Allowed

Icici Bank Limited v. Sathvek Infrastructure Developer Private Limited

DRT23 Sept 2025OA/347/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by ICIC Bank Ltd. for issuance of a Recovery Certificate against two defendants for a construction equipment loan default. The claim was unchallenged due to the defendants' ex parte absence. The Tribunal reduced the interest rate to 10% simple p.a. and ordered recovery from joint assets.

What did the court decide?

Recovery Certificate issued for Rs. 41,89,675 plus interest at 10% simple p.a.; Recovery from joint, several and personal assets; Costs of proceedings awarded.

Icici Bank Limited versus Sathvek Infrastructure… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 23^rd Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No347/2023

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BETWEEN:

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ICIC Bank Ltd. Registered office at: ICICI Bank tower, Near Chakli circle, Old padre road, Vadodara – 390 007 And having its corporate office at: ICICI bank towers, Bandra kurla complex, Bandra (East) Mumbai – 400 051 And its branch office at: Mystree center, #4/10, Hosur road, Bommanahalli, Bangalore – 560 068

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Represented by its collection manager & POA holder Sri. Pramodh Gurumallappa

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…APPLICANT

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AND:

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Sathvek Infrastructure Developer Private Limited, Represented by its authorized signatory Sri. Shankrappa Muganoor, Chunchaiah, Bugudabahally, Bellavi hobli, Tumkur – 572 107

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Sri Shankrappa Muganoor S/o. Sri. Basppa sangappa, Aged about 62 years, 363/1/273, Bugudanahalli at post, Bellavi hobli, Bellavi, Tumakuru, Tumkur – 572 107 ...DEFENDANTS

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OA 347/2023

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Counsel on record/appeared for: Applicant : V Suresh Defendant : Ex parte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs.41,89,675/-(Rupees Forty One Lakhs Eighty Nine Thousand Six Hundred Seventy Five Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants availed Construction Equipment Loan of Rs. 42,75,000/-(Rupees Forty Two Lakhs Seventy Five Thousand only) for purchase of Equipment Hydraulic Excavator/EX 210 LC.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with, hypothecation deed and irrevocable power of attorney.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in compliance of the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this

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OA 347/2023

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Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 29.01.2025

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-7 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains

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unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are

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OA 347/2023

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sufficient to prove availment of the credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank and

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the defaults committed in the accounts. The liability of the defendants and the amount claimed as due are also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, the Tribunal

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find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for commercial equipment loan and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is

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of the view that the OA can be allowed with a reduced interest of 10.00% (simple).

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In the result, OA.No.347/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of

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Rs.41,89,675/-(Rupees Forty One Lakhs Eighty Nine Thousand Six

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Hundred Seventy Five Only) with further interest @ 10.00 % p.a.(simple), from the date of filing OA till the realization, from the

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defendants jointly, severally & personally after giving credit to all the

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OA 347/2023

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amount recovered and received during the pendency of the OA and

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allowed the same to be recovered by proceedings against their

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assets, including hypothecated schedule. Properties Schedule to the OA be the schedule to the recovery certificate.

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ii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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iii) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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iv) Interim application pending, if any, are disposed of with

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this Final Order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 23^rd Day of August, 2025].

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA 347/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Pramodh Gurumallappa, S/o. Sri. Gurumallappa Collection Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Preliminary Credit Facility Application Form Fully Filled and Signed by Defendants as Annexure-A1
A2	Credit Facility Application Form Dated 28.11.2020 at Annexure- A2
A3	Unattested Dated Of Hypothecation Dated 28.11.2020 at Annexure-A3
A4	Irrevocable Power Of Attorney Dated 28.11.2020 At Annexure- A4
A5-A6	Legal Notice Dated 05.02.2022 Annexed With Postal Receipt at Annexure–A5 & A6
A7	Foreclosure And Statement Of Account Dated 12.05.2022 at Annexure-A7

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

-Nil -

-Nil -

Sd/-

(T. RAJESH)

PRESIDING OFFICER

Icici Bank Limited v. Sathvek Infrastructure Developer Private Limited

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Sathvek Infrastructure Developer Private Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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