Allowed

Icici Bank Limited v. Sh. Mohit Sethi and Another

DRT28 Aug 2026OA/1214/2025

Case brief

AI extract

What is this about?

In an ex-parte application filed under the RDB Act 1993, the Delhi Debt Recovery Tribunal allowed ICICI Bank's claim for recovery. The Tribunal reduced the pending interest rate from 24% to 8% based on market conditions and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery certificate issued; Defendants liable to pay principal with simple interest at 8% p.a.

Icici Bank Limited versus Sh. Mohit Sethi and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1214/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.09.2025

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DATE OF DECISION: 28.08.2026

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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 SCO 132-133-134, Sector 9 C, Chandigarh - 160017 through its Authorized Signatory, Sh. Jatinder Mishra.

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……..Applicant

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Versus

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Sh. Mohit Sethi S/o Sh. Naresh Kumar, R/o House no. 251, Sector 21 B, Gobindgarh, District Fatehgarh Sahib (Punjab) Pincode -147301.

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M/s D.A Steel Industries, through its Proprietor Sh. Mohit Sethi, Sector 26, Godown no. 143, Block B, Disposal Road, Mandi Gobindgarh, District Fatehgarh Sahib (Punjab) Pincode - 147301.

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…….. Defendants

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Advocates:

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Argued by Sh. Himendra Pal Singh, Advocate for the applicant (through VC)

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None for defendants (Already ex-parte vide order dated 24.08.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.20,80,559.00 (Rupees Twenty Lacs Eighty Thousand Five Hundred and Fifty Nine Only). The

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2 OA NO.1214/2025 ICICI BANK LTD. VS SH. MOHIT SETHI AND ANOTHER

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Original Application has been filed through Sh. Jatinder Mishra, Authorized Signatory of the applicant, who is competent to institute the Original Application vide Power of Attorney, dated 08.01.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 in his individual capacity and defendant no. 2 through its proprietor defendant no. 1 a pproached the applicant for grant of Term Loan Facility for purchase of new car of Rs.10,00,000.00 vide Application Form, dated 24.05.2022, which is Annexure A2 to this OA.

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Thereafter, the defendant no. 1 a pproached the applicant for grant of Term Loan Facility for purchase of new car of Rs.15,00,000.00 vide Credit Facility Application Form, dated 05.12.2022, which is Annexure A6 to this OA.

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Thereafter, the defendant no. 1 in his individual capacity and defendant no. 2 through its proprietor defendant no. 1 a pproached the applicant for grant of Term Loan Facility against hypothecation of used car of Rs.4,40,000.00.

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The applicant sanctioned the Term Loan Facility I for purchase of new car of Rs.10,00,000.00 vide Credit Facility Application Form, dated 24.05.2022, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Thereafter, t he applicant sanctioned the Term Loan Facility II for purchase of new car of Rs.15,00,000.00 vide Credit Facility Application Form, dated 05.12.2022, which is Annexure A7 to this OA and the terms and conditions were duly accepted by the defendant no. 1.

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Thereafter, t he applicant sanctioned the Term Loan Facility III against hypothecation of used car of Rs.4,40,000.00 vide Credit Facility Application Form, dated 01.09.2023, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 hypothecated his movable assets i.e.,

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3 OA NO.1214/2025 ICICI BANK LTD. VS SH. MOHIT SETHI AND ANOTHER

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(i) Car model Creta 1.5 CRDI MT, bearing Registration No. PB07CA7777, Engine No. D4FANM564998, Chassis No.

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MALPC813LNM327792, vide copy of Registration Certificate, which is Annexure A5 to this OA.

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(ii) Car model Mahindra Thar LX, bearing Registration No. PB39K0777, Engine No. YKN4H64358, Chassis No. MA1UJ4YK2N2H34222, vide copy of Registration Certificate, which is Annexure A9 to this OA.

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Documents executed: Unattested Deeds of Hypothecation, dated 24.05.2022, 06.12.2022, 01.09.2023, which are Annexures A4, A8 & A11 to this OA; Recall Notice, dated 11.07.2025, along with postal receipts, which is Annexure A12 to this OA; Statement of Accounts along with certificate, which are Annexures A13 to A15 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.20,80,559.00, 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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 24.08.2026.

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In support of the OA, affidavit of Sh. Jatinder Mishra, Authorized Signatory, ICICI Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant 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 A15 to this OA, it is proved that the defendant no. 1 in his individual capacity and defendant no. 2 through its proprietor defendant no. 1 a pproached applicant for availing of Term Loan Facilities I & III, which were

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4 OA NO.1214/2025 ICICI BANK LTD. VS SH. MOHIT SETHI AND ANOTHER

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granted to them and the defendant no. 1 a pproached applicant for availing of Term Loan Facility II, which was granted to him.

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They had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.9,20,341.00 (Rupees Nine Lacs Twenty Thousand Three Hundred and Forty One Only), along with interest from the defendants, jointly and severally, and Rs.11,60,218.00 (Rupees Eleven Lacs Sixty Thousand Two Hundred and Eighteen Only), along with interest from the defendant no. 1, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @24.00%p.a. in the loan accounts from 16.07.2025 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 hypothecated assets, undertaking of the defendants, quantum of loans 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 simple interest @8.00%p.a. in the loan accounts 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 sum of Rs.9,20,341.00 (Rupees Nine Lacs Twenty Thousand Three Hundred and Forty One Only), jointly and severally, and the defendant no. 1 is liable to pay to the applicant sum of Rs.11,60,218.00 (Rupees Eleven Lacs Sixty Thousand Two Hundred and Eighteen Only), with costs, current and

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5 OA NO.1214/2025 ICICI BANK LTD. VS SH. MOHIT SETHI AND ANOTHER

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future simple interest @8.00%p.a. in the loan accounts 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 vehicles of defendant no. 1 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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12. 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 10.09.2026.

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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: 28.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Icici Bank Limited v. Sh. Mohit Sethi and Another

Case brief

What is this about?

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Icici Bank Limited v. Sh. Mohit Sethi and Another

Case brief

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