Allowed

Icici Bank Limited v. M/S Arora Associates

DRT27 May 2025OA/991/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of a classified NPA loan against defendants who failed to repay their overdraft limit. The court adjusted the interest rate to 8% per annum and directed issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.56,52,903.63p with 8% simple interest; Recovery Certificate issued; Enforcement through sale of mortgaged properties or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.991/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.08.2024

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DATE OF DECISION: 27.05.2025

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ICICI BANK LTD., a body corporate incorporated under the Companies Act, 1956 and bank within the meaning of the banking regulations Act, 1949 and having its registered office at Near Chakli Circle, Old Padra Road, Vadoodara-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 office situated at 1^st Floor, Near N.K. Sharma Office, Chandigarh Ambala National Highway, Zirakpur District SAS Nagar Mohali Punjab through its authorized signatory, Mohd. Vajid

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……..Applicant

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Versus

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M/s Arora Associates, through its partners, Arora Complex, B4/1063/1, Near Choice Resort, Chandigarh-Ambala Road, Zirakpur, District SAS Nagar Mohali Punjab-140603.

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Chander Kanta Arora W/o Sh. Daulat Ram Arora, Partner M/s Arora Associates.

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Atul Arora S/o Sh. Ashok Arora, Partner M/s Arora Associates.

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Raghav Arora S/o Sh. Ashok Arora, Partner M/s Arora Associates.

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Sumedh Arora S/o Sh. Narinder Kumar Arora, Partner M/s Arora Associates.

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Anu Arora W/o Sh. Narinder Kumar Arora.

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Mini Arora W/o Sh. Ashok Kumar Arora.

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Defendant no.2 to 7 are residents of :- House No.1209, Sector-7, Panchkula, Haryana-134109.

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….……Defendants

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Advocates:

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Argued by, Sh. Rahul Garg, Advocate for applicant Defendant Nos.1,5 & 6 already ex parte vide order dated 22.05.2025 None for defendant Nos.2 to 4 & 7

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2 OA NO.991/2024 ICICI BANK LIMITED VS M/S ARORA ASSOCIATES AND OTHERS

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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.56,52,903.63p (Rupees Fifty Six Lacs Fifty Two Thousand Nine Hundred Three & Sixty Three Paisa only). The Original Application has been filed through Sh. Mohd. 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.

¶22

The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of Overdraft Limit of Rs.100.00 Lacs vide Loan application dated 06.09.2022 and Final Credit Application form dated 29.112022, which are Annexures A3 and A5 to this OA.

¶23

The applicant sanctioned the Overdraft Limit of Rs.100.00 Lacs vide Sanction Letter to this OA and the terms and conditions were duly accepted by the defendants.

¶24

Defendant no.2, 6 & 7 had mortgaged their immovable properties i.e. total land measuring 2Kanal-18Marla situated at Village Pabhat, Hadbast No.234, near choice resort, Chandīgarh Ambala road, Zirakpur District SAS Nagar Mohali Punjab v ide Equitable Mortgage of Sale Deed bearing deed no.5534 dated 02.02.1994, which is Annexure A8 this OA.

¶25

Documents executed: - Partnership deed dated 20.04.2016, which is Annexure A2 to this OA; Intimation letter dated 23.11.2022, which is Annexures A4 to this OA; Partnership authority letter and confirmation, Deed of guarantee both dated 29.11.2022, which are Annexures A6 & A7 to this OA; Annexure VII-B Declaration darted 30.11.2022, which is Annexure A9 to this OA; Loan recall notice

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3 OA NO.991/2024 ICICI BANK LIMITED VS M/S ARORA ASSOCIATES AND OTHERS

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dated 09.05.2024, which is Annexure A10 to this OA and Statement

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of account with certificate, which is Annexure A11 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.56,52,903.63p, 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.

¶30

The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant nos.1, 5 and 6 and they were proceeded ex-parte on 22.05.2025. Ms. Lovedeep Kaur, Advocate appeared on behalf of defendant nos.2, 3, 4 and 7 and filed her Power of Attorney but did not filed WS within stipulated period. Therefore, opportunity to file WS by defendant nos.2, 3, 4 and 7 was closed and their defense was struck of on 22.05.2025.

¶31

In support of the OA, affidavit of Sh. Mohd. Vajid, authorized signatory, ICICI Bank Ltd., h as been filed. 8. Heard arguments of Ld. counsel for applicant. None appeared for defendants for arguments. Perused record. 9. 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 A11 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.56,52,903.63p (Rupees Fifty Six Lacs Fifty Two Thousand Nine Hundred Three & Sixty Three

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4 OA NO.991/2024 ICICI BANK LIMITED VS M/S ARORA ASSOCIATES AND OTHERS

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Paisa only) rest 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 @10.90%p.a. with Monthly 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 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.

¶36

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.56,52,903.63p (Rupees Fifty Six Lacs Fifty Two Thousand Nine Hundred Three & Sixty Three 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 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.

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5 OA NO.991/2024

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ICICI BANK LIMITED VS M/S ARORA ASSOCIATES AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 10.06.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 27.05.2025

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

Icici Bank Limited v. M/S Arora Associates

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. M/S Arora Associates

Case brief

What is this about?

What did the court decide?

What the court decided

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