Allowed

State Bank of India v. M/S Shaikh Industries

DRT9 Nov 2023OA/1051/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by State Bank of India for recovery of dues totaling approximately Rs. 30.78 lakhs against M/s. Shaikh Industries and its proprietor, as the respondents were absent.

What did the court decide?

Recovery of Rs. 30,78,084/- along with interest and costs was granted; the office is directed to issue a Recovery Certificate and allow the applicant to sell schedule properties or proceed against oth

State Bank of India versus M/S Shaikh Industries — Insolvency and Bankruptcy | DRT (2023)

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IN THE DEBTS RECOVERY^{TRIBUNAL- I, KARNATAKA}

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AT BENGALURU

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Dated this the 09th day of November,2023

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Present: Sri Imtiaz Ali

Presiding Officer

OA No.1O51/2022

BETWEEN:

State Bank of India

Branch at - Kumta, Benne Complex

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Court Road

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Kumta- 581 343 Uttara Kannada^District Duly Represented by^{its Branch Manager} Sri Maruthi Sarode

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... APPLICANT

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AND:

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L. Mls Shaikh Industries

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A ProprietorshiP^Concern Having its Office at: Chandavar Village

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Industrial Area, Hegde^Cross, Kumta- 581 343

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Uttara Kannada^District Duly Represented^{by its Proprietor}

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Sri Adamsaheb^{AbdulRashidShaikh}

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Sri Adamsaheb^{AbdulRashidShaikh} S/o. Sri Abdul^{Rashid Shaikh} Aged about 35 Years Residing at: #85 B, Noorani^Cross Chandavar^{Post, HonnavarTaluk} Uttara Kannada^{District-581 334} DEFENDANTS Proprietor-^{M/s. Shaikh Industries}

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Counsels on^{record/aooeared for:} Appticant : Sri BCGuru Defendants i Ex-Parte

OA No.1Os1/2022

FINAL ORDER

The present OA have been filed by^{the Applicant Bank} under Section 19 of the Recovery of^{Debts and Bankruptcy} Act, 1993, seeking recovery of money of Rs.3o,78ro84l(Rupee thirty lakhs seventy-eight thousand and eightyfour only) together with costs, interest, etc.

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The case of the Applicant Bank is that, the First Defendant concern is represented by its Proprietor Sri. Adamsaheb Abdul Rashid Shaikh, who is arrayed as Defendant No.2 have approached the Applicant Bank for sanction of Cash Credit Loan and Term Loan for the purpose of Working Capital and purchase of Machinery. Accordingly, the Applicant Bank has considered the request of the Defendants and sanctioned Cash Credit Loan of Rs.5,00,000/- on 03.01.2019 under Account No.3810615444O and Term Loan of Rs.18,75,000/- under Account No.38051007211 on 03.11.2018. Again, the Defendants have approached the Applicant Bank for sanction of GECL Loan. Accordingly, the Applicant has considered the request of the Defendants and sanctioned GECL Loan of Rs.3,80,000/- under Account No.39754532597 on 23.06.2O2O, in terms of loan agreements. In order to secure

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OA No-1051/2022

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the loans, the Defendants have executed documents, viz., Agreement of Loan-Cum-Hypothecation, Personal Assets and Liabilities Statement, Sanction Confirmation Letter, Supplemental Agreement of Loan-Cum-Hypothecation, Sanction Resolution Appraisal Format cum Control Report under Pre-Approved GECL etc.

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Further, the Applicant Bank has further submits that, the defendants have agreed to repay the Cash Credit Loan of Rs5,00,000/- with interest at the rate of 72.4oo/o compounded monthly at the time of sanction and 2olo^penal interest in case of default and the amount^{has to be repaid in} 24 months from the date of sanction.^The Term^Loanof Rs.18,75,000/- with the^interest at the rate of^11.15o/o compounded monthly at the^time of^{sanction and 2o/openal} interest in case of default and the amount^{has to be repaid in} 79 monthly instalments of Rs.34,899/-^{each and 1 monthly} instalment ol Rs.29,0941- each^along with^{interest and last} instalments of Rs.20/-^{within flrst instalmentcommencingon} 03.O2.2O19 and the last^{instalment failingdue on} 03.10.2025. The GECL^{Loan of RS.3,80,000/-with interest at} the rate of 7.4Oo/o^{and compoundedmonthly at the timeof} sanction and 2o/o^{penal interestin case of default and the}

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OA No.1051/2022

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amount has to be repaid in^{equal monthly instalment of} Rs.2,3f2l- along with interest.

