Allowed

Icici Bank Limited v. Mr Mamun Hussain Chowdhury

DRT13 Dec 2023OA/421/2022

Case brief

AI extract

What is this about?

In an application under Section 19 of the RDBFI Act, 1993, ICICI Bank sought a recovery certificate against Mr. Mamun Hussain Chowdhury for a defaulted vehicle loan. The Tribunal allowed the application, holding the loan documents valid and the claim established, and directed the issuance of a Recovery Certificate with interest.

What did the court decide?

Recovery Certificate issued for Rs. 33,19,134.00 with pendentelite and future interest @8.70% per annum; respondent directed to pay costs.

Icici Bank Limited versus Mr Mamun Hussain Chowdhury — Banking and Recovery | DRT (2023)

¶1

oA 421l2022loRT Guwahall

¶2

IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

¶3

(North Eastern Region)

¶4

(Tribunal ofAssam, Nagaland, Meghalaya, Manipur Mizoram, Arunachal Pradesh & Tripura)

¶5

Before Shri Shiv Sharan Dubev. Presidino Officer

¶6

O.A. No. 42112022

¶7

ln thE matter of - ICICI BANK LIMITEO Ground Floor, Shanti Complex, G.S.Road, Bhangagarh, Guwahati-781005, Assam.

¶8

Applicant

¶9

Vs.

¶10

.I. MR MAMUN HUSSAIN CHOWDHURY Son of Mokbul Hussain Resident of Ward No.13, Village-^Gariajan, North Lakhimpur-787001,^Assam.

¶11

Defendant

¶12

Presence of the Coungel:

¶13

For the Applicant : Mr. Mukesh Sharma, Advocate

¶14

For the Oefendant Mr. Afrluddin Ahmed, Advocate.

¶15

Daled^{'.'1311212023}

¶16

JUDGi'ENT

¶17

This is an application^{undersgc-tion 19 of the Recoveryof Debts Due to Banks} and Financial lnstitutions^{Act,1993 Iiled by the lclcl Bank Limited,Ground Floor,} Shanti Complex,^{G.S.Road, Bhangagarh,Guwahati-781005' Assam, with a prayer to} issue Recovery^{Certificatefor the sum of Rs' 33,19,134'00 (Rupee3 Thirty-Three} Laca Ninetssn^{ThousandOneHundred Thirty-Four)only as on 03 09'2022 against} the sole defendant^{with pendentelite and futureinterestat contractual rate with} monthly rests^{till realization along with cost and otherreliei}

¶18

A few facts^{givingriseto the present application are as under'}

¶19

The Defendant^{had aPproached the ApplicantBank and applied for financial}

¶20

assistance^{for the purchaseof Ford Endeavour/ Titanium3 2 4x4 by submitting}

¶21

d,A,thua-4rl* \3 t7 t3 U Presiding Offcer ORT. Guwahali

¶22

¶23

o'a' 4212022'lDRr6wahal'

¶24

Preliminary^{credit facility application form dated20 09 2O2Owith Proforma lnvoice} dated^{22.09.2020respectivelyand upon verificationof the saiddocumentsand} considering^{the applicationof the Defendant'the Applicant Bank agreed to} sanction^{loan facility to the Defendant inter-aliaon the followingterms: -}

¶25

l. The Applicant^{Bank would grant and disburseto the Pefendants.anaggregate} ;;;;i;d;i;l i".^{34,4o,ooo.do (iupees rhirtv-FourLakhs Fortv rhousand)onlv} ior^{purchasing the aforementioned vehicle'}

¶26

The said^{sumshall be used for purchasingof Ford Endeavour/ Titanium 3 2 4x4} ;il'fi";fi;i;iu tnirr u" t vpot'""ated^{t;the ApplicantBankas securitv of the} said loan^amount;

¶27

The oarties^{enter into agreementfor loan and theDefendantswould be required} '";^{;;;?;-iiouateJ rtr;ntnrv tniiatrmentscommencingfro'n 10 '11 2020and} "r,iir6^{*io.rilzo2Trespectivelyunderthe said agreement'}

