The DRT allowed the applicant's original application for recovery of outstanding dues. The Tribunal modified the claimed interest rate from 24% to 8% per annum and issued a recovery certificate for immediate attachment.
Recovery of Rs.43,68,275.39 with simple interest at 8% p.a. from filing date; issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.131/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 05.02.2025
DATE OF DECISION: 06.08.2026
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 ICICT 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.
……..Applicant
…….. Defendants
Advocates:
Argued by Sh. Himendra Pal Singh, Advocate for the applicant (through VC)
None for defendants (Already ex-parte vide order dated 04.08.2026).
FINAL ORDER
2 OA NO.131/2025 ICICI BANK LTD. VS M/S MALHOTRA CYCLE INDUSTRIES AND ANOTHER
competent to institute the Original Application vide Power of Attorney dated 08.01.2025, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 a pproached the applicant for grant of Personal Loan Facility for Business purpose of Rs.30,00,000.00 vide Application Form dated 25.09.2023, which is Annexure A4 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 a pproached the applicant for grant of Term Loan Facility for purchase of Car of Rs.12,50,000.00 vide Application Form dated 16.11.2023, which is Annexure A6 to this OA. 3. The applicant sanctioned the Personal Loan Facility for Business purpose of Rs.25,00,000.00 vide Credit Facility Application Form dated 25.09.2023, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants.
Thereafter, T he applicant sanctioned Term Loan Facility for purchase of Car of Rs.12,50,000.00 vide Credit Facility Application Form dated 16.11.2023, which is Annexure A7 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated its movable asset i.e.,
Motor Car namely Hyundai Creta 1.5 bearing Registration No. PB10JG1082, Chassis No. MALPA812LPM583290, Engine No. G4FLPB312249 vide Virtual Registration Certificate, which is Annexure A9 to this OA.
Documents executed: GST Registration Certificate date 25.09.2017, which is Annexure A2 to this OA; Sole Proprietorship Declaration dated 25.09.2023, which is Annexure A3 to this OA; Unattested Deed of Hypothecation dated 16.11.2023, which is Annexure A8 to this OA; Loan Recall Notices, dated 23.02.2024, 29.10.2024, along with postal receipts, which is Annexure A10 to this OA; Statement of Accounts along with certificates, which are Annexures A11 & A12 to this OA. 5. 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.43,68,275.39, which is recoverable and the
3 OA NO.131/2025 ICICI BANK LTD. VS M/S MALHOTRA CYCLE INDUSTRIES AND ANOTHER
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.
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 vehicle, undertaking of the defendants, quantum of loans and prevalent market rates of
4 OA NO.131/2025 ICICI BANK LTD. VS M/S MALHOTRA CYCLE INDUSTRIES AND ANOTHER
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 both 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.
12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.
Pronounced by me in the open Tribunal .
Dated: 06.08.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount under Section 19 of the RDB Act.
Whether the rate of interest claimed by the applicant should be modified by the Tribunal.
1 provisions across 1 enactments
ICICI Bank Ltd.
M/s Malhotra Cycle Industries
Sh. Devinder Pal
MRIDULESH KUMAR SINGH
As recorded by the court registry
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