Allowed

Icici Bank Limited v. Sachin Kumar

DRT7 Oct 2024OA/461/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application filed by ICICI Bank Ltd. under Section 19 of the RDBFI Act, 1993, for recovery of loan dues against the defendant. In the absence of the respondent, the Tribunal deemed it appropriate to grant uniform simple interest at 8% p.a. instead of the claimed higher rate, directing recovery from hypothecated properties.

What did the court decide?

Directed recovery of Rs.40,40,387.00 with interest @8.00% p.a. from filing date; granted Recovery Certificate; allowed sale of hypothecated assets.

Icici Bank Limited versus Sachin Kumar — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.461/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.03.2023

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DATE OF DECISION: 07.10.2024

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ICICI BANK LTD. having its registered office at Near Chakli Circle, Old Padra Road, Vadodara, 390-007, Gujarat Inter Alia having a bank branch at Ropar (Rup Nagar), through its attorney/authorized Representative Sh. Mohammad Vajid, Manager.

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……..Applicant

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Versus

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Sh. Sachin Kumar S/o Sh. Krishan Lal, Sole proprietor of KL Roadlines, R/o Jhandian Kalan, Rupnagar.

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….……Defendant

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate for the Applicant Defendant is ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.40,40,387.00(Rupees Forty Lacs Forty Thousand Three Hundred Eighty Seven Only). The Original Application has been filed through Sh. Mohammad Vajid, Authorized Representative o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 18.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant had approached the applicant for the grant of Four Vehicle loans of Rs.81,44,196.00 for Purchase of Vehicles & for their Body Making of Rs.13.60 Lacs vide Preliminary/Credit Facility Application Forms dated 10.10.2018 & 31.10.2018, which are Annexures A2 & A3 to this OA. Further, Defendant again approached the applicant bank for (ECLGS) of Rs.25.97 Lacs dated 12.08.2020, which is Annexure A10 to this OA.

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3. The applicant sanctioned Four Vehicle loans of Rs.81,44,196.00
for Purchase of Vehicles & for their Body Making of Rs.13.60 Lacs and
further sanctioned Working Capital Term Loan (ECLGS) of Rs. 25.97
Lacs vide Sanction Letter dated 19.09.2020, which isAnnexure A11
to this OA and the terms and conditions was duly accepted by the
defendant.
4. Defendant had hypothecated his movable properties i.e.
Commercial Vehicles:-
(i) Registration no. PB65AT8659, Engine no.JXPZ148711 and Chassis no.MB1CTCHD1JPXF8388 (ii) Registration no. PB65AT8641 Engine no.JXPZ148698 and Chassis no.MB1CTCHD5JPXF8345 (iii) Registration no. PB65AT8642 Engine no.JXPZ148714 and Chassis no.MB1CTCHDXJPXF8387
(iv) Registration no. PB65AT8643 Engine no.JXPZ148693 and Chassis no.MB1CTCHDXJPXF8437
vide FOPs dated 31.01.2023, which areAnnexures A6 to A9to this
OA.
Documents executed:- Deed of Hypothecation & Irrevocable Power of
Attorney both dated 31.10.2018, which areAnnexures A4 & A5to
this OA; Preliminary credit facility application form & Deed of
hypothecation both dated 19.09.2020, which areAnnexures A10 &
A12, Notice dated 30.01.2023 with postal receipts, which are
Annexures A13 to A14to this OA and Statement of Account and
foreclosure statement of the loan, which areAnnexures A15 to A32 to this OA.
5. The loan accounts became irregular and was classified as NPA
and after adjusting debit and credit entries in all the loan accounts
there was a debit of Rs.40,40,387.00, which is recoverable and the
defendant was served recall notices but they did not repay the
outstanding amount, therefore, the applicant requested to accept the
application and to issue Recovery Certificate accordingly.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 27.09.2024.

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In support of the OA, affidavit of Sh. Mohammad Vajid, Authorized Representative, ICICI Bank Ltd. h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A32 to this OA, it is proved that the defendant approached applicant for availing of the loans facilities which were granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.40,40,387.00 (Rupees Forty Lacs Forty Thousand Three Hundred Eighty Seven Only) along with interest from the defendant, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned the applicant in relief clause has claimed [email protected]%p.a. along with penal interest @2.00%p.a. with monthly rests in all accounts from 31.01.2023 the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendant, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it

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just and appropriate to grant uniform simple interest @8.00%p.a.in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.40,40,387.00 (Rupees Forty Lacs Forty Thousand Three Hundred Eighty Seven Only) with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 22.10.2024. 15. Copy of this order be given Dasti to the applicant and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 07.10.2024 (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Icici Bank Limited v. Sachin Kumar

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Sachin Kumar

Case brief

What is this about?

What did the court decide?

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