Allowed

Icici Bank Limited v. Salimkha Shabbirkha Pathan

DRT1 Sept 2025OA/170/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed bank's application for recovery of Rs. 21,51,062/- along with future interest at 9% per annum against borrowers who defaulted on vehicle loans. Court directed sale of hypothecated assets to recover dues.

What did the court decide?

Directed defendants to pay Rs. 21,51,062/- plus future interest at 9% p.a. (simple) from filing date; granted right to sell hypothecated vehicles for recovery.

Icici Bank Limited versus Salimkha Shabbirkha Pathan — Insurance | DRT (2025)

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Presented on: 26.01.2023 Registered on: 28.11.2023 Decided on: 01.09.2025 Duration: Y M D 02 07 06

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J.R. Chauhan, Presiding officer) TOTAL CLAIM AMOUNT – Rs. 21,51,062/-

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ORIGINAL APPLICATION No.170/2023

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ICICI Bank Ltd. A Registered Company, Having its Registered Office at ICICI Bank Tower, Near Chakli Circle, Old Padra Road, Vadodara, Gujarat- 390007. And having one of its Branch Office at ICICI Bank Ltd, Cherikar Prestine, Plot No.4, Opp. LIC Office, Bhagya Nagar, Adalat Road, Aurangabad-431001 Through: it’s Power of Attorney Holder Shri. Girish S/o. Shrikrishnarao Naik Age: 47 Years, Occ. Service, R/o: C/o. ICICI Bank Ltd, Cherikar Prestine, Plot No.4, Opp. LIC Office, Bhagya Nagar, Adalat Road, Aurangabad431001

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… Applicant

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Versus

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Salimkha Shabbirkha Pathan, Age:- 46 Years, Occ: - Business, R/o. Bramhani Garada, Bramhani, Kannad, Aurangabad-431103.

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Shabir Shabbir Pathan, Age:- 30 Years, Occ:- Business, R/o. At Garada, Post Bramhani, Kannad, Aurangabad431103.

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…Defendants

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[SBJ] (OA No.170/2023) Page 1 of 13

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APPEARANCES

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For the Applicant Mr. U.N. Shete - Advocate For Defendants Ex-parte

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JUDGMENT (Delivered on 01^st September, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.21,51,062/- (Rupees Twenty-One Lacs, Fifty-One Thousand, Sixty-Two Only) alongwith further interest at the contractual rate from 19.05.2022 till the date of realization of the entire dues and costs of the application from the defendants jointly and severally.

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Brief facts of the application are as under :

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The defendants approached the applicant bank on or about 07.05.2019 for loan for purchase of vehicles Eicher 1114XP Chassis. As per the Preliminary Credit Application dated 07.05.2019 of defendants, the applicant bank sanctioned and disbursed the Hypothecation of the Vehicles Loan facility under Loan No.LVAUR00039194659 of Rs.19,29,429/(Rupees Nineteen Lacs, Twenty-Nine Thousand. Four Hundred and Twenty-Nine Only) to the defendants for purchasing of vehicles Eicher 1114XP.

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[SBJ] (OA No.170/2023) Page 2 of 13

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In order to secure the aforesaid loan facility, the defendants executed the Key Fact Statement and Most Important Information dated 20.05.2019, Credit facility application form dated 20.05.2019, Unattested Deed of Hypothecation dated 20.05.2019, Irrevocable Power of Attorney dated 20.05.2019, B-Extract of the said vehicle, in favour of the applicant bank as is disclosed in Paragraph No.3 and 6 of the Original Application.

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The defendants have agreed to pay rate of interest at the fixed rate of 12.52% per annum. The defendants have also agreed to pay the loan amount in 71 months with equated monthly installments of Rs.43,439/- (Rupees Forty-Three Thousand Four Hundred Thirty-Nine only) each without committing any default. The installment amount was to be repaid on 22^nd day of each month.

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In order to secure the aforesaid loan facility of Credit Loan No.LVAUR00039194659 Rs.19,29,429/- (Rupees Nineteen Lacs, Twenty-Nine Thousand, Four Hundred and TwentyNine Only), the defendants executed Unattested Deed of Hypothecation dated 20.05.2019 thereby hypothecating the vehicles Eicher 1114XP is registered with the Registering

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[SBJ] (OA No.170/2023) Page 3 of 13

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authority with registration bearing Nos. MH-20-EL-1612 in favour of the Applicant Bank., as mentioned in Paragraph No.6 of the OA and in the Affidavit Marking of Documents List (Exhibit-9) marked at Exhibit AW-1/05.