¶28

4.TheDefendantwouldstrictlyadheretothere-paymentSchedulebymaking tnont't'rv^{in"iailmentsto the Applicant Bank under a fixed} ;r;;";;;i;i;qr"t"o rate of lnterest @^{8.70% annum;}

¶29

ln the event,^{the Defendantfalls to adhere to the repaymenl schedule specified} i; il""ffi;;enis tne nppricant^{eant in its discretion-woutd be at libertv to} l"J|'[ ti"^{ii,iii""iiitlirort',ri*r inJ a"."nd the outstandins from the Defendant}

¶30

The^{Applicant Bank would be furtherat liberty to take possession of the said} of the^{loan amount and dispose of the} vehicles uDon default^{in rn"t'ng} '"i'y';"nt :ill]fi^{p"fi;;i"-;l"i""tion oiit" ir'6" as asainstthe oerendant'}

¶31

On the^{aforesaid terms and conditions' the Defendantentered into Loan} Agreements^{for the purposeof availingthe loanfacility to the tune of Rs'} 34,40,OO0.OO/-^{(RupeesThirty-Four Lakhs Forty Thousand) only and in this regard} Credit^{Facility Application Formdated 24 O12O2O was executed by the} Defendants.^{The said sum of Rs 34'40'OOO'OO/- (RupeesThirty-Four Lakhs Forty} Thousand)^{only was disbursed to Defendantvide Loan AgreementNo'} LANRKOOO421O686O^{for a tenureof 62 Months with effectfrom 25 09 2020 with} Equated^{Monthly lnstallmenl(EMlin short) of Rs 55'035/-forthe purposeof} purchasing of^{Ford Endeavour/ Titanium3 2 4x4'}

¶32

ln connection^{withthe sanctionof the Loan facilityof Rs 34'40'0001} (Rupees Thirty-Four^{Lakhs Forty Thousand) only sanctioned by the Applicant Bank} and availed^{ol by the Defendants'an Unattested Oeed of Hypothecation dated} 24.Og.zu2lhave^{been signed and executedby the Oefendant in favour of the}

¶33

c[, s hra,'^[l+t 13.1L¹⁾ U Pre6iding^Oficer DRT, Guwahali

¶34

¶35

o A a2la2o2zrDRT4umh'ti

¶36

Applicant Bank^{as securityfor repaymentof the loanfacility' thereby agreeing to all} thetermsandconditionslaiddowninthesaidagreementandalsohypothecated the vehicles^{purchasedout of bank finance (more specifically describedin} schedule A^{of the OA)in favour of the Applicant Bank'}

¶37

Thesoledefendanthadavailedthesaidcreditfacilityfromtheapplicantbank but have^{not paid the outstanding loan amountas per terms and conditions as} agreed upon^{withthe applicant bank,in spite of repeateddemands and requestby the} applicant bank.^{As the defendantfailed to repaythe loan amount'the saidloan} account became^{NPA on 26.09.2021'After theaccount became NPA the applicant} bank issued^{noticesfor repayment of the due amount'but the sole defendant failedto} repay the loan^amount.

¶38

The applicant^{bank thus became constrainedto file the present Original Application} for the recovery^{of R3. 33,19,134'00 (Rupegs Thirty-Three Laca Nineteen Thou3and} One Hundred^{Thirty-Four)only as onOg Og 2022 along with interest and cost of the} application.

