Allowed

Union Bank of India v. M/S Emi Furniture Com

DRT18 Oct 2023OA/1060/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Union Bank of India to recover an outstanding loan amount of Rs. 25,64,342/- from M/s EMI Furniture Com and its proprietor. The respondents appeared ex-parte. The Tribunal issued a recovery certificate under Section 22 of the RDBFI Act.

What did the court decide?

Recovery certificate issued for Rs. 25,64,342/- with pendent lite and future interest; allowed issuance of recovery certificate.

Union Bank of India versus M/S Emi Furniture Com — Banking and Recovery | DRT (2023)

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“ORIGINALAPPLICATION” No. 1060 OF 2022

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIVEK SAXENA

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PRESIDING OFFICER

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O.A. NO. 1060 OF 2022

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DATE OF DELIVERY OF ORDER 18.10.2023

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Union Bank of India , a corporate Constituted under banking Companies (Acquisition and Transfer of Under Taking) Act-1970 and having its Head Office at Union Bank Building, 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and FGMO office at Ajmer Road Jaipur having several Branches throughout India and abroad inter alia a Branch office at G-1 & 13 on Ground Floor in Shubh Laxmi Tower, Plot No. B-4, Central Spine, Vidhyadhar Nagar, Jaipur through it Branch Manager/Sr. Manager Master Sh. Master Vahid Khan

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…………Applicant/Bank

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V/s

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M/s EMI Furniture Com through proprietor Gouri Shanker Jangid, R/o, Plot No. 29, Maharaja Colony, Behind PNB, Dehar Ka Balaji, Sikar Road, Jaipur-302013

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Sh. Gouri Shanker Jangid s/o Sh. Ram Lal Jangid, proprietor of M/s EMI Furniture. Com, r/o, Plot No. 29, Maharaja Colony, Behind PNB, Dehar Ka Balaji, Sikar Road, Jaipur302013

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…………….Defendants

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Counsel for the Applicant Bank Sh. Prakash Pareek Defendants Ex-Parte

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JUDGMENT

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This Original Application was filed by the applicant bank on 29.08.2022 for recovery of outstanding amount of Rs. 25,64,342/- from the Defendants.

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That the defendant No. 1 is proprietorship firm and the defendant no. 2 is its proprietor of the firm and also guarantor for the loan facility. The defendant no. 1 firm has carrying business of Furniture. Therefore all defendants are jointly and severally liable for repayment of the dues loan amount with interest & expenses of the applicants and thus they are being joined as necessary parties to this application.

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That the defendant no. 2 as proprietor of the defendant no. 1 firm approached to the applicant Bank vide application Dated 26.11.2019, marked as Exhibit A-2, and applicant requested for grant of Cash Credit limit of Rs. 20 lacs for development or expansion and smooth running its trading and manufacturing business of Furniture. That in consideration of the above said sanction, with a view to secure repayment of the above loan facilities, the defendant no. 2 offered to hypothecate Stock of raw material and finished goods of furniture of firm.

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That the applicants Bank considered the loan application of defendant no. 2 on behalf of defendant no. 1 firm vide its sanction letter Dated 08.01.2020 and sanctioned or allowed Cash Credit Facilities of Rs. 20,00,000/- against the hypothecation of stock i. e. Raw Material and Finished Goods of Furniture on the terms and conditions mentioned in the above said Letter of Sanction. The Letter of Sanction is annexed herewith and marked as Exhibit A-3 and the terms and condition of sanction is also conveyed by the applicant bank. The interest stipulated in the said sanction was 1 year MICL plus 1.65 % plus 2.50 % i.e. 10.50 % per annum on the Cash Credit facilities payable with monthly rest.

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That in consideration of the Case Credit facilities of Rs. 20 Lacs and by way of further secures of the repayment of the above facilities, the defendant No. 2 on behalf of defendant no. 1 firm executed and signed loan documents in favour of the applicant Bank on Dated 09.01.2020.

