Allowed

Union Bank of India v. M/S U Turn Nice Collection

DRT18 Oct 2023OA/1064/2022

Case brief

AI extract

What is this about?

The tribunal allowed the bank's original application for recovery of outstanding dues arising from a cash credit facility. A recovery certificate was issued for the principal amount along with pendent lite interest.

What did the court decide?

Recovery certificate issued for Rs. 24,39,803.13 with pendent lite interest; directed Recovery Officer to proceed against respondents assets.

Union Bank of India versus M/S U Turn Nice Collection — Banking and Recovery | DRT (2023)

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“ORIGINALAPPLICATION” No. 1064 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. 1064 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 Vahid Khan

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…………Applicant/Bank

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V/s

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M/s U Turn Nice Collection a proprietorship firm through proprietor Sh. Surya Prkash Kumawat, R/o, 234, Oswal Soap, Khatipura Road, Jhotwara, Jaipur-302012

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Sh. Surya Prakash Kumawat s/o Sh. Mangal Chand Kumawat proprietor of M/s U-Turn Nice Collection a proprietorship firm, r/o, Gram- Naradpura, Jalsu, Jaipur

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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. 24,39,803.13 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. The defendant No. 1 firm has carrying business of Trading of Dresses. 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 through proprietor defendant No. 1 approached to the applicant Bank vide application Dated 27.11.2019, 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 business of Dresses. 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 finished and unfinished goods dresses of the 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 29.11.2019 and sanctioned or allowed Cash Credit Facilities of Rs. 20, 00, 000 against the hypothecation of stock i. e. finished dresses and dress material 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 EBLR plus 1.75 % plus 0.75 % per annum on the Cash Credit facilities payable with monthly rest. Thereafter in token of acceptance of terms and condition of the loan facilities, the defendant No. 2 put his signature on

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the letter of convey or on sanction letter. In this way the defendant no. 2 on behalf of defendant no. 1 firm accepted all the terms and condition of the loan sanction letter.

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That in consideration of the Case Credit facilities of Rs. 20 