Allowed

Icici Bank Limited v. Satnam Singh and Others

DRT15 Oct 2024OA/564/2024

Case brief

AI extract

What is this about?

DRT allowed recovery by ICICI Bank against four defendants for Rs.34,64,132.09 arising from an NPA loan account. Court granted uniform simple interest at 8% p.a. and directed issuance of Recovery Certificate with authority for sale of mortgaged assets under SARFAESI Act.

What did the court decide?

Recovery of Rs.34,64,132.09 with 8% simple interest p.a.; issuance of Recovery Certificate; authority to sell mortgaged assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.564/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.03.2024

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DATE OF DECISION: 15.10.2024

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ICICI BANK LTD., having its Registered Office at Land Mark, Race Course Circle, Vadodara,390007 Having its Branch Office at SCO-237238, Sector-20, Panchkula Through its Authorized Representative Sh. Mohammad Vajid.

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……..Applicant Versus

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Sh. Satnam Singh, S/o Sh. Harnek Singh, Shamashpur, Patiala (Punjab) – 140417

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Sh. Balbir Singh, S/o Sh. Harnek Singh, Shamashpur Patiala (Punjab) – 140417

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Sh. Nek Singh, S/o Sh. Gurmukh Singh, Shamashpur Patiala (Punjab) – 140417

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Sh. Hardeep Singh, S/o Sh. Balram Singh, Shamashpur Patiala (Punjab) – 140417

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….……Defendant

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Advocates:

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Argued by Sh. Jasneet Singh, Advocate proxy for Sh. Gagandeep Toni, 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.34,64,132.09p (Rupees Thirty Four Lac Sixty Four Thousand One Hundred Thirty Two And Paise Nine Only). The Original Application has been filed through Sh. Mohammad Vajid, Authorized Representative of the applicant, who is competent to institute the Original Application

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vide General 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 the grant of KCC Limit of Rs.28.50 Lacs vide Loan application dated 11.10.2021, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.28.70 Lacs vide Sanction Letter dated 30.12.2021, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.3 had mortgaged his immovable property i.e. total land measuring 8 Bighe 0 Bishwa situated at Samaspur, Sub Tehsil Ghanour, Patiala (Punjab) vide Declaration under section 4(1), which is Annexure A5 to this OA. Documents executed:-Deed of Hypothecation dated 31.12.2021, which is Annexure A4 to this OA; Notice dated 20.01.2024 with postal receipts, which are Annexures A6 and 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.34,64,132.09p, 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 27.09.2024. 7. In support of the OA, affidavit of Sh. Mohammad Vajid, Authorized Representative, ICIC 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,

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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 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 is entitled to recover a sum of Rs.34,64,132.09p (Rupees Thirty Four Lac Sixty Four Thousand One Hundred Thirty Two And Paise Nine 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 @10.85% p.a. plus penal interest @2.00%p.a. from 18.01.2024 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 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 @08.00%p.a. in 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.34,64,132.09p (Rupees Thirty Four Lac Sixty Four Thousand One Hundred Thirty Two And Paise Nine 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 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 25.10.2024.

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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: 15.10.2024.

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

Icici Bank Limited v. Satnam Singh and Others

Case brief

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Icici Bank Limited v. Satnam Singh and Others

Case brief

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