Allowed

Icici Bank Limited v. Md. Neyaz Ashraf

DRT19 Sept 2024OA/330/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application under Section 19 of the RDB Act. Finding jurisdiction valid and the claim within limitation, the court accepted the bank's documentary evidence as the defendants failed to appear. The debt of Rs. 21,67,265.06 with interest was determined and a recovery certificate was issued.

What did the court decide?

Recovery Certificate issued directing the Recovery Officer to realize Rs. 21,67,265.06 plus interest from the respondents via sale of assets. Defendants debarred from transferring attached properties.

Icici Bank Limited versus Md. Neyaz Ashraf — Banking and Recovery | DRT (2024)

DRT. PATNA

OA 330 of 2022 IJI

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 330 of 2022

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ICICI Bank Limited, Zonal Office. Plot no. 6B, Sahdeo Mahto Marg, S.P. Puri Boring Road, Patna- 1

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. . . . . . .Applicant

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Md. Neyaz Ashraf S/o Abdul Quiyoom Ashraf, Ward no. 12,P.O.-Nautan Dubey, Anchal Nautan Village-Khaptola, West Champaran, -845438 PAN no. AQMPA3648Q

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Abdul Quaiyoom Ashraf S/o Karim Ashraf, Ward no. 12,P.O.-Nautan Dubey, Anchal Nautan Village-Khaptola, West Champaran, -845438

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Sakina Khatun W/o Neyaz Ashraf, Ward no. 12,P.O.-Nautan Dubey, Anchal Nautan Village-Khaptola, West Champaran, -845438

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Defendants

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Present:

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For the Applicant : Shri Anil Kumar. Advocate For the Defendants : None

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Dated: 19.09.2024

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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) on6.6.2022 against the defendants to recover its debts from defendants of Rs.21,67,265.06 as on30.11.202 1 along with pendente-lite and future interest @11.95% p.a. with monthly rests from 1.12.2021 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 the companies Act 1956 and also a banking company within the meaning of the banking regulation Act 1949, having its registered office at ICICI bank Tower, Near Chakli Circle Old padre Road, District-Vadodara, Pin-390007 its Eastern Regional office at 3 A Gurusaday Road, P.S.-Karaya, Kolkata-700019 and also at Zonal office Plot no. 6B, SahdeoN4ahtoMarg. S.P. Puri Boring Road, Patna- 1

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Defendant no. I approached the bank for grant of KCC loan of Rs.15 lakh, which was sanctioned by the bank on 5.9.2016. Defendants executed the

OA 330 of 2022 IJl

DRT, PATNA

various loan documents and also executed a simple mortgage deed details given at page 22 in schedule-I of OA.

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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 1.11.2019

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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.21,67,265.06with pendentelite and future interest at the contractual rate from 1.12.2021 till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 12.7.2022, 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. But the defendants have not appeared, hence, the Registry of this Tribunal has ordered to publish the notice in newspaper and subsequently, substituted service by publication of notice by way of advertisement in newspaper was also made against the defendants on 14.9.2023 in “Hidndustan” newspaper.

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Despite the registered summons/notices and publication of notice in newspaper, the defendants have not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to defend their case, but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 6.12.2023

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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 Ashish Kumar, Manager of the applicant bank. The details of documents are as follows:

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b1Description Documents PhotocoDies	of1Date Execu	of tion	Amount I (inLakh)	Signature of Executants	1Ex./ Ann No
		h	n

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OA 330 of 2022 IJ

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DRT, PATN A

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	Loanapplication	22.8.2016	Rs.20 lakh	Defendants
2	Sanction letter	5.9.2016	Rs. 15 lakh	Bank	2
3	Hypothecationdeed	9.9.2016	Rs. 15 lakh	Defendantno	3
4	Mortgage Simple deed	9.9.2016			4
5	Loan demand notice	10.5.2019		Bank	5
6	Loan recall notice	9.11.2021		Bank	6
7	of Statement account	As on 30.11.2021	Rs.21,67,265.06	Bank	7

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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 their business in the state of Bihar. Cause of action also arose in the State of Bihar. 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 1.11.2019, whereas the present application has been filed on 6.6.2022 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.

