Allowed

Icici Bank Limited v. Nirpal Singh

DRT2 Jun 2025OA/47/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by ICICI Bank against two defendants for recovery of Rs.22 lakhs. Proceedings were conducted ex parte as defendants did not appear. The Tribunal confirmed liability but granted simple interest at 8% p.a. instead of the claimed rates.

What did the court decide?

Order allowed: Defendants liable to pay Rs.22,26,889.37 with simple interest @8% p.a. Recovery Certificate issued.

Icici Bank Limited versus Nirpal Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.47/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.01.2025

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DATE OF DECISION: 02.06.2025

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ICICI BANK LTD., having its registered office at Land Mark, Race Course Circle Vadodara-390007 Having its branch office at ICICI BANK LTD., SCO -143 A, 2^nd and 3^rd Floor, City Emporium Mall Industrial Area Phase-1, Chandigarh Through its authorized Representatives Sh. Mohammad Vajid.

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……..Applicant

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Versus

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Sh. Nirpal Singh S/o Sh. Sham Singh R/o Village Midda, Tehsil Malout, District Mukatsar-151210.

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Sh. Gurmeet Singh S/o Sh. Sham Singh R/o Village Midda, Tehsil Malout, District Mukatsar-151210.

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….……Defendants Advocates:

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Argued by, Ms. Dipti Toni Advocate for 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.22,26,889.37p (Rupees Twenty Two Lacs Twenty Six Thousand Eight Hundred Eighty Nine & Thirty Seven Paisa only). The Original Application has been filed through Sh. Mohammad Vajid, authorized Representatives o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 18.09.2021, 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 Sanction of enhancement of KCC Limit from Rs.6.50 Lacs to Rs.15.00 Lacs vide Loan application dated 17.05.2018, which is Annexure A2 to this OA.

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2 OA NO.47-2025 ICICI BANK LIMITED VS NIRPAL SINGH AND OTHERS

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The applicant sanctioned enhancement of KCC Limit from Rs.6.50 Lacs to Rs.15.00 Lacs vide Sanction letter dated 19.05.2018, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged his immovable properties i.e. total land measuring i.e. 56Kanal-00Marla situated at Village Midda, Hadbast no.186, Tehsil Malout, District Mukatsar Sahib, Punjab vide Declaration u/s 4(1) dated 10.06.2021 & Letter to Tehsildar for Creation of charge, which are Annexures A5 & A6 to this OA.

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Documents executed: - Copy of deed of hypothecation dated 17.05.2018, which is Annexure A4 to this OA; Copy of notice dated 31.12.2022, which is Annexure A7 to this OA; Copy of posting receipts, which is Annexure A8 to this OA and Copy of statement of account with certificate, which is Annexure A9 to this OA.

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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.22,26,889.37p, 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.

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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 30.05.2025.

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In support of the OA, affidavit of Sh. Mohammad Vajid, authorized Representatives, 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 (through Video

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Conferencing) 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 A9 to this OA, it is proved that the defendants approached applicant for availing of the

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3 OA NO.47-2025 ICICI BANK LIMITED VS NIRPAL SINGH AND OTHERS

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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.22,26,889.37p (Rupees Twenty Two Lacs Twenty Six Thousand Eight Hundred Eighty Nine & Thirty Seven Paisa 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 @11.8%p.a. along with penal interest @2.00%p.a. with from 05.11.2024 till date of 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.22,26,889.37p (Rupees Twenty Two Lacs Twenty Six Thousand Eight Hundred Eighty Nine & Thirty Seven Paisa 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

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4 OA NO.47-2025

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ICICI BANK LIMITED VS NIRPAL SINGH AND OTHERS

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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. 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 18.06.2025. 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: 02.06.2025.

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

Icici Bank Limited v. Nirpal Singh

Case brief

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Icici Bank Limited v. Nirpal Singh

Case brief

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