Allowed

Icici Bank Limited v. Unity Travel Rep by Its Prop Sri.Mugure Gowda.D.

DRT21 Feb 2024OA/575/2022

Case brief

AI extract

What is this about?

DRT-II, Bengaluru allowed an original application by ICICI Bank Limited for recovery of dues amounting to Rs. 51,77,289/- along with future interest and costs against Unity Travels and proprietors, relying on unchallenged documentary evidence.

What did the court decide?

Recovery certificate issued for Rs. 51,77,289/- with future interest at 11% p.a.; liberty to sell personal assets of defendants for recovery of dues.

Icici Bank Limited versus Unity Travel Rep by Its Prop… — Specific Performance | DRT (2024)

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OA No.575/2022

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 21^st Day of February 2024

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Present: SMT. S. V. GOWRAMMA

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Hon’ble Presiding Officer

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OA NO.575/2022

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BETWEEN:

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ICICI BANK LIMITED

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4/10, Mythree Tower, Bommanahalli, Hosur Main Road, Benglauru-68.

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Represented through its Constituted Attorney Sri Pramodh.G.

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… APPLICANT

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AND:

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Unity Travels, A Registered Proprietorship Firm No.282/92, 100 Feet Ring Road, Hosakerehalli, BSK 3^rd Stage, Opposite PESIT, Bangalore – 560 085. Represented by its Proprietor Mugure Gowda D.

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Mugure Gowda D, S/o. Gowda Dyave, Aged about 46 Years, Residing at No.23, 10^th Cross, Sonnenahalli, Maruthi Nagar 2^nd Stage, Kengeri, Bangalore – 560 056.

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Irin Gretta Veigus, D/o. Bouthis Veigus, Aged about 43 Years, Residing at No.23, 10^th Cross, Sonnenahalli, Maruthi Nagar 2^nd Stage, Kengeri, Bangalore- 560 056. …DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Vidhii Partners Defendants Nos.1 to 3 : Ex-parte.

OA No.575/2022

FINAL ORDER

The present Original Application (OA) is filed on 31-03-2022 under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.51,77,289/-(Rupees Fifty One Lakhs Seventy Seven Thousand Two Hundred and Eight Nine 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 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 1^st Defendant is being as Borrower for the debt disbursed under 7 car loans and 2 commercial vehicle loans provided by the Original Applicant. The Defendant No.2 is the proprietor of the 1^st defendant firm, the 1^st defendant has been registered as a proprietary firm on 24.09.2017. The 2^nd defendant has executed a declaration of sole proprietorship declaring that he is solely responsible for the conduct and affairs of the 1st defendant firm.

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The Defendants intended to purchase 7 cars of Dzire Tour S from Kataria Automobiles Pvt Ltd for commercial purpose of the 1^st defendant firm and had approached the Applicant Bank for the financial facility of car loan to purchase the same. The Preliminary Credit Facility Application Form

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OA No.575/2022

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and 7 Credit Facility Applications dated 21.11.2019 sanctioning & disbursing Rs.41,09,000/- altogether to the 1^st & 2^nd defendants form part and parcel of the loan sanction documentation process of the Applicant bank. The Defendants have duly accepted the terms and conditions of sanction which were also handed over to Defendants and further the Defendants have acknowledged the same. 7 Credit Facility Application forms dated 21.11.2019 along with customer consent.

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The Defendants have executed 7 hypothecation deeds, hypothecating

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the cars for which financial facility was availed along in favour of the applicant bank for full satisfaction of the loan amount. The 7 unattested hypothecation deeds executed by the defendant in favour of the applicant bank. Pursuant to the aforesaid sanction, the Defendants vide Key facts statement dated 21.11.2019 inter alia agreed that:

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i) They shall repay the facility and interest thereon in the manner and on the dates specified thereto;

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ii) Terms of repayment 36 months.

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iii) EMI of Rs.18,972/- x 7 times per month for 36 months under said loan accounts.

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iv) Date of commencement of EMI was 05.01.2020 & the Due Date for payment of each EMI was on 5^th day of each month,

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v) The Defendants agreed to pay a fixed rate of interest at 9.85% p.a. on the principal amount.

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OA No.575/2022

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The Applicant states that the above loans were accordingly disbursed in favour of the defendants. The Defendants initially made payments as agreed, however, the Defendants failed and neglected to continue to do the same in respect of loan account bearing No. LABNG00041106948. The said car loan account has been classified as a Non-Performing Asset (NPA) on 05.11.2020 and the said car loan account has been closed as a settlement

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was reached between the parties, but the terms of the said settlement were not complied with by the defendants.

