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ICICI BANK LIMITED v. UTTAM STONE CRUSHER.

Debts Recovery Tribunal

Jul 6, 2020

Judgment

Subsequent
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CaseIQ

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Judgment Summary — Debts Recovery Tribunal, Jaipur (O.A. No. 1404 of 2019)

Factual and Procedural Background

This summary is based exclusively on the provided court opinion and records of the Debts Recovery Tribunal, Jaipur in O.A. No. 1404 of 2019.

On 30-10-2019 M/s ICICI Bank Limited (Applicant Bank) filed Original Application No. 1404 of 2019 against the Defendants for recovery of Rs. 32,31,618.00 (Rupees Thirty Two Lakh Thirty One Thousand Six Hundred Eighteen) being outstanding on a credit facility granted for purchase of commercial vehicles. The loan was granted under the bank's loan-cum-hypothecation scheme for purchase of commercial vehicles. The vehicles were hypothecated in favour of the bank and registered; the opinion records two registration numbers prominently: RJ51-GA-1328 and RJ51-GA-1330.

The defendants undertook to repay by equated monthly installments with interest and agreed that in the event of default the bank could take possession of the hypothecated vehicles. According to the applicant bank, the defendants defaulted in repayment and, after adjusting payments made, remained liable for the stated sum.

Procedural history recorded in the opinion:

The Defendants were called and set ex-parte on 05.03.2020.
The applicant bank filed an evidence affidavit and produced documents marked Exhibit Aw/1/1 to Aw/1/9.
Arguments were heard by video conference from the learned counsel for the applicant bank.
The Tribunal framed the point for consideration as: whether the applicant bank is entitled to the claim as prayed for.
The Tribunal pronounced the judgment on 06.07.2020 allowing the O.A. and directed issuance of a recovery certificate under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act).
The Registrar verified the recovery certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015, Recovery Certificate was prepared and placed for signature, and parties were directed to appear before the Recovery Officer on 13-10-2020.

Legal Issues Presented

Whether the applicant bank is entitled to recover the claimed sum of Rs. 32,31,618.00 (with interest) from the defendants as prayed in the Original Application?

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Tribunal's analysis, as recorded in the opinion, proceeded in the following steps:

Noting the procedural posture, the Tribunal recorded that the defendants remained ex-parte and did not participate after being set ex-parte on 05.03.2020.
The applicant bank produced an evidence affidavit and documentary evidence marked Exhibit Aw/1/1 to Aw/1/9; the Tribunal described those affidavits and documents as containing recitals which "clinches the claim" of the applicant bank against the defendants.
On the basis of the unchallenged evidence filed by the applicant and the defendants' absence, the Tribunal concluded that the material on record established the bank's claim for the stated amount and the entitlement to recovery remedies available under the loan agreement and hypothecation.
Accordingly, the Tribunal held the defendants liable to pay the claimed amount with future interest and costs, and directed enforcement steps (issuance of a recovery certificate and realization by the Recovery Officer under the RDDBFI Act).

The opinion contains no extended doctrinal discussion or citation of case law; the reasoning is founded on the uncontroverted evidentiary record presented by the applicant and the defendants' non-appearance.

Holding and Implications

Holding: O.A. No. 1404 of 2019 is allowed.

Consequences and direct effects on the parties:

The Defendants are declared liable to pay the applicant bank Rs. 32,31,618.00 (Rupees Thirty Two Lakh Thirty One Thousand Six Hundred Eighteen) with future interest at 10% per annum (simple) from the date of filing the original application until realization.
The applicant bank is entitled to realize the amount by sale of the hypothecated commercial vehicles (registration numbers recorded in the opinion: RJ51-GA-1328 and RJ51-GA-1330) and by proceeding against other personal movable and immovable properties/assets of the defendants, jointly and severally.
The applicant bank is entitled to costs and expenses of the O.A.; the Memorial of Costs records a total of Rs. 36,385 comprising: Fee on the application Rs. 35,000; Process Fees (inc. Publication) Rs. 135; Advocate Fees Rs. 1,250; Miscellaneous Charges NIL; with an unspecified entry for Commissioner/Receivers/Valuation/Security Fee.
A recovery certificate was ordered to be issued forthwith, prepared in compliance with the Tribunal's directions, verified by the Registrar under Regulation 24(1) and (2) of the Debts Recovery Tribunal Jaipur Regulation 2015, and sent to the Recovery Officer, DRT, Jaipur for realization in the manner prescribed under Section 25 and Section 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
Parties were directed to appear before the Recovery Officer, DRT, Jaipur on 13-10-2020. The file was to be consigned to record after compliance.

