Allowed

Icici Bank Limited v. Jaj Singh and Others

DRT8 Jan 2025OA/1590/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by ICICI Bank Limited against three defendants for recovery of a defaulted KCC loan. The court confirmed liability for Rs. 26.89 Lakhs and fixed uniform simple interest at 8% p.a., ordering issuance of a recovery certificate.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 26,89,304.56p with 8% p.a. simple interest; entitled to recover from sale of hypothecated/mortgaged or personal assets.

Icici Bank Limited versus Jaj Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1590/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION:28.08.2022

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DATE OF DECISION:08.01.2025

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ICICI Bank Limited, company incorporated under the Companies Act, 1956 and a Banking Company within the meaning of Banking Regulations Act, 1949 and is having its Registered Office at Land Mark, Race Course Circle, Vadodara-390007 and interalia having branch at Johari Complex, Showroom No.3, Ghagga Road, Samana District Patiala, Punjab 147101 through its Manager and authorized signatory Mr. Parveen Kumar.

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……..Applicant

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Versus

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Sh. Jaj Singh S/o Sh. Mahinder Singh R/o Village Asmanpur, Tehsil Samana, District Patiala (Punjab)-147101.

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Sh. Balwinder Singh S/o Sh. Mahinder Singh R/o H.No.64, Village Asmanpur, Tehsil Samana, District Patiala (Punjab)-147101.

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Sh. Mahinder Singh S/o Sh. Kartar Singh R/o H.No.64, Village Asmanpur, Tehsil Samana, District Patiala (Punjab)-147101.

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….……Defendants

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Advocates:

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Argued by Sh. Mohan Prasad, Advocate proxy for Sh. Himendra Pal Singh, Advocate for Applicant Defendant 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.26,89,304.56p (Rupees Twenty Six Lacs Eighty Nine Thousand Three Hundred Four And Paise Fifty Six only). The Original Application has been filed through Mr. Parveen Kumar, authorized signatory of the applicant, who is competent to institute the Original Application vide Photostat Copy of 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.22.77 Lacs vide Copy of Loan Application dated 16.02.2018, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.22.77 Lacs vide Copy of Sanction Letter dated 22.02.2018, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 & 2 had mortgage his immovable properties i.e. total land measuring 64K-0M situated at Village Asmanpur, Tehsil Samana, Distt. Patiala vide Declaration u/s 4(1) of Punjab Agricultural Credit Operations & Misc. Provisions (Banks) Act, 1978 and Letter to Sub Registrar for Creation of Charge both dated 07.03.2018, Which are Annexures A5 & A6 to this OA. Documents executed:- Copy of Deed of Hypothecation dated 23.02.2018, which is Annexure A4 to this OA; Copy of Notices dated 11.04.2022, which is Annexure A7 to this OA; Copy of Postal Receipts dated 13.04.2022, which is Annexure A8 to this OA and Statement of Account dated 04.04.2022, which is Annexure A9 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.26,89,304.56p, 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 16.04.2024. 7. In support of the OA, affidavit of Mr. Parveen Kumar, authorized signatory, ICICI 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,

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the applicant had proved its case. From the perusal of all the Annexures A1 to A9 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.26,89,304.56p (Rupees Twenty Six Lacs Eighty Nine thousand Three Hundred Four And Paise Fifty Six 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 @11.50%p.a. along with penal interest @2.00%p.a. from 17 .08.2022 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 @8.00%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.26,89,304.56p (Rupees Twenty Six Lacs Eighty Nine thousand Three Hundred Four And Paise Fifty Six 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

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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. 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 17.02.2025. 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:08.01.2025.

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

Icici Bank Limited v. Jaj Singh and Others

Case brief

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Icici Bank Limited v. Jaj Singh and Others

Case brief

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