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The Applicant states that the above loans were accordingly disbursed in favour of the defendants. The Defendants initially made payments as agreed, however, the Defendants failed and neglected to continue to do the same in respect of loan account bearing No. LABNG00041106951 and the said car loan account has been closed as a settlement was reached between the parties, but the terms of the said settlement were not complied by the defendants.

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The Applicant states that the above loans were accordingly disbursed in favour of the defendants. The Defendants initially made payments as agreed, however, the Defendants failed and neglected to continue to do the same in respect of loan account bearing No. LABNG00041106955 and the said car loan account has been closed as a settlement was reached between

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the parties, but the terms of the said settlement were not complied by the defendants.

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OA No.575/2022

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The Applicant states that the above loans were accordingly disbursed in favour of the defendants. The Defendants initially made payments as agreed, however, the Defendants failed and neglected to continue to do the same in respect of loan account bearing No. LABNG00041106973. The said car loan account has been classified as a Non-Performing Asset (NPA) on 05.09.2020 and the said car loan account has been closed as a settlement

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was reached between the parties, but the terms of the said settlement were not complied by the defendants.

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The Applicant states that the above loans were accordingly disbursed in favour of the defendants. The Defendants initially made payments as agreed, however, the Defendants failed and neglected to continue to do the same in respect of loan account bearing No. LABNG00041106983 and the said car loan account has been closed as a settlement was reached between

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the parties, but the terms of the said settlement were not complied by the defendants.

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The Applicant states that the above loans were accordingly disbursed in favour of the defendants. The Defendants initially made payments as agreed, however, the Defendants failed and neglected to continue to do the same in respect of loan account bearing No. LABNG00041106985 and the said car loan account has been closed as a settlement was reached between the parties, but the terms of the said settlement were not complied by the defendants.

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The Applicant further states that the Applicant was left with no other option but to issue a recall Notice dated 20.02.2021 in respect of 5 car/auto loan accounts bearing Nos. LABNG00041106942, LABNG00041106951, LABNG00041106973, LABNG00041106983 & LABNG00041106985 to the 1^st & 2^nd Defendants at both their addresses inter alia calling upon the Defendants to pay a sum of ₹30,66,827.35/- (Rupees Thirty Lakhs SixtySix Thousand Eight Hundred Twenty-Seven and Thirty-Five paise Only) along with interest & other charges etc. as on 28.01.2021.

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The Applicant further states that the Applicant was left with no other option but to issue a recall Notice dated 18.03.2021 in respect of 2 car/auto loan accounts bearing Nos. LABNG00041106948, & LABNG00041106955 to the 1^st & 2^nd Defendants at both their addresses inter alia calling upon the Defendants to pay a sum of ₹11,61,929/- (Rupees Eleven Lakhs Sixty-One Thousand Nine Hundred Twenty-Nine Only) along with interest & other charges etc. as on 15.03.2021.

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The Applicant submits that the Defendants have defaulted in making payments under the said facilities and hence the liability to make the payment of outstanding amounts under the said facility has arisen. 7 Foreclosure statements in respect of the seven car/auto loans in respect of loan account bearing Nos. LABNG00041106942, LABNG00041106948, LABNG00041106951, LABNG00041106955, LABNG00041106973, LABNG00041106983 & LABNG00041106985 were issued on 14.01.2022 reflecting the amount that, the defendants are liable to pay a sum of

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OA No.575/2022

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Rs.30,55,335.29/- (Rupees Thirty Lakhs Fifty-Five Thousand Three Hundred Thirty-Five and Twenty-Nine paise Only) i.e., addition of amounts to be recovered under the 7 car loans as on 14.01.2022 plus applicable interest, penal interest, premia, charges etc.

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The Defendants intended to purchase 2 units of Traveller Minibus from Khivraj Motors and had approached the Applicant Bank for the financial facilities of commercial vehicle loans to purchase the same. The preliminary credit facility application bearing No. CB 000 318253 submitted by the 1^st & 2^nd defendants with the 3^rd defendant as a Co-applicant. Both the 2^nd and 3^rd defendants together have executed an addendum to the preliminary credit facility application bearing No.318253.

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The Preliminary Credit Facility Application Form and Credit Facility Application dated 30.12.2019 in respect of Traveller Minibus sanctioning & disbursing Rs.26,80,000/- to the defendants form part and parcel of the loan sanction documentation process of the Applicant bank. The Defendants have duly accepted the terms and conditions of sanction along with the standard terms and conditions which were also handed over to Defendants and further the Defendants have acknowledged the same.