Broader implications: The opinion does not state or record any new legal precedent or broader doctrinal pronouncement. The decision enforces the bank's contractual and statutory remedies based on the evidentiary record and the defendants' non-appearance; no additional policy or precedent-setting discussion is contained in the provided text.

Case Identification and Key Participants (as recorded)

Applicant Bank: M/s ICICI Bank Limited (registered office: ICICI Bank Tower, Near Chakli Circle, Old Padra Road, Vadodara-390007; regional office: JSEL Building, JLN Marg, Malviya Nagar, Jaipur-302017). Counsel for Applicant: Sh. Deepak Sarawagi.

Defendants: 1) Uttam Stone Crusher through its proprietor Shanti Lal Jat (addresses include Mata Ji Ka Khera, Bhilwara-311402; Araji No. 5648, Tehsil Shahpura, Village Dhikola, Bhilwara-311402); 2) Sita Ram Jaat (address recorded at Pashupatinath Mandir, Indor Road, Jhalrapatan, Jhalawar-326023).

Presiding Officer: Vivek Saxena, Presiding Officer, Debts Recovery Tribunal, Jaipur. Date of delivery of order: 06.07.2020.

End of summary. This document strictly summarizes the information contained in the provided opinion and does not add or infer facts beyond the source text.

Show all summary ...

1. The Applicant Bank originally filed this O.A. on 30-10-2019, against the Defendants for the recovery of a sum of RS. 32,31,618.00 (RUPEES THIRTY TWO LAC THIRTY ONE THOUSAND SIX HUNDRED EIGHTEEN) on Credit Facility for purchase of Vehicles @ 9.00% p.a. rests from the Defendants with date of filing this original application till the date of realization and in default by sale of hypothecated Commercial Vehicles i.e.- OA No. 1404 of 2019 S.No. Description of Vehicles Registration No. LVJLR00037122478 Lpk 2518/Fully Built Regd. No.-RJ51-GA-1328 LVJLR00037122469 Lpk 2518/Fully Built Regd. No.-RJ51-GA-1330 AND as well as other Personal movable and immovable properties/assets of Defendant, jointly and severally. The applicant bank is entitled to proceed against the same towards recovery of its debt. The applicant bank is entitled to the costs and expenses of the original application. The brief facts of the case are-

i. that the present original application was filed by the Authorized Officer of the applicant bank and who was authorized to sigh & verify the original application and the same on behalf of the bank.

ii. that the Defendants approached and requested the applicant bank for grant of loan for purchase of commercial vehicles under the loan cum hypothecation scheme of the applicant bank. The defendants agreed to repay the said loan in equated monthly installments along with interest. The defendants also agreed and undertook to repay the loan amount along with interest and in case any installment is delayed, the defendants pay a penal interest as per the agreement and applicant bank would also be entitled to take the possession of the commercial vehicles in the event of default in making the payment of the installments by the defendants.

iii. that disbursement of the loan amount from the applicant bank, the above commercial vehicles was delivered to the defendants and the said Vehicles got registered hypothecated in the name of the applicant bank. OA No. 1404 of 2019

iv. that despite the undertaking given by the defendants, the defendants had defaulted in repayment of the monthly installments and as per the account maintained by the applicant, the defendants is liable to pay a sum of Rs. 32,31,618/- towards the outstanding installments, interest and other dues after adjusting the payment made by the defendants.

