Allowed

Icici Bank Limited v. Mastaan Singh and Others

DRT24 Sept 2024OA/675/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of ₹21,05,113.76, declaring the borrowers jointly and severally liable. The Tribunal fixed the interest rate at 8% per annum and granted a recovery certificate.

What did the court decide?

Recovery certificate issued; Defendants liable to pay ₹21,05,113.76 with 8% simple interest; recovery via sale of mortgaged or personal assets allowed.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.675/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.04.2023

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DATE OF DECISION: 24.09.2024

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ICICI Bank Ltd., company incorporated under the Companies Act, 1956 and Banking Company within the meaning of Banking Regulation Act, 1949, and is having its registered office at Land Mark, Race Course Circle, Vadodara-390007 and interalia having branch at Village Kheri Gurna, Tehsil Rajpura, District Patiala, Punjab-140417, through its Manager and Authorized Signatory Sh. Parveen Kumar.

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……..Applicant

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Versus

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Sh. Mastaan Singh S/o Sh. Raghvir Singh, H.No. 57, Village Jand Mangoli, Tehsil Rajpura, District Patiala, Punjab-140417.

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Sh. Harnek Singh S/o Sh. Raghvir Singh, H.No. 57, Village Jand Mangoli, Tehsil Rajpura, District Patiala, Punjab-140417.

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Sh. Manpreet Singh S/o Sh. Raghvir Singh, H.No. 57, Village Jand Mangoli, Tehsil Rajpura, District Patiala, Punjab-140417.

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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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.21,05,113.76p (Rupees Twenty One Lacs Five Thousand One Hundred Thirteen and Paisa Seventy Six only). The Original Application has been filed through Sh. Parveen Kumar, Manager and Authorized Signatory o f the applicant, 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 for the grant of Cash Credit Limit (KCC) of Rs.20.00 Lacs vide Farmer Finance Facilities Credit Facility ApplicationForm ‘CFAF’ dated 15.11.2018, which is Annexure A2 to this OA.

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The applicant sanctioned the Cash Credit Limit (KCC) of Rs.18.00 Lacs vide Sanction Letter dated 21.11.2018, 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 48 Bighas-0 Biswa situated at Village Chahi Waka mojan, Jand Mangoli, Tehsil Ghanaur, District Patiala (Punjab) vide Declaration Under Sec 4 (1) of Punjab Agricultural Credit Operation and Misc. Provisions (Banks) Act, 1978 and Letter to Sub-Registrar dated 2 8.11.2018 along with their Translations , which are Annexures A5 & A6 to this OA.

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Documents executed:- Deed of Hypothecation dated 29.11.2018, which is Annexure A4 to this OA; Notice dated 27.01.2023 along with its translations and postal Receipts, which are Annexures A7 & A8 to this OA and Statement of Account along with Certificate regarding the Computer System and the genuineness of the statement of account being prepared through Computer System, which is Annexure A9 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.21,05,113.76p, 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 28.08.2024. 7. In support of the OA, affidavit of Sh. Parveen Kumar, Manager and Authorized Signatory, ICICI Bank Ltd. has been filed.

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Heard 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 had proved its case. From the perusal of all the Annexures A1 to A9 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.21,05,113.76p (Rupees Twenty One Lacs Five Thousand One Hundred Thirteen and Paisa Seventy Six 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 @11.50%p.a. plus penal interest @2%p.a. with yearly rests 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 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.21,05,113.76p (Rupees Twenty One Lacs Five Thousand One

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Hundred Thirteen and Paisa Seventy Six 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 16.10.2024.

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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 . Dated: 24.09.2024

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

Icici Bank Limited v. Mastaan Singh and Others

Case brief

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Icici Bank Limited v. Mastaan Singh and Others

Case brief

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