Allowed

Icici Bank Limited v. M/S Sat Guru Trading Co. and Others

DRT9 Feb 2026OA/310/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application by ICICI Bank Ltd. for recovery of dues from M/S Satgrahu Trading Co. and others. Declaring the respondents jointly and severally liable for Rs. 35,56,828.92, the court modified the claimed interest rates to a uniform simple rate of 8.00% p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; respondents declared liable for Rs. 35,56,828.92 with interest at 8% p.a.; liberty to enforce through execution.

Icici Bank Limited versus M/S Sat Guru Trading Co… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 310/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.01.2023

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DATE OF DECISION: 09.02.2026

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ICICI BANK LTD., a body corporate incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulations 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 Plot No.143-A, City Emporium, Industrial Area, Phase-I, Chandigarh-160002 through its Authorised Signatory Sh. Vikas Kaundal.

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			……..Applicant
1. M/S Sat Grain Ma	Guru Trading Co., thr rket, Amloh, District Fat	ough its proprie ehgarh Sahib, Pu	tor, Shop No. 47, njab-147203
2. Sh. Noh through	ar Chand S/o Sh. Roo his Legal heirs:	p Chand Singla	(since deceased)
(i)	Smt. Saroj Rani W/o	Late Sh. Nohar	Chand, R/o Ward
	No.23, Street No.3, 141401	Uttam Nagar,	Khanna, Punjab-
(ii)	Sh. Girish Kumar S/o	Late Sh. Nohar	Chand, R/o Ward
	No.23, Street No.3, 141401.	Uttam Nagar,	Khanna, Punjab-
(iii)	Sh. Harish Singla S/o	Late Sh. Nohar	Chand, R/o Shop
	No.47, Grain Market, Punjab-147203.	Amloh, District	Fatehgarh Sahib,
(iv)	Ms. Sneh Lata D/o L	ate Sh. Nohar	Chand, R/o Shop
	No.47, Grain Market, Punjab-147203.	Amloh, District	Fatehgarh Sahib,
(v)	Ms. Sushma Rani D/o	Late Sh. Nohar	Chand, R/o Shop
	No.47, Grain Market, Punjab-147203.	Amloh, District	Fatehgarh Sahib,

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2 OA310/2023

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ICICI BANK LIMITED VS M/S SATGURU TRADING CO. & OTHERS

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(vi) Ms. Kavita Mittal D/o Late Sh. Nohar Chand, R/o Shop No.47, Grain Market, Amloh, District Fatehgarh Sahib, Punjab-147203.

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(vii) Ms. Mannat Mittal D/o Late Sh. Nohar Chand, R/o Shop No.47, Grain Market, Amloh, District Fatehgarh Sahib, Punjab-147203

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Smt. Saroj Rani W/o Late Sh. Nohar Chand, R/o Ward No.23, Street No.3, Uttam Nagar, Khanna, Punjab-141401

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Sh. Girish Kumar S/o Late Sh. Nohar Chand, R/o Ward No.23, Street No.3, Uttam Nagar, Khanna, Punjab-141401

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….……Defendants

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Advocates:

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Argued by, Sh. Rahul Garg, Advocate for Applicant (through VC)

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Defendants already ex parte vide order dated 31.10.2025

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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.35,56,828.92 (Rupees Thirty Five Lacs Fifty Six Thousand Eight Hundred Twenty Eight and Paise Ninety Two Only). The Original Application has been filed through Sh. Vikas Kaundal, Authorized Signatory o f the applicant, who is competent to institute the Original Application vide 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 defendant no. 1 through its proprietor defendant no. 2 (since deceased) approached the applicant for grant of Overdraft Facility of Rs. 31.00 Lacs vide Preliminary Credit Facility Application Form dated 05.08.2018, which is Annexure A2 to this OA and Final Credit Application Form dated 27.07.2018 which is Annexures A4 to this OA. Defendant nos. 2 to 4 stood as guarantors. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 (since deceased) approached the applicant for Working Capital Term Loan (WCTL) of Rs. 6.20 Lacs under GECL

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3 OA310/2023

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ICICI BANK LIMITED VS M/S SATGURU TRADING CO. & OTHERS

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vide Application Form dated 16.06.2020 which is Annexure A6 to this OA.

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The applicant sanctioned the Overdraft Facility of Rs. 31.00 Lacs vide Intimation Letter dated 27.07.2018 which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Working Capital Term Loan (WCTL) of Rs. 6.20 Lacs under GECL vide sanction letter dated 25.06.2020, which is Annexure A7 to this OA. 4. Defendant No. 2(since deceased) mortgaged his immovable property i.e. Commercial Property Bearing Booth No. 49, admeasuring 25.55 Sq. Yards, Situated at New Grain Market, Khanna, District Ludhiana, Punjab through equitable mortgage of Sale Deed No.492 dated 26.04.2010, along with its translation, which is Annexure A10 to this OA. Declaration Annexure VII-B, dated 24.08.2018 and 25.06.2020, regarding mortgage by deposit of title deeds, which is Annexures A11 and A12 to this OA. Documents executed : Deed of Guarantee dated 27.07.2018 which is Annexures A5 to this OA; Deed of Hypothecation, Deed of Guarantee, both dated 26.06.2020 which are Annexure A8 to A9 to this OA; Recall Notices dated 17.10.2022 which are Annexures A13 to A14 to this OA; Statement of Accounts which are Annexures A15 to A16 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 loan accounts there was a debit of Rs.35,56,828.92 (Rupees Thirty Five Lacs Fifty Six Thousand Eight Hundred Twenty Eight and Paise Ninety Two Only), 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 31.10.2025.

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4 OA310/2023 ICICI BANK LIMITED VS M/S SATGURU TRADING CO. & OTHERS

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In support of the OA, affidavit of Sh. Sh. Vikas Kaundal, Authorized Signatory, ICICI Bank Limited has been filed.

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Heard ex-parte arguments and perused record. 9. 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 had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendant no.1 through its proprietor defendant no. 2 (since deceased) approached applicant for availing of the loan facilities in which the defendant nos. 3 and 4 stood as guarantors. The loan facilities were were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.35,56,828.92 (Rupees Thirty Five Lacs Fifty Six Thousand Eight Hundred Twenty Eight and Paise Ninety Two 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 [email protected]%p.a. in Overdraft Facility and @ 15.25%p.a.in GECL Loan with monthly rests from 01.12.2022 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/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 uniform simple interest @8.00%p.a. in both the loan accounts from the date of filing of the OA

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OA310/2023

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ICICI BANK LIMITED VS M/S SATGURU TRADING CO. & OTHERS

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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.35,56,828.92 (Rupees Thirty Five Lacs Fifty Six Thousand Eight Hundred Twenty Eight and Paise Ninety Two Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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 assets/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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 23.02.2026. 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 .

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Dated: 09.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Icici Bank Limited v. M/S Sat Guru Trading Co. and Others

Case brief

What is this about?

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Icici Bank Limited v. M/S Sat Guru Trading Co. and Others

Case brief

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What did the court decide?

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