Allowed

Icici Bank Limited v. Buddha Kathat

DRT29 Oct 2025OA/1401/2022

Case brief

AI extract

What is this about?

Applicant bank sought recovery of outstanding dues of Rs. 45,11,072.61 from two defendants who defaulted on commercial vehicle loans and failed to hand over hypothecated vehicles. The tribunal, hearing the application ex-parte, declared the defendants jointly liable and directed issuance of a recovery certificate.

What did the court decide?

Declaration of joint liability to pay Rs. 45,11,072.61 with interest; issuance of Recovery Certificate for realization from hypothecated vehicles and other assets.

Icici Bank Limited versus Buddha Kathat — Banking and Recovery | DRT (2025)

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“ORIGINALAPPLICATION” No. 1401 of 2022

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1401 OF 2022

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DATE OF DELIVERY OF ORDER 29.10.2025

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ICICI BANK LIMITED , HAVING ITS REGISTERED OFFICE AT: ICICI BANK TOWER, NEAR CHAKLI CIRCLE, OLD PADRA ROAD, VADODARA – 390007. HAVING ITS REGIONAL OFFICE AT: ICICI BANK LTD. 3RD FLOOR, JSEL BUILDING, JLN MARG MALVIYA NAGAR, JAIPUR - 302017 THROUGH ITS AUTHORISED REPRESENTATIVE M R. VIVEK SHARMA.

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…..Applicant Bank…..

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VERSUS

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1. BUDDHA KATHAT S/O. SH. SAYAR KATHAT, VILLAGE - HARRAJ PURA, BEAWAR KHAS, BEAWAR, DISTT. - AJMER-305901, RAJASTHAN.

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2. MUKESH KATHAT S/O. SH. BUDDHA KATHA, VILLAGE - HARRAJ PURA, BEAWAR KHAS, BEAWAR, DISTT. – AJMER - 305901 (RAJASTHAN)

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……Defendants…..

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Counsel for the Applicant Bank Sh. Deepak Sarawagi Defendants Ex parte

OA No. 1401 of 2022

JUDGMENT

This Original Application was filed by the applicant bank on 05.12.2022 for recovery of outstanding amount of Rs. 45,11,072.61 from the Defendants.

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As per the pleadings, Defendants approached and requested the applicant bank for grant of 4 loans for purchase of commercial vehicles under the Loan cum hypothecation Scheme of the Applicant Bank. In the Pandemic (Covid-19) period, Defendants also approached for 1 more loan (on security of above loans) in Guaranteed Emergency Credit Line ("GECL") by way of working capital term loan facility under the Emergency Credit Line Guaranteed Scheme ("ECLGS") launched by the Government of India through Ministry of Finance and Department of Financial Services, subject to terms and conditions given in Sanction Letter. The Defendants had entered into Credit Facility Application along with the terms and conditions for the loan facilities, deed of hypothecation and irrevocable power of attorney with the applicant bank. The loan agreement numbers wherein the Defendants are the applicant borrower & coapplicant borrower in the loan agreement with the applicant bank.

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The Defendants agreed to repay the said loan in equated monthly installments along with interest as per the repayment schedule to the loan documents in equated monthly installments and they also secured the loan against

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OA No. 1401 of 2022

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the commercial vehicles financed to them by the applicant bank. The detail is given below:

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S. No .	Loan No.	Disb. Date	Int. Rate	Te nu re	EMI	Loan Amount
1	LVBWR00038370272	28-Dec- 2018	12.00 %	48	77837/-	28,78,000.00
2	LVBWR00041041326	08-Nov- 2019	10.76 %	52	69234/-	28,42,034.00
3	LVBWR00041041344	08-Nov- 2019	10.76 %	48	9461/-	3,64,443.00
4	UVBWR00041963413	25-Aug- 2020	9.25%	48	34374/-	10,77,000.00

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That the Defendants executed the following documents on 27.12.2018, 07.11.2019, 21.08.2020 & 25.08.2020 in favour of the applicant bank Credit Facility Application along with Terms and Conditions of the Loan: By virtue of this application and terms and conditions to the loan, the Defendants agreed and undertook to repay the loan amount along with interest in equated monthly installments. The Defendants further agreed that in case any installment is delayed the Defendants would pay a penal interest as per the agreement entered between the parties on the outstanding Equated Monthly Installments amount and the applicant

