Allowed

Icici Bank Limited v. Sh. Gurbaj Singh and Others

DRT9 Jun 2025OA/231/2023

Case brief

AI extract

What is this about?

Applicant bank filed an O.A. under the RDBFI Act for recovery of a loan classified as NPA. Defendants appeared ex-parte. Tribunal validated the presumption of facts, allowed the application, reduced interest to 8%, and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 29,43,980.42 with simple interest at 8.00% p.a.; issuance of Recovery Certificate; liberty to enforce via SARFAESI Act or attachment of personal assets.

Icici Bank Limited versus Sh. Gurbaj Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.231/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.11.2022

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DATE OF DECISION: 09.06.2025

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ICICI BANK LTD., 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 685/13, Patti Jaid, Badbar Road, Longowal District Sangrur-148106, Punjab through its manager and authorized signatory Mr. Parveen Kumar.

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……..Applicant

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Versus

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1. Sh. Gurbaj Singh S/o Sh. Kashmir Singh, R/o Village Dhadrian, Tehsil and District Sangrur Punjab-148106.

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2. Sh. Major Singh S/o Sh. Kashmir Singh R/o Village Dhadrian, Tehsil and District Sangrur Punjab-148106.

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3. Sh. Gurpinder Singh S/o Sh. Gurdeep Singh R/o Village Sahoke, Tehsil and District Sangrur, Punjab-148106.

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….……Defendants

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Advocates:

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Present Sh. Arunjeet Singh Kakkar, Advocate proxy for Sh. Himendra Pal Singh, Applicant 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.29,43,980.42p (Rupees Twenty Nine Lacs Forty Three Thousand Nine Hundred Eighty & Forty Two Paise only). The Original Application has been filed through Mr. Parveen Kumar, authorized signatory o f the applicant, 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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2 OA NO.231-2023 ICICI BANK LIMITED VS GURBAJ SINGH AND OTHERS

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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.22.26 Lacs vide Copy of Farmer finance facilities credit facility dated 18.01.2016, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.22.26 Lacs for the 1^st year and Rs.32.58 Lacs for the 5^th year vide Sanction letter dated 26.02.2016, which is Annexure 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 68K-00M situated at Village Dhadrian, Sub tehsil Longowal, District Sangrur, Punjab vide Declaration u/s 4(1) & Letter to Sub Registrar for Creation of charge both dated 29.02.2016, with its translations, which are Annexures A6 & A7 to this OA. Documents executed: -Deed of hypothecation, Deed of Guarantee both dated 16.02.2016, which are Annexures A4 & A5 to this OA; Copy of notice dated 11.04.2022, which is Annexure A8 to this OA; Copy of postal receipts dated 13.04.2022, which is Annexure A9 to this OA and Statement of account with certificate, which is Annexure A10 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.29,43,980.42p, 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 05.06.2025. 7. In support of the OA, affidavit of Mr. Parveen Kumar, authorized signatory, ICICI BANK LTD., h as been filed. 8. Ld. proxy counsel for applicant present has not advanced any arguments. Perused record.

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3 OA NO.231-2023

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ICICI BANK LIMITED VS GURBAJ SINGH AND OTHERS

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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 A10 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.29,43,980.42p (Rupees Twenty Nine Lacs Forty Three Thousand Nine Hundred Eighty & Forty Two 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.

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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 @12.00%p.a. along with penal interest @2.00%p.a. from 14.06.2022 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.29,43,980.42p (Rupees Twenty Nine Lacs Forty Three Thousand Nine Hundred Eighty & Forty Two Paise only) jointly and severally, with

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4 OA NO.231-2023

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ICICI BANK LIMITED VS GURBAJ SINGH AND OTHERS

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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 .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 01.07.2025.

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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 . Dated: 09.06.2025.

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

Icici Bank Limited v. Sh. Gurbaj Singh and Others

Case brief

What is this about?

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Icici Bank Limited v. Sh. Gurbaj Singh and Others

Case brief

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