v. that pursuant to the said loan, the defendants failed to adhere to the financial discipline of the repayment of the loan either principle and interest or charges thereon..

vi. that despite several assurances by the defendants, the defendants have deliberately violated the equated monthly installments schedule.

vii. that the applicant bank duly notified into the defendants to make the repayment of the outstanding amount and also handover the peaceful possession of the commercial vehicles to applicant bank. The defendants have neither cared to reply to the notice nor have made any effort to repay the outstanding amount and also to handover the peaceful possession of the commercial vehicles.

viii. that the applicant bank is entitled to recover the aforesaid amount from the Defendants and also entitled to realize outstanding amount by the sale of hypothecated Vehicles & personal properties of the Defendants.

2. The Defendants is called absent and set ex-parte on 05.03.2020.

3. The applicant bank filed its evidence affidavit along with list of documents, annexing there with Exhibit Aw/1/1 to Aw/1/9.

4. Heard arguments through Video Conference of Ld. Counsel for the applicant bank.

5. The point that arise for consideration is: Whether the applicant bank is entitled to the claim as prayed for? OA No. 1404 of 2019

6. As stated supra, the Defendant remained ex-parte. The applicant bank filed the evidence affidavit coupled with the recitals in the documents, viz Exhibit Aw/1/1 to Aw/1/9 marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendant. Hence, I hold that the Defendant is liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

7. In the result, this O.A. No. 1404 of 2019 is allowed declaring that:-

a) The Defendants are liable to pay to the applicant bank a sum of RS. 32,31,618.00 (RUPEES THIRTY TWO LAC THIRTY ONE THOUSAND SIX HUNDRED EIGHTEEN) with future interest @ 10% p.a. (Simple) rests from the date of filing the original application till the date of realization.

b) The applicant bank is entitled to recover the above amount by the sale of hypothecated Commercial Vehicles i.e. S.No. Description of Vehicles Registration No. LVJLR00037122478 Lpk 2518/Fully Built Regd. No.-RJ51-GA-1328 LVJLR00037122469 Lpk 2518/Fully Built Regd. No.-RJ51-GA-1330 AND as well as other Personal movable and immovable properties/assets of Defendant, jointly and severally. The applicant bank is entitled to proceed against the same towards recovery of its debt.

c) The applicant bank is entitled to the costs and expenses of the O.A.

8. The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

9. Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 13-10-2020.

10. Prepare Recovery Certificate accordingly.

11. A copy of the Judgment and Recovery Certificate be given or sent by registered post to each of the parties free. A copy of the Recovery OA No. 1404 of 2019 Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law. (Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur Order pronounced in the open court today i.e. 06.07.2020. (Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur Place-Jaipur Dated-06.07.2020 OA No. 1404 of 2019 BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIVEK SAXENA PRESIDING OFFICER O.A. NO. 1404 OF 2019 DATE OF DELIVERY OF ORDER 06.07.2020 RECOVERY CERTIFICATE (UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993) M/S ICICI BANK LIMITED, HAVING ITS REGISTERED OFFICE AT: ICICI BANK TOWER, NEAR CHAKLI CIRCLE, OLD PADRA ROAD, VADODARA-390007 HAVING ITS REGIONAL OFFICE AT: ICICI BANK LTD, .JSEL BUILDING, JLN MARG, MALVIYA NAGAR, JAIPUR-302017 ..Applicant Bank VERSUS

1. UTTAM STONE CRUSHER,THROUGH ITS PROPRIETOR-SHANTI LAL JAT, S/O. SH. UGMA JAT,MATA JI KA KHERA, BHILWARA-311402 (RAJ.) ALSO AT- ARAJI NO.-5648, TEHSIL-SHAHPURA, VILLAGE- DHIKOLA, BHILWARA-311402 (RAJ.)

