Allowed

Icici Bank Limited v. Subbaiah K B

DRT19 Dec 2023OA/1043/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by ICICI Bank Ltd. for recovery of dues and interest against borrower and co-borrower who defaulted on a Kisan Credit Card loan, following exparte proceedings due to non-appearance.

What did the court decide?

Bank allowed to recover Rs. 82,51,676/- plus interest @ 18% p.a. compounded monthly; liberty to recover via sale of schedule properties and personal assets if unpaid.

Icici Bank Limited versus Subbaiah K B — Contract and Commercial Disputes | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of December, 2023

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Present: SMT. S. V. GOWRAMMA Hon`ble Presiding Officer

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OA. No.1043/2022

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BETWEEN:

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ICICI Bank Ltd., Branch office at Sunanda Complex, College Road, Madikeri District, Kodagu-571 201. Represented by its Manager & POA Holder, Sri. Harish E.

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… APPLICANT

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AND:.

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Sri. Subhaiah K B S/o late. Sri. Biddappa, Aged about 46 years, No.41, Hatti Hammiyala, Avandi, Mukkodlu, Madikeri, Kodagu-571 251.

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Smt. Muthavva K B W/o late. Sri. Biddappa, Aged about 74 years, No.41, Hatti Hammiyala, Avandi, Mukkodlu, Madikeri, Kodagu-571 251 ... DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. SA Associates Defendant Nos.1 & 2 : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 01.07.2022 under section 19 of Recovery of the Debts and Bankruptcy Act 1993 for recovery of a sum of Rs.82,51,676/- (Rupees eighty two lakh fifty one thousand six

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OA. No. 1043/2022

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hundred and seventy six only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The application filed is within the period of limitation as prescribed under Section 24 Recovery of the Due and Bankruptcy Act 1993 and the subject recovery claim falls within the jurisdiction of this Hon’ble Tribunal.

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Brief facts of the case:

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It is the case of the applicant bank where in the Defendant No.1 is the borrower and Defendant No.2 is the Co-borrower. The Defendants approached the applicant bank seeking for Kisan Credit Card Loan of Rs.75,00,000/- (Rupees seventy five lakh only) an Loan Application dated 01.07.2017 for the purpose of purchase of crop products. After, considering the request of the Defendants, applicant bank sanctioned a Kisan Credit Card Loan of Rs.75,00,000/- (Rupees seventy five lakh only) vide sanction letter dated 31.07.2017 along with interest @ 11.25% p.a. and repayment on Demand, in Loan A/c No. 048751000057.

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The defendants executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendants executed Hypothecation Deed dated 31.07.2017 and Memorandum of Entry- First Time Mortgaged by Deposit of Title Deeds dated 19.08.2017 which is registered as Document No. MDK-1-01185-2017-18 stored in C.D. No. MDKD146 of Book I, in the office of Sub-Registrar, Madikeri in favour of the applicant bank.

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OA. No. 1043/2022

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The Applicant Bank submits that the Defendants, after availing the said facilities, failed to repay the loan amount and committed default. The Applicant Bank issue Legal Notice dated 03.02.2022 calling upon the defendants to repay the entire outstanding loan amount. However, there was no positive response from the Defendants. Hence, this Original Application (OA) has been filed to recover the dues from the Defendants.

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After the filing of the OA, summons was sent to the Defendant Nos.1 & 2 through Registered Post with Acknowledgment Due the same is duly served on 03.11.2022. Therefore, service held sufficient. When OA was taken up on 18.01.2023 even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendant Nos.1 & 2 were placed exparte on 18.01.2023.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Sri. Harish E S/o Sri. Eshwar, Manager has filed Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, the list of Document

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came to be marked as Ex.A2 and documents came to be marked as

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Ex.A3 to A10. As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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Having regard to the amount advanced, the interest applied, the

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conduct and operations in the account and the default committed, this

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OA. No. 1043/2022

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Tribunal comes to the conclusion that the applicant bank is entitled to a final order on the following terms:

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: O R D E R:

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants jointly and severally to pay an amount of Rs.82,51,676/- (Rupees eighty two lakh fifty one thousand six hundred and seventy six only) with further interest @ 18% p.a. compounded at monthly rests from the date of OA till the date of realization.

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(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned property in the OA;

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(d) If the sale proceeds of the schedule mentioned properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendants (both movable and immovable) respectively to recover the balance dues as required under law;

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OA. No. 1043/2022

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(e) The applicant bank shall file the latest memo of calculation of OA

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amount together with interest, costs etc., to be paid by the defendants duly considering the amounts, if any, paid by the defendants and/or amount realized by sale of assets etc., during the intervening period after the filing

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of the OA, enabling the Registry to prepare Recovery Certificate for the

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amount to be paid by the respective defendants to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days from the

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date of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the Recovery

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Officer in terms of the final order.

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10. A copy of this order be communicated to the parties concerned.

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[Dictated to the (CS), transcribed by her, corrected and signed by me on this the 19^th Day of December 2023].

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Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Harish E S/o Sri. Eshwar, Manager of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Applicant Evidence
A2	List of Documents.

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OA. No. 1043/2022

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A3	Farmer Finance Facilities-Credit-Facility Application Form dated 01.07.2017
A4	Sanction Letter dated 31.07.2017
A5	Hypothecation Deed
A6	Memorandum of Entry dated 19.08.2017
A7	Legal Notice dated 03.02.2022
A8	Postal Receipts
A9	India Post Track consignment
A10	Statement of Account.

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

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SCHEDULE ‘A’ PROPERTY

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(The property belongs to Defendant No.1)

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All that piece and parcel of agricultural land bearing Sy.No.50/1 measuring with extent 15.34 situated at Avandi Village, Madikeri Hobli, Madikeri Taluk, Kodagu District and bounded as follows:

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East by: Sy.No.49, 50/5

West by: Road,

North by: Sy.No.50/3

South by: Sy.No.50/6

SCHEDULE ‘B’ PROPERTY

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(The property belongs to Defendant No.1)

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All that piece and parcel of agricultural land bearing Sy.No.50/5 measuring with extent 10.00 situated at Avandi Village, Madikeri Hobli, Madikeri Taluk, Kodagu District and bounded as follows:

OA. No. 1043/2022

East by: Sy.No.49

West by: Sy.No.50/1 & 50/6 North by: Sy.No.50/1

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South by: Sy.No.50/6

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SCHEDULE ‘C’ PROPERTY

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(The property belongs to Defendant No.1)

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All that piece and parcel of agricultural land bearing Sy.No.50/6 measuring with extent 4.94 situated at Avandi Village, Madikeri Hobli, Madikeri Taluk, Kodagu District and bounded as follows:

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East by: Sy.No.49

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West by: Road,

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North by: Sy.No.50/1 & 50/5

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South by: Road

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Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

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OA. No. 1043/2022

Icici Bank Limited v. Subbaiah K B

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Subbaiah K B

Case brief

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What did the court decide?

What the court decided

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