Allowed

Icici Bank Limited v. Mithu Singh and Others

DRT26 Sept 2024OA/528/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by ICICI Bank Ltd. against three respondents for recovery of a loan default. The court issued a recovery certificate, fixed simple interest at 8% p.a., and authorized recovery through sale of mortgaged or personal assets under the SARFAESI Act.

What did the court decide?

Recovery certificate issued; respondents declared liable to pay principal, costs, and simple interest at 8% p.a. Recovery via sale of mortgaged or personal assets authorized.

Icici Bank Limited versus Mithu Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.528/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.04.2024

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DATE OF DECISION: 26.09.2024

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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 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 1^st Floor, Near N.K. Sharma Office, Chandigarh Ambala National Highway, Zirakpur, District S.A.S. Nagar, Punjab through its Authorized Signatory Mohd. Vajid.

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……..Applicant

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Versus

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Sh. Mithu Singh S/o Sh. Gurbachan Singh 2. Sh. Jarnail Singh S/o Sh. Gurbachan Singh 3. Smt. Amarjit Kaur W/o Sh. Gurbachan Singh

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All the defendants are residents of Village Chatha Gobindpura, Pakki Khanauri, Tehsil Moonak, District Sangrur, Punjab-148027.

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….……Defendants

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Advocates:

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Argued by Sh. Manav Singal, Advocate proxy for Sh. Rahul Garg, 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.20,26,169.07p (Rupees Twenty Lacs Twenty Six Thousand One Hundred Sixty Nine and Paisa Seven only). The Original Application has been filed through Mohd. Vajid, Authorized Signatory o f the applicant

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who is competent to institute the Original Application vide Power of Attorney dated 18.09.2019, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant for the grant of Cash Credit Limit (KCC) of Rs.15.00 Lacs vide Loan application dated 16.07.2018, which is Annexure A2 to this OA. 3. The applicant sanctioned the Cash Credit Limit (KCC) of Rs.14.50 Lacs vide Sanction Letter dated 30.07.2018, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable properties i.e. total land measuring 40K-0M situated at Village Chatha Gobindpura, Tehsil Moonak, District Sangrur (Punjab) vide Declaration u/s 4 (1) along with its Translations and Letter to Sub Registrar for creation of charge bearing vasika no.83 dated 30.07.2018, which are Annexures A5 and A6 to this OA.

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Documents executed:- Hypothecation Deed 30.07.2018, which is Annexure A4 to this OA; Loan Recall Notice dated 12.03.2023, which is Annexure A7 to this OA and Statement of account with certificate, which is Annexure A8 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.20,26,169.07p, 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.

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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 07.09.2024. 7. In support of the OA, affidavit of Mohd. Vajid, Authorized Signatory, ICICI Bank Ltd. h as been filed. 8. Heard arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A8 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 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.20,26,169.07p (Rupees Twenty Lacs Twenty Six Thousand One Hundred Sixty Nine and Paisa Seven 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 @11.70%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.20,26,169.07p (Rupees Twenty Lacs Twenty Six Thousand One Hundred Sixty Nine and Paisa Seven only) jointly and severally, with

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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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.10.2024.

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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: 26.09.2024

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

Icici Bank Limited v. Mithu Singh and Others

Case brief

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Icici Bank Limited v. Mithu Singh and Others

Case brief

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