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OA 330 of 2022 1 Jl

DRT, PATN A

Shri Ashish Kumar, Manager of the applicant bank, has filed the affidavit in support 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 of entries in bankers’ books.–Subject to the provisions of this Act, a certifIed copy of any entry in a banker’s book shall in all legal proceedings be received as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is now by law admissible, 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 bank nor have pointed out any specific error and discrepancy in the Statement of Account

OA 330 of 2022 IJI

DRT, PATNA

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 30.11.2021 has been proved to be Rs.21,67,265.06 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.21,67,265.06along with pendente-lite and future interest @11.95% p.a. with compounded monthly rests from 1.12.2021 (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 toRs.21,67,265.06along with pendente-lite and future interest @11.95% p.a. with compounded monthly rests from 1.12.2021(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 mortgaged or hypothecated 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 1993. The applicant may submit the certified copy of this Judgment and the 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

adR

OA 330 of 2022 IJl

DRT, PATN A

Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendants, by sale of mortgaged/ 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 4.11.2024. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on lgthday of September, 2024. r Nr

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Dictated &corrected by me. {~,/’ \„““““y„''q [KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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

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DEBTS RECOVERY TRIBLTN AL PATN A

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OF TIIE R

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2nd Floor? ( A. B & F Wing) Karpuri Thakur Sadan. Kendriya Kuramchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

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AD \ }If,\l) [.:D FROh

rc) TI )FB

RC No. 228/2024

Case No: OA/330/2022

In the Matter of (CH- 1) ICICI BANK LIMITED ZONAL OFFICE. PLOT NO 6B. SAHDEO MAHTO N4ARG. S.K Ptr Rl BORiNG RUAD PATN A .BIHAR -80000 1

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Applicant(s )

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TII

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(CD- 1) MD. NEYAZ ASHRAF S/o Abdul Quiyc)om Ashraf Ward No- 12. P.O- Nautan Dubcy, Anchal- Nauta11 , Village- Khaptola Pasllchim Champaran ,BIHAR

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rcD- 2) ABDUL QUAIYOONt ASHRAF S/O KARIM ASHRAF, \VA RD NO- 12, P.O- NAUTAN DUBEY. ANCH AL- NAUl-AN VILLAGE-

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Defendant( s)

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KHAPTOLA, WEST CHAMPARAN. BIHAR- 845438

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(CD- 3) SAKINA KHATUN

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\”O NEyAZ ASHRAF WARD NO-12 P. O- NAUTAN DUBEY. ANCH AL- NAUTAN VTLLAGE-

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KHAPTOI_ A. WEST CHAM PAR AN. BIHAR- 845438

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Recovery CertifIcate for Rs 2167265,06 [ Rupees Twenty One Laklrs Sixty Seven Thousands T\yo Hundred Sixty Five And Paise Six onI\ I

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In terms of final order dated 19/09/2024 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2167265.06 along with cost. expenses and interest from the 0 1/ 12/202 1 i.e. date of filing / with effective date of the OA/330/2022 and future interest from order date till the date of realisation in full. jointly or severally from the Celtificate Debtors, hereinafter referred to as:-

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	Int. 1 T)’pc/Mode IRate	IEffective Date	Order Date		RC Remark Amount(Rs.)
4D. NEYAZ .SHItAF					167265.06
BDUL QUAIYOOM RAF	''ompound 1,95 Mo	lo1/12'3021	9/09/2024	b167265.06	67265.06
AKINA KHATUN	I1.95	l01/12/202

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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 muvable/ Immovable assets of the certificate 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 pursu,Ince of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankluptcy Act 1993

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Parties are directed to appear before RIANOJ KUMAR . Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 04/ 11/2024.

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The Recovery Oftlcer 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 CertiHcate Debtors

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This Certificate has been issued under my signature and seal of the Tribunal on this 20/09/2024

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PRESfD va OFFICER DEBTS RECOVERY TRtgUNAL PATNA

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DoUg Rw fr;land Pa£ai

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FORM NO. 10 [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 (GPOA),

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Ashiana Digha Road, Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 228/2024

Case No: OA/330/2022

Applicant(s): ICICI BANK LIMITED

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Versus

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Defendant(s): MD.-NEYAZ ASHRAF

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Sr.No	Rem of Costs	.mountinRs
	Feeon the application	m4
	r	bc
3	i AdvocateFees	ro
4	(	[0
5	i MiscellaneousCharges	[0
	Total Costs:Rs

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Place: PATNA

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Date: 20/09/2024

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PRESID fFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Icici Bank Limited v. Md. Neyaz Ashraf

Case brief

What is this about?

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Icici Bank Limited v. Md. Neyaz Ashraf

Case brief

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