Allowed

Icici Bank Limited v. Eeshaan Traders

DRT23 Apr 2025OA/1308/2024

Case brief

AI extract

What is this about?

In this recovery proceeding under Section 19 of the RDBFI Act, 1993, the Tribunal allowed the applicant's application for recovery of Rs. 32,91,584.22p. The court issued a recovery certificate and modified the claimed interest rate to 8% p.a. considering market conditions.

What did the court decide?

Recovery certificate issued directing recovery of Rs. 32,91,584.22p plus 8% p.a. simple interest; applicant at liberty to enforce through personal assets.

Icici Bank Limited versus Eeshaan Traders — Specific Performance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1308/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.11.2024

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DATE OF DECISION: 23.04.2025

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ICICI Bank Ltd., having its Registered Office at Near Chakli Circle, Old Padra Road, Vadodara-390007, having its Branch Office at ICICI Bank Limited, SCo.143, A City Emporium Mall, Industrial Area, Phase I, Chandigarh-160002 through its authorized Representative Mr. Mohamad Vajid. .. … …..Applicant Versus Eeshaan Traders through its Proprietor Sh. Eeshaan Chhabra, R/o Shop No.159, Landran Road, Sohana, Mohali, Pinjab-140308 2^nd Address : H. No.141, Sarpanch Wali Gali, Nora Singh, Shaheedan Gurudwara, Sector 78, Village Sohana, SAS Nagar, Mohali-140308

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….……Defendant

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Advocates: Argued by Sh. Pahal Singh, Advocate proxy for Sh. Amit Rishi, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.32,91,584.22p (Rupees Thirty Two Lacs Ninety One Thousand Five Hundred Eighty Four And Twenty Two Paisa Only). The Original Application has been filed through Sh. Rajendra Prasad, Authorized Representative o f the applicant, who is competent to institute the Original Application vide Board Resolution dated 16.10.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for the grant of Business Loan (Personal Guarantee) of

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2 OA NO.1308/2024 ICICI BANK LIMITED VS EESHAAN TRADERS

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Rs.30.00 Lacs vide Loan application dated 17.10.2023, which is Annexure A2 to this OA.

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The applicant sanctioned Business Loan (Personal Guarantee) of Rs.30.00 Lacs vide terms & Conditions of Business Loan dated 17.10.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Documents executed:- Copy of Demand Notice dated 31.07.2024 with postal receipts, which is Annexure A4 to this OA and Statement of Account with certificate under Bankers Book of Evidence, which is Annexure A5 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.32,91,584.22p, which is recoverable and the defendant 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded 07.04.2025. 7. In support of the OA, affidavit of Sh. Rajendra Prasad, Authorized Representative, HDFC Bank Limited, has been filed. 8. Heard arguments and perused record. 9. 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 A5 to this OA, it is proved that the defendant 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 applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA.

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3 OA NO.1308/2024 ICICI BANK LIMITED VS EESHAAN TRADERS

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From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.32,91,584.22p (Rupees Thirty Two Lacs Ninety One Thousand Five Hundred Eighty Four And Twenty Two Paisa Only) along with interest from the defendant, 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 @15.00%p.a. with monthly rests from 26.09.2024 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 @08.00%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 defendant is liable to pay to the applicant a total sum of Rs.32,91,584.22p (Rupees Thirty Two Lacs Ninety One Thousand Five Hundred Eighty Four And Twenty Two Paisa 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 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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4 OA NO.1308/2024 ICICI BANK LIMITED VS EESHAAN TRADERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 20.05.2025.

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Copy of this order be given dasti to the applicant and be sent to defendant 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: 23.04.2025.

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

Icici Bank Limited v. Eeshaan Traders

Case brief

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Icici Bank Limited v. Eeshaan Traders

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