Allowed

Icici Bank Limited v. M/s Tirupati Automobiles

DRT18 Sept 2024OA/121/2024

Case brief

AI extract

What is this about?

Debt Recovery Tribunal adjudicated an application by ICICI Bank Ltd. to recover dues from Tirupati Automobiles. Finding the claim established via documentary evidence and limiting provisions, the Tribunal issued a recovery certificate for the decretal amount with costs.

What did the court decide?

Recovery Certificate issued for Rs. 39,66,885/- with interest at 7.20% p.a. and costs, recoverable via sale of mortgaged and other assets.

Icici Bank Limited versus M/s Tirupati Automobiles — Banking and Recovery | DRT (2024)

DRT_ PATN A

OA 121 of 202+ 1 Jl

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri KaushalendraYadav

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OA Case No. 121 of 2024

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ICICI Bank Limited. Zonal c)face 2"'1 and 3’d Floor. Gulab Palace Near Panchmukhi Hanuman Mandir. East Boring Canal Road Patna- 1

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.Applicant

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Vs.

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Tirupati Automobiles Proprietor Pawan Kumar S/o Amrendra Kumar Singh Address PG Road, Jehanabad. Opposite Sdram Hotel, Jehanabad804408. PAN no. ARCPK0400H.

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. . . . . . . Defendant

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Present:

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For the Applicant Shri Prem Prakash. Advocate For the Defendant None

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Dated : 18.09.2024

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JUDGMENT

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The Applicant bank has made this application u/s 19 of the Recovery of Debts and Bankruptcy Act. 1993 (here-in-after referred to as Act) on 19.2.2024 against the defendant to recover its debts from defendant of Rs.39.66,885/- as on 18.1.2024 along with pendente-lite and future interest at the contractual rate from 19.1.2024 with costs till realization.

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The application has been filed with the contention that the applicant bank. is a body corporate, under provisions of the companies Act 1956 and a banking conlpany within the meaning of the banking regulation Act 1949 having its registered office at ICICI Bank Tower. Near Chakli Circle. Old Padra Road, Vadodara. 390007 and corporate office at ICICI Bank tower. Bandra Kurla Complex. Mumbai-400051 and also the Branch office at 2"d and 3"1 Floor. Gulab Palace. Roc)p Alankar Jewellery. Near Panchmukhi Mahdvir Mandir. East Boring Canal Road. Patna- 1

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3 . Defendant approached the bank for grant of overdraft facility of Rs.5.30 lakh on 9.8.2019. which was sanctioned by the bank. Defendant further approached the bank for grant of personal loan of Rs. 20.40 lakh. which was sanctioned by the bank on 19.8.2021. Defendant further approached the bank

OA 121 of 2024 IJl

DRT, PATN A

for grant of tenor based overdraft loan facility of Rs. 30 lakh. which was sanctioned by the bank. Defendants executed the various loan documents.

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After availing the sanctioned credit facilities defendants became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank and avoiding the repayment of its dues to the bank. in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 2.6.2023

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Since. the defendants failed and neglected in spite of several reminders to make payment of the dues recoverable to the bank. hence this application has been filed by the bank.

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The total liability in the loan account is Rs.39.66,885/- with pendentelite and future interest at the contractual rate from 19.1 .2024 the realization

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 19.3.2024, requiring them to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules. 1993 .

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Despite the registered summons/notices. the defendants have appeared before this Tribunal to contest the case. The sufficient time hds been given to the defendants to file W.S.. but they failed to file WS. hence. the Tribunal has passed an order to opportunity to file written statement of the defendants was closed on 15.5.2024.