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Further, the Defendants have agreed to^repaythe above loans with variable rate of interests, as^{applicable from} time to time as^per the directions of the^{HeadOffice/Central} Offlce of the Applicant Bank and^penal interest in^{case of} default and keep the accounts regular by^paying installments as and when due to the satisfaction of the Applicant^{Bank, as} detailed in the OA by the Applicant Bank.

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The Defendants after utilising the said loans have failed and neglected to make the repayment of the loans due as agreed and Defendants have not serviced the interest thereon as per the terms and condition agreed by the Defendants. In spite of several demands and requests made by the Applicant Bank, the Defendants have failed to repay the outstanding dues.. Thereafter, the Applicant Bank has sent Recall letters dated 01.032021 and 27.O7.2027 and Legal notice to the Defendants on 21.O9.2021, recalling the entire loan liability. In spite of receipt of Legal notice, the Defendants have failed to^pay the outstanding dues and hence the recovery process is initiated to recover the dues.

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OA No.l051/2022

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In the light of these factors, it is contended by the Applicant Bank that Defendants are liable to pay a total sum of Rs.3O,78,O84l- (Rupee thirty lakhs seventy-eight

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thousand and eighty-four only),

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After filing this oA, Summons were sent and served to the Defendants through RPAD. When the Defendants were called out, the Defendants remained absent and hence, they were placed ex parte.

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To prove the case of the Applicant Bank, it's Chief Manager, Sri Rama Nagappa Moger, has filed his alfidavit by way of evidence the same was considered as evidence of AW.1 and marked at Ex.A1 and list of documents came to be marked at Ex.A2 and 24 documents came to be marked at Ex.A3 to A26.

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No evidence on behalf of the Defendants.

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Arguments of Learned Counsel for the Plaintiff/ Applicant Bank heard and^perused the records of the case.

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Following^points arise for my consideration: 1) Whether Plaintiff/Applicant Bank^proves its case as contended in the^{plaint/application?}

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What Order?

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oA No.10s1/2022

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For the following reasons, I answer the abovereferred points in the following manner:

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REASONS

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The Chief Manager of the Applicant Bank came to be examined as AW.1. His affidavit by way of evidence reiterated the facts pleaded in the plaint and his affidavit is also corroborated by the above-referred Ex.A3 to 426 which clearly establish the case of the Applicant Bank to allow the present OA. Added to this, the Defendants have remained absent, hence it is to be construed that Defendants have admitted the entire case pleaded by the Applicant Bank in the present OA.

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t4. Therefore, for these reasons, present OA is to be allowed with costs as sought by the Applicant Bank.

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ORDER

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Present OA stands allowed as prayed for with interest and costs.

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In the event of failure of the Defendants to pay the said OA amount, the Applicant Bank is at liberty to sell the

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OA No.1051/2022

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Schedule^property in^{accordance with law as soughtby the} Applicant Bank in the OA.

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In spite of sale of the Schedule^{property the OA amount} is not fully realised, then^{the Applicant Bank is at liberty to} proceed against the^persons and other^{properties of the} Defendants in accordance^{with law.}

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Applicant Bank shall file^{latest Memo of Calculation of} OA amount together with^{interest, costs etc., to be paid by} Defendants duly taking into^{accountthe amount/s, if any,} paid by the Defendants and/or amount realised by sale of assets, etc., during the intervening^{period after filing the OA,} to enable the office to^{prepareRecoveryCertificate for the} amount to be^paid by the^{Defendantsto the Applicant Bank.}

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Office is directed to issue Recovery Certificate as sought by the Applicant Bank in the OA and do the^needfulas required under the law^forthwith.

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The Office is directed to issue, as far^{as possible, free}

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copy of this order to the^{parties concerned.}

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(Dictated to the Stenographer, after its transcription^{and necessarycorrections, signed and} pronounced by me in the Open Court on this the^{09thday of November, 2023)}

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Y (rmtia/Ali) Presiding officer DRT-I, Bengaluru

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oANo.7057/2022

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ANNEXURES

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Witness Examined for the Aooticant Bank: AW-1 : Sri Rama Nagappa Moger The Chief Manager of the Applicant Bank List of Documents Exhibited for the Aoolicant Bank: Ex.A-l : Affidavit of AW-1 Ex.A-2 : List of Docu ments Ex.A-3 to A-26 : 24 documents Witness Examined for the Defendants:

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Nil -

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List of Documents Exhibited for the Defendants: Nil-

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t ..,^) ,- f.ii .1 (Imtiaz Ali) Presiding Officer DRT-I, Bengaluru

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State Bank of India v. M/S Shaikh Industries

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Shaikh Industries

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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