Allowed

Icici Bank Limited v. J.K. Arora Builders and Developers and Another

DRT22 Oct 2025OA/1111/2025

Case brief

AI extract

What is this about?

The DRT allowed an original application filed under Section 19 of the RDB Act, 1993 by ICICI Bank Ltd. against builders and their partners for recovery of outstanding vehicle loans. The court directed recovery from hypothecated assets and fixed interest at 8% per annum.

What did the court decide?

Recovery of Rs. 1,74,75,135 with interest at 8% p.a. declared; execution proceedings to be initiated against hypothecated and personal assets.

Icici Bank Limited versus J.K. Arora Builders and Developers and Another — Arbitration | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1111/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.08.2025

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DATE OF DECISION: 22.10.2025

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ICICI Bank Ltd., having its registered office at Near Chakli Circle, Old Padra Road, Vadodara, 390-007, Gujarat Inter Alia having a bank branch at Ludhiana, Punjab, through its Attorney/Authorized Representative Sh. Jatinder Mishra, Manager.

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……..Applicant

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Versus

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J.K. Arora Builders and Developers, Plot No. 21, Manveer Enclave, Barewal Road, Ludhiana-141012, through its partner

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Sh. Karan Arora.

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Sh. Karan Arora S/o Sh. Jagdish Arora, Partner in J.K. Arora Builders and Developers, R/o H. No. 21, Barewal Road, Near Octori, Ferozepur Road, Manveer Enclave, Ludhiana-141012.

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………. Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate proxy for Sh. Sumeet Sehgal, Advocate for the applicant

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Defendants already 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.1,74,75,135.00 (Rupees One Crore Seventy Four Lacs Seventy Five Thousand One Hundred Thirty Five Only). The Original Application has been filed through Sh. Jatinder Mishra, Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 08.01.2025, which is

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Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 through its partner defendant no.2 had approached the applicant for grant of Vehicle Loan of Rs.1,43,74,500/- and Rs. 1.25 Crore for purchase of Cars vide Preliminary credit facility application form and credit

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OA NO. 1111/2025 ICICI BANK LIMITED VS J K ARORA BUILDERS AND DEVELOPERS AND ANOTHER

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applications forms dated 23.01.2023 and 28.02.2023, which are Annexures A2 to A4 and A9 to A10 to this OA.

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The applicant sanctioned the Vehicle Loans Rs.1.44 Crore and Rs. 1.12 Crore for purchase of Cars and terms and conditions duly accepted by the defendants.

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Defendant no. 1 through its partner had hypothecated its moveable assets i.e. Vehicles detailed as under: -

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(i) Vehicle namely MERCEDES-BENZ AG S 450 4MATIC, bearing registration No.HR-26-FA-4142, Chassis No. W1K2231612A037815, Engine No.25693030309004 vide deed of hypothecation dated 23.01.2023, which is Annexure A5 to this OA; FOP of vehicle, which is Annexure A12 to this OA.

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(ii) Vehicle namely MERCEDES-BENZ GLS 400 D 4MATIC, bearing registration No. PB-10JB-4142, Chassis No. W1NFF2DE1PM014737, Engine No.65692980254585 vide deed of hypothecation dated 28.02.2023, which is Annexure A11 to this OA; FOP of vehicle, which is Annexure A13 to this OA. Documents executed : - Partnership deed dated 01.09.2016, which is Annexure A6 to this OA; Partnership Authority letter and Confirmation, which is Annexure A7 to this OA; Statement of accounts and foreclosure statements of the loan, which are Annexures A14 to A17 to this OA; Notice dated 11.07.2025, along with postal receipts, which are Annexures A18 and A19 to this OA; 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.1,74,75,135.00, 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 16.10.2025.

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OA NO. 1111/2025 ICICI BANK LIMITED VS J K ARORA BUILDERS AND DEVELOPERS AND ANOTHER

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In support of the OA, affidavit of Sh. Jatinder Mishra, Manager, ICICI BANK LIMITED, 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 had proved its case. From the perusal of all the Annexures A1 to A19 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.1,74,75,135.00 (Rupees One Crore Seventy Four Lacs Seventy Five Thousand One Hundred Thirty Five 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00% p.a. plus 2% penal interest with monthly rests for 1^st Car Loan and @9.05%p.a. plus 2% penal interest with monthly rests for 2^nd Car Loan from 16.07.2025 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/hypothecated assets, undertaking of the defendants, quantum of loans 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 @08.00%p.a. in both the loan accounts from the date of filing of the

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OA NO. 1111/2025 ICICI BANK LIMITED VS J K ARORA BUILDERS AND DEVELOPERS AND ANOTHER

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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.1,74,75,135.00 (Rupees One Crore Seventy Four Lacs Seventy Five Thousand One Hundred Thirty Five Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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 vehicles of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant 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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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 01.11.2025.

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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 .

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Dated: 22.10.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Icici Bank Limited v. J.K. Arora Builders and Developers and Another

Case brief

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Icici Bank Limited v. J.K. Arora Builders and Developers and Another

Case brief

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