Allowed

Icici Bank Limited v. Baljit Singh

DRT13 Feb 2025OA/1745/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 23,38,625.75 from defaulting borrowers. The Tribunal directed the issue of a Recovery Certificate and ordered interest at 8% p.a., thus approving the recovery from mortgaged and personal assets.

What did the court decide?

Issue Recovery Certificate; Order payment of Rs. 23,38,625.75 with costs and simple interest at 8% p.a.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1745/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.09.2022

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DATE OF DECISION: 13.02.2025

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ICICI Bank Ltd., Company incorporated under The Companies Act, 1956 and a Banking Company within the meaning of the Banking Regulations Act, 1949 and is having its Registered Office at Land Mark, Race Course Circle, Vadodara-390007 and interalia having branch Village Gholia Kalan, Near Post Office, Tehsil Bagha Purana, District Moga, Punjab142038 through its Manager and Authorised Signatory Mr. Parveen Kumar.

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……..Applicant

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Versus

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Sh. Baljit Singh S/o Sh. Sukhdev Singh, R/o Village Chand Nawan, Tehsil & District Moga (Punjab-142001).

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Smt. Ravinder Kaur W/o Sh. Baljit Singh, R/o Village Chand Nawan, Tehsil & District Moga (Punjab-142001).

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….……Defendants

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Advocates:

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Argued by Sh. Himendra Pal Singh, 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.23,38,625.75p (Rupees Twenty Three Lacs Thirty Eight Thousand Six Hundred Twenty Five and Seventy Five Paise only). The Original Application has been filed through Mr. Parveen Kumar, Manager and Authorized Signatory who is competent to institute the Original Application vide 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.11.50 Lacs for the 1st year

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and Rs. 16,83,600.00 for the 5^th year vide Farmer Finance Credit Facility Application Form dated 18.07.2016, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.11.50 Lacs for the 1st year and to be enhanced upto Rs. 16,83,600.00 for the 5^th year vide Sanction Letter dated 23.08.2016, which is Annexures A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged their immovable properties i.e. total land measuring 26K-00M situated at Village Chand Nawan, Tehsil Bagha Purana, District Moga vide Declaration under Section 4(1) of Punjab Agricultural Credit Operation & Miscellaneous Provisions (Banks) Act, 1978 dated 17.08.2016, which is Annexure A5 to this OA. Documents executed:- Copy of Deed of hypothecation dated 28.08.2016, which is Annexure A4 to this OA; Copy of Letter to SubRegistrar dated 17.08.2016, which is Annexure A6 to this OA; Copy of notices dated 07.07.2022 with Postal receipts, which are Annexures A7 and A8 (colly) to this OA and Statement of account and Certificate regarding the Computer System and the genuineness of the statement of account being prepared through Computer System, 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.23,38,625.75p, 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 27.06.2024. 7. In support of the OA, affidavit of Mr. Parveen Kumar, Manager and Authorized Signatory , ICICI Bank Limited, h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel through Video Conferencing that in view of the documentary evidence brought on record which had

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gone unrebutted, 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.23,38,625.75p (Rupees Twenty Three Lacs Thirty Eight Thousand Six Hundred Twenty Five and Seventy Five Paise 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.95%p.a. along with penal interest @2.00%p.a. from 03.07.2022 till the realization. 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,38,625.75p (Rupees Twenty Three Lacs Thirty Eight Thousand Six Hundred Twenty Five and Seventy Five 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

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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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 15.03.2025.

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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. Pronounced by me in the open Tribunal .

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Dated: 13.02.2025.

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

Icici Bank Limited v. Baljit Singh

Case brief

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Icici Bank Limited v. Baljit Singh

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