In CR No.447 of 2022-PUNJ HC- Single default in payment as per settlement would entitle Bank to take possession of concerned vehicle: P&H HC directs Trial Court to dispose of recovery suit filed by ICICI Bank against persons defaulting on loan payment
Justice Rajbir Sehrawat [19-01-2023]

Read Order: Malkit Singh And Another Vs. ICICI Bank Ltd

Monika Rahar

Chandigarh, January 20, 2023: While dealing with a petition challenging Trial Court's order in respect of a recovery suit filed by the ICICI Bank, the High Court Punjab and Haryana has directed the Trial Court to dispose of the suit in view of a settlement being arrived at between the parties qua the terms of payment. 

The Bench of Justice Rajbir Sehrawat observed, "It is clarified that even a single default in payment as per the settlement arrived herein above would entitle the respondent-Bank to take possession of the vehicle in question; without requirement of any further order from any Court." 

Essentially, ICICI Bank filed a suit for recovering the outstanding amount and for seeking possession of the vehicle in question. The orders passed by the Additional Civil Judge (Senior Division), Chandigarh in respect of the said suit, was challenged before the High Court in the present petition. 

During the course of arguments, the parties arrived at a settlement, under which the petitioners agreed to pay and the respondent-Bank agreed to accept the money as per schedule. The amount to be deposited by the ascertained date, the EMI amount etc. were agreed upon in the settlement. The settlement also contained a term which was to the effect that in case of default in payments as per above mentioned conditions, ICICI Bank was entitled to take the custody of the vehicle in question.

In view of the above, the Court observed, "It is clarified that even a single default in payment as per the settlement arrived herein above would entitle the respondent-Bank to take possession of the vehicle in question; without requirement of any further order from any Court."

Thus, the Court directed the Trial Court to dispose of the said suit accordingly.

While issuing such direction, the Bench noted, "Since, the main suit, from which the present petition had arisen, was filed by the Bank for recovering the outstanding amount and for seeking possession of the vehicle in question; and now the parties have arrived at a settlement qua the terms of payment, therefore, even that civil suit has been rendered as infructuous".