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The applicant bank further submitted that the defendants have failed to pay the equated monthly installments regularly and committed defaults of the terms and conditions of the agreement. The defendants were called upon to pay the overdue amount but they failed to pay the same. Despite repeated requests, reminders and demands, the defendants failed to pay the loan amount. The defendants acknowledged their liability by making payment of Rs.40,000/- on 30/12/2021 in the Loan Account No. LVAUR00039194659.

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The applicant bank submitted that the Government of India through Ministry of Finance, Department of Financial Services, introduced Emergency Credit Line Guarantee Scheme (“ECLGS”) for providing 100% guarantee coverage for additional working capital term loan availed by the Borrower’s inter alia, from Banks and Financial Institutions subject to compliance with the terms and conditions of the

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[SBJ] (OA No.170/2023) Page 4 of 13

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scheme.

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The applicant bank has submitted that again the defendants on or about 01.10.2020 approached the applicant bank for Guaranteed Emergency Credit Line Loan facility for purchasing of the vehicle Eicher 1114XP. is registered with the Registering authority with registration bearing nos. MH-20-EL-1612. As per the Loan Application dated 01^st October, 2020 of defendants, the applicant bank sanctioned the said subject to the execution of Loan facility under Loan No. UVAUR00042171513 for Rs.3,52,348/- (Rs. Three Lacs, Fifty-Two Thousand, Three Hundred, Forty-Eight Only) to the defendants vide Sanction Letter dated 06.10.2020.

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As per the Preliminary Credit Application dated 01.10.2020 of defendants, the applicant bank sanctioned and disbursed the Term Loan facility under Loan No.UVAUR00042171513 for Rs.3,52,348/- (Rs. Three Lacs, Fifty-Two Thousand, Three Hundred Forty-Eight Only), to the defendants for purchasing of vehicles Eicher 1114XP.

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The defendants have agreed to pay rate of interest at the fixed rate of 9.25% per annum. The defendants have also agreed to pay the loan amount in 48 months with equated

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[SBJ] (OA No.170/2023) Page 5 of 13

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monthly installments of Rs.2716/- (Rupees Two Thousand Seven Hundred Sixteen only) each without committing any default and have also agreed to pay an amount of Rs.550/towards cheque / ECS / SI bouncing charges. The defendant had further agreed to pay late payment penalty @2% per month. The installment amount was to be repaid on 07^th day of each month. The first installment in the loan account was due on 07.11.2020 and the last installment has to be paid on 07.10.2024.

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In order to secure the Term Loan facility under Loan No.UVAUR00042171513 for Rs.3,52,348/- (Rs. Three Lacs, Fifty-Two Thousand, Three Hundred Forty-Eight Only), the defendants have signed and executed various necessary loan and security documents in favour of the applicant bank i.e. Sanction Letter dated 06.10.2020, Hypothecation Deed dated 06.10.2020, Guarantee Agreement dated 06.10.2020, Sole Proprietorship Letter, dated 06.10.202, SelfUndertaking by Defendants dated 06.10.202, Undertaking in relation to security dated 06.10.2020 mentioned in Paragraph No.8, 9, and 11 of the Original Application.

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Term Loan facility under Loan No.UVAUR00042171513 for

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[SBJ] (OA No.170/2023) Page 6 of 13

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Rs.3,52,348/- (Rs. Three Lacs, Fifty-Two Thousand, Three Hundred Forty-Eight Only), the defendants have signed and executed Hypothecation Deed dated 06.10.2020 thereby hypothecating the Eicher 1114XP which is registered with the Registering authority with Registration bearing Nos. MH-20-EL-1612, in favour of the applicant bank, mentioned in Paragraph No.9 of the OA and in the Affidavit Marking of Documents List (Exhibit-9) marked at Exhibit-AW-1/10.

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The applicant bank further submitted that the defendants have failed and neglected to pay the equated monthly installments regularly and committed defaults of the terms and conditions of the agreement. The defendants were called upon to pay the overdue amount but they failed to pay the same. Despite repeated requests, reminders and demands, the defendants failed to pay the loan amount.

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The defendants had expressed their inability to pay the same on time and had given assurance to pay the same in due course of its business.

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The applicant bank further submitted that the defendants have failed and neglected to make payments of the amount due and the interest, which is evident from the statements

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[SBJ] (OA No.170/2023) Page 7 of 13

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of accounts of the defendants. As such, the aforesaid Loan Accounts of the defendants declared as Non-Performing Assets on 08.06.2021 as per the Reserve Bank of India norms and accordingly penal interest is applied as agreed.

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The defendants have acknowledged their liability by making payment of Rs.40,000/(Rupees Forty Thousand only) on 30.12.2021 in Loan Account No. LVAUR00039194659 and Rs.3,000/- (Rupees Three Thousand only) on 30.12.2021 in Term Loan Account No. UVAUR00042171513.

