Allowed

Icici Bank Limited v. Sri. Narayanaswamy H.V.

DRT20 Dec 2023OA/525/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of a loan of Rs. 23,83,883/- plus interest and future interest at 18% p.a., permitting recovery via sale of hypothecated or personal assets as the defendants appeared ex-parte.

What did the court decide?

Allowed recovery of Rs. 23,83,883/- with 18% p.a. future interest; authorized sale of schedule property and personal assets for realization.

Icici Bank Limited versus Sri. Narayanaswamy H.V. — 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 20^th Day of December, 2023

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

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OA. No.525/2022

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BETWEEN:

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ICICI Bank Ltd., Branch office at Mystree Center, #4/10, Hosur Road, Bommanahalli, Bangalore-560 068. Represented by its Collection manager & POA Holder, Sri. Pramodh Gurumallappa.

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… APPLICANT

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AND:.

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Sri. Narayanaswamy H.V. S/o Sri. Venkatappa Aged about 29 years, Hosahalli, Hungenahalli, Malur, Kolar-563 130.

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Smt. Rathnamma W/o Sri. Narayanappa Aged about 57 years, Hosahalli, Hungenahalli, Malur, Kolar-563 130.

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... 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 28.03.2022 under section 19 of Recovery of the Debts Due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.23,83,883/- (Rupees twenty three

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OA. No. 525/2022

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lakh eighty three thousand eight hundred eighty three 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 to Banks and Financial Institutions 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 Construction Equipment Loan of Rs.21,05,577/- (Rupees twenty one lakh five thousand five hundred and seventy seven only) an Loan Application dated 15.09.2020 for the purpose of purchase of asset JCB 3DX. After, considering the request of the Defendants, the applicant bank sanctioned a Construction Equipment Loan of Rs.21,05,577/- (Rupees twenty one lakh five thousand five hundred and seventy seven only) and credit application form dated 25.09.2020, in Loan A/c No. LQBNG00052109234. The loan was repayable with interest @ 12% p.a. with monthly installment of Rs.56,364/- at tenure of 48 month commencing form 15.12.2020 to 15.11.2024.

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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 Unattested Deed of

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OA. No. 525/2022

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Hypothecation dated 25.09.2020 and Irrevocable Power of Attorney dated 25.09.2020 in favour of the applicant bank.

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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 Recall Notice dated 13.07.2021 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 26.08.2022. 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 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 came to be marked as Ex.A2 and documents came to be marked as Ex.A3 to

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A7. 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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OA. No. 525/2022

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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 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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9. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants to pay

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an amount of Rs.23,83,883/- (Rupees twenty three lakh eighty three thousand eight hundred eighty three only) together with future interest @

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18% p.a. Form 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

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amount, the bank is at liberty to recover the amount by sale of the schedule mentioned property in the OA;

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order;

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(d) If the sale proceeds of the schedule mentioned properties are not

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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. 525/2022

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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 20^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 Eshwar, Manager of Applicant Bank.

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OA. No. 525/2022

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Applicant Evidence
A2	List of Documents.
A3	Preliminary Credit Facility Application form dated 15.09.2020 duly filled and signed by Defendants.
A4	Credit Facility Application Form dated 25.09.2020.
A5	Unattested Deed to Hypothecation dated 25.09.2020
A6	Irrevocable Power of Attorney dated 25.09.2020
A7	Legal Notice dated 13.07.2021
A8	Foreclosure and Statement of Account dated 27.12.2021.

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

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SCHEDULE

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Asset JCB 3DX bearing Registration No. KA51 MP8753.

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Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

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OA. No. 525/2022

Icici Bank Limited v. Sri. Narayanaswamy H.V.

Case brief

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Icici Bank Limited v. Sri. Narayanaswamy H.V.

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