¶39

After Iiling of^{the OA the Tribunal issuednotice upon the soledefendant} through registered^{post and the aPplicant bank filed service report on 06 12 2022 fhe} learned counsel^{has appeared for the sole defendanton the same day ieon} O6]12-2}22and^{filed his written statement and evidenc€ on affidavit on 22 0220231o} which learned^{counselfor the applicantfiled rejoinderon 31 07 '2023 Thereafterthe} matter was Posted^{for hearing'}

¶40

Supponing lhe^{claim of the applicantbankSri Abhishek Sah' Relationship} Manager^{of the Applicant Bank has filed evidence on affdavitcoupled with the security} documentsmarkedasExhibitP,AW-1/1toAW1/6supportingtheclaimofiheapplicant

¶41

bank details^{of which are: -'}

¶42

|Nameofthedo9l|qq
Powerot
daled0'1.07^.2029
qeditfacilityappticationform^dated
20.o9.2020
icAionform^{aated24.q9/Zq}
Creditfacility^a
ecationOatea^Z+OSZOZO
Unaf,es-ted^oeeoof|*)rW,3"l
PrBiringOfficar
DRT, Gulvahati| |---|---|

¶43

O A. 421 /2o2zoRT-Guwahalr

¶44

¶45

Certified copies ot SGtentent ot^{eccounts/ledgers which} have been duly certified under^{the BankersBooks of} Evidence Act. [roiorma lnvoice^{daled 22.09 2020.}

¶46

The sote defendant^{hasappeared and contested the claim of the applicantbank} by llling writien^{statement statinginteraliathat the instant originalapplicationis not} maintiainable^{in faclsas well as law lt is further stated that the defendant is the Govt'} Registered^{ld Class Contractor and he hasvarious projeclsin the various departments} ofthe Govt. of Assam^{but the conceming departmentdoes not release fundsagainstthe} completed^{project by the answering defendant Assuchthe answering defendant failed} to realize the^{loan amountin due murseof time as per the tems and mnditions of Loan} Agreement executed^{by the answering defendant lt is further stated that the defendant} approached^{the Branch managerof the conceming Bank to give some times to repay} the Loan amount^{but the same has been denied by the Branch Manager of the} conceming Bank.^{The answering defendant is ready to pay Loan amount but seeking} times.

¶47

The leamed^{counsel for lhe applicant bank has filed rejoinder against the writlen} statement and^{evidenceon affidavitIiled by the sole defendant in whichit has been} statedthattheavermentsmadeinthewrittenstjatementisvagueandincorrecl staternents and^{is thereforeliable to be rejected'}

¶48

Heard the learned counsel^{for the applicant bankwho prayed for issuance of} Recovery Certilicate^{against the soledefendant as per pleadingsmade in the} Application,^{supPorted by evidenceon affidavit of theirwitness who affirmed on oath} the execution^{of the securityand other documents by thesole defendant and also} execution of their^{own documents relied upon, which have been marked exhibits'}

¶49

None has appeared^{for the sole defendantto put foMardhis arguments'}

¶50

I have carefully^{perusedthe documentson record including original application'} evidence^{on affidavitand exhibited documents as well as written statement and} evidence on^{affidavitfiled by the sole defendant'}

¶51

It is observed^{that the sole defendanthas not deniedthe availmentof loan'}

¶52

execution^{of documentsand his signatureon the same'}

¶53

s,%fl&k ft.axring Ofrcor DRT, Guweh.ti

¶54

o a' 42lzozDRT-Gurah'ti

¶55

¶56

It is evident^{from the statement of accountfiled by the applicant bank thatthe sole} defendant^{hasdefaulted in repayment of the loan lf there is defaultin repayment of the} loan the^{applicantbank has every right to proceed againstthe soledefendant for} realization^{of the outstandingduesHence' I have no hesitation to hold that this original} application^{is mainiainable'}

¶57

The applicant^{bank has produced on record the copies of the statement of account} in respecl^{of the defendant'duly certmedunder Bankers'Books EvidenceAc{ The} applicant^{bank by the evidence-on-affidavit of Sri AbhishekSah'Relationship Manager} of the applicant^{bankhad deposed the conectness of the affidavitand certified copy of} theaccount.Beyondthatnothingmorehastobedeposedbyanofficerofthebank.ltis thus obvious^{that apartftom the entriesof the Books of account there are ampleevidence} on the record^{to @noborate the said entries'}

