ICICI BANK LIMITED vs RAGHU ARVIND RAO on 15 May 2024

Page.No.

KOLKATA DEBTS RECOVERY TRIBUNAL NO. 2

ORDER SHEET (Continuation)

ICICI Bank Ltd.

TA/13 of 2019 (OA/46 of 2018)

Case No. \_\_\_\_\_

Vs Raghu Arvind Rao

<table border="1"><thead><tr><th data-bbox="131 202 201 266">Date of Order</th><th data-bbox="201 202 761 266">Order with Signature</th><th data-bbox="761 202 893 266">Office action with date and dated Signature of parties when necessary</th></tr></thead><tbody><tr><td data-bbox="131 266 201 924">24<br/>15.05.2024</td><td data-bbox="201 266 761 924"><p>Counsel for the parties:<br/>Ms. Shreyashi Sen and Ms. Akansha Chopra, Ld. Advocates representing Mr. Avishek Guha, Ld. Counsel for the applicant Bank.<br/>None appears for the defendant.<br/>T.A./13 of 2019 (arising out of O.A./46 of 2018 is allowed and disposed of.<br/>Final order / Judgment is in separate sheet.<br/>File be consigned to record room.<br/>Order be uploaded on the Tribunal's website.</p><p style="text-align: right;"><br/>(Arbind Madhav)<br/>Presiding Officer<br/>DRT-2, Kolkata</p></td><td data-bbox="761 266 893 924"></td></tr></tbody></table>

1

TA/13 of 2019 – DRT-2/KOL

**DEBTS RECOVERY TRIBUNAL - 2, KOLKATA**

Jeevan Sudha Bldg. 07^th Floor, 42/C, J.L. Nehru Road, Kolkata – 700071

**Before Shri Arbind Madhav, Presiding Officer**

**T.A. No. 13 of 2019**

(arising out of O.A./46 of 2018)

**In the matter of** -

**ICICI Bank Ltd.**, a company incorporated under the provisions of the Companies Act, 1956 and a banking company within the meaning of the Banking Regulations Act, 1949, having its Registered Office at ICICI Bank Tower, Near Chakli Circle, Old Padra Road, Vadodara – 390007, Gujarat, and also having its Branch at Bandra Kurla Complex, Mumbai – 400051, and Regional Branch office in Kolkata at 3A, Gurusaday Road, 3^rd Floor, P.S.- Karaya, Kolkata – 700019.

..... Applicant Bank

-Versus-

- 1. **Raghu Arvind Rao**, residing at E 701, Avishkta 1, 369/1, Purbachal Kalitala Main Road, Kolkata – 700078, and also 'Basundhara Apartment', 114C, Selimpur Road, Dhakuria, Near Green Chilly Restaurant, Kolkata – 700031, and also at Vishaka, Flat No.1B, 13, Chanditala Lane, Kolkata – 700040,

..... Defendant

Counsel for parties:

For the Applicant Bank : Mr. Avishek Guha, Ms. Shreyashi Sen, Ld. Advocate, Guha & Co.

For the Defendant : *Ex-Parte*

**FINAL ORDER / JUDGMENT**

Delivered on 15.05.2024

Applicant, ICICI Bank Ltd. instituted the present Application being the Original Application No.46 of 2018 filed in DRT-3, Kolkata on 17.01.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.25,10,621.00 (Rupees twenty five lacs ten thousand six hundred twenty one) calculated as on 06.12.2017 together with further interes, till realization of the entire dues. Subsequently, the instant case has been transferred to DRT-2, Kolkata vide the Hon'ble Chairperson DRAT, Kolkata's direction vide letter No.4/6/DRAT/KOL/2018(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3's Order dated 15.10.2019 and the same has been renumbered as T.A./ 13 of 2019 vide Ld. Registrar's order dated 24.10.2019.

- 2. The brief facts of the case as set out by the Applicant Bank in its Original Application, as under:

(i) That the defendant had applied and approached the applicant Bank with an intention to avail a Personal Loan for the purpose of renovation and/or extension of his house and in this regard the said defendant duly submitted the Preliminary Credit Facility Application Form. Copy of Preliminary Credit Facility Application Forms is annexed and marked as Annexure 'A'. Upon consideration of loan application, applicant Bank was pleased to grant / sanction a Term Loan of Rs.30,00,000/- (Rupees thirty lacs) in favour of the defendant. The said loan is to be repaid in equated monthly installments @ Rs.68,259/- per month for a tenure of 60 months commencing from 05.09.2015 payable at a fixed rate of interest @ 13% per annum.

(ii) On the said terms and conditions, the defendant entered into a Loan Agreement / Credit Facility Application Form for the purpose of availing the loan facility of Rs.30.00 lakhs. Copy of Credit Facility Application Form dated 07.08.2015 is annexed and marked as Annexure 'B'.

3. The applicant Bank thus disbursed the loan amount of Rs.30.00 lacs in favour of the defendant. Defendant availed and enjoyed the said credit facility; however, the defendant failed and neglected to abide by the terms and conditions of the facilities. The Defendant did not repay the outstanding Bank's dues, agreed EMIs and overdue interests in loan Account. Inspite of repeated requests and personal contact made by the Applicant Bank, the defendant failed to regularize the loan Account. Since the defendant did not pay any attention to regularize the Account, the Account became out of order and was classified as NPA. The applicant Bank finding no other alternative compelled to issue Loan Recall Notice dated 20.02.2017, but the defendant did not comply the said notice; copy of said notice is annexed and collectively marked as Annexure 'C'. By virtue of subsequent defaults being committed by the defendant, an amount of Rs.25,10,621/- calculated as on 06.12.2017 stands due and payable against the said loan account as appear from the Foreclosure Statements dated 06.12.2017; copies of said foreclosure statement is annexed and marked as Annexure 'D'. Certified copies of Statement of Account along with Certificate under Bankers' Books Evidence Act, with Statement of Claim, have been filed to show and prove the dues (Annexure 'E'), and future interest together with costs etc. till realization, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

