defendants were served recall notices but they did not repay the
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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 03.05.2024. 7. In support of the OA, affidavit of Sh. Mohammed Vajid, Authorised Signatory, ICICI Bank Limited h as been filed. 8. Heard ex-parte 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 A10 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.74,17,751.44p (Rupees Seventy Four Lacs Seventeen Thousand Seven Hundred Fifty One and Forty Four Paise only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.
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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amounts 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.74,17,751.44p (Rupees Seventy Four Lacs Seventeen Thousand Seven Hundred Fifty One and Forty Four Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amounts. 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 12.08.2024. 15. 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. Pronounced by me in the open Tribunal. Dated: 23.07.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount from the defendants jointly and severally.
Whether the Tribunal should modify the claimed rate of interest to a uniform simple interest rate.
Whether the applicant bank is entitled to a Recovery Certificate and enforce the claim through sale of mortgaged or personal assets.
1 provisions across 1 enactments
ICICI Bank Ltd.
Nexus International
Sh. Arjun Pahwa
Sh. Pawan Kumar Pahwa
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
