Allowed

Icici Bank Ltd. v. J B Commission Agent

DRT31 Jul 2024OA/881/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application under Section 19 RDBFI Act for recovery of outstanding dues. After hearing ex-parte arguments, the court declared the defendants liable for the principal sum, granted uniform simple interest of 8%, and issued a Recovery Certificate.

What did the court decide?

Allowance of recovery of Rs. 21,28,457.11 with simple interest at 8% p.a., issuance of Recovery Certificate, and liberty to recover from mortgaged or attached properties.

Icici Bank Ltd. versus J B Commission Agent — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.881/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.06.2023

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DATE OF DECISION: 31.07.2024

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ICICI Bank Ltd., having its Registered Office at Near Chakli Circle, Old Padra Road, Vadodara-390007 and having its Branch Office at ICICI Bank Limited, No.143-A, City Emporium, Industrial Area, Phase-I, Chandigarh-160002 through its Authorized Signatory Sh. Mohamad Vajid

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……..Applicant

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Versus

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J B Commission Agent, through its proprietor Sh. Jatinder Kumar C/o Shop No.43-B, New Grain Market, Tarn Taran-143404

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Sh. Jatinder Kumar S/o Sh. Krishan Lal, R/o H.No.1370, Bhikhiwind, Guru Nanak Mohalla, Tehsil Patti, Tarn Taran-143401

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Also at : Khata Khatoni No.302/837, Killa No.75//3/2, Min Rakba 0- 6 Marla, Wakia Rakba Bhikhiwind, Tehsil Patti, Tarn Taran, Amritsar (Punjab)-143401

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Sh. Krishan Lal S/o Sh. Salag Ram, R/o H.No.1370, Bhikhiwind, Guru Nanak Mohalla, Tehsil Patti, Tarn Taran-143401

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Smt. Sita Rani W/o Sh. Jatinder Kumar, R/o H.No.1370, Bhikhiwind, Guru Nanak Mohalla, Tehsil Patti, Tarn Taran-143401

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….……Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate proxy for Sh. Gagandeep Toni, Advocate for the applicant (through VC) 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

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Institutions Act, 1993, against the defendants for recovery of Rs.21,28,457.11p (Rupees Twenty One Lacs Twenty Eight Thousand Four Hundred Fifty Seven and Eleven Paise only). The Original Application has been filed through Sh. Mohamad Vajid, Authorized Signatory of the applicant bank, who is competent to institute the Original Application vide 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 defendant No.1 through its proprietor defendant No.2 had approached the applicant bank for the grant of Overdraft facility of Rs.27.00 Lacs vide Loan Application Form dated 19.09.2016, which is Annexure A2 to this OA and Facility Credit Application Form dated 28.09.2016, which is Annexure A3 to this OA. Defendant No. 3 and 4 stood as guarantors.

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The applicant Bank sanctioned the Overdraft facility of Rs.27.00 Lacs vide Intimation Letter dated 28.09.2016, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.3 had mortgaged his immovable properties i.e. Residential property measuring 0 Kanal 6 Marla situated at Village Bhikhiwind, Hadbast No.137, Tehsil Patti, Tarn Taran, Punjab vide Equitable Mortgage of Sale Deed bearing Vasika No.1365 dated 29.08.2002 along with its translation and declaration dated 20.10.2016 regarding mortgage, which is Annexure A6 to this OA. Documents executed:- Guarantee agreement dated 28.09.2016,

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which is Annexure A5 to this OA; Recall notice dated 18.07.2022, which is Annexure A7 to this OA; Postal Receipts dated 19.07.2022, which are Annexures A8 and A9 to this OA and Statement of Account along with Certificate, which is Annexure A10 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.21,28,457.11p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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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 22.05.2024. 7. In support of the OA, affidavit of Sh. Mohamad Vajid, Authorized Signatory, ICICI Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel through video conferencing 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.21,28,457.11p (Rupees Twenty One Lacs Twenty Eight Thousand Four Hundred Fifty Seven and Eleven 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @15.75%p.a. from 13.05.2023 till 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

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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.21,28,457.11p (Rupees Twenty One Lacs Twenty Eight Thousand Four Hundred Fifty Seven and Eleven 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.

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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 21.08.2024.

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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.

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Pronounced by me in the open Tribunal.

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Dated: 31.07.2024

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

Icici Bank Ltd. v. J B Commission Agent

Case brief

What is this about?

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Icici Bank Ltd. v. J B Commission Agent

Case brief

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