¶58

The documents^{executedby the sole detendantare duly proved by the} applicant^{bank and the witnessof the applicantThe applicant has sufficient causeof} action^{lor filing the instant application due to disbursemenuavailmentof loan to/by the} soledefendantandondefaultinrepaymentoftheloanbythesoledefendant,inspite of demands^{made, as per exhibited documentsliled by the applicantbank'}

¶59

Considering^{the facts and circumstances of the case' I am of the considered} viewthatthedocumentsfiledbytheapplicantbankaresupportingtheclaimo' the applicant^{bank and establishingthe liability ofthesole defendant lt is proved that} thesoledefendantisliabletopaytotheapplicantbanktheclaimmadeintheoriginal ApPlication.^{The loan wasobtainedand documents have been executedon} 2O.OL.2O2O&^{24 09 2020 The accounts became NPA on 26 09'2021and the OA has} been^{filed on '13'10 2022Hence' the OAis filed well withinthe period of limitation and} this Tribunal^{havinga iurisdictionto adjudicatethe OriginalApplication'}

¶60

ConsideringtheversionofbySriAbhishekSah,theapplicant'switnessandall the documents^{markedas exhibits'including duly certilied copy of the statement of} account^{alongwith interest calculation sheet maintained by the applicant Bank in i(s} regular^{courseof business'I holdthat theapplicantis entitledto get the Recovery} cerriricare^{as prayed ror'} d'i-/d9firq#U

¶61

d'i-/d9firq#U Presioing^{oh"cer'- -/ v} DRT, Guwahati

¶62

¶63

o A. 42r2o2zoRT€uwahati

¶64

ln the result, the present Original Application No. 421 of 2022 is allowed with

¶65

cost as under: -

¶66

i) The sole defendant is liable to pay to the applicant bank a sum of Rs. 33,19,134.00 (Rupees Thirty-Three Lacs Nineteen Thousand One Hundred Thirty-Four) only with pendentelite and future interest @8.70% per annum with monthly rests ltom 04.09.2022 till the date of full paymenurealization and also cost of the application.

¶67

ii) The charge of the certificate amounl be kept alive on hypothecated vehjcle i.e. Asset Description: Ford Endeavour/Titanium 3.2 4x4 as described in Schedule-A of the Original Application till the amount is realized in full.

¶68

iii) The applicant bank is entitled to proceed against the secured items towards recovery of lhe debts.

¶69

iv) The applicant bank is also entitled to proceed against the personal assets and properties of the sole defendant towards recovery of the dues.

¶70

v) The applicant bank is entitled to the costs of the O.A., which includes the advocate fees of the applicant bank. Applicant is directed to file the cost memo within 2 weeks from today.

¶71

vi) lssue Recovery Certificate accordingly for a sum Rs. 33,.19,134.00 (Rupees Thirty-Three Lacs Nineteen Thousand One Hundred Thirty-Four) only in favour of the applicant bank against the sole defendant.

¶72

vii) Communicate copy of this order to the concerned parties.

¶73

This order is dictated and corrected by the undersigned.

¶74

Judgment dated 13rh December' 2023, signed and pronounced in the Tribunal

¶75

today under my signature.

¶76

Copy of the JudgmenuFinal Order be uploaded in the Tribunal's Website and

¶77

file be consigned to Record Room.

¶78

S|)^{elq a^} t:.rz'z? (Shiv Sharan Dulu be y+--/ lLtI Presiding Officer DRT, Guwahati.

Icici Bank Limited v. Mr Mamun Hussain Chowdhury

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Mr Mamun Hussain Chowdhury

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Tagmaxx

Sanjay Jain versus Punjab National Bank

Bank of Baroda versus M/S Kumar Tiles and Sanitary Wares

Hdfc Bank versus Shri Rajiv Kumar Singla

Icici Bank Limited versus Sh. Pankaj Kumar Singh

Sarva Haryana Gramin Bank versus Sh. Baldev Kumar