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OA No. 1401 of 2022

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bank would also be entitled to take the possession of the commercial vehicles in the event of default in making the payment of the installments by the Defendants. Deed of Hypothecation: As per the deed of hypothecation, the commercial vehicles financed to be hypothecated in the name of the applicant bank and the bank would be entitled to take the possession of the commercial vehicles in the event of default by the Defendants being the rightful of the same. Irrevocable Power of Attorney authorizing the applicant bank to take over the possession of the commercial vehicles and sell the same to appropriate the dues in the event of default by the Defendants. Preliminary Credit Facility Application Form, Sanction Letter with Annexure & Exhibits, Deed of Hypothecation with Stamps -In the Pandemic (Covid-19) period, Defendants also execute the above mentioned documents for 1 more loan (on security of above loans) in Guaranteed Emergency Credit Line ("GECL") by way of working capital term loan facility under the Emergency Credit Line Guaranteed Scheme ("ECLGS") launched by the Government of India through Ministry of Finance and Department of Financial Services, subject to terms and conditions given in Sanction Letter. Pursuant to the disbursement of the loan amount from the applicant bank, the said commercial vehicles were delivered to the Defendants and the said commercial vehicles were got registered hypothecated in the name of the applicant bank. Despite the undertaking given by the Defendants, the Defendants had defaulted in repayment of the monthly installments and as per the account maintained by the

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OA No. 1401 of 2022

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applicant, the Defendants is liable to pay a sum of Rs. 45,11,072.61 towards the outstanding installments, interest and other dues after adjusting the payment made by the Defendants as on 04-AUG-2022.

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It is submitted that pursuant to the said receipt of the aforesaid Loan, the Defendants failed to adhere to the financial discipline of the repayment of the loan either towards principle or interest or charges thereon. Several installments have not been paid by the Defendants despite repeated requests and reminder by the Officials of the Applicant Bank. The Defendants were served with reminders to pay the amount which is due towards as result of nonPayment of the Monthly installments in terms of the repayment Schedule. Persistent requests were made by the officials of the bank to the Defendants to abide by the terms of the agreement entered between the parties, they were also told that the time was the essence of the contract, to which the Defendants has been promising from time to time but had failed to honor their commitments. The Defendants further failed to make the commercial vehicles (Which are security) available for inspection to the officials of the bank in consonance with the Agreement entered between the parties. That till date the Defendants has been defaulting in repayment of many Equated Monthly installments which are due as on date as per the agreement.

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It is submitted that despite several assurances by the Defendants, the Defendants have deliberately violated the Equated Monthly installments Schedule.

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OA No. 1401 of 2022

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It is submitted that the Applicant Bank duly notified unto the Defendants to make the repayment of the outstanding amount and also handover the peaceful possession of the commercial vehicles, as the applicant Bank has decided to withdraw the loan facility provided to the Defendants, by a notice dated 14-Juue-2022. Despite the receipt of the notice, the Defendants have neither cared to reply to the notice nor have made any effort to repay the outstanding amount and also to handover the peaceful possession of the commercial vehicles. That as per the accounts maintained by the Applicant Bank the Defendants is liable to pay a sum of Rs. 45,11,072.61, towards principal, interest, penal interest and other charges as on 04-AUG-2022. That the as per agreement applicant bank is also entitled to claim interest on the outstanding dues against the Defendants.

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Summons were issued to the Defendants on 20.05.2023 and re-issued Dasti summons on 08.01.2025. Counsel for the Applicant Bank filed proof of Dasti service dated 09.04.2025 along with affidavit of service dated 12.04.2025. None were appeared on behalf of the Defendants, therefore, right to file reply was closed and proceeded ex-parte. Possession report of receiver was also filed on 24.08.2023.

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Heard arguments and perused the record.