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That with a view to secure repayment of the above loan facilities to the defendant no. 1 firm through proprietor

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defendant no. 2, the defendant no. 2 also agree to furnish his personal guarantee in consideration of the above said loan facility. So that as per his consent, the defendant No. 2 executed Letter of Guarantee (SD-01) on Dated 09.01.2020 in favour of the applicant Bank in consideration for the above said loan facilities availed by defendant no. 2 as proprietor of defendant no. 1 firm, which is annexed and marked as Exhibit A-12 and also executed Annexure-I, CIBIL under taking for publication his name in the news paper in case of default annexed herewith and marked as Exhibit A-13.

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That thereafter the defendant no. 2 as proprietor of the defendant no. 1 firm again approached to the applicant Bank and request to provided financial assistance in Covid time, in addition to loan for smooth running its trading and manufacturing business of Furniture. That in consideration of the above said sanction, with a view to secure repayment of the above loan facilities, the defendant no. 2 offered hypothecate Stock of raw material and finished goods of furniture of firm as security.

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That the applicants Bank considered request of defendant no. 2 on behalf of defendant no. 1 firm vide its sanction letter Dated 06.06.2020 and sanctioned or allowed Working Capital Term Loan of Rs. 3,59,000/- against the hypothecation of stock i. e. Raw Material and Finished Goods of Furniture on the terms and conditions mentioned in the above said Letter of Sanction returnable in installments of 48 months. The Letter of Sanction is annexed herewith and marked as Exhibit A-14 and the terms. The interest stipulated in the said sanction was 7.50 % per annum on the Working Capital Term Loan payable with monthly rest.

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That in consideration of the Working Capital Term Loan facilities of Rs. 3,59,000/- and by way of further secures of the repayment of the above facilities, the defendant No. 2 on behalf of defendant no. 1 firm executed and signed the loan documents in favour of the applicant Bank on Dated 24.07.2020.

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That with a view to secure repayment of the above loan facilities to the defendant no. 1 firm through proprietor defendant no. 2, the defendant no. 2 also agree to furnish his personal guarantee in consideration of the above said loan facility. So that as per his consent, the defendant No. 2 executed Letter of Guarantee (SD-01) on Dated 24.07.2020 in favour of the applicant Bank in consideration for the above said loan facilities availed by defendant no. 2 as proprietor of defendant no. 1 firm, which is annexed and marked as Exhibit A-20.

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That the defendant was taking time to deposit the dues or to settle the account and also give assurance to the applicant Bank to remove irregularities in the account and deposit the all outstanding.

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That recoverable dues with interest up to 31.03.2022 against the defendants is Rs. 25,64,342/- (Rs. Twenty five lacs sixty four thousand three hundred forty two) and the applicant Bank is entitled to recover the said amount along with pendenlite and future interest thereon at the rate of 10.50 % per annum with monthly rest from the defendants jointly and severally. The statement of accounts of the said loan of the defendants are dully certified under the Banker’s Book of Evidence Act with Certificate and the Certificates are submitted herewith and marked as Exhibit A-27 and A-29.

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That the interest has charged as per norms of the Bank and circulars issued from time to time. The rate of interest was prescribed as 10.50 % p. a. with monthly rest in CC Hypothecation account and 7.50 % p. a. with monthly rest in Working Capital Term Loan account at the sanctioning of loan and execution of the loan documents. At the time of filling of suit or present application, the prevalent rate of interest are 10.50 % and 7.50 % p. a. with monthly rest. The Applicant Bank is entitled for same rate of interest till realization of amount at the rate of 10.50 % p. a. with monthly rest. The defendants have also accepted the rate of interest charged and also acknowledged the same from time to time and no

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objection with respect to interest charged were made. Copy of statement of account in which the interest has been charged was supplied time to time to the defendants. The rate of interest is charges as under in the statement of account:-

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Statement of Account Exhibit-A-26

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09.01.2020 to 31.03.2022………………….10.50% Statement of Account Exhibit-A-28

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09.01.2020 to 31.03.2022………………….7.50%

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That the cause of action inter alia arose on Dated 26.11.2019 when loan application was submitted to the applicant Bank, on Dated 08.01.2020 and 06.06.2020 when loan was sanctioned and on Dated 09.01.2020 and 24.07.2020 when various security documents were executed by the defendants and on Dated 27.08.2021 when the Balance confirmation has executed by the defendant and 10.09 2021 when recall notice was issued to the defendant by the Bank and recall credit facility and make demand for repayment of out standings.

