Allowed

Icici Bank Limited v. Sh. Jagtar Singh

DRT19 Aug 2024OA/68/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application under Section 19 RDBFI Act, 1993. It declared defendants jointly and severally liable to repay Rs.21.30 lakhs with simple interest at 8% p.a., permitting recovery via sale of mortgaged or personal assets.

What did the court decide?

Declaration of liability to pay Rs.21,30,257.00 with interests at 8% p.a.; Recovery Certificate issued; Recovery via mortgage sale or attachment permitted.

Icici Bank Limited versus Sh. Jagtar Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.68/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.12.2023

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DATE OF DECISION: 19.08.2024

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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, Sh. Mohd. Vajid.

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……..Applicant

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Versus

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Sh. Jagtar Singh S/o Sh. Gurdiyal Singh, R/o House No.173, Village Hathoor, Tehsil Jagraon, District Ludhiana, Punjab 144203

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Sh. Jagjiwan Singh S/o Sh. Gurdiyal Singh, R/o Village & Post Office Hathoor, Tehsil Jagraon, District Ludhiana, Punjab 144203

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Smt. Bachan Kaur W/o Sh.Gurdiyal Singh, R/o House No.173, Village Hathoor, Tehsil Jagraon, District Ludhiana, Punjab 144203

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….……Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate proxy for Sh. D.K. Singal, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.21,30,257.00 (Rupees Twenty One Lakh Thirty Thousand Two Hundred Fifty Seven Only). The Original Application has been filed through Sh. Mohd. Vajid, authorized signatory of the applicant bank, who is competent to institute the Original Application vide General

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Power of Attorney dated 18.09.2019, which isAnnexure A1to this OA.
2. The brief facts of the OA are that the defendants had approached the applicant bank for the grant of KCC Limit of Rs.24.00 Lacs vide Loan Application dated 01.06.2017, which isAnnexure A2
to this OA.
3. The applicant Bank sanctioned the KCC Limit of Rs.21.00 Lacs
vide Sanction Letter dated 30.06.2017, which isAnnexure A3to this
OA and the terms and conditions were duly accepted by the
defendants.
4. Defendants had mortgaged his immovable properties i.e total land measuring 52 Kanal -0Marla detailed as:
a. total land measuring 24Kanal-0Marlasituated at R/o Village Hathoor -I, Tehsil Jagraon, District Ludhiana, Punjab
b. total land measuring 15Kanal 13Marlasituated at R/o Village Hathoor -II, Tehsil Jagraon, District Ludhiana, Punjab
c. total land measuring 12Kanal 7Marlasituated at R/o Village
Hathoor -III, Tehsil Jagraon, District Ludhiana, Punjab
vide Letter to Tehsildar for creation of Charge and Declaration under section 4(1), which isAnnexure A5 to A6to this OA.
Documents executed:- Hypothecation Deed dated 30.06.2017, which is
Annexure A4to this OA;Loan Recall Notice dated 01.12.2023 with
postal receipts,which isAnnexure A7to this OA; statement of account with certificate, which isAnnexure A8to this OA.
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.21,30,257.00 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.

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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 12.07.2024.

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In support of the OA, affidavit of Sh. Mohd. Vajid, 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 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.21,30,257.00 (Rupees Twenty One Lakh Thirty Thousand Two Hundred Fifty 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 bank in relief clause has claimed interest @11.50%p.a. with half yearly rests from 01.12.2023 the realization. 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

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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.21,30,257.00 (Rupees Twenty One Lakh Thirty Thousand Two Hundred Fifty Seven 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 10.09.2024.

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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:19.08.2024.

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

Icici Bank Limited v. Sh. Jagtar Singh

Case brief

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Icici Bank Limited v. Sh. Jagtar Singh

Case brief

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