Scribd
Upload
55 views14 pages

., Hans Co Sirhind / Vs - Icicibank: A Case Study Presentation

The case involves a dispute between Hans & Co., Sirhind and ICICI Bank regarding a Contract Financing Agreement (CFA) entered into in 2006. Key points: 1) Hans & Co. spent money setting up an office and provided ICICI a fixed deposit receipt (FDR) worth Rs. 5 lakhs as security. 2) ICICI terminated the agreement without proper notice but held onto the FDR. 3) The consumer forum ruled in favor of Hans & Co., ordering ICICI to return the FDR along with interest and pay damages for mental harassment. 4) The forum observed ICICI did not follow the CFA terms to give notice before termination and could not hold the

Uploaded by

Saranya Saran
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
55 views14 pages

., Hans Co Sirhind / Vs - Icicibank: A Case Study Presentation

The case involves a dispute between Hans & Co., Sirhind and ICICI Bank regarding a Contract Financing Agreement (CFA) entered into in 2006. Key points: 1) Hans & Co. spent money setting up an office and provided ICICI a fixed deposit receipt (FDR) worth Rs. 5 lakhs as security. 2) ICICI terminated the agreement without proper notice but held onto the FDR. 3) The consumer forum ruled in favor of Hans & Co., ordering ICICI to return the FDR along with interest and pay damages for mental harassment. 4) The forum observed ICICI did not follow the CFA terms to give notice before termination and could not hold the

Uploaded by

Saranya Saran
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 14

A Case Study Presentation

Hans & Co., Sirhind


V/s
I C I C I Bank.

a n y a
R. Sar
Case Facts
Hans & Co., Sirhind entered into a CFA with
ICICI Bank on 29.12.2006.

CFA terms & conditions.

Co. spent – Rs. 3.00 lakhs & Rs. 0.06 lakhs as
rent for setting of office.
Case Facts Cont…
ICICI Bank obtained FDR of Rs. 5.00 lakhs @
8% p.a. maturing on 14.01.2008 as security
deposited.

ICICI terminated agreement & held on to FDR.

Hans & Co. approached District Consumers
Redressed Forum on 03.09.2009.
Case Facts Cont…
ICICI Arguments

 Default in loans – as per CFA, Bank could
adjust the security deposit – General Lien of
Bankers.

 16 Cases pending to be disbursed by Hans &
Co.

 Repeated Reminders failed to get desired
response.

Case Facts Cont…
 Hans & Co., Sirhind Arguments

 Co. entered into CFA to earn livelihood.

 Incurred heavily for setting up of office.

 Burdened by ICICI by double taxing – SDR & FDR.

 Holding on to FDR after CFA Termination in gross
violation of the Banker Customer (Debtor –
Creditor) Relation.

 Deposit to be returned as & when customer
demands – even if before maturity – without
deduction of principal.
Observations by the Forum:
 CFA - either party may terminate – 2 months notice

 ICICI did not do so.

 CFA – ICICI may without notice terminate if T&C


violated.

 Hans & Co. issued notice on 07.08.2009 to ICICI to
refund FDR matured on 01.01.2008 to FDR along
with interest.

 ICICI paid interest of Rs. 1.49 lakhs on FDR but failed
to give the notice for termination of agreement.
Judgment by the FORUM
In favour of Hans & Co., Sirhind

ICICI Bank to return the FDR along with interest
@ 8% p.a. till the realization of the bill
excluding the interest already paid.

ICICI Bank to pay Rs. 10,000.00 as mental
agony & harassment charges & Rs. 5,000.00
towards litigation expenses.
Case Analysis
CFA – Hans & Co., Sirhind & ICICI Bank.

Hans & Co. set up office – Rs. 3.00 lakhs and
Security Deposit in addition to Rs. 5.00 lakhs
FDR

Termination of Agreement by giving a two
months notice – Non Adherence to CFA.

ICICI terminated CFA & held on to FDR of Rs.
5.00 lakhs.
What is Lien?
Lien is the right of a banker to
retain possession of the goods &
securities owned by the debtor until
the debt due from him is paid.
Banker's Lien V/s General Lien
On taking housing Sec 171 of Indian
loan – property is Contract Act, 1872
given as security. gives banker the
 right on all goods &
 securities received
by the banker.
Vehicle Loan – Vehicle

is hypothecated.
LIC Policy, FDR, Share

Certificate.
Asset created out of

the advance is
provided as security FDR against CFA.
Wrong Doings of ICICI Bank.
Did not give two months notice.

Held on to FDR against the wish of the
depositor on termination of CFA.

FDR to be closed prematurely if customer
demands so but without deduction of
principal amount.


What ICICI could have done
right?
ICICI serves a two month notice.

Hold on to FDR.

Saved from the embarrassment of paying
mental agony & harassment charges &
litigation charges.

Could have held on to SDR (as per CFA) & FDR
(as per General Lien).
 Thank You !!!

Saranya
Any

 ???

You might also like