The DRT allowed the bank's application for recovery of ₹1.01 crore. The court modified the claimed interest rate to 8% p.a. uniform simple interest from the filing date until realization.
Recovery of ₹1.01 crore plus simple interest @8% p.a. from filing date; Recovery Certificate issued; Execution proceedings directed under SARFAESI Act.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1569/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 22.09.2022
DATE OF DECISION: 16.01.2025
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 Froze Gandhi Market, Ludhiana, through its attorney/authorized Representative Sh. Mohammad Vajid, Manager.
……..Applicant
….……Defendant
Advocates:
Argued by Sh. Anup Prajapati, Advocate proxy for Sh. J. S. Sehgal, Advocate for the Applicant Defendants are ex-parte
FINAL ORDER
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Rs.75,67,345.00 for Purchase of Vehicles & for their Body Making of Rs.20,35,216 and further approached for GECL Loan of Rs.32.00 Lacs vide Preliminary/Credit Facility Application Forms dated 10.07.2018, 03.10.2018, 16.09.2019, 23.01.2020 & 22.08.2020, which are Annexures A2, A3, A7, A8, A12, A13, A16, A17 & A25 to this OA. 3. The applicant sanctioned Four Vehicle loans Rs. Rs.75,67,345.00 for Purchase of Vehicles & for their Body Making of Rs.20,35,216 Lacs and further sanctioned GECL Loan of Rs.32.00 Lacs and vide Sanction Letter dated 29.08.2020, which is Annexure A26 to this OA and the terms and conditions was duly accepted by the defendants.
(ii) vehicle namely Tata LPS 4018 bearing Registration no. PB05AK3313 Engine no.82595 and Chassis no.AT447261J5J23095 vide FOP, which is Annexure A22 to this OA (iii) Vehicle Namely Bharat Benz 5528TT 6x4 BSIV bearing Registration no. PB05AM5513 Engine no.400953D0079823 and Chassis no. MEC2817CAKP079084 vide FOP, which is Annexure A24 to this OA Documents executed:- Deed of Hypothecation & Irrevocable Power of Attorney, Deed of Guarantee all dated 10.07.2018, 03.10.2018 and 23.01.2020, which are Annexures A4 to A6, A9 to A11, A14, A15 & A18 to A20 to this OA; Deed of Hypothecation dated 22.08.2020, which is Annexure A27 to this OA; Notice dated 22.07.2022 with postal receipts, which are Annexures A28 to A31 to this OA and Statement of Account and foreclosure statement of the loan along with Certificate, which are Annexures A32 to A47 to this OA. 5. The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in all the loan accounts
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there was a debit of Rs.1,01,40,319.00, 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.
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
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instant case including nature of the mortgaged property, 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 @8.00%p.a.in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,01,40,319.00 (Rupees One Crore One Lacs Forty Thousand Three Hundred and Nineteen Only) with costs, current and future simple interest @8.00%p.a. in all 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/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.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
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2 issues framed by the court
Whether the application for recovery of dues is maintainable and supported by evidence.
At what rate of interest the outstanding loan amount should be recoverable.
1 provisions across 1 enactments
ICICI Bank Ltd.
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
