ICICI BANK LIMITED Vs. JAL SINGH

JUDGEMENT

(1.) ALLOWED subject to just exception. Application stands disposed of.

(2.) THE learned Additional District Judge vide its order dated 29th June, 2007, has declined the request of the appellant-bank to appoint an ex parte receiver. Adumbrated in brief the case of the appellant is this. The respondent approached the appellant-bank for grant of a loan in the sum of Rs. 1,77,382/- for the purchase of a vehicle namely 733/34 bearing registration No. HR-30C-7827 under the Loan-cum-Hypothecation Scheme of the appellant-bank. The respondent executed demand promissory note for an amount of Rs. 1,77,382/- and interest thereon at the rate of 9.33 % p.a., irrevocable power of attorney and several other documents in favor of the appellant-bank on 13th December, 2004. The respondent agreed to repay the said loan along with interest in 16 quarterly Installments. It was also agreed that in the event of any default in paying the Installments by the respondent, the appellant-bank would be entitled to take the possession of the commercial vehicle financed to him and sell the same to recover the outstanding amount due. It is alleged that the respondent failed to adhere to the financial discipline of the repayment of loan. A sum of Rs. 2,12,304.59 inclusive of penal interest @24% per annum and other dues is due to him. Thereafter, a loan recall notice dated 28th April, 2007, was served upon the respondent but it did not produce the desired result.

(3.) IN my judgment dated 5th February, 2007, passed in FAO 42/2007 titled as ICICI Bank Limited v. Kaptan Singh (which was also produced before the learned Additional District Judge), I had followed the judgment dated 3rd April, 2002, passed by a Division Bench of this Court in FAO(OS)117/2002 titled as CITI Bank N.A. v. Udesh Kumar, wherein it was held,