Allowed

Icici Bank Limited v. Jagjit Singh and Others

DRT18 Jan 2025OA/928/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the original application filed by ICICI Bank Ltd. to recover Rs. 45,89,951.30p along with costs and future simple interest at 8% per annum from the respondents, who were absconding and faced with executable mortgage properties.

What did the court decide?

Recovery of Rs.45,89,951.30p plus costs and simple interest at 8% per annum from the date of filing of the Original Application.

Icici Bank Limited versus Jagjit Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.928/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.07.2023

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DATE OF DECISION: 18.01.2025

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ICICI Bank Ltd., Company incorporated under the Companies Act, 1956 and a Banking Company within the meaning of the Banking Regulations Act, 1949 and is having is Registered Office at Land Mark Race Course Circle, Vaddara-390007 and interalia having branch at Bhadarpur Road, Bareta District Mansa Punjab 151501 through its Manager and authorized signatory Mr. Parveen Kumar.

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……..Applicant

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Versus

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Sh. Jagjit Singh S/o Sh. Piara Singh, R/o Village & Post office Kahangarh, Tehsil Budhlada, District Mansa (Punjab) - 151501.

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Sh. Avtar Singh S/o Sh. Jagjeet Singh, R/o Village & Post office Kahangarh, Tehsil Budhlada, District Mansa (Punjab) - 151501

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Sh. Makhan Singh S/o Sh. Mithu Singh, R/o Ward No.6, Near Gurudwara Sahib, Village Biroke Khurd, Tehsil Budhlada, District Mansa-151501.

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….……Defendants

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Advocates: Argued by Sh. Himendra Pal Singh, 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.45,89,951.30p (Rupees Forty Five Lacs Eighty Nine Thousand Nine Hundred Fifty One and Thirty Paise only). The Original Application has been filed through Mr. Parveen Kumar, authorized signatory of the

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applicant, who is competent to institute the Original Application vide Copy of General Power of Attorney dated 09.03.2021, 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 the grant of KCC Limit of Rs.37.50 Lacs vide Copy of Farmer Finance Facilities Credit Facility Application form dated 02.01.2017, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.37.50 Lacs vide Copy of Sanction Letter dated 27.01.2017, which is Annexure A3 to this OAand the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgage his immovable properties i.e. total land measuring 106K-06M situated at Village Kahanagrh Tehsil Budhlada, District Mansa vide Declaration u/s 4(1) dated 26.04.2017 which is Annexure A6 to this OA. Documents executed:-Copy of deed of hypothecation, Copy of Deed of Guarantee both dated 30.01.2017, which are Annexures A4 & A5 to this OA; Copy of Notice dated 05.06.2023 with postal receipts, which are Annexures A7 and A8 to this OA and 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 the loan account there was a debit of Rs.45,89,951.30p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank 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 09.01.2025. 7. In support of the OA, affidavit of Mr. Parveen Kumar, authorized signatory, ICICI Bank Ltd., has been filed. 8. Heard arguments and perused record.

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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 bank had proved its case. From the perusal of all the Annexure A1 to A9 to this OA, it is proved that the defendants approached applicant bank 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 bank is entitled to recover a sum of Rs.45,89,951.30p (Rupees Forty Five Lacs Eighty Nine Thousand Nine Hundred Fifty One 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 @11.50%p.a. along with penal interest @2.00%p.a. from 31.05.2023 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 defendant, 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 @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.

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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.45,89,951.30p (Rupees Forty Five Lacs Eighty Nine Thousand Nine

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Hundred Fifty One 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 bank 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 bank 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 28.02.2025. 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: 18.01.2025.

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

Icici Bank Limited v. Jagjit Singh and Others

Case brief

What is this about?

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Icici Bank Limited v. Jagjit Singh and Others

Case brief

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