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The Defendants have executed a hypothecation deed, hypothecating the vehicles, for which financial facility was availed along with an irrevocable power of attorney in favour of the applicant bank for full satisfaction of the loan amount. The hypothecation deed and the irrevocable power of attorney executed by the defendant in favour of the

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OA No.575/2022

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applicant bank. Pursuant to the aforesaid sanction, the Defendants vide

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facility application dated 30.12.2019 inter alia agreed that:

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i) They shall repay the facility and interest thereon in the manner and on the dates specified thereto;

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ii) Terms of repayment 48 months.

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iii) EMI of Rs.68,648/- per month for 48 months under said loan account.

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iv) Date of commencement of EMI was 15.02.2020 & the Due Date for payment of each EMI was on 15^th day of each month

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v) The Defendants agreed to pay a fixed rate of interest at 10.29% p.a. on the principal amount.

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The Applicant states that the above loans were accordingly disbursed

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in favour of the defendants. The Defendants initially made payments as agreed, however, the Defendants failed and neglected to continue to do the same in respect of commercial vehicle loan accounts bearing Nos. LVBNG00041314955 from 15^th December 2021 & LVBNG00041315027. The Applicant states that the Defendants failed and neglected to make payment to the Applicant Bank.

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The Applicant further states that the Applicant was left with no other

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option but to issue a recall Notice dated 18.02.2021 in respect of 2 commercial vehicle loan accounts bearing Nos. LVBNG00041314955 & LVBNG00041315027 to all the Defendants inter alia calling upon the Defendants to pay a sum of Rs.29,80,504/- (Rupees Twenty-Nine Lakhs

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OA No.575/2022

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Eighty Thousand Five Hundred and Four Only) along with interest & other charges etc.

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A Foreclosure statement in respect of the 1^st commercial vehicle loan in respect of loan account bearing No LVBNG00041314955 is produced dated on 14.01.2022 showing the defendants liability to pay a sum of Rs.10,81,670.68/- (Rupees Ten Lakhs Eighty-One Thousand Six Hundred Seventy and Sixty-Eight paise Only) as on 14.01.2022 plus applicable interest.

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A Foreclosure statement in respect of the second commercial vehicle loan in respect of loan account bearing No. LVBNG00041315027 dated 14^th January 2022 reflecting liability of the defendants to pay a sum of Rs.10,40,286.78/- (Rupees Ten Lakhs Forty Thousand Two Hundred Eighty-Six and Seventy-Eight paise Only) as on 14,01.2022 plus applicable interest.

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The Applicant values its claim in the Original Application at Rs.51,77,289/- as on 14.01.2022 and is claiming future interest. In view of the continued default on the part of the Defendants in repayment of the outstanding dues. Calling upon the Defendants to repay the outstanding balance. 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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OA No.575/2022

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After the filing of OA, summons was sent to the Defendants 1 to 3 Summons served to D1 on 30.05.2022 and summons served to D2 and D3 on 01.06.2022 by RPAD with Acknowledgement produced. When OA was taken up on 09.12.2022, 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 09.12.2022.

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Heard the submissions of Counsels and perused the records.

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To prove the case, Mr.Pramod G. aged 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 documents came to be marked as Ex.A3 to A52. 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 the default committed, this Tribunal comes to the conclusion that the 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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i) The Applicant bank is allowed to recover from Defendants No.1

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to 3 jointly or severally to pay a sum of Rs.51,77,289/- along

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OA No.575/2022

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with future interest from 15.01.2022 with interest @ 11 % till the date of realization of the said amount;

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ii) That Hon’ble Tribunal be pleased to issue Certificate of Recovery in favour of the Applicant against the Defendants to pay to the Applicant a sum of ₹51,77,289/- with interest @ 11 % from 15.01.2022 being the aggregate amount outstanding and payable under the Loan account Nos. LABNG00041106942, LABNG00041106948,LABNG00041106951, LABNG00041106955,LABNG00041106973, LABNG00041106983,LABNG00041106985, LVBNG00041314955 and LVBNG00041315027 together with contractual interest till the date of realization.

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(b) 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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(c) 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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OA No.575/2022

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(d) The applicant bank shall file memo of costs within ten days from the date of this final order.

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

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27. A copy of this order be communicated to the parties concerned.

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[Dictated to the (GS), transcribed by her, corrected and signed by me on this the 21st day February 2024].

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Sd/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: Its Area Debt Manager, Sri.Rohit Ali.M. of the Applicant Bank.