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As stated supra, the Applicant Bank filed the evidence affidavit of Shri Vivek Sharma coupled with the recitals in the documents, viz Exhibit AW/1 to AW/18 marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendants. Hence, I hold that the

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OA No. 1401 of 2022

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Defendants are jointly & severally liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

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In the result, this O.A. No. 1401 of 2022 is allowed declaring that:-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 45,11,072.61/- (Rupees Forty Five Lac Eleven Thousand Seventy Two and Sixty One Paisa only) with pendente lite and future interest @ 10% (simple) till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated commercial vehicles

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S.	Loan No.	Vehicle Name and Detail
No.
1.	LVBWR00038370272	Tata 4923, Reg. No.-RJ36-GB-0665
2.	LVBWR00041041326	Lps 5523, Reg. No.-RJ36-GA-6335
3.	LVBWR00041041344	Lps5523, Body
4.	UVBWR00041963413	-

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as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled

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to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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OA No. 1401 of 2022

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12.The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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13.Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 23.12.2025 .

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14.Prepare Recovery Certificate accordingly.

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15.A copy of the Judgment and Recovery Certificate be given or sent by registered post to each of the parties free. A copy of the Recovery Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order pronounced in the open court today i.e. 29.10.2025 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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OA No. 1401 of 2022

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1401 OF 2022

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DATE OF DELIVERY OF ORDER 29.10.2025

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RECOVERY CERTIFICATE

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(UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993)

…..Applicant Bank…..

VERSUS

1. BUDDHA KATHAT S/O. SH. SAYAR KATHAT, VILLAGE - HARRAJ PURA, BEAWAR KHAS, BEAWAR, DISTT. - AJMER-305901, RAJASTHAN.

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2. MUKESH KATHAT S/O. SH. BUDDHA KATHA, VILLAGE - HARRAJ PURA, BEAWAR KHAS, BEAWAR, DISTT. – AJMER - 305901 (RAJASTHAN)

……Defendants…..

OA No. 1401 of 2022

Recovery Certificate for Rs. 45,11,072.61/-

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In terms of final order dated 29.10.2025 passed by this Tribunal in the above mentioned case, it is ordered that the-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 45,11,072.61/- (Rupees Forty Five Lac Eleven Thousand Seventy Two and Sixty One Paisa only) with pendente lite and future interest @ 10% (simple) till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated commercial vehicles

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S.	Loan No.	Vehicle Name and Detail
No.
1.	LVBWR00038370272	Tata 4923, Reg. No.-RJ36-GB-0665
2.	LVBWR00041041326	Lps 5523, Reg. No.-RJ36-GA-6335
3.	LVBWR00041041344	Lps5523, Body
4.	UVBWR00041963413	-

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as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A. Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 23.12.2025 .

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OA No. 1401 of 2022

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor.

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This Certificate has been issued under my signatures and seal of the Tribunal on this 29.10.2025 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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OA No. 1401 of 2022

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1401 OF 2022

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DATE OF DELIVERY OF ORDER 29.10.2025

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

1. BUDDHA KATHAT S/O. SH. SAYAR KATHAT, VILLAGE - HARRAJ PURA, BEAWAR KHAS, BEAWAR, DISTT. - AJMER-305901, RAJASTHAN.

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2. MUKESH KATHAT S/O. SH. BUDDHA KATHA, VILLAGE - HARRAJ PURA, BEAWAR KHAS, BEAWAR, DISTT. – AJMER - 305901 (RAJASTHAN)

……Defendants…..

OA No. 1401 of 2022

S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	48,000.00
2	Process Fee (Inc. Publication)	110.00
3	Advocate Fee	1,250.00
4	Court Commissioner’s Fees	NIL
5	Commission/Receiver/Valuation	NIL
6	Miscellaneous Charges	NIL
	Total	49,360.00

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 1401 of 2022

29.10.2025

Counsel:

Sh. Deepak Sarawagi, Counsel for Applicant Bank Defendants are ex-parte

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Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepared accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015 and after verification place the same before the Tribunal.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 1401 of 2022

29.10.2025

Counsel:

Sh. Deepak Sarawagi, Counsel for Applicant Bank Defendants are ex-parte

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The Tribunal vide order dated 29.10.2025 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

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The Registrar vide order dated 29.10.2025 verified the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. Recovery Certificate be prepared accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

Icici Bank Limited v. Buddha Kathat

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Buddha Kathat

Case brief

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