Allowed

Icici Bank Limited v. M/S Piara Lal Subash Chand and Others

DRT10 Jun 2025OA/160/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs.76.21 lakhs. Despite the appellants arguing for the claimed interest rates, the Tribunal deemed it just to grant uniform simple interest at 8% p.a. The order issues a Recovery Certificate and directs attachment of assets if dues remain unsatisfied.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs.76,21,456.12 with 8% p.a. simple interest; Liberty to attach assets under SARFAESI Act.

Icici Bank Limited versus M/S Piara Lal Subash Chand and Others — Money Laundering | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.160/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.01.2025

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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 Regulation Act, 1949 and having its registered office at Near Chakli Circle, Old Padra Road, Vadodara-390007 and its corporate office at ICICI Bank Towers, Bandra Kurla Complex, Mumbai-400051 and having branches all over India and one of its Branch Offices situated at SCO 132-134, Sector 9- C, Chandigarh through its authorized signatory, Sh. Mohd Vajid.

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……..Applicant

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Versus

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M/s Piara Lal Subash Chand, through its Proprietor, Shop No.55, New Market Khanauri, District Sangrur, Punjab-148027.

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Subash Chand S/o Sh. Piara Lal, Proprietor M/s Piara Lal Subash Chand r/o Ward No.11, Tehsil Moonak, Khanauri Mandi, District Sangrur, Punjab-148027.

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Krishan Kumari w/o Sh. Subash Chand r/o Ward No.11, Tehsil Moonak, Khanauri Mandi, District Sangrur, Punjab-148027.

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………. Defendants

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Advocates:

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Argued by Sh. Rahul Garg, 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 defendants for recovery of Rs.76,21,456.12p (Rupees Seventy Six Lacs Twenty One Thousand Four Hundred Fifty Six and Paise Twelve Only). The Original Application has been filed through Sh. Mohd Vajid, Authorized Signatory o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 18.09.2019, which is Annexure A1 to this OA.

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2 OA NO.160-2025 ICICI BANK LIMITED VS M/S PIARA LAL SUBHASH CHAND AND OTHERS

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of CC Limit of Rs.60.00 Lacs and further for ECLGS Term Loan of Rs.11,62,978.79p vide Intimation Letter, Final Credit Application Form dated 21.07.2017, which is Annexure A5 to this OA.

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The applicant Bank sanctioned the CC Limit of Rs.60.00 Lacs vide Intimation Letter dated 23.06.2017, which is Annexure A4 to this OA and further sanctioned further for ECLGS Term Loan of Rs.11,62,978.79p, vide Sanction Letter dated 03.06.2020, which is Annexure A7 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had hypothecated their movable property i.e. SCF No.55 measuring 20’ * 80’ sq. yards situated at New Grain Market, Khanauri Kalan, District Sangrur, Punjab vide and Equitable Mortgage of Sale Deed bearing vasika no.314 dated 03.06.1998 along with its translation, which are Annexures A10 to this OA.

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Documents executed:- Preliminary application form dated 16.06.2017, which is Annexure A2 to this OA; Letter of Sole Proprietorship dated 23.06.2017, which is Annexure A3 to this OA; Deed of Guarantee dated 21.07.2017, which is Annexure A6 to this OA; Hypothecation Deed and Deed of guarantee dated 24.06.2020, which are Annexure A8 and A9 to this OA; Annexure VII-B declarations dated 04.08.2017 and 24.06.2020, which are Annexure A11 & A12 to this OA; Loan Recall Notice dated 11.07.2024, which is Annexure A13 to this OA; Statement of Accounts with certificate, which are Annexure A14 & A15 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs. 76,21,456.12p, which is recoverable and the defendants were served recall notices but they did not repay the

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3 OA NO.160-2025 ICICI BANK LIMITED VS M/S PIARA LAL SUBHASH CHAND AND OTHERS

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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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In support of the OA, affidavit of Sh. Mohd Vajid, 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 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 A15 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.76,21,456.12p (Rupees Seventy Six Lacs Twenty One Thousand Four Hundred Fifty Six and Paise Twelve Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @15.35%p.a. in CC Limit and interest @15.25%p.a. in ECLGS Term Loan with monthly rests from 02.09.2024 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

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4 OA NO.160-2025 ICICI BANK LIMITED VS M/S PIARA LAL SUBHASH CHAND AND OTHERS

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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 both 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.

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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.76,21,456.12p (Rupees Seventy Six Lacs Twenty One Thousand Four Hundred Fifty Six and Paise Twelve Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 02.07.2025.

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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

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5 OA NO.160-2025 ICICI BANK LIMITED VS M/S PIARA LAL SUBHASH CHAND AND OTHERS

Icici Bank Limited v. M/S Piara Lal Subash Chand and Others

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. M/S Piara Lal Subash Chand and Others

Case brief

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What did the court decide?

What the court decided

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