Allowed

Icici Bank Limited v. Harkirat Singh and Others

DRT21 Aug 2024OA/624/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of Rs. 39,56,439.21 from borrowers and guarantors. The Tribunal re-calculated interest to 8% p.a. granted a recovery certificate, and authorized attachment of assets if dues remain unsatisfied under the SARFAESI Act.

What did the court decide?

Recovery certificate issued for Rs. 39,56,439.21 with 8% simple interest. Bank entitled to recover via sale of mortgaged properties or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.624/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.04.2023

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DATE OF DECISION: 21.08.2024

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ICICI BANK LTD., company incorporated under the Companies Act, 1956 and a Banking Company within the meaning of the Banking Regulation Act, 1949 and is having its Registered Office at Land Mark, Race Course Circle, Vadodara -390007 and interalia having branch at SCF 1, Grain Market, Bhawanigarh, District Sangrur-148026, through its Manager and authorized signatory Mr. Parveen Kumar.

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……..Applicant

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Versus

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1. Sh. Harkirat Singh S/o Sh. Malkit Singh, Village Sakrodi, Tehsil Bhawanigarh, District Sangrur, Punjab, Pin 148026

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1. Sh. Jaspinder Singh S/o Sh. Harkirat Singh, Village Sakrodi, Tehsil Bhawanigarh, District Sangrur, Punjab, Pin 148026

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(Borrower/Mortgagors)

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Sh. Jaspal Singh S/o Sh. Jora Singh, Village Dehlawal, Tehsil & District Sangrur, Punjab, Pin 148026 (Guarantor)

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….……Defendants

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Advocates:

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Argued by Sh. Himendra Pal Singh, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.39,56,439.21p (Rupees Thirty Nine Lacs Fifty Six Thousand Four Hundred Thirty Nine and Twenty One Paise Only). The Original Application has been filed through Sh. Parveen Kumar, Authorized

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Representative of 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 defendants had approached the applicant bank for the grant of credit facility under KCC Limit of Rs.43.00 Lacs vide Loan Application dated 17.11.2016, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.40.00 Lacs vide Sanction Letter dated 30.11.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable properties i.e. Total land measuring 57 Bighas 12 Biswas detailed as:-

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a. Land measuring 15 Bigha-13 Biswa situate d in the revenue estate of Village Sarkodi, Tehsil Bhawanigarh, District Sangrur,

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b. Land measuring 41 Bigha-19 Biswa situated in the revenue estate of Village Kakra, Tehsil Bhawanigarh, District Sangrur vide Declaration u/s 4(1) dated 16.02.2017 and L etter to SubRegistrar for creation of charge, which are Annexure A6 and A7 to this OA.

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Documents executed:- Deed of hypothecation dated 30.11.2016, which is Annexure A4 to this OA; Guarantee Deed dated 29.11.2016, which is Annexure A5 to this OA; Notices dated 30.12.2022 with postal receipts, which are Annexure A8 and A9 to this OA and Statement of Account along with Certificate, which is Annexure A10 to this OA.

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5 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.39,56,439.21p, 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.

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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 15.07.2024.

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In support of the OA, affidavit of Sh. Parveen Kumar, Authorized Signatory, ICICI Bank Ltd., h as been filed.

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Heard ex-parte arguments and perused record.

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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 A10 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.39,56,439.21p (Rupees Thirty Nine Lacs Fifty Six Thousand Four Hundred Thirty Nine and Twenty One 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 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 claimed interest @11.30%p.a. along with penal interest @2%p.a. from 22.01.2023 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

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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.39,56,439.21p (Rupees Thirty Nine Lacs Fifty Six Thousand Four Hundred Thirty Nine and Twenty One Paise 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. 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 11.09.2024.

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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.

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Pronounced by me in the open Tribunal. Dated:21.08.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Icici Bank Limited v. Harkirat Singh and Others

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Harkirat Singh and Others

Case brief

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What did the court decide?

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