Allowed

Icici Bank Limited v. M/S Bhullar Associates and Construction Co. and Others

DRT10 Jun 2025OA/154/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's application for recovery of an agricultural loan classified as NPA. The tribunal ordered payment of the principal sum along with reduced uniform simple interest and empowered the applicant to recover dues through asset sales under SARFAESI Act.

What did the court decide?

Direction to pay principal sum of Rs. 32,98,141.40 with 8% simple interest. Recovery via sale of hypothecated or personal assets.

Icici Bank Limited versus M/S Bhullar Associates and… — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.154/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.02.2025

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DATE OF DECISION: 10.06.2025

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ICICI BANK LTD., a body corporate, incorporated under the Companies Act, 1956 and bank within the meaning of the Banking regulations Act, 1949 and having its registered Office at ICICI Bank tower, Near Chakli Circle, Old Padra Road, Vadodara-390007 and its corporate office ICICI Bank Towers, Bandra Kurla Complex, Mumbai400051 and having branches all Over India and one of its branch offices situated at SSCO 132-133-134, Sector-9C, Chandigarh -160017 through is authorized signatory Sh. Jatinder Mishra.

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……..Applicant

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Versus

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M/s Bhullar Associates and Constriction Co., through its partners Mr. Tarlok Singh & Ms. Paramjit Kaur, R/o Village Bhakuwal Raipur Arian, District Kapurthala, Punjab-144601.

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Sh. Tarlok Singh S/o Sh. Kartar Singh R/o Village Bhakuwal Raipur Arian, District Kapurthala, Punjab-144601.

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Paramjit Kaur D/o Gopal Singh R/o Village Bhakuwal Raipur Arian, District Kapurthala, Punjab-144601.

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….……Defendants

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Advocates:

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Argued by Sh. R.K. Bansal, Advocate proxy for Sh. Himendra Pal Singh, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.32,98,141.40p (Rupees Thirty Two Lacs Ninety Eight Thousand One Hundred Forty One & forty Paise only). The Original Application has been filed through Sh. Jatinder Mishra, authorized signatory o f the applicant, who is competent to institute the Original Application vide

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2 OA NO.154-2025 ICICI BANK LIMITED VS M/S BHULLAR ASSOCIATES AND CONSTRUCTION CO. AND OTHERS

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Power of Attorney dated 08.01.2025, which is Annexure A1 to this

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OA.

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The brief facts of the OA are that the defendants through its partner defendant no.2 & 3 had approached the applicant for the grant of Vehicle Loan of Rs.40.00 Lacs vide Credit facility application form dated 07.11.2022, which is Annexure A6 to this OA.

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The applicant sanctioned the Vehicle Loan of Rs.40.00 Lacs. 4. Defendants had hypothecated his movable properties i.e. Vehicle namely:- BHARAT BENZ 2828 C GOODS CARRIER bearing Registration no. PB08FA9414, Engine no.926956D0123621 and Chassis no.MEC841FBCNP120049 vide Forms of Particulars, which is Annexure A9 to this OA.

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Documents executed: -Partnership deed dated 04.09.2009, which is Annexure A2 to this OA; Partnership Confirmation letter dated 07.11.2022, which is Annexure A3 to this OA; GST registration Certificate dated 26.09.2017, which is Annexure A4 to this OA; Preliminary Credit facility application form, Hypothecation deed, Irrevocable Power of attorney all dated 07.11.2022, which are Annexures A5, A7 & A8 to this OA; Loan recall notice dated 13.12.2024, which is Annexure A10 to this OA and statement of account with certificate, which is Annexure A11 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.32,98,141.40p, 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 06.06.2025.

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3 OA NO.154-2025 ICICI BANK LIMITED VS M/S BHULLAR ASSOCIATES AND CONSTRUCTION CO. AND OTHERS

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In support of the OA, affidavit of Sh. Jatinder Mishra, authorized signatory, ICICI BANK LTD., h as been filed.

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Heard 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 A11 to this OA, it is proved that the defendants approached applicant 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 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.32,98,141.40p (Rupees Thirty Two Lacs Ninety Eight Thousand One Hundred Forty One & forty Paise only) rest 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 @24.00%p.a. plus penal interest @2.00%p.a. with monthly rests from 01.01.2025 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, 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

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4 OA NO.154-2025 ICICI BANK LIMITED VS M/S BHULLAR ASSOCIATES AND CONSTRUCTION CO. AND OTHERS

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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.32,98,141.40p (Rupees Thirty Two Lacs Ninety Eight Thousand One Hundred Forty One & Forty 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 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 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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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 01.07.2025. 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.

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Pronounced by me in the open Tribunal .

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Dated: 10.06.2025

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

Icici Bank Limited v. M/S Bhullar Associates and Construction Co. and Others

Case brief

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Icici Bank Limited v. M/S Bhullar Associates and Construction Co. and Others

Case brief

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