2. SITA RAM JAAT,S/O. SH. UGMA RAM, PASHUPATINATH MANDIR, INDOR ROAD, JHALRAPATAN, JHALARA PATAN CITY, JHALAWAR, JHALAWAR-326023 (RAJ.) Defendants. Recovery Certificate for Rs. 32,31,618.00 /- In terms of final order dated 06.07.2020 passed by this Tribunal in the above mentioned case, it is ordered that the-

a) The Defendant are liable to pay to the applicant bank a sum of RS. 32,31,618.00 (RUPEES THIRTY TWO LAC THIRTY ONE THOUSAND SIX HUNDRED EIGHTEEN) with future interest @ 10% p.a. (Simple) rests from the date of filing the original application till the date of realization. OA No. 1404 of 2019

b) The applicant bank is entitled to recover the above amount by the sale of hypothecated Vehicles i.e.- S.No. Description of Vehicles Registration No. LVJLR00037122478 Lpk 2518/Fully Built Regd. No.-RJ51-GA-1328 LVJLR00037122469 Lpk 2518/Fully Built Regd. No.-RJ51-GA-1330 AND as well as other Personal movable and immovable properties/assets of Defendant, jointly and severally. The applicant bank is entitled to proceed against the same towards recovery of its debt.

c) The applicant bank is entitled to the costs and expenses of the O.A.

ii. Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 13-10-2020. The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor. This Certificate has been issued under my signatures and seal of the Tribunal on this 06.07.2020. (Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur Place-Jaipur Dated-06.07.2020 OA No. 1404 of 2019 FORM NO. 10 [See Regulation-24(1)] DEBTS RECOVERY TRIBUNAL SFE 3-4, Nehru Place, Tonk Road, JAIPUR- 302015 SCHEDULED TO RECOVERY CERTIFICATE MEMO OF COST O.A No. 1404 of 2019 M/S ICICI BANK LIMITED, HAVING ITS REGISTERED OFFICE AT: ICICI BANK TOWER, NEAR CHAKLI CIRCLE, OLD PADRA ROAD, VADODARA-390007 HAVING ITS REGIONAL OFFICE AT: ICICI BANK LTD, .JSEL BUILDING, JLN MARG, MALVIYA NAGAR, JAIPUR-302017 ..Applicant Bank VERSUS

2. SITA RAM JAAT,S/O. SH. UGMA RAM, PASHUPATINATH MANDIR, INDOR ROAD, JHALRAPATAN, JHALARA PATAN CITY, JHALAWAR, JHALAWAR-326023 (RAJ.) Defendants. S. No. Item of Costs Amount in Rupees

1. Fee on the application 35,000

2. Process Fees (inc. Publication) 135

3. Advocate Fees 1,250

4. Commissioner/Receivers/Valuation/ Security Fee

5. Miscellaneous Charges NIL Total Costs 36,385 (Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur Place-Jaipur Dated-06.07.2020 OA No. 1404 of 2019 06.07.2020 Counsel: Sh. DEEPAK SARAWAGI, Counsel for the Applicant Bank Defendants are Ex-parte. Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepared accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015 and after verification place the same before the Tribunal. (Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur OA No. 1404 of 2019 06.07.2020 Counsel: Sh. DEEPAK SARAWAGI, Counsel for the Applicant Bank Defendants are Ex-parte. The Tribunal vide order dated 06.07.2020, directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. The Registrar vide order dated 06.07.2020 verified the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. Recovery Certificate is prepared accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record. (Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur OA No. 1404 of 2019 DEBTS RECOVERY TRIBUNAL, JAIPUR ORIGINAL APPLICATION NO. 1404 of 2019 The Recovery Certificate prepared in compliance of order dated 06.07.2020 passed by Honble Presiding Officer, DRT, Jaipur in Original Application No. 1404 of 2019 Title- ICICI Bank Ltd. Vs. Uttam Stone Crusher and Ors has been checked and may be verified. Section Officer Assistant Registrar On the basis of the report of Section Officer the Recovery Certificate is verified. The Recovery Certificate is placed below for the signature of Honble Presiding Officer please. Assistant Registrar Honble Presiding Officer