Allowed

Icici Bank Limited v. Venkatesh

DRT19 Apr 2024OA/1212/2022

Case brief

AI extract

What is this about?

The DRT-II, Bengaluru allowed an OA filed by ICICI Bank under Section 19 of RDBFIA 1993 for recovery of Rs. 45,61,747.66/- from borrowers and guarantor who defaulted on a loan for a JCB. The Tribunal entered an ex-parte order permitting recovery from joint assets or via sale of hypothecated vehicles.

What did the court decide?

Recovery of Rs. 45,61,747.66/- jointly and severally from defendants, future interest at 24% p.a., liberty to sell hypothecated or personal assets if proceeds are insufficient.

Icici Bank Limited versus Venkatesh — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th day of April 2024

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

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OA NO.1212/2022

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BETWEEN:

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ICICI Bank Ltd, 4/10, Mythree tower, Bommanahalli, Hosur Main Road, Benglauru-68. Represented through its Constituted Attorney Sri Pramodh.G.

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…APPLICANT

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AND:

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C.Venkatesh

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Son of Chinnappa, Aged about 51 years Sy No.83, Chinnappa Garden, White Peacock Ground, Railway Parallel Road, Rajivgandhinagar, Bengaluru 560097

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Shashikala.K.

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Wife of C.Venkatesh Aged about Major No.304, 1st Main Road, Byatarayanapura, Bengaluru North-560092

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Muniraju.N. Son of Late Nanjegowda Aged about Major, No.4, 1st Main, 1st Cross, Vishweshwaraiah Layout, BT Pura, behind HDFC Bank, Bengaluru North, Bengaluru-560 092. …DEFENDANTS

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OA NO. 1212/2022

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Counsel on record/appeared for:

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Applicant : Vidhii Partners

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Defendant Nos.1 to 3 : Ex-parte.

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FINAL ORDER

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The present Original Application (OA) is filed on 24-08-2022, under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.45,61,747.66/- (Rupees Forty Five Lakhs Sixty One Thousand Seven Hundred and Forty Seven and Sixty Six Paisa Only) with further interest thereon from the date of filing till realization from defendants.

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The Application filed is within the period of limitation as prescribed

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under Section 24 of the Recovery of Debts Due to Banks and Financial Institutions Act 1993 and the subject recovery claim falls within the jurisdiction of this Tribunal.

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Brief facts of the case:

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The first defendant who is the borrower. The Second defendant i.e, Co-applicant and wife of first defendant. The third defendant is the Guarantor. The defendants approached the applicant bank for financial facility for purchase of JCB 215 LC WM Track 600 1.02 Cum HD BKT from RNS Earth Movers Pvt Ltd., During the year 2021 the defendants being the borrower, Co-applicant and Guarantor intended to obtain a financial Facility

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OA NO. 1212/2022

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and accordingly submitted the Preliminary Credit Facility. Subsequently Credit Facility application form dated 26.11.2021, long with Unattested deed of Hypothecation, irrevocable General Power of Attorney and Deed of Guarantee were executed by the Defendants in favour of the applicant Bank.

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The Defendants had duly accepted the terms and conditions of sanction which were also handed over to Defendants and further the Defendants have acknowledged the same, in Key Fact Statement and Most important information. The defendants 1 have acknowledged the loan borrowed of Rs. 43,50,000/- along with tenure of 60 Installments as 60 months, and EMI Amount of Rs.93,673/- with rate of Interest at the rate of 10% and penalty at the rate of 2% per month for delayed payments. The Defendants initially made payments as agreed, however, the Defendants failed and neglected to continue to do the same and became irregular in payment and installment is pending from 15.05.2022, but even prior to it there was irregular payment by the defendants.

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The Applicant was left with no other option but to issued a Loan recall Notice dated 22.06.2022 to the Defendants calling upon the Defendants to pay a sum of Rs. 4614750/- along with interest as on 20.06.2022 and further informed the Defendants that incase of their failure to repay the outstanding amount, the Applicant shall proceed in accordance with law. The Applicant submits that the Defendants have defaulted in making payment under the said facilities and hence the liability to make the

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OA NO. 1212/2022

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payment of outstanding amounts under the said facilities has arisen. The Applicant Bank submits that the Defendants, after availing the loans, failed to repay the loan amount and committed default. 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 Defendants No.1 to 3 by RPAD on 06.03.2023. Applicant filed a memo on 05.07.2023. When OA was taken up on 09.11.2023, even after giving sufficient time, there was no appearance or representation from the defendants, hence, Defendants No.1 to 3 was placed ex-parte on 09.11.2023.

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Heard the submissions of Counsels and perused the records.

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To prove the case, Sri. Pramodh.G., aged about Major, Collection Manager of the Applicant Bank, has filed Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, and

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documents came to be marked as Ex.A3 to 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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Having regard to the amount advanced, the interest applied, documents executed, the conduct and operations in the loan account and

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OA NO. 1212/2022

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the default committed, this Tribunal comes to the conclusion that the

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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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The OA is allowed with costs,

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(a) The Applicant bank is allowed to recover from defendant Nos.1 to 3 jointly or severally, a sum of Rs.45,61,747.66/- towards Loan account LQBNG00044853917 and is claiming future interest at 24% from 11.07.2022 till the date of realization.

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(b) In the event of failure of the defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned properties in the OA;

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d) If the sale proceeds of the schedule mentioned properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendants (both movables and immovables) to recover the balance dues as required under law;

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OA NO. 1212/2022

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(e) The Applicant Bank shall file the latest memo of calculation of OA 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 of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by defendants to the applicant bank.

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(f) The Applicant Bank shall file memo of costs within ten days from the date of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

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A Copy of this order be communicated to the parties concerned.

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[Dictated to the (GS), transcribed by him, corrected and signed by me on this the 19^th day April 2024].

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Sd/-

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PRESIDING OFFICER 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. Pramod.G, Collection Manager of the Applicant Bank.

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OA NO. 1212/2022

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Exhibits on the part of the Applicant:

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Sl. No.	PARTICULARS	EXHIBITS
1.	Preliminarycredit application	A3
2.	Credit Facility Application along with unattested deed of Hypothecation, Irrevocable GPA and Guarantee deed	A4
3.	Key Facts Statement and Most Important Information.	A5
4.	Loan Recall Notice	A6
5.	Ledger and Foreclosure Statement in respect of loan account Ledger	A7

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Witness Examined for the Defendants:

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-Nil –

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List of Documents Exhibited for the Defendants:

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-Nil –

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SCHEDULE OF MOVABLES HYPOTHECATED BY THE DEFENDANTS

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Vehicle bearing No.

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a) JCB 215AAHMBCD+B

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HSN Code No. 8429.52.00

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JCB215LC QM Track 600 1.02 CUM HD BKT

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

Icici Bank Limited v. Venkatesh

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Venkatesh

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

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Case details

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