In this matter, the Tribunal allowed ICICI Bank Limited's application under Section 19(1) of the Recovery of Debts due to Banks and Financial Institutions Act. The court adjudicated the outstanding balance of vehicle loan dues against the borrowers.
Directed to pay Rs. 30,31,906.30 plus 12% p.a. interest, recoverable out of hypothecated vehicle; issued Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
ORIGINAL APPLICATION NO.603 OF 2023
DEBTS RECOVERY TRIBUNAL No.2, MUMBAI
PRESIDING OFFICER: HARISH KUMAR KAUSHIK
ORIGINAL APPLICATION NO.603 OF 2023
Date of Institution: 22.03.2019 Date of Decision: 30.10.2025
TOTAL CLAIM AMOUNT :
₹ 30,31,906.30/-
ICICI Bank Limited Banking Company incorporated under the Companies Act,1956 and licensed as a bank under the Banking Regulation Act,1949 and having its registered office at ICICI Bank Tower, Near Chakli Circle, Old Padra Road, Vadodara – 390 007, and having Branch office at RPG Towers, J.B Nagar, Andheri Kurla Road Andheri (E) Mumbai- 400 059 Power of Attorney Holder Mr Jitendra Patil.
… Applicant
Versus
…Defendants
Page 1 of 8
ORIGINAL APPLICATION NO.603 OF 2023
APPEARANCES For the Applicant : Ms Priti Tapdiya i/b M/s Bhide & Asso. – Advocate For Defendants : None – Advocate
J U D G M E N T
(1) This is an application under Section 19(1) of the Recovery of the Debts due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 (for short, ‘the 1993 Act’) to recover ₹30,31,906.30/- (Rupees Thirty Lakhs Thirty-One Thousand Nine Hundred Six & paisa Thirty Only) @ 13.27% per annum plus applicable taxes or other statutory levies payable on the 1st of every month and penal interest to be calculated @ 24% per annum from the date of presentation of the Original Application i.e. 22.03.2019 till payment/realization and to enforce the hypothecated security.
The details of the claim amount are as under: -
| Sr | Nature | Principal | Normal | Penal | Other | Total |
|---|---|---|---|---|---|---|
| No | of | O/s. | Interest | Interest | Charges | Amount |
| Facility | (LPP) | |||||
| 1 | Vehicle | 26,03,671.90 | 1,84,810. | 2,23,454. | 19,970 | 30,31,90 |
| Loan | 10 | 30 | 6.30 |
(2) It is undisputed fact in the matter that the Defendant nos.1 & 2 were duly served with the
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ORIGINAL APPLICATION NO.603 OF 2023
summons vide order-sheet dated 03.07.2024. Despite service, the defendants did not enter their appearance and therefore, they are set ex-parte on 16.09.2025.
(3) Defendant nos.1 & 2 are the borrowers who approached the Applicant Bank seeking financial assistance by way of Vehicle Loan Facility. Pursuant to the loan application vide Preliminary Credit Facility Applications dated 28.09.2016 and 29.09.2016 and Credit Facility Application Form dated 29.09.2016 made by defendants, the Applicant sanctioned the loan vide Preliminary Credit Facility Applications dated 28.09.2016 and 29.09.2016 and Credit Facility Application Form dated 29.09.2016 which acts as Sanction Letters as per undated Letter of Non-Issuance of Sanction Letter issued by the Applicant Bank in sum of ₹35,41,000/- (Rupees Thirty Five Lakhs Forty One Thousand Only) for 60 monthly instalments of ₹80,587/- (Rupees Eighty Thousand Five Hundred Eighty Seven Only) each payable with interest at the rate of 13.01%. The first instalment as on 01.11.2016 and last instalment on 01.10.2021. The said loan was disbursed directly infavour of New Ganesh Motors an amount of ₹34,89,899/(Rupees Thirty-Four Lakhs Eighty-Nine Thousand Eight Hundred Ninety-Nine Only).
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ORIGINAL APPLICATION NO.603 OF 2023
The details of the Sanction amount are as under:-
| Sr | Date of |
Amount of |
ROI | Security | |
|---|---|---|---|---|---|
| No | Sanction | Sanction | |||
| 1 | 28.09.2016 | ₹35,41,000 | 13.01% | Hypothecated Vehicle | Model |
| and | /- | BMW 3 SERIES |
Chassis | ||
| 29.09.2016 | Number | ||||
| WBA3Y37050D364782 | Engine | ||||
| No.70164831 | RTO | ||||
| Registration No.MH05 | PG8527 | ||||
| and Credit LAN |
No. |
||||
| LUMUM00034884556 | |||||
| Total | ₹35,41,000 | - | - | ||
| Amount | /- |
The details of the documents executed by the Defendant are as under: -
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ORIGINAL APPLICATION NO.603 OF 2023
Hypothecation dated 29.09.2016 of Vehicle Model BMW 3 SERIES GT Chassis Number 364782 Engine No.164831 RTO Registration No.MH05PG8527;
(e) Certified and Notarized copy of Electronic Clearing Service (Debit Clearing) Mandate with date of effect from 01.12.2016;
(f) Copy of Registration Certificate B Form dated 17.10.2016 signed Form-26, Form27, Form-28, Form-29, Form-30, Form-34 and Form-35 and Form TCR;
(5) The Applicant in their Claim Affidavit dated 28.07.2022 states that all the original documents were duly deposited with the Bhandup Police Station in due course of inquiry and investigation in CR No.184/19.
(6) After availing the loan, defendants did not adhere to the financial discipline and committed default in payment of instalments and repayment of the loan and accordingly the accounts of the borrowers were declared as Non-Performing Assets (N.P.A.) on 31.05.2018 as per RBI Guidelines. Therefore, on 06.09.2018, the applicant, issued recall notice and called upon the defendants to liquidate the outstanding in the sum of ₹31,34,754.53/- (Rupees Thirty One Lakhs Thirty Four Thousand Seven Hundred Fifty Four & paisa
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ORIGINAL APPLICATION NO.603 OF 2023
Fifty Three Only) as on 04.09.2018 alongwith interest and other charges till payment and/or realization within 7 days from receipt of this notice. Despite notice, defendant nos.1 & 2 failed and neglected to pay.
(7) As on 23.01.2019, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹30,31,906.30/- (Rupees Thirty Lakhs Thirty-One Thousand Nine Hundred Six & paisa Thirty Only). The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of the banking business.
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ORIGINAL APPLICATION NO.603 OF 2023
on the 1st of every month and penal interest to be calculated @ 24% per annum from the date of presentation of the Original Application i.e. 22.03.2019 till payment/realisation.
ORDER
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ORIGINAL APPLICATION NO.603 OF 2023
Application i.e. 22.03.2019 till
payment/realization.
Sd/-
(Harish Kumar Kaushik) Presiding Officer, DRT-2, Mumbai
Page 8 of 8
2 issues framed by the court
Whether the bank's claim for recovery of debt along with interest and charges is maintainable under Section 19(1) of the Recovery of Debts due to Banks and Financial Institutions Act.
Whether the defaulted vehicle loan created by the defendants amounts to a case where a secured creditor can enforce its rights under a recovery application.
2 provisions across 2 enactments
ICICI Bank Limited
Mr Kirron Manharlal Mehta
Kirti Manharlal Mehta
Harish Kumar Kaushik
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
