Applicant obtained recovery certificate under RDB Act for defaulted term loan. Tribunal directed payment of principal with reduced interest and authorized asset sale.
Recovery certificate issued. Defendants directed to pay Rs.22,95,314 plus simple interest at 8% p.a. Applicant may recover via sale of hypothecated vehicle or attachment of personal assets.
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.268/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 05.02.2026
DATE OF DECISION: 08.04.2026
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 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 office situated at SCO 132-134, Sector 9-C, Chandigarh through its Authorized Signatory Sh. Jatinder Mishra.
……..Applicant
Versus
……..Defendants
Advocates:
Argued by Sh. Rahul Garg, Advocate for Applicant (through VC) None for defendants (Already ex-parte vide order dated 30.03.2026)
FINAL ORDER
2 OA/268/2026 ICICI BANK LIMITED VS SH. BHAJAN SINGH AND ANOTHER
institute the Original Application vide Power of Attorney dated 08.01.2025, which is Annexure A1 to this OA.
Documents executed: Unattested Deed of Hypothecation dated 21.08.2024, which is Annexure A4 to this OA; Loan Recall Notice dated 14.11.2025 along with postal receipts, which is Annexure A6 to this OA; Statement of Account along with Certificate, which is Annexure A7 to this OA.
3 OA/268/2026 ICICI BANK LIMITED VS SH. BHAJAN SINGH AND ANOTHER
From the perusal of all the Annexures A1 to A7 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,95,314.00 (Rupees Twenty Two Lacs Ninety Five Thousand Three Hundred and Fourteen 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.
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 asset, 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 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 defendant is liable to pay to the applicant a total sum of Rs.22,95,314.00 (Rupees Twenty Two Lacs Ninety Five Thousand Three Hundred and Fourteen Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account
4
OA/268/2026
ICICI BANK LIMITED VS SH. BHAJAN SINGH AND ANOTHER
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 commercial vehicle of the 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.
12. Any other application pending stands disposed of.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recovery certificate and declaration of liability for the outstanding loan amount.
What rates of interest to grant in this case.
2 provisions across 2 enactments
ICICI Bank Ltd.
Sh. Bhajan Singh
Sh. Subhash Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