4. The notice / summons was sent to the sole Defendant by the Tribunal; service of Notice / summons upon the Defendant by postal service / hand delivery has been effected, such has been recorded vide Ld. Registrar's order dated 10.07.2023. Despite service, the defendant did not appear nor filed the written statement; thus, the defendant was ordered to be proceeded *ex-parte* vide order dated 14.03.2024. Ld. Advocate of the applicant Bank has filed the written notes of arguments on 15.05.2024 wherein stated the brief facts of the case as has been narrated in the original application.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by Saswato Bhattacharjee, Manager / Constituted Attorney of Bank's 31 Chowringhee Road Office, Mezzanine Floor, Kolkata – 700016 along with the copy of documents executed by the Defendant. Copy of documents have been produced by the Applicant Bank; the same have been verified with copies of the documents annexed with O.A., and the original documents after verification have been returned to Mr. Shamim Aslam, Manager (Law) of Bank's 3A, Gurusaday Road Office, Kolkata – 700019 on 10.07.2023, such has been recorded in Ld. Registrar's order dated 10.07.2023. The documents produced by the Applicant Bank are exhibited and annexed at 'A-1' to 'A-5'.

I have heard the Ld. Advocate of the Applicant Bank and perused the records.

6. Evidence-on-affidavit, filed by Applicant Bank, has remained unchallenged, un-rebutted and its veracity cannot be put to dispute. Applicant Bank has corroborated the averments made in the O.A. Applicant Bank has proved the sanction of Term Loan facility for an amount of Rs.30.00 lakhs. This case is not secured by equitable mortgage of immovable property(s), but the unsecured debt amount is Rs.25,10,621/- (In para 3A at page 8 of the O.A.).

7. On the point of limitation, Loan has been sanctioned and disbursed on 11.08.2015, Loan Agreement / Credit facility Application Form dated 07.08.2015 and original Application has been filed on 17.01.2018. As such, the original Application appears to have been filed well within the period of limitation.

8. Applicant Bank has stated that the outstanding balance in Loan Account (inclusive of accrued interests calculated upto 06.12.2017) for a sum of **Rs.25,10,621.00** (Rupees twenty five lacs ten thousand six hundred twenty one) as on 06.12.2017, which is the amount claimed by the applicant Bank in the original Application, and the defendant is liable to repay the said amount to the applicant Bank with *pendente lite* and future interest, till realization. I allow the claim as made by the applicant Bank in the original Application. It is observed that no future interest has been prayed for by the applicant Bank in the original application, while in the Loan Agreement / Credit Facility Application Form dated 07.08.2015 the rate of interest @ 13% per annum, has been mentioned. Therefore, in my view, as the loan has been granted for the purpose of renovation and/or extension of house, the *pendente lite* & future rate of interest @ 13% per annum, simple, from 07.12.2017, is allowed.

9. The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. The Applicant Bank has proved to claim made in the O.A./T.A. The T.A. being T.A./13 of 2019 (arising out of O.A./46 of 2018) deserves to be allowed; hence allowed

10. In view of the above, I pass the following order :-

ORDER

(i) T.A./13 of 2019 (arising out of O.A./46 of 2018), filed by the Applicant Bank, is allowed and debt is determined with cost against the sole Defendant. It is hereby ordered that the Defendant is hereby directed to pay the total debt amount of **Rs.25,10,621.00**

(Rupees twenty five lacs ten thousand six hundred twenty one) due and payable, inclusive of interest and other charges as calculated upto 06.12.2017; and interest for the period *pendente lite* and future rate @ 13% per annum, simple, from 07.12.2017, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendant in the loan account or amount, if any, recovered by the Applicant Bank after filing of the Original Application, the same may be taken into account while arriving at the exact amount of dues/debt payable by the Defendant. Accordingly, the *pendente lite* and future interest shall be calculated on the reduced amount.

(iii) This case is not secured by equitable mortgage of immovable property(s), but the unsecured debt amount is Rs.25,10,621/- (In para 3A at page 8 of the O.A.).

The Defendant is also debarred from transferring, alienating, encumbering or disposing any other property(s) either movable or immovable and assets belonging to him till the aforesaid adjudicated debt amount are recovered from the Defendant.

(iv) The defendant is given a time of thirty days from the date of this Final Order / Judgment for repayment of the above mentioned dues, so intimated to him. In case the Defendant fails to pay the dues within the above mentioned time, the Applicant Bank is entitled to recover its dues by sale of secured properties, as aforesaid. Applicant Bank is also entitled to proceed against personal properties of the Defendant both moveable and immovable and also proceed against the sole Defendant personally to recover the dues, in accordance with law.

(v) Let the Certificate of Recovery be drawn up by Ld. Registrar forthwith in terms of Final Order / Judgment for issuance of the same against the Defendant in favour of Applicant Bank under Section 19(22) of the Recovery of Debts and Bankruptcy Act, 1993 (amended from time to time) and put up the same for signature for issuance.

(vi) Ld. Recovery Officer shall realize the amount as per the Recovery Certificate from the sole Defendant, in accordance with law.

(vii) Ld. Registrar of this Tribunal is directed to place Recovery Certificate in terms of this Final Order / Judgment under section 19(22) of the Act of 1993.

**Accordingly, the Original Application, being T.A./13 of 2019 (arising out of O.A./46 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 15^th day of May, 2024.

Copy of the Final Order / Judgment be uploaded in the Tribunal's Website.

(Arbind Madhav) Presiding Officer DRT-2, Kolkata

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