Allowed

Icici Bank Limited v. Malhi Trading Co.

DRT3 Mar 2025OA/796/2023

Case brief

AI extract

What is this about?

DRT allowed ICICI Bank's application against Malhi Trading Co. and others for recovery of Rs. 23.84 Lacs NPA. The Tribunal granted uniform simple interest @8% p.a. instead of claimed 15.75% and directed issuance of a recovery certificate under the RDBFI Act. Future execution to be allowed under SARFAESI Act.

What did the court decide?

Recovery Certificate issued. Defendants liable to pay Rs. 23,84,213.30 with costs and simple interest @8% p.a. Recovery executable under SARFAESI Act.

Icici Bank Limited versus Malhi Trading Co. — Consumer Protection | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.796/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.06.2023

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DATE OF DECISION: 03.03.2025

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ICICI BANK LTD., having its registered office at Near Chakli Circle Old Padra Road, Vadodara 390007, having its Branch office at ICICI Bank Limited, No.143-A, City Emporium, Industrial Area, Phase-1, Chandigarh 160002, through its Authorized Signatory Sh. Mohamad Vajid.

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……..Applicant

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Versus

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Malhi Trading Co., through its proprietor Sh. Ranjodh Singh, Anaj Mandi, Patran, District Patiala, Punjab.

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Sh. Ranjodh Singh R/o House No. 146, Ward No.14, Chunagra Road, Guru Nanak Pura, Patran, District Patiala, Punjab.

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Also at : Sagar Basti, Guru Nanak Colony, Chunagra Road, Near Old Bus Stand, Patran, District Patiala, Punjab.

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Ranjit Kaur R/o House No. 146, Ward No.14, Chunagra Road, Guru Nanak Pura, Patran, District Patiala, Punjab

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Also at : Sagar Basti Guru Nanak Colony Chunagra Road, Near Old Bus Stand, Patran, District Patiala, Punjab.

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Harbans Kaur R/o House No. 146, Ward No.14, Chunagra Road, Guru Nanak Pura, Patran, District Patiala, Punjab

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Also at : Sagar Basti Guru Nanak Colony Chunagra Road, Near Old Bus Stand, Pura Patran District Patiala Punjab.

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….……Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate proxy for Sh. Gagandeep 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.23,84,213.30p (Rupees Twenty Three Lacs Eighty Four Thousand

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Two Hundred Thirteen and Thirty Paise only). The Original Application has been filed through Authorized Signatory Sh. Mohamad Vajid 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. 2. The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for the grant of Overdraft Facility Limit of Rs.32.00 Lacs vide Copy of Loan Application & Copy of final credit application dated 14.12.2015 & 31.12.2015, which are Annexures A2

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& A3 to this OA.

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The applicant sanctioned the Overdraft Facility Limit of Rs.32.00 Lacs vide Copy of Intimation letters dated 31.12.2015, 28.12.2017 & 29.05.2018, which are Annexures A4 to A6 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No. 4 her had mortgaged his immovable properties i.e. total land measuring 0Kanal 03 Marla situated at Sagar Basti, Guru Nanak Colony, Chunagra Road Near Old Bus Stand, Patran, Punjab vide Equitable Mortgage of Transfer Deed bearing vasika no.1699 dated 03.12.2015, which is Annexure A8 to this OA. Documents executed:- Copy of guarantee dated 31.12.2015, which is Annexure A7 to this OA; Copy of Recall Notice dated 21.02.2023, which is Annexure A9 to this OA; Copy of postal receipts dated 23.02.2023, which are Annexures A10 & A11 to this OA Copy of statement of account, which is Annexure A12 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.23,84,213.30p, 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 12.02.2025.

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In support of the OA, affidavit of Authorized Signatory Sh. Mohamad Vajid, ICICI Bank Ltd., has been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy 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 A12 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.23,84,213.30p (Rupees Twenty Three Lacs Eighty Four Thousand Two Hundred Thirteen and Thirty 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 @15.75% p.a. from 12.05.2023 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

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Rs.23,84,213.30p (Rupees Twenty Three Lacs Eighty Four Thousand Two Hundred Thirteen and Thirty 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.

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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 04.04.2025.

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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 . Dated: 03.03.2025

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

Icici Bank Limited v. Malhi Trading Co.

Case brief

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Icici Bank Limited v. Malhi Trading Co.

Case brief

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