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The applicant bank has submitted that the accounts of the defendants are maintained in the usual and ordinary course of its business and certified under the Banker's Book Evidence Act, 1891 and the entries are contained in one of the ordinary books of the banks and that such books are still in the custody of the bank.

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The particulars of the claim are as under:

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A. Loan No. LVAUR00039194659 (as on 18.05.2022)

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Sr. No.	Particulars	Amount (Rs.)
1	Future Principal	12,77,370.00
2	Current Outstanding	4,70,218.00

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[SBJ] (OA No.170/2023) Page 8 of 13

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3	Accrued Interest	16,114.00
	(A) TOTAL	17,63,702.00

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B. Term Loan No.UVAUR000421715130 (as on 18.05.2022)

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Sr. No.	Particulars Amount (Rs.)
1	Future Principal 29,1239.00
2	Current Outstanding 9,4409.00
3	Accrued Interest 1,712.00
	(B) TOTAL 3,87,360.00
Total O	utstanding A+B 21,51,062.00

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(Rupees Twenty-One Lacs, Fifty-One Thousand, SixtyTwo Only),

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Thereafter the applicant bank issued a Legal Notice through its advocate on 25^th January, 2022 through Registered Post A.D. thereby calling upon the defendants to pay the outstanding amount aggregating to Rs.20,47,527/- (Rupees Twenty Lacs Forty-Seven Thousand Five Hundred TwentySeven only). Despite notice, the defendants have failed to repay the loan amount and thereby violated and committed gross breaches of terms and conditions and failed to repay the loan amount.

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The applicant bank further contended that the account of the defendants has become irregular and as such the

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[SBJ] (OA No.170/2023) Page 9 of 13

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applicant bank has no alternative to file this OA. Hence, the applicant bank has filed this Original Application to recover the outstanding dues from the defendants jointly and severally.

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In this matter the defendants were duly served but failed to appear despite of service and as such, the defendants proceeded ex-parte vide order dated 23.04.2024.

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The applicant Bank has filed Claim Affidavit of Evidence (Exhibit-4) of Mr. Girish S/o. Shrikrishnarao Naik, Manager of the applicant Bank, and has produced on record the original loan documents at Exhibit-AW- 1/1 to AW- 1/16 alongwith Affidavit Marking of Documents List (Exhibit-9), which corroborates the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the applicant bank.

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Since the defendants failed to appear and contest the application, I find no reason to disbelieve the un-rebutted evidence of the applicant bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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In this matter the applicant bank has claimed the relief for

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[SBJ] (OA No.170/2023) Page 10 of 13

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Rs.21,51,062/(Rupees Twenty-One Lacs, Fifty-One Thousand, Sixty-Two Only) alongwith further interest at the contractual rate from 19.05.2022 till the date of realization of the entire dues and costs of the application from the defendants jointly and severally. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

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Hence, I pass the following order.

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ORDER

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(A) Original Application No.170/2023 is allowed with costs.

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(B) Defendants are hereby ordered and directed to pay jointly and severally to the applicant the aggregate sum of Rs.21,51,062/- (Rupees TwentyOne Lacs, Fifty-One Thousand, Sixty-Two Only) along with future interest @9% per annum (simple) from the date of filing of the original application i.e. 26^th January, 2023 till full payment/realization

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[SBJ] (OA No.170/2023) Page 11 of 13

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of the amount.

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(C) The aforesaid adjudicated amount is secured by the Unattested Deed of Hypothecation dated 20.05.2019 thereby hypothecating the vehicles Eicher 1114XP is registered with the Registering authority with registration bearing Nos. MH-20EL-1612 in favour of the Applicant Bank, as mentioned in Paragraph No.6 and 9 of the OA and in the Affidavit Marking of Documents List (Exhibit-9) marked at Exhibit AW-1/05 and Exhibit AW-1/10.

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(D) The applicant Bank is entitled to sell the hypothecated properties as mentioned in Paragraph No.6 and 9 of the OA and in the Affidavit Marking of Documents List (Exhibit-9) marked at Exhibit AW-1/05 and Exhibit AW-1/10, to recover its dues.

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(E) Issue Recovery Certificate accordingly.

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(F) The Registry is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

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[SBJ] (OA No.170/2023) Page 12 of 13

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(G) File be consigned to the Record Room after due compliance.

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Pronounced in open Court. Date :01.09.2025

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Sd/(Dr. J.R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad

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[SBJ] (OA No.170/2023) Page 13 of 13

Icici Bank Limited v. Salimkha Shabbirkha Pathan

Case brief

What is this about?

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Icici Bank Limited v. Salimkha Shabbirkha Pathan

Case brief

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