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Exhibits on the part of the Applicant:

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SL No.	Documents	Exhibits
1.	Registration Certificate of Unity Travels dated 24.09.2017	A3
2.	Declaration of Sole Proprietorship	A4
3.	Proforma Invoice for 7 cars of Dzire Tour S	A5
4.	PreliminaryCredit FacilityApplication	A6
5.	Credit FacilityApplication form dated 21.11.2019	A7 to A13
6.	Key Facts statement and most important information	A14
7.	7 Unattested Deeds of Hypothecation	A14 to A21

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8.	Loan Recall Notice dated 20.02.2021 in respect of car/auto loan accounts bearing Nos.LABNG00041106942,LABNG00041106951,LAB NG00041106973,LABNG00041106983 & LABNG00041106985.	A22
9.	Loan Recall Notice dated 20.02.2021 in respect of car/auto loan accounts bearing Nos.LABNG00041106942,LABNG00041106951,LAB NG00041106973,LABNG00041106983 & LABNG00041106985.	A23
10.	Loan Recall Notice dated 18.03.2021 in respect of car/auto loan accounts bearing Nos. LABNG00041106948,& LABNG00041106955.	A24
11.	Loan Recall Notice dated 18.03.2021 in respect of car/auto loan accounts bearing Nos LABNG00041106948,& LABNG00041106955.	A25
12.	Foreclosure statement dated 14.01.2022 in respect of loan account bearingNos. LABNG00041106942.	A26
13.	Foreclosure statement dated 14.01.2022 in respect of loan account bearingNo. LABNG00041106948.	A27
14.	Foreclosure statement dated 14.01.2022 in respect of loan account bearingNo. LABNG00041106951.	A28
15.	Foreclosure statement dated 14.01.2022 in respect of loan account bearingNo. LABNG00041106955.	A29
16.	Foreclosure statement dated 14.01.2022 in respect of loan account bearingNo. LABNG00041106973.	A30
17.	Foreclosure statement dated 14.01.2022 in respect of loan account bearingNo. LABNG00041106983.	A31
18.	Foreclosure statement dated 14.01.2022 in respect of loan account bearingNo. LABNG00041106985.	A32
19.	Loan Account statement in respect of loan account bearingNos. LABNG00041106942.	A33
20.	Loan Account statement in respect of loan account bearingNo. LABNG00041106948.	A34
21.	Loan Account statement in respect of loan account bearingNo. LABNG00041106951.	A35
22.	Loan Account statement in respect of loan account bearingNo. LABNG00041106955.	A36
23.	Loan Account statement in respect of loan account bearingNo. LABNG00041106973.	A37

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OA No.575/2022

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24.	Loan Account statement in respect of loan account bearingNo. LABNG00041106983.	A38
25.	Loan Account statement in respect of loan account bearingNo. LABNG00041106985.	A39
26.	Preliminary Credit facility Application bearing No. CB 000 318253	A40
27.	Addendum to preliminary credit facility application No. 318253.	A41
28.	Credit FacilityApplication dated 30.12.2019	A42
29.	Key Facts statement and most important information.	A43
30.	Deed of Hypothecation	A44
31.	Irrevocablepower of attorney	A45
32	Loan Recall Notice dated 18.02.2021 in respect of commercial vehicle loan accounts bearing Nos LVBNG00041314955 & LVBNG00041315027.	A46
33.	Loan Recall Notice dated 18.02.2021 in respect of commercial vehicle loan accounts bearing Nos LVBNG00041314955 & LVBNG00041315027.	A47
34.	Loan Recall Notice dated 18.02.2021 in respect of commercial vehicle loan accounts bearing Nos LVBNG00041314955 & LVBNG00041315027.	A48
35.	Foreclosure Statement dated 14.01.2022 in respect of commercial vehicle loan account bearing No. LVBNG00041314955.	A49
36.	Loan Account Statement in respect of commercial vehicle loan account bearing No. LVBNG00041314955.	A50
37.	Foreclosure Statement dated 14.01.2022 in respect of commercial vehicle loan account bearing No. LVBNG00041315027.	A51
38.	Loan Account Statement in respect of commercial vehicle loan account bearing No. LVBNG00041315027.	A52

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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:

-Nil –

OA No.575/2022

SCHEDULE OF MOVABLES HYPOTHECATED BY THE DEFENDANTS

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Commercial Vehicle KA05 AK3278 KA05 AK3563 KA05 AK3564

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

Icici Bank Limited v. Unity Travel Rep by Its Prop Sri.Mugure Gowda.D.

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Unity Travel Rep by Its Prop Sri.Mugure Gowda.D.

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

Coram

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