Allowed

Icici Bank Limited v. Sh. Sukhwinder Singh and Others

DRT30 Jul 2024OA/576/2023

Case brief

AI extract

What is this about?

The DRT allowed the Application under Section 19 RDBFI Act. The Tribunal declared the respondents liable to pay the outstanding dues with modified simple interest at 8% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; Respondents held jointly and severally liable to pay Rs. 28,16,291.00 with simple interest at 8% p.a. from the date of filing.

Icici Bank Limited versus Sh. Sukhwinder Singh and Others — Specific Performance | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.576/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.08.2023 DATE OF DECISION: 30.07.2024 ICICI Bank Ltd. having its registered office at Land Mark Race Course Circle, Vadodara-390007, having its Branch office at SCO 237-238, Sector 20, Panchkula, through its Authorized Representative, Sh. Parveen Kumar. ……..Applicant Bank Versus 1. Sh. Sukhwinder Singh, S/o Sh. Gurmel Singh, R/o Village Sampurangarh, Rajpura, Patiala, Punjab-147111. (Borrower) 2. Sh. Gurmel Singh, S/o Sh. Mansa Singh, R/o Village Sampurangarh, Rajpura, Patiala, Punjab-147111 (Co-borrower) 3. Sh. Sukh Dev Singh, S/o Sh. Harbans Singh, R/o Khauli Dhudan Sadan, Tehsil Patiala, Distt. Patiala, Punjab-147111 (Guarantor) ….……Defendants Advocates: Argued by Sh. Kaveesh, Advocate proxy for Sh. Puneet Tuli, for 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 Rs.28,16,291.00 (Rupees Twenty Eight Lacs Sixteen Thousand Two Hundred & Ninety One Only). The Original Application has been filed

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throug h, Sh. Parveen Kumar, Authorised Representative o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 09.03.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No. 1 and 2 had approached the applicant bank for grant of KCC Limit of Rs.29.00 Lacs vide Credit Facility Application Form dated 11.05.2016, which is Annexure A2 to this OA. Defendant No. 3 stood as Guarantor. 3. The applicant Bank sanctioned the KCC Limit of Rs.22.00 Lacs vide Sanction Letter dated 27.05.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had No. 2 mortgaged his immovable properties i.e. land measuring 48K-0M situated at Village Sampurangarh, Tehsil Duduan Sadhan, District Patiala vide D eclaration u/s 4(1) of Punjab Agricultural Credit Operations & Misc. Provisions Act 1978 along with letter to Joint Sub Registrar for creation of charge bearing No.132A dated 30.05.2016, which are Annexures A4 & A5 to this OA. Documents executed:-Demand Notices dated 10.06.2022 which is Annexure A6 to this OA; Postal Receipts dated 13.06.2022, which is Annexure A7 to this OA and Statement of Account 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.28,16,291.00 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 21.05.2024.

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In support of the OA, affidavit of Sh. Parveen Kumar, Authorised Representative, ICICI Bank Ltd. 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 A8 to this OA, it is proved that the defendants approached applicant bank 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 bank is entitled to recover a sum of Rs.28,16,291.00 (Rupees Twenty Eight Lacs Sixteen Thousand Two Hundred & Ninety One 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 bank in relief clause has interest @ 12.00% p.a. + 2% penal interest 14.06.2022 till the realization. 11. 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.28,16,291.00 (Rupees Twenty Eight Lacs Sixteen Thousand Two Hundred & Ninety One 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 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.

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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 Tribunal on 20.08.2024.

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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: 30.07.2024

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

Icici Bank Limited v. Sh. Sukhwinder Singh and Others

Case brief

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Icici Bank Limited v. Sh. Sukhwinder Singh and Others

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