Allowed

Icici Bank Limited v. M/S Chowdhry International and Others

DRT29 Jul 2025OA/68/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Chandigarh, allowed an original application filed by ICICI Bank Ltd. for recovery of Rs.50.86 lakhs. The Tribunal modified the claimed interest rate to 8% per annum and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs.50,86,679.99p with costs and simple interest @8.00%p.a.; issue of Recovery Certificate; liberty to execute through SARFAESI Act.

Icici Bank Limited versus M/S Chowdhry… — Contract and Commercial Disputes | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.68/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 04.11.2024

¶5

DATE OF DECISION: 29.07.2025

¶6

ICICI BANK LTD., a body corporate incorporated under the Companies Act, 1956 and bank within the meaning of the Banking Regulations 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 No.132134, Sector-9-C, Chandigarh through its Authorized Signatory Mohd Vajid.

¶7

……..Applicant

¶8

Versus

¶9

M/s Chowdhary International through its proprietor, B-16971/1660, Street No.6, Muradpur, Ludhiana Punjab-141003.

¶10

Sh. Rajinder Kumar Chaudhary S/o Sh. Baldev Chaudhary M/s Chowdhary International, R/o House No.227, Phase-1, Urban estate Dugri, Basant Avenue, Ludhiana Punjab.

¶11

Smt. Kamaljeet Kaur W/O Sh. Rajinder Kumar Choudhary R/o House No.227, Phase-1, Urban estate Dugri, Basant Avenue, Ludhiana Punjab.

¶12

….……Defendants

¶13

Advocates:

¶14

Argued by, Sh. Manav Singal, Advocate for Applicant (through VC) Defendants already ex parte

¶15

FINAL ORDER

¶16

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act 1993, against the defendants for recovery of Rs.50,86,679.99p (Rupees Fifty Lacs Eighty Six Thousand Six Hundred Seventy Nine & Ninety Nine Paise only). The Original Application has been filed through Sh. Mohd.

¶17

2 OA/68/2025 ICICI BANK LIMITED VS MESSRS CHOWDHRY INTERNATIONAL AND OTHERS

¶18

Vajid, Authorized Signatory of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 18.09.2019, which is Annexure A1 to this OA.

¶19

The brief facts of the OA are that the defendant no.1 through its proprietor defendant no.2 had approached the applicant for the grant of Working Capital Limit of Rs.50.00 Lacs vide Application form dated 24.06.2022, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor.

¶20

The applicant sanctioned the Working Capital Limit of Rs.50.00 Lacs vide Intimation letter dated 06.09.2022, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.2 had mortgaged his immovable properties i.e. shop no. B-16-971/1660 measuring 130.33 sq. yards situated at Village Peerubanda, Hadbast No.167, Abadi Muradpura, Tehsil and District Ludhiana Punjab vide equitable mortgage of Transfer Deed bearing deed no.2022-23/106/1/3487 dated 15.06.2022, along with its translation which is Annexure A5 and & Annexure VII-B (Declaration in respect of mortgage by deposit of title deeds) dated 22.09.2022, which is Annexures A6 to this OA. Documents executed: -Deed of guarantee dated 19.09.2022, which is Annexure A4 to this OA; Loan recall notice dated 01.08.2024, along with postal receipts, which is Annexure A7 to this OA and statement of account, which is Annexure A8 to this OA.

¶21

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.50,86,679.99p, which his 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.

¶22

3 OA/68/2025 ICICI BANK LIMITED VS MESSRS CHOWDHRY INTERNATIONAL AND OTHERS

¶23

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 23.05.2025.

¶24

In support of the OA, affidavit of Sh. Sh. Mohd Vajid, Authorized Signatory, ICICI BANK LTD, has been filed.

¶25

Heard ex-parte arguments and perused record.

¶26

It was argued by learned counsel (through Video 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 A8 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.50,86,679.99p (Rupees Fifty Lacs Eighty Six Thousand Six Hundred Seventy Nine & Ninety Nine 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 [email protected]%p.a. with monthly rests from 10.09.2024 till the realization.

¶27

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

¶28

4 OA/68/2025 ICICI BANK LIMITED VS MESSRS CHOWDHRY INTERNATIONAL AND OTHERS

¶29

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.

¶30

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.50,86,679.99p (Rupees Fifty Lacs Eighty Six Thousand Six Hundred Seventy Nine & Ninety Nine 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 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.

¶31

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 04.09.2025. 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: 29.07.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Icici Bank Limited v. M/S Chowdhry International and Others

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. M/S Chowdhry International and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Hdfc Bank Limited versus Sh. Mahain Singh and Others

Uco Bank versus Sh. Ajay Kumar Koundal and Another

Punjab and Sind Bank versus Sh. Baldev Singh and Another

M/S Blue Mountain Education Society versus M/S Piramal Capital and Housing Finance Limited and Others

State Bank of India versus Sh. Jeet Singh

State Bank of India versus Sh. Davinder Singh