Allowed

Icici Bank Limited v. K Balu and Other

DRT25 Mar 2025TA/76/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of a commercial vehicle loan of Rs. 15,79,427.13 plus interest due from two borrowers who failed to repay the loan and executed a hypothecation deed.

What did the court decide?

Recovery of Rs. 15,79,427.13 with interest @ 12.27% p.a.; sale of hypothecated vehicle; sale of personal assets if vehicle proceeds are insufficient.

Icici Bank Limited versus K Balu and Other — Banking and Recovery | DRT (2025)

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T.A. No. 76 of 2023

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25.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 25^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 76 of 2023

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(Originally filed before DRT- II, Chennai as OA 413/2018 and thereafter transferred to this Tribunal and renumbered as TA No 76 of 2023)

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ICICI Bank Limited Rep. by its Authorised Signatory, Mr. Srikrishna No.1, Cenotaph Road, Teynampet, Chennai – 600 018

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….Applicant

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-Vs-

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K. Balu

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S/o Karupaasamy Door No.8, Ganapathi nagar, 2^nd Street, Anankaputhur Tambaram, Chennai – 600 070.

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Also at: K. Balu Prop. Of Sri Ganapathi Transport, O. No.79, N. No.118, Shanmugarayan Street, Chennai – 600 001.

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B. Muniyammal W/o. K.Balu Door No.8, Ganapathi Nagar, 2^nd Street, Anakapthur, Tambaram, Chennai – 600 070 …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s M. Ajmal Azzath

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Defendants 1 to 2 were set ex-parte on 09.10.2018

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T.A. No. 76 of 2023

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: - FINAL ORDER - :

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This original application is filed on 16.11.2017 by the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 to 2, jointly and severally for recovery of a total sum of Rs.15,79,427.13p (Rupees Fifteen Lakhs Seventy Nine Thousand Four Hundred and Twenty Seven and Thirteen Paise only) due in respect of Commercial Vehicle Loan (Account No.LVCHE00029449616) together with further interest @ 12.27% p.a., with monthly rests from the date of Application till the date of realization in full, for sale of scheduled mentioned immovable property and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.413 of 2018, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.413 of 2018 stood transferred to this Tribunal and renumbered as TA No.76 of 2023.

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Hon’ble Tribunal.

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T.A. No. 76 of 2023

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It is the case of applicant bank that the defendants had approached the applicant bank and submitted loan application form dated 28.08.2014 and sought for sanction of Commercial Vehicle loan for their own use, and executed the credit facility application forms dated 31.08.2014 in favour to the applicant.

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After scrutinizing the documents the same was considered by the applicant bank, and sanctioned a sum of Rs.23 lakhs credited to borrower’s account after deducting processing fee of Rs.2850/- and stamp duty of Rs.120/-, which was acknowledged by the defendants.

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The applicant submits that there upon, the defendants executed the loan documents namely preliminary credit facility application form dated 28.08.2014 in favour to the applicant for availing credit facility, wherein they had under taken to comply with all the terms and conditions of the applicant bank governing the said facilities.

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It is submitted by the applicant bank that the defendants had availed loan facility for purchase of Commercial vehicle loan account No. Via, LVCHE00029449616.

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It is further submitted by applicant bank that in consideration of availing the above said loan facilities from the Applicant bank, as a security for due repayment of the amount due and payable under the said loan facilities, the defendants have created a charge over and

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hypothecated the said vehicle in favour of the applicant bank and the fact of hypothecation was also recorded in the registration certificate of the said vehicle.

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The defendants, who were borrowers under the facilities executed following documents in favour of applicant bank:

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a. An Unattested Deed of Hypothecation dated 31.08.2014 for hypothecating the vehicle.

