Allowed

Icici Bank Limited v. I P Electricals and Hardware Company

DRT19 Dec 2025OA/137/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by ICICI Bank Ltd. for recovery of a defaulted overdraft of Rs. 52.41 lakhs against I.P. Electricals Ltd. after an ex-parte hearing. The court fixed interest at 12% per annum for pendent lite period.

What did the court decide?

Director to pay Rs. 52,41,377 plus pendent lite interest at 12% per annum from 02.12.2022 and default interest; recovery certificate issued.

Icici Bank Limited versus I P Electricals and Hardware Company — Banking and Recovery | DRT (2025)

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O.A. No. 137 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 137 of 2023

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ICICI Bank Ltd.

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Plot No.7, Community Centre S.D.Tower, Sector-8, Rohini Delhi-110085

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Applicant

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Versus

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I.P. Electricals & Hardware Company

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(Through its proprietress Ms Indu Sharma) Sharma Village Chaura, Rati Ram Opp.ESIC Hospital

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Gautambudh Nagar, Noida, UP-201301

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Also at:

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Ms.Indu Sharma

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M-10, Sector-11, Noid, UP-201301

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Also at:

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Ms Indu Sharma

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Shop No.01, Sharma Market

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Sector-22, Noida, UP-201301

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Defendant

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Present: Shri Satish Kumar, Counsel for the applicant bank

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Date of Reserve: 03.12.2025

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Date of Pronouncement: 19.12.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 19.01.2023 through Shri Abhishek Goel, authorized representative of the applicant bank under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendant for recovery of a sum of

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O.A. No. 137 of 2023

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Rs.52,41,377/- (Rupees Fifty Two Lacs Forty One Thousand Three Hundred Seventy Seven Only) 02.12.2022 together with pendentelite and future interest @24% per annum till its realization with costs.

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The brief facts of the case are that on the request of defendant through its proprietress Ms Indu Sharma, the applicant bank sanctioned Overdraft facility of Rs.51,80,000/(Rupees Fifty One Lacs Eighty Thousand only) on 08.072021 @interest rate of I-MCLR-6M and spread per annum for the period of 12 month from the date of drawl of the overdraft facility availed vide Credit Arrangement Letter.

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In order to avail the said loan facility, the defendant executed Credit Arrangement Letter dated 08.07.2021, Document Trial Certificate dated 09.07.2021, Mandate Letter for Overdraft Accounts dated 16.07.2021 and Irrevocable Power of Attorney dated 17.07.2021 in favour of applicant bank.

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It has been submitted by the applicant that after availing the aforesaid loan facility, the defendant failed to comply with the terms and conditions and despite several request and reminders, failed to regularize the loan account with applicant Bank. The applicant bank issued notice and terminated the facility vide notice letter dated 16.02.2022 calling upon the defendant to make payment with interest of outstanding amount but the defendant did not clear the dues of the applicant bank hence the applicant bank has approached this tribunal for recovery of its dues.

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Notices of this O.A. were issued to the defendant and despite proper service, the defendant has chosen to absent

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O.A. No. 137 of 2023

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from the proceedings. As per order dated 13.08.2025, the defendant has been proceeded ex-parte as not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Abhishek Goel, authorized representative of the applicant bank who has proved the documents such as Power of Attorney Ex-AW1/1(OSR), Credit Arrangement Letter Ex-AW1/2, Document Trial Certificate ExAW1/3, Mandate Letter for Overdraft Accounts Ex-AW1/4, Irrevocable Power of Attorney Ex-AW1/5, Cam Report ExAW1/6, Loan Recall Notice Ex-AW1/7(colly), Statement of Accounts Ex-AW1/8, Certificate u/s 2A of Banker's Book of Evidence Act Ex-AW1/9 and Certificate u/s 65B of Indian Evidence Act 1872 Ex-AW1/9.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been

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O.A. No. 137 of 2023

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laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendant to pay to the applicant bank within 30 days, a sum of Rs.52,41,377/(Rupees Fifty Two Lacs Forty One Thousand Three Hundred Seventy Seven Only) 02.12.2022 together with pendentelite interest @12.00% per annum from 02.12.2022 till the date of realization and costs. In case of default, the aforesaid amount shall be recovered from the sale of moveable and immovable properties of the defendant.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 17.02.2026.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 19.12.2025

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