Allowed

Icici Bank Limited v. M/S Unique Auto Zone

DRT14 Feb 2025OA/1151/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed under Section 19 of the RDBFI Act for recovery of Rs. 22,34,778 accumulated as an NPA. The Tribunal determined a simple interest rate of 8% per annum from the filing date until realization and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery certificate issued; Defendants directed to pay Rs. 22,34,778 with costs and 8% simple interest p.a. from filing date.

Icici Bank Limited versus M/S Unique Auto Zone — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1151/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.09.2024

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DATE OF DECISION: 14.02.2025

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ICICI Bank Ltd., a body corporate incorporated under the companies Act,1956 and bank within the meaning of the Banking Regulations Act, 1949 and having its registered office at ICICI Bank Towers, Near Chakli Circle, Old Padra Road, Vadodara-390007 and its corporate office at ICICI Bank Towers Bandra Kurla Complex, Mumbai-400051 and having branches all over India and having branches all Over India and one of its Branch offices situated at Scetor-9C, Madhya Marg Chandigarh through its authorized Signatory Mr. Mohamad Vajid .

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……..Applicant

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Versus

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1. M/s Unique Auto Zone, Gali Mohalla Preet Nagar No.1, Near Peeran Wali Gali Kapurthala Punjab-144601.

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2. Suman Proprietor of M/s Unique Auto Zone Gali Mohalla Preet Nagar No.1, Near Peeran Wali Gali Kapurthala Punjab-144601.

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3. Sandeep M/s Unique Auto Zone Gali Mohalla Preet Nagar No.1, Near Peeran Wali Gali Kapurthala Punjab-144601.

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….……Defendants

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Advocates:

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Argued by Sh. Atul Goyal, Advocate for the applicant Defendants are 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 defendants for recovery of Rs.22,34,778.00p (Rupees Twenty Two Lacs Thirty Four Thousand Seven Hundred & Seventy Eight only). The Original Application has been filed through Mr. Mohamad Vajid, authorized Signatory who is competent to institute the Original Application vide Copy of Power of Attorney 18.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants are DSA of the Applicant and maintaining an account no.189505000645, Supplier ID 378212 with applicant. On 25.04.2023, while processing a loan in respect of a used Car Loan through another DSA with same name of defendant no.1, M/s Unique Auto Zone having account no.17405008805, supplier ID 385580, Panipat, as amount of Rs.29,89,061.40p was inadvertently transferred in the bank account of defendant no.1, which was withdrawn by defendant no.1 from his account. The defendants failed to pay back the amount.

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Documents attached:- Copy of KYC Documents, which are Annexures A2 and A3 to this OA Copy of account statement along with certificate u/s 2A of the Banker’s Books Evidence Act dated 25.04.2024 to 27.04.2024, which is Annexure A4 to this OA; Copy of letter dated 15.05.2023, which is Annexure A5 to this OA; Copy of complaint along with acknowledgement dated 30.06.2023, which is Annexure A6 to this OA and copy of Letter dated 19.08.2023, which is Annexure A7 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.22,34,778.00p, which is recoverable and the defendants were 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 17.01.2025. 7. In support of the OA, affidavit of Mr. Mohamad Vajid, authorized Signatory, ICICI Bank Ltd., has 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 A7 to this OA, it is proved that defendants are DSA

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of the Applicant and maintaining an account no.189505000645, Supplier ID 378212 with applicant. On 25.04.2023, while processing a loan in respect of a used Car Loan through another DSA with same name of defendant no.1, M/s Unique Auto Zone having account no.17405008805, supplier ID 385580, Panipat, as amount of Rs.29,89,061.40p was inadvertently transferred in the bank account of defendant no.1, which was withdrawn by defendant no.1 from his account. The defendants failed to pay back the amount. Applicant had marked the lien on account. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,34,778.00p (Rupees Twenty Two Lacs Thirty Four Thousand seven Hundred & Seventy Eight only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00%p.a. with monthly rests from 08.09.2024 till 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, quantum of amount 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 just and appropriate to grant uniform simple interest @8.00%p.a. in the account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.22,34,778.00p (Rupees Twenty Two Lacs Thirty Four Thousand seven Hundred & Seventy Eight only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the account from the date of filing of OA till the date of realization of the amount.

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Accordingly, the applicant shall be entitled to recover aforesaid amount from by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.03.2025. 15. Copy of this order be given dasti to the applicant and be sent to defendants 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: 14.02.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Icici Bank Limited v. M/S Unique Auto Zone

Case brief

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Icici Bank Limited v. M/S Unique Auto Zone

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