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To prove its case. the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Amit Verma. Manager of the applicant bank. The details of documents are as follows:

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Sl-N'’	I Description of	IDate of	Signatureof	1Ex./
	Documents	Execution	Executants	Ann
	Photocopies			No
	Powerofattorne)
2	GST regjstration

\4,q

OA 121 of 2024 IJl

DRT, PATN A

certitlcate
Personalloanfacility			Defendant
based Tenor overdraft application
Loanrecallnotice	9.8.2023 18.8.2023 16. 10.2023		Bank
Statementofaccount	As on 18. 1.2024	Rs 39.66,88 5/	Bank

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Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendants have taken the loan and utilized the same and also executed the various loan documents to secure the loan. Further. submitted that the claim of the bank has been proved by documentary evidence. All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant bank in its usual course of business. The interest /compound interest has been charged at such rates. and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

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It is further submitted by Id. Counsel of applicant bank that there is no stay granted by any Higher Court. in respect of the proceedings of the present OA and requested to issue recovery certificate, as claimed for. in OA.

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It has been established that defendants are living and carrying on theiI business in the state of Bihar. Cause of action also arose in the State of Bihdr. The said claim on the date of filing of application exceeded Rs.20 lacs. The applicant bank is functioning within the jurisdiction of this Tribunal. Therefore. this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has declared the account as NPA on 2.6.2023. whereas the present application has been filed on 19.2.2024. Even, it is counted for the purpose of Limitation. then it is established that the applicant bank has filed the case within the limitation period. As such. it is established that the present application has been filed well within the period of limitation.

DRT. PATN A

OA 121 of 2024 IJI

Shri Amit Verma, Manager of the applicant bank. has filed the aftldavit in supporl of contents of application and the documents as evidence and proved on oath the pleadings and documents of the applicant bank as stated above.

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Section 19(3) of the Recovery of Debts and Bankruptcy Act. 1993 provides that the application u/s S.19 ( 1 ) shall be accompanied with true copies of all the documents relied on in support of the claim.

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The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules. 1993. provides that if the defendant denies his liability to pay the claim made by the applicant. the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record sworn the affidavit in respect of the contents of the application and the documents as evidence.

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The rule 12 ( 11) of the aforesaid Rules. provides that the provisions contained in section 4 of the Banker's Books evidence that Act. 1891 (18 of 1891 ) shall apply to a certified copy of an entry in a Banker's Books furnished along with application filed under sub section 1 of section 19 by the applicant.

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Section 4 of Banker’s Books evidence Act, 1891 runs as underS.4. Mode of proof Qf entries in bankers’ books.–Subject to the provisions Qf this Act, a cerII.fled cop)’ qf any entry in a banker 's book shall in all legal proceedings he received as lwinta.facie evidence CIf t}lc exislence of such entry. cltId shall be udtllitled as evidence of' IItt lIIalters. transacli(nls and clccolltlls therein recorded in eleIT case \ttlere. and to the sclnre extent CIS. The original entry itsejf is no\v bv Icr\v adnlissihle, but not further or otherwise.

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As such the certified true copies of the documents are admissible in evidence. The statement of account maintained in the ordinary course of business is not only admissible but shall be taken as the correct statement of account. more so since the entries in the statement of account have not been challenged.

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On perusal of the application. documents, affidavit and on consideration of the arguments. it is proved that the defendants have applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with Interests etc.. the defendants have executed various loan documents. as stated in the application and proved by aforesaid evidence. Defendants have neither denied the utilization of funds advanced by applicant

DRT, PATN A

OA 121 of 2024 1.Jl

bank nor have pointed out any specific error and discrepancy in the Statement of Account.

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The evidence discussed above goes to establish that the amount of loan as mentioned in the O. A.. was availed by the borrower under the agreed terms and conditions for repayment with interest. The balance amount till 18.1.2024 has been proved to be Rs.39,66.885/- only by way of statement of account. There is nothing to prove the amount more than that disclosed in the aforementioned statement. As such this amount is recoverable till full and final realization of the claim.

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In my view. facts of the case stand proved by evidence of the applicant bank. Accordingly. the applicant bank is entitled to recover from defendants jointly and severally of Rs.39.66.885/- along with pendente-lite and future interest r cfl 7.20% p.a. with compounded monthly rests from 19.2.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly. to meet the ends of justice.

