Allowed

Icici Bank Limited v. M/S Authentic Travels

DRT24 Dec 2024OA/118/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed ICICI Bank's application for recovery of Rs. 24,34,972.02 admitted in default against an absent proprietor. Tribunal awarded interest at 12% p.a. instead of contractual 24% invoking Central Bank of India principle and remitted disbursement to Recovery Officer.

What did the court decide?

Directed respondent to pay principal sum of Rs. 24,34,972.02 with future interest at 12% p.a. and costs within 30 days. Recovery certificate directed to be issued to Recovery Officer.

Icici Bank Limited versus M/S Authentic Travels — Banking and Recovery | DRT (2024)

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O.A. No. 118 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 118 of 2023

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ICICI Bank Ltd. SD Tower, 2nd Floor Sector - 8, Rohini Community Centre Delhi-110085

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Applicant

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Versus

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M/s Authentic Travels Proprietor / Borrower/ Guarantor Sh.Praveen Kumar A-505, Somdutt II, Bikaji Cama Place New Delhi-110066

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Also at: M/s Authentic Travels Proprietor / Borrower/ Guarantor Sh.Praveen Kumar C-332, Prodhyogik Apartment Defendant Sector-3, Dwarka, New Delhi-110075

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Present: Shri B.K.Jha, Counsel for the applicant bank

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Date of Institution: 12.01.2023 Date of Pronouncement: 24.12.2024

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FINAL ORDER

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This original application has been filed by the applicant bank on 12.01.2023 through Shri Abhishek Goyal, authorized representative of the applicant bank under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendant for recovery of a sum of id-

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O.A. No. 118 of 2023

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Rs.24,34,972.02 (Rupees Twenty Four Lacs Thirty Four Thousand Nine Hundred Seventy Two & paisa Two Only) as on 06.10.2022 together with pendentelite and future interest @24% per annum from the date of filing of this application till its realization with costs.

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The brief facts of the case are that on the request of defendant vide loan application dated 25.09.2006 along with related documents, the applicant bank sanctioned Overdraft facility of Rs.6,00,000/- (Rupees Six Lacs Only) on 25.09.2006 @15.50 rate of interest rate for business purpose which were renewed / modified from to time by the applicant bank. The defendant agreed to pay non-refundable processing fee of 2% of sanction amount plus applicable taxes etc.

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In order to avail the said loan facility, the defendant executed Credit Arrangement Letter, Credit Renewal Memo, Personal Guarantee Deed dated 25.09.2006.

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It has been submitted by the applicant that after availing the aforesaid loan facility, the defendant failed to comply with the terms and conditions; and despite several request and reminders, the defendant failed to repay contractual dues / charges and interest despite reminders, requests and several opportunities granted. The applicant bank recalled the loan facility by issuing notice dated 05.03.2021 for Rs.16,94,808/with interest etc. but the defendant did not clear the dues.

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Notices of this O.A. were issued to the defendant and 5. despite proper service, the defendant has chosen to absent from the proceedings. As per order dated 21.05.2024, the defendant has been proceeded ex-parte as not appeared

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O.A. No. 118 of 2023

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before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Ranjeet Jha, authorized representative of the applicant bank who has proved the documents as Power of Attorney Ex-AW1/1(OSR), Pan Card, Driving License, MTNL Bill Mark-A to Mark-C, Original Letter of Declaration of Sole Proprietor Ex-AW1/2, Original Credit Arrangement Ex-AW1/3, Original Deed of Guarantee ExAW1/4, Loan Recall Notice Ex-AW1/5(colly), Statement of Accounts Ex-AW1/6, Certificate u/s 2A of Banker's Books of Evidence Act Ex-AW1/7, Certificate under Section 65-B of Indian Evidence Act Ex-AW1/8.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the

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O.A. No. 118 of 2023

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circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants, jointly or severally, to pay to the applicant bank within 30 days, a sum of Rs.24,34,972.02 (Rupees Twenty Four Lacs Thirty Four Thousand Nine Hundred Seventy Two & paisa Two Only) together with pendentelite and future 'merest @12.00% per annum along with costs from 06.10.2022 till its realization and costs. In case of default, the aforesaid amount shall be recovered from the sale of moveable and immovable properties of the defendant.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III)^{Parties are directed to appear before Recovery Officer,} DRT I, Delhi on 24.02.2025.

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(IV)^{Copies of final order as well as Recovery Certificate be} sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 24.12.2024

Icici Bank Limited v. M/S Authentic Travels

Case brief

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Icici Bank Limited v. M/S Authentic Travels

Case brief

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