Allowed

Icici Bank Limited v. Hardev Singh and Others

DRT12 Jul 2024OA/942/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Chandigarh, decided an ex-parte original application filed by ICICI Bank Ltd. for recovery of outstanding loan amounts against three defendants. The court found the bank proved its case regarding the loan taken and default. It allowed the application, reduced the interest rate to 8% per annum, and directed issuance of a recovery certificate.

What did the court decide?

Application allowed; defendants liable to pay Rs.22,39,791.14p with costs and simple interest @8% p.a.; Recovery Certificate issued.

Icici Bank Limited versus Hardev Singh and Others — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.942/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.07.2023

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DATE OF DECISION: 12.07.2024

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ICICI Bank Ltd., having its Registered Office at: Land Mark, Race Course Circle, Vadodara, 390007 having its Branch Office at: SCO 237238, Sector-20, Panchkula, through its Authorised Representative Sh. Parveen Kumar

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……..Applicant

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Versus

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Sh. Hardev Singh S/o Sh. Harchand Singh, R/o Village Nathuwalia Gargbi, Moga (Punjab)-142038 (Borrower)

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Sh. Lakhwinder Singh S/o Sh. Hardev Singh, R/o Village Nathuwalia Gargbi, Moga (Punjab)-142038 (Co-Borrower)

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Sh. Gurbhej Singh S/o Sh. Mahinder Singh, R/o Village Nathuwalia Gargbi, Moga (Punjab)-142038 (Guarantor)

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….……Defendants

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Advocates:

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Argued by Ms. Dipti Toni, 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.22,39,791.14p (Rupees Twenty Two Lacs Thirty Nine Thousand Seven Hundred Ninety One and Fourteen Paise only). The Original Application has been filed through Sh. Parveen Kumar, Authorized 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 KCC Facility of Rs.22.00 Lacs vide Loan application dated 16.10.2015, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Facility of Rs.12.80 Lacs vide Sanction Letter dated 10.12.2015, 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 24K-00M situated at Village Nathu Wala Garbi-2, Tehsil Baghapurana, District Moga (Punjab) vide Declaration under Section 4(1) Punjab Agricultural Credit Operation & Miscellaneous Provisions (Banks) Act, 1978 and Letter to Sub Registrar for creation of charge bearing vasika no.1580 dated 10.12.2015, which are Annexure A6 to this OA. Documents executed:- Agreement for Hypothecation and Agreement of Guarantee all dated 10.12.2015, which are Annexures A4 and A5 to this OA; Notice dated 05.06.2023 with Postal Receipts, which are Annexures A8 and A9 to this OA and Statement of account with certificate, which is Annexure A10 to 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.22,39,791.14p, 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 07.05.2024. 7. In support of the OA, affidavit of Sh. Parveen Kumar, Authorized Representative, 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.22,39,791.14p (Rupees Twenty Two Lacs Thirty Nine Thousand Seven Hundred Ninety One and Fourteen 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 @12.00%p.a. along penal interest with @2%p.a. rests from 03.06.2023 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.22,39,791.14p (Rupees Twenty Two Lacs Thirty Nine Thousand Seven Hundred Ninety One and Fourteen 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 01.08.2024. 15. 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: 12.07.2024

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

Icici Bank Limited v. Hardev Singh and Others

Case brief

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Icici Bank Limited v. Hardev Singh and Others

Case brief

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