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Heard arguments and perused the record.

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Defendants remained ex-parte and so it is clear that they have noting to say and so OA stands disposed of as allowed.

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order pronounced in the open court today i.e. 18.10.2023 .

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIVEK SAXENA

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PRESIDING OFFICER

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O.A. NO. 1060 OF 2022

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DATE OF DELIVERY OF ORDER 18.10.2023

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RECOVERY CERTIFICATE

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UNDER SUB section 22 of the recovery of Debts due to banks and Financial Institutions Act, 1993 (Act 51 of 1993)

…………Applicant/Bank

V/s

M/s EMI Furniture Com through proprietor Gouri Shanker Jangid, R/o, Plot No. 29, Maharaja Colony, Behind PNB, Dehar Ka Balaji, Sikar Road, Jaipur-302013

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Sh. Gouri Shanker Jangid s/o Sh. Ram Lal Jangid, proprietor of M/s EMI Furniture. Com, r/o, Plot No. 29, Maharaja Colony, Behind PNB, Dehar Ka Balaji, Sikar Road, Jaipur302013

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…………….Defendants

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Recovery Certificate for Rs. 25,64,342/-

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In terms of final order dated 18.10.2023 passed by this Tribunal in the above mentioned case, it is ordered that the –

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a) The Defendants are liable to pay the applicant bank the sum of rupees 25,64,342 /- (Twenty Five Lakh Sixty Four Thousand Three Hundred Forty Two Only) with

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pendentelite future interest @ 10.00% p.a. (simple) from the date of filing the original application till the date of realization alongwith Cost & expenses.

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b) The applicant bank is entitle to recover the above amount by the personal movable and immovable property/assets of dependents jointly and severally. The applicant bank is entitled to proceed against the sale towards recovery of its debt.

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

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d) Parties are directed to appear before the Recovery Officer DRT Jaipur on 12.01.2024.

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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 Debtors.

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This Certificate has been issued under my signature and seal of Tribunal on this 18.10.2023.

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

Place- Jaipur

Dated- 18.10.2023

BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIVEK SAXENA

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PRESIDING OFFICER

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O.A. NO. 1060 OF 2022

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DATE OF DELIVERY OF ORDER 18.10.2023

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…………Applicant/Bank

V/s

M/s EMI Furniture Com through proprietor Gouri Shanker Jangid, R/o, Plot No. 29, Maharaja Colony, Behind PNB, Dehar Ka Balaji, Sikar Road, Jaipur-302013

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Sh. Gouri Shanker Jangid s/o Sh. Ram Lal Jangid, proprietor of M/s EMI Furniture. Com, r/o, Plot No. 29, Maharaja Colony, Behind PNB, Dehar Ka Balaji, Sikar Road, Jaipur302013

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…………….Defendants

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S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	28,000.00
2	Process Fee (Inc. Publication)	94.00
3	Advocate Fee	1,250.00
4	Commission/Receiver/Valuation	NIL
5.	Miscellaneous Charges	NIL
	Total	29,344.00

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal,

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Jaipur

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Date : 18.10.2023

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Counsel:

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Sh.PRAKASH PAREEK, Counsel for the Applicant Bank Defendants are ex-parte

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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.

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Date : 18.10.2023

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Counsel:

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Sh.PRAKASH PAREEK, Counsel for the Applicant Bank Defendants are ex-parte

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The Tribunal vide order dated 18.10.2023 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

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The Registrar vide order dated 18.10.2023 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.

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

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DEBTS RECOVERY TRIBUNAL, JAIPUR

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ORIGINAL APPLICATION NO. 1060 of 2022

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The Recovery Certificate prepared in compliance of order dated 18.10.2023 passed by Hon’ble Presiding Officer, DRT, Jaipur in Original Application No. 1060 of 2022 Title- Union Bank of India Vs M/s. EMI Furniture Com & Ors. has been checked and may be verified.

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Section Officer

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Assistant Registrar

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On the basis of the report of Section Officer the Recovery Certificate is verified. The Recovery Certificate is placed below for the signature of Hon’ble Presiding Officer please.

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Assistant Registrar

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Hon’ble Presiding Officer

Union Bank of India v. M/S Emi Furniture Com

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S Emi Furniture Com

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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