ICICI BANK LIMITED vs SIDHIK M.S on 24 February 2018

FINAL ORDER

The Original Application has been filed under Section 19(1) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 for recovery of a sum of Rs.10,77,757/- (Rupees Ten lakhs seventy seven thousand seven hundred and fifty seven only) is due to the applicant from the defendant together with future interest @ 11.34% per annum from the date of OA till the date of realization and also its costs. BRIEF FACTS OF THE CASE

The applicant is M/s.ICICI Bank Ltd. a company incorporated under the Companies Act, 1956 and licensed as a Bank under Banking Regulation Act, 1949, having its registered office at ‘Land Mark’, Race Course Circle, Alkapuri, Baroda-390007 and it corporate office at ICICI Towers, Bandra-Kurla Complex, Bandra (E) Mumbai-400051 and its branch at Aban Arcade, P.K.Road, Pathanamthitta, Pin-689 646. The Debt Manager, Ernakulam Branch being one of the Principal Officers and Power of Attorney Holder of the applicant bank is competent to sign and verify the original application and represent the bank in this proceedings.

It is the case of the applicant that the defendant approached the applicant bank for availing a used car loan for the purchase of SKODA OCTAVIA. Accordingly, the defendant submitted preliminary credit facility form to the applicant highlighting his credentials and financial details.

The prior to the sanction of the loan defendant had executed vehicle loan cum hypothecation agreement and irrevocable power of attorney in favour of the applicant bank. Accordingly applicant sanctioned the loan and defendant had disbursed an amount of Rs. 6,90,000/-.

It is stated by the applicant that at time of entering into the agreement, defendant has agreed to repay the aforesaid loan with interest, cheque bouncing charge and other overdue charges etc for the defaulted amount. But the defendant has default the payment of EMI and failed to maintain sufficient balance in the bank account. Hence the applicant banks sent loan recall notice dated 06.07.2015 and the same was acknowledged by the defendant.

5. As on 22.06.2015 an amount of Rs.10,77,757/- is outstanding in respect of the loan account No.LUTDU00003184054.

Hence the applicant constrained to file the instant OA. Along with the Original Application, the applicant bank filed IA.No.1994/2015 seeking an attachment of the vehicle scheduled therein belonging to the defendant. The Tribunal on being found that there is a prima facie case in favour of the applicant bank had passed conditional attachment in respect of the schedule vehicle on 03.08.2015. But the Advocate Commissioner could not execute the order passed in IA.No.1994/2015 as the vehicle was not traceable.

6. The defendant was duly served with summons. But he neither appeared nor he represented and thus the defendant was set exparte on 06.10.2017.

7. The evidence on the side of the applicant bank consists of the proof affidavit of its Principal Officer, AW1 and Exhibits A1 to A7 is marked on the side of applicant and closed their side of evidence.

8. Heard arguments of the applicant bank and perused the records of the case. The following points arise for my consideration:

(i) Whether the applicant is entitled for the reliefs prayed for in the OA?

(ii) What order?

My findings on the above points are as follows:- Point No.(i):

In the affirmative

Point No.(ii):

As per final order.

Reasons:-

9. The case of the applicant bank regarding recovery of the sum of Rs.10,77,757/- claimed as due under Exts.A7 statements of account relating to the loan account No.LUTDU00003184054 together with future interest @ 11.34% per annum and by sale of movable property attached in IA.No.1994/2015 is proved by the proof affidavit of its Principal Officer, AW1 and Exhibits A1 to A7. Having regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, I am of the view that the applicant bank is entitled to get interest @ 11.34% per annum, as prayed for.

10. The applicant bank, therefore, is entitled to get a final order on the following lines:-

O R D E R

The applicant bank is given a final order allowing it to recover the sum of Rs.10,77,757/- (Rupees Ten lakhs seventy seven thousand seven hundred and fifty seven only) together with future interest @ 11.34% per annum from 29.07.2015 till realization and also its costs from the defendant and by sale of movable property attached in IA.No.1994/2015.

11. Schedule to the IA.No.1994/2015 shall be appended to this order.

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

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

14. The Registry is directed to communicate copy of the order to the parties concerned by speed post or registered post with AD. [Dictated to the Steno, transcribed by her, corrected by me and then pronounced in the open court on this the 24th day of February, 2018]

(S.V.GOWRAMMA) Presiding Officer

A P P E N D I X Witness for Applicant: AW1: Vineeth Kumar, Principal Officer of the applicant bank.

Witness for Defendant: Nil

Exhibits on the part of the applicant

Ext.No. Date Particulars of documents A1. 29.12.2004 Preliminary credit facility form submitted by the defendant. A2.

Vehicle loan cum hypothecation agreement executed by the defendant in favour of the applicant. A3.

Irrevocable Power of Attorney executed by the defendant in favour of the applicant bank. A4. 06.07.2015 Office copy of the recall notice issued to the defendant by the applicant. A5. 07.07.2015 Postal receipt evidencing the issuance of recall notice to the defendant. A6. 10.07.2015 Acknowledgement card signed by the defendant evidencing the receipt of recall notice dated 06.07.2015 by the defendant. A7.

Statement of accounts along with IT certificate pertaining to account No.LUTDU00003184054.

Defendant Exhibits – Nil

(PRESIDING OFFICER)

(PRESIDING OFFICER)

VK

IN THE DEBTS RECOVERY TRIBUNAL-II, KERALA AT ERNAKULAM

Dated this the 24th day of February, 2018

Present: S.V.Gowramma, B.A., LL.B Presiding Officer

TA.No.1001/2016 (O.A.No.371/2015) Between M/s.ICICI Bank Ltd. …Applicant And

Sidhik M.S

…Defendant

FINAL ORDER