Allowed

Icici Bank Ltd., v. M/s Lovepreet Trading Co. and Others

DRT29 May 2025OA/843/2024

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank to recover Rs. 36 lakhs from the respondents, declaring them jointly liable. The Tribunal awarded uniform simple interest at 8% p.a., reduced from the claimed rate, and ordered the issuance of a recovery certificate.

What did the court decide?

The application is allowed; respondents to pay Rs. 36,14,199.90 with simple interest at 8% p.a.; Recovery Certificate issued.

Icici Bank Ltd., versus M/s Lovepreet Trading Co. and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.843/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.07.2024

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DATE OF DECISION: 29.05.2025

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ICICI Bank Ltd., a Body Corporate, incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulation Act, 1949 and having its registered office at ICICI Bank Tower, 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 1^st Floor, Near N.K. Sharma Office, Chandigarh Ambala National Highway, Zirakpur, District S.A.S Nagar, Punjab through its authorized signatory, Mohd Vajid.

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……..Applicant

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Versus

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M/s Lovepreet Trading Co. through its Proprietor, 156 B, Dana Mandi, Tehsil and District Tarn Taran, Punjab-143401.

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Sh. Sarabjit Singh S/o Sh. Swaran Singh, Proprietor M/s Lovepreet Trading Co. R/o H. No. 86, Village Behla, Tehsil and District Tarn Taran, Punjab-143401.

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Sh. Rajbir Kaur w/o Sh. Swaran Singh R/o H. No. 86, Village Behla, Tehsil and District Tarn Taran, Punjab-143401.

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………. Defendants

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Advocates:

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Argued by Sh. Manav Singla, Advocate 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.36,14,199.90p (Rupees Thirty Six Lakh Fourteen Thousand One

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2 OA NO.843-2024 ICICI BANK LIMITED VS M/S LOVEPREET TRADING CO. AND OTHERS

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Hundred Ninety Nine and Ninety Paise Only). The Original Application has been filed through Sh. Mohd Vajid, Authorized Signatory o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 18.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No. 1 had approached the applicant bank for the grant of CC Limit of Rs.45.00 Lacs vide Preliminary Application form dated 14.02.2017, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the CC Limit of Rs.45.00 Lacs vide Intimation Letter and Final Credit Application Form dated 28.02.2017, which are Annexure A3 and A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.2 had mortgaged his immovable property i.e., Shop No. 146 measuring 9 Marla 50 Feet situated at New Grain Market, Tarn Taran, Tehsil & District Tarn Taran, Punjab vide Equitable Mortgage of Sale Deed bearing vasika no.631 dated 23.05.2016 along with its translation, which is Annexure A6 to this OA.

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Documents executed:- Deed of Guarantee and Annexure VII-B i.e. Declaration dated 28.02.2017, which are Annexures A5 and A7 to this OA; Loan Recall Notice dated 18.11.2023, which is Annexure A8 to this OA and Statement of Account with certificate, which is Annexure A9 to the 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.36,14,199.90p, 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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3 OA NO.843-2024 ICICI BANK LIMITED VS M/S LOVEPREET TRADING CO. AND OTHERS

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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 27.05.2025.

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In support of the OA, affidavit of Sh. Mohd Vajid, Authorized Signatory, 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 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 loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. 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.36,14,199.90p (Rupees Thirty Six Lakh Fourteen Thousand One Hundred Ninety Nine and Ninety 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 @17.00%p.a. with rests from 03.06.2024 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

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4 OA NO.843-2024 ICICI BANK LIMITED VS M/S LOVEPREET TRADING CO. AND OTHERS

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%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.36,14,199.90p (Rupees Thirty Six Lakh Fourteen Thousand One Hundred Ninety Nine and Ninety Paise Only) jointly and severally, with costs, current and future simple interest @08.00%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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 13.06.2025. 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.

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Pronounced by me in the open Tribunal . Dated: 29.05.2025

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

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5 OA NO.843-2024 ICICI BANK LIMITED VS M/S LOVEPREET TRADING CO. AND OTHERS

Icici Bank Ltd., v. M/s Lovepreet Trading Co. and Others

Case brief

What is this about?

What did the court decide?

Icici Bank Ltd., v. M/s Lovepreet Trading Co. and Others

Case brief

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What did the court decide?

What the court decided

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