Allowed

Icici Bank Limited v. Sh. Rattan Singh and Another

DRT25 Apr 2025OA/1488/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by ICICI Bank Ltd. for recovery of Rs.22,16,259.00 against two respondents. The court decided the application ex-parte and granted uniform simple interest at 8% p.a. instead of the claimed rate.

What did the court decide?

Recovery of Rs.22,16,259.00 with simple interest @8% p.a. from date of filing; Recovery Certificate issued.

Icici Bank Limited versus Sh. Rattan Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1488/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.09.2022

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DATE OF DECISION: 25.04.2025

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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.2372038, Sector-20, Panchkula through its authorized representative Sh. Parveen Kumar.

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……..Applicant

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Versus

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Sh. Rattan Singh S/o Sh. Bachitar Singh R/o Village Bania, Tehsil Khadur Sahib, Tarn Taran, Punjab-143117

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Smt. Narinder Kaur W/o Sh. Bachitar Singh R/o Village Bania, Tehsil Khadur Sahib, Tarn Taran, Punjab-143117

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………. Defendants

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Advocates:

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Argued by Sh. Kaveesh, Advocate proxy for Sh. Puneet Tuli, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.22,16,259.00 (Rupees Twenty Two Lacs Sixteen Thousand Two Hundred Fifty Nine Only). The Original Application has been filed through Sh. Parveen Kumar, Authorized Representative o f the applicant, who is competent to institute the Original Application vide General 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 for the grant of KCC Limit of Rs.24.50 Lacs

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2 OA NO.1488/2024 ICICI BANK LIMITED VS RATTAN SINGH AND OTHER

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vide Preliminary Credit Facility Application Form dated 07.07.2016, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.24.50 Lacs. 4. Defendant no.1 had mortgaged his immovable property i.e. Land measuring 55Kanal-6Marle situated at Village Bania, Tehsil Khadoor Sahib and District Tarn Taran, Punjab vide Declaration U/s 4(1) and Letter to Sub Registrar for creation of charge both dated 09.08.2016, which are Annexures A4 and A5 to this OA. Documents executed:- Hypothecation Agreement and Guarantee Deed dated 25.07.2016, which is Annexure A3 to this OA; Demand Notices dated 07.07.2022 with postal receipts, which are Annexures A6 and A7 to this OA and Statement of Account with certificate, which is Annexure A8 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 the loan account there was a debit of Rs.22,16,259.00, 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.

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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 22.04.2025.

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In support of the OA, affidavit of Sh. Mohd Vajid, Authorized Signatory, ICICI Bank Ltd. h as been filed. 8. Heard arguments and perused record.

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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 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 for availing of the

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3 OA NO.1488/2024

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ICICI BANK LIMITED VS RATTAN SINGH AND OTHER

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loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. 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 is entitled to recover a sum of Rs.22,16,259.00 (Rupees Twenty Two Lacs Sixteen Thousand Two Hundred Fifty Nine 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 in relief clause has claimed interest @12.00%p.a. plus penal interest @2.00%p.a. from 03.07.2022 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 defendants are liable to pay to the applicant a total sum of Rs.22,16,259.00 (Rupees Twenty Two Lacs Sixteen Thousand Two Hundred Fifty Nine Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly,

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OA NO.1488/2024

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ICICI BANK LIMITED VS RATTAN SINGH AND OTHER

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the applicant 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 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 22.05.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 25.04.2025

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

Icici Bank Limited v. Sh. Rattan Singh and Another

Case brief

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Icici Bank Limited v. Sh. Rattan Singh and Another

Case brief

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