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b. Irrevocable power of Attorney in favour to the applicant bank dated 31.08.2014 and

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It is submitted by applicant bank that under the terms of the credit facility mentioned supra, and under the terms of the hypothecation deed referred to above, the defendants have undertaken to pay the loan instalments on the due dates without any delay or default and in case of default in the payment of monthly instalments on the due date, the defendant had agreed to pay further interest @24% p.a. plus applicable tax and other statutory levies, if any, from the date of default till payment thereof however the levy of additional interest will not absolve the liability of the defendant to pay the monthly instalments on the due dates. The defendant had also declared that they were bound by the standard terms governing the applicant banks loan facilities for purchase of the vehicles/ equipment mentioned above.

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Under clause VII (6) of the said credit application forms, the

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defendant had undertaken to inform the applicant bank regarding any changes whatsoever in his address or the address where the products are located / fixed or kept.

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The defendant had also under clause VII (12) of the credit application forms had declared that the transaction for which the loan was obtained was for a commercial transaction and had clearly waived any defense under any usury or other laws relating to the charging of the interest.

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The defendant had also under VII (13) of the credit application form had acknowledge and confirmed that the applicant bank is not responsible for the quality, fitness and performance of the products and should not be liable for any representation or warranties whatsoever made by the seller; manufacturer, dealer or other agents with respect to the products in any manner.

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The applicant submits that the loan transaction referred to above is governed by the terms and conditions as set out in ICICI Bank Ltd standard terms and conditions for facilities for purchase of against products which had been duly accepted by the defendants.

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It is submitted that defendant shall pay the instalment amount on the due dates as per the application without any delay or default whether demanded or not, the defendant shall pay a further interest @24% p.a. on the payment defaults over the amount in arrears from time to time till

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payment thereof.

It is submitted by Applicant Bank that after availing the said facility, the defendants deliberately failed to repay the loan amount availed in spite of repeated demands and reminders by Applicant Bank. As defendants miserably failed to make repayments in the aforesaid loan account, this Original Application (OA) has been filed to recover the dues from the defendants.

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After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which returned with the endorsement “no such person” in respect of D-1, while Summons to D-2 was duly served. Applicant bank had caused paper publication of notice in respect of D-1 and filed proof thereof. When OA was taken up on 09.10.2018 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants1 to 3 were placed ex-parte on 09.10.2018.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Mr. V. Srikrishna, Authorised Signatory of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-11 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra

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evidence available on record to repudiate the claim of the Applicant Bank.

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With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

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: O R D E R :

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 to 3 jointly and severally, a total sum of Rs.15,79,427.13p (Rupees Fifteen Lakhs Seventy Nine Thousand Four Hundred and Twenty Seven and Thirteen Paise only) due in respect of Commercial Vehicle Loan (Account No.LVCHE00029449616) together with further interest @ 12.27% p.a ., with monthly rests from the date of Application till the date of realization in full along with costs of this application.

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(b) In the event of failure of the Defendants to pay the aforesaid

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amount, the bank is at liberty to recover the amount by sale of the schedule mentioned hypothecated vehicle more fully detailed in the OA schedule.

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(d) If the sale proceeds of the hypothecated assets are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants;

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(e) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days from the date of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

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A copy of this order be communicated to the parties concerned.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER,

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DRT-III, CHENNAI

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(Dictated to Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 25^th day of March, 2025)

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. V. Srikrishna, Authorised Signatory of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Power of Attorney 29.03.2014	A-1
2.	Preliminary Credit Facility Application Form 23.08.2014	A-2
3.	Addendum	A-3
4.	Most Important information 31.08.2014	A-4
5.	Credit Facility Application 31.08.2014	A-5
6.	Unattested Deed of Hypothecation 31.08.2014	A-6
7.	Irrevocable Power of Attorney 31.08.2014	A-7
8.	Registration Certificate of Vehicle	A-8
9	Loan Recall Notice 14.09.2017	A-9
10	Statement of Accounts 28.08.2017	A-10
11	BBE Certificates	A-11

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

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:- SCHEDULE OF PROPERTY-:

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HYPOTHECATED VEHICLE : AMW 2528 TP

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MODEL : VEHICLE REGISTRATION No : TN 22 BP 3111 ENGINE No : H00000705 CHASIS No :1484622

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Icici Bank Limited v. K Balu and Other

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. K Balu and Other

Case brief

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