Allowed

Icici Bank Limited v. M S Ajjappa

DRT8 Nov 2023OA/937/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by ICICI Bank for recovery of loan dues of over 25 lakhs against three Defendants who failed to pay sanctioned loan amounts for a backhoe loader and car, granting permission to sell Schedule Properties and issue a Recovery Certificate.

What did the court decide?

Allowed OA with costs and interest; granted liberty to sell Schedule Vehicle; directed issuance of Recovery Certificate.

Icici Bank Limited versus M S Ajjappa — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL - I, KARNATAKA

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AT BENGALURU

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Dated this the 8th day of November, 2023

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present: Sri Imtiaz Ali

presiding Officer

oA No,937 / 2022

BETWEENT

ICICI AA K LTD.,

Branch Office at; The Senate IBC Ulsoor Road,^yellappa Garden Yellappa Chetty Layout

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Sivachetti Gardens

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BENGALURU . 560 OO8

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Represented by its Officer and power of Attorney sri Pramodh G.

.. AppLIcANT

AND:

I. MR. M.S. AJJAPPA

Aged about 42 years Son of I'lr. Makar Siddappa

Lingannanahalli,

Jagalur,

Davanagere - 577 528

2. MR. ANUSUYA

Aged about 31 years D/o M S Ajjappa

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Lingannanahalli, Kattigehalli Jagalur,

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Davanagere - 577 S2A

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3. MR. SHIVANNA

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Aged about 42 years Lingannanahalli, Gollarahatti KattigehaIi Jagalur, Davanagere - 577 527

.. DEFENDANTS

OA No.937 /2022

Counsels on record/aooeared for:

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Applica nt : FX & CO., Associates

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Defendants No.l to 3 i Ex parte

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FINAL ORDER

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The present OA has been filed by the Applicant Bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money of Rs,25r5g,2g1.O2 (Rupees Twenty Five Lakhs Fifty Eight Thousand Two Hundred Eighty One and paise Two only ) together with costs, interest, etc.

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The case of the Applicant Bank is that, during the month of February 2019, the Defendants have approached the Applicant Bank for Loan to purchase 424 Backhoe Loader and during the Month of October , 2O2O Car Loan. Accordingly, the Applicant Bank had sanctioned the Loan of Rs. 16,92,000/- on 2L.O2.ZOL? and Car Loan of Rs. 16,00,000/- on t2.L0.2O2O.

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In order to secure the loans, the Defendants have executed various documents such as; power of Attorney, Key fact statement and most important information, Copy of

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oA No_937 /2022

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Hypothecation Agreements and Copy of B Extract etc.

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The Applicant Bank has further submitted that, the Defendants have agreed to repay the above loans with variable rate of interests, as applicable from time to time as per the directions of the Head Office/Central Office of the Applicant Bank and penal interest in case of default and keep the accounts regular by paying installments as and when due to the satisfaction of the Applicant Bank, as detailed in the OA by the Appticant Bank.

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The DeFendants have utilized the whole sanctioned amount under the said facilities. The Defendants have failed and neglected to repay the debts due to the Applicant Bank and the defendants have failed to adhere to the terms and conditions of the Agreement and for having committed default, the Applicant Bank classified the Loan Accounts as a Non^performing Assets in accordance with the directions/guidelines issued by the Reserve Bank of India. Thereafter the Applicant Bank got issued Notices on f7.Oa.212f and also on 02.11.2021 to the Defendants asking them to pay the sum due by them with agreed interest in terms of the agreed conditions, but the

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OA No .937 /2022

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Defendants did not come forward to pay the outstanding due a mou nt.

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In the light of these factors, it is contended by the Applicant Bank that Defendants are liable to pay a total sum of Rs.25,58,2AL.O2 (Rupees Twenty Five Lakhs Fifty Eight Thousand Two Hundred Eighty One and Paise Two only).

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After filing this OA, Summons were sent and served to the Defendants through RPAD. When the Defendants were called out, none represented and hence^placed ex^parte.

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B. To prove the case of the Applicant Bank, its Manager -Sri Pramodh G. has filed his affidavit by way of evidence and the same was considered as evidence of AW.1 and marked at Ex,A1 and list of documents came to be marked at Ex.A2 and 18 documents came to be marked at Ex.A3 to A20.

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No evidence on behalf of the Defendants.

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Arguments of Learned Counsel for the Plaintiff / Applicant Bank heard and perused the records ofthe case.

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OA No.937/2022

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Following points arise for my consideration:

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1. Whether^{plaintiff/Applicant} Bank proves its case as contended in the plaint/application?

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1. What Order?

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L2, For the following reasons, I answer the above_ referred points in the following manner:

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REASONS

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The Manager of the Applicant Bank came to be examined as AW.1. His affidavit by way of evidence reiterated the facts pleaded in the plaint and his affidavit is also corroborated by the above-referred Ex.A3 to A20 which clearly establish the case of the Applicant Bank to allow the present OA. Added to this, the Defendants No.i- to 3 have remained absent and hence placed ex par.te. Therefore, it is to be construed that the Defendants have admitted the entire case pleaded by the Applicant Bank in the present OA,

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L4. Therefore, for these reasons, present OA is to be allowed with costs as sought by the Applicant Bank.

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ORDER

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Present OA stands allowed as prayed for with interest and costs.

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OA No.937/2022

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In the event of failure of the Defendants to pay the said OA amount, the Applicant Bank is at liberty to sell the Schedule Vehicle Property as mentioned in the main application in accordance with law as sought by the Applicant Bank in the OA.

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In spite of sale of the Schedule Vehicle^property as mentioned in the main application, if the OA amount is not fully realised, then the Applicant Bank is at liberty to proceed against the persons and other properties of the Defendants as required under law and also as advised.

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Applicant Bank shall file latest lYemo of Calculation of OA amount together with interest, costs etc., to be paid by Defendants duly taking into account the amount/s, if any, paid by the Defendants and/or amount realised by sale of assets, etc., during the intervening period after filing the OA, to enable the office to prepare Recovery Certificate for the amount to be paid by the Defendants to the Applicant Bank.

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Office is directed to issue Recovery Certificate as sought by the Applicant Bank in the OA and do the needful as required under the law forthwith.

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OA No.937 /2022

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The Office is directed to issue, as far as possible, free

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copy of this order to the parties concerned.

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(Dictated to the Stenographer, after its-transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 8th day of'NovemUer, ZOZS)

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u (rmtiSz Ali) presiding Officer DRT-I, Bengaluru

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ANNEXURES

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Examined for the A

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AW-1 Sri Pramodh G. The Manager of the Applicant Bank

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Ex.A-1 Affidavit of AW-1

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Ex.A-2 List of Documents

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Ex.A-3 to A-20

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1B docu ments

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Nit -

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Nil-

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Yuu*' (Imtia, Ati) Presiding Officer DRT-f, Bengaluru

Icici Bank Limited v. M S Ajjappa

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. M S Ajjappa

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

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