Allowed

Icici Bank Limited v. S Kumar Concrete Pvt. Ltd.

DRT19 Dec 2022OA/579/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed ICICI Bank Limited's application for recovery of Rs. 2.05 crore plus interest from S Kumar Concrete Private Limited and its director Sunil Kumar Gupta, holding them jointly liable and directing the issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs. 2,05,47,769.67 with 10% interest; issuance of Recovery Certificate; liberty to attach and sell properties.

Icici Bank Limited versus S Kumar Concrete Pvt. Ltd. — Company and Corporate | DRT (2022)

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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

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DATED THE 19^th DAY OF DECEMBER , 2022

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ORIGINAL APPLICATION NO. 579/2022

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ICICI Bank Limited, 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, Vadodra-390007 and its Corporate office at ICICI Bank Tower, Bandra Kurla Complex, Mumbai-400051 and having Branches all over India, including at 1^st Floor, Near N.K. Sharma Office, Chandigarh-Ambala National Highway, Zirakpur, District S.A.S. Nagar, Punjab through its authorised signatory, Sh. Mohd. Vajid

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…..Applicant Bank

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Versus

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S Kumar Concrete Private Limited, through its Directors, 43 Mile Stone, NH-10, Delhi-Rohtak road, Near Village Rohad, Bahadurgarh, District Jhajjar, Haryana-124507

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Sh. Sunil Kumar Gupta S/o Sh. Sham Lal Gupta, Director of S Kumar Concrete Private Limited R/o House No. A-10, Satyawati Colony, Ashok Vihar, Phase 3, North West Delhi, New Delhi-110034

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…..Defendants

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Argued by: Sh. Sukhvinder Singh proxy counsel for Sh. D. K. Singal counsel for the applicant bank Defendants ex parte

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FINAL ORDER

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Present Original Application was instituted on 28.03.2022 by the applicant bank under Section 19 (1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, (hereinafter

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OA NO/579/2022 ICICI BANK VS S KUMAR CONCRETE PRIVATE LIMITED AND ANOTHER 2

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referred to as ‘the Act’ for brevity) against the defendants for recovery of Rs. 2,05,47,769.67/- (Rupees Two Crore, Five lacs, Forty Seven Thousand, Seven Hundred Sixty Nine and Sixty Sven Paisa only) . It has been filed through Sh. Mohd. Vajid, Authorised Signatory, vide Power of Attorney dated 18.09.2019, Annexure-A1 (copy).

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The brief facts of the Original Application are that defendant No. 1 through defendant No. 2 had approached the applicant bank for grant of Term loan facilities of Rs. 13,05,000/-, Rs. 1,40,25,000/-, Rs. 73,15,000/- and financial assistance of Rs. 37,29,900/- under Emergency Credit Line Guarantee Scheme for purchase of commercial vehicles vide resolutions of the Company dated 18.08.2018, 28.08.2019 and 27.12.2009, Annexures-A5, A11 and A19 (copy), preliminary credit facility application forms dated 18.08.2018, 29.08.2019, 27.12.2019, Annexures-A6, A12, A20 and A29 (copy) and credit facility application forms dated 18.08.2018, 29.08.2019, 27.12.2019, Annexures-A7, A13 and A21 (copy), for repayment of which, defendant No.2 stood as a guarantor.

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The applicant bank sanctioned the loan facilities of Rs. 13,05,000/-, Rs. 1,12,20,000/-, Rs. 73,15,000/- for term loan to defendant No.1, and Rs. 37,29,900/- for financial assistance vide sanction letter dated 20.11.2020, Annexure-A30 (copy) to defendant No.1 as per the terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facilities, defendant No.1 executed various loan and security documents, i.e. Certificate dated 16.02.2011 of incorporation which is Annexure-A1 (copy), memorandum of association and articles of association, which are Annexures-A3 and A4 (copy), deeds of hypothecation dated 18.08.2018, 29.08.2019 and

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OA NO/579/2022 ICICI BANK VS S KUMAR CONCRETE PRIVATE LIMITED AND ANOTHER 3

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27.12.2019, Annexures-A8, A14, A22 and A31 (copy)., Guarantee deeds dated 18.08.2018 and 27.12.2019, Annexures-A9 and A23 (copy), documents regarding details of vehicles, Annexures- A10, A24 to A28 (copy) and tax invoice documents dated 30.08.2019, AnnexuresA15 to A18 (copy).

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Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

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It is further the case of the applicant bank that the loan facilities were duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank and resultantly, the loan account became irregular. The applicant bank recalled the entire outstanding amount vide recall notices dated 23.06.2021, 19.07.2021, 21.10.2021, Annexures-A32 to A35 (copy), but to no avail.

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs. 2,05,47,769.67/(Rupees Two Crore, Five lacs, Forty Seven Thousand, Seven Hundred Sixty Nine and Sixty Sven Paisa only) is recoverable against the defendants as per statement of accounts duly certified under Banker’s Books Evidence Act, Annexures-A37 to A46 (copy).

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Notices of the Original Application were duly served upon the defendants but since none appeared on behalf of the defendants despite service, thus, the defendants were proceeded against ex parte vide order dated 30.07.2022.

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In support of contents of the OA, affidavit of evidence of Sh. Mohd. Vajid, Authorised signatory of the applicant bank was filed.

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OA NO/579/2022 ICICI BANK VS S KUMAR CONCRETE PRIVATE LIMITED AND ANOTHER 4

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This Tribunal has heard ex-parte arguments advanced by the learned counsel and gone through the record carefully.

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It was argued by the learned counsel that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case for recovery of the amount sought against the defendants. From perusal of Annexures- A1 to A46, it is clear that the defendants had approached the applicant bank for availing of the loan facilities which were granted to them after they had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs. 2,05,47,769.67/- (Rupees Two Crore, Five lacs, Forty Seven Thousand, Seven Hundred Sixty Nine and Sixty Sven Paisa only) from the defendants.

¶28

In so far as pendente lite and future interest is concerned, the applicant bank in relief clause has claimed interest @24% per annum. In preliminary credit facility application forms dated 18.08.2018, 29.08.2019, 27.12.2019, Annexures-A6, A12 and A20 (copy), the rate of interest has been mentioned @9.25% per annum for Rs.13,05,000/-, @10.02% per annum for Rs. 1,40,25,000/- and @11.02% per annum for RS. 73,15,000/- and in sanction letter dated 20.11.2020, Annexure-A30 (copy), the rate of interest has been mentioned @8.25% per annum for Rs. 37,29,900/-.

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This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19

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OA NO/579/2022 ICICI BANK VS S KUMAR CONCRETE PRIVATE LIMITED AND ANOTHER 5

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affecting businesses, nature of loan, i.e. vehicle loan, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @10% per annum from the date of filing of the OA till realisation of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the Original Application is allowed with costs declaring that the defendants are liable to pay to the applicant bank a sum Rs. 2,05,47,769.67/- (Rupees Two Crore, Five lacs, Forty Seven Thousand, Seven Hundred Sixty Nine and Sixty Sven Paisa only) with current and future simple interest @10% per annum , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. If the dues of the bank still remain unsatisfied, applicant bank shall be at liberty to recover the same by attachment and sale of personal assets/properties of the defendants. The applicant bank is at liberty to enforce the claim through due process of law.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 27.01.2023.

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Copy of this order be sent to the applicant bank and the defendants through registered/speed post. This order be also immediately uploaded on the official website of this Tribunal.

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Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2,Chandigarh

Icici Bank Limited v. S Kumar Concrete Pvt. Ltd.

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Icici Bank Limited v. S Kumar Concrete Pvt. Ltd.

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