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ORDER

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In the result. the application of the applicant bank is allowed and debt is determined with costs against the defendants. The defendants are hereby jointly and severally. ordered to pay the applicant bank its debt amounting to Rs.39.66.885/- along with pendente-lite and future interest fill, 7.20% p.a. with conrpounded monthly rests from 19.2.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs

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It is made clear that any amount deposited by the defendants. be deducted in the claim amount. if not deducted

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Defendants are debarred from transferring. alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice, The mortgage(i or hypothecdted assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1 993. The applicant may submit the certified copy of this Judgment and the

q:,

OA 121 of 202+ 1.Jl

DRT, PATN A

Recovery CertifIcate before the Registrar/Sub- Registrar to endorse the charge over the secured assets.

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Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued. on the basis of the order of the Tribunal to the Recovery Officer. The Recovery Officer shall realize the amount as per the certificate in the manna and mode prescribed under the Act from the defendants. by sale of nlortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants.

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Parties are directed to appear before the Recovery Officer. DRT. Patna on 04.11.2024. The order be communicated accordingly.

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Judgment signed. sealed. dated and pronounced in the open court on 18tl1 day ' of September. ' 2024. ,- LP/A.A/ /

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Dictated &corrected by me

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$#\ {\

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[KaushalendraYadav] Presiding OffIcer Debts Recovery Tribunal. Patna

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FORM NO. 9 [See Regulation 24( 1 )]

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DEBTS RECO\’ER' TRIBUNAI. PATN A

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2nd Floor. ( A. B & F Wing) Karpuri ThaI.iur Sadan. Kcndriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

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RECOVERY CERTIFICATE UNDER SECTION 19(2) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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RC No. 220/2024 IN

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Case No: OA/121/2024

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In the Matter of: (CH- 1) ICICI BANK LIMITED ZONAL OFFICE 2ND AND 3RD FLOOR GULAB PALACE NEAR PANCHNIUKHI HANUMAN MANDIR EAST BORING CANAL ROAD PATNA .BIHAR -800001

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--–– Versus ––--Tu (CD- 1) M/S TIRUPATI AUTOMOBILES Proprietor Pan'an Kumar, S/o- Amrendra Kumar Singh. Address PG Road, Jehanabad. Opposite Sdram Hotel. Jehanabad .BIHAR -804408

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Applicant(s)

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Defendant(s)

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Recovery Certitlcate for Rs 3966885.00 1 Rupees Thirty Nine Lakhs Sixty Six Thousands Eight Hundred UgLty Five Only_I

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In terms of final order dated 1 8/09/2024 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Celtitlcate Holder Bank is entitled to recover a sum of Rs. 3966885.00 along with cost. expenses and interest from the 1 9/02/2024 i.e. date oftlling / with effective date of the OA/121/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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	Loan pe	Int IType/Modl	Int. Rate	IEffective ! Date		lterest (as on Irder	RC IAmount(Rs.)	Remarl
4/S TIRUPATI AUTOMOBIL.		!Compound Interest KM„„thly)	7.20	E19/02/2024i	ll8/09/2024;l3966885.00	Interest on FOrder IDare	F3966885.00

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In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothecated assets as well as other personal movable/ Immovable assets of the cer+ificate debtors.

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The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceeding in pursuance of the Recovery ccltificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. PaNics are directed to appear before ASHISH KUMAR . Rccovery Officer. DEBTS RECOVERY TRIBUNAL PATNA on 04/ 11/2024

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 19/09/2024

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/ PRESIDITG OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10

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n=P

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, ( A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

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(GPOA). Ashiana Digha Road. Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 220/2024

Case No: OA/121/2024

Applicant(s): ICICI BANK LIMITED Versus

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Defendant(s): M/S TIRUPATI AUTOMOBILES

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Sr. No	Item ofCosts	F Amount inRs
	Feeontheapplication	i42000
7	r	rij
	AdvocateFees	[ii
4	o	hi
	MiscellaneousCharges	bt
	o	m4

Place: PATNA

Date: 19/09/2024

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Icici Bank Limited v. M/s Tirupati Automobiles

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. M/s Tirupati Automobiles

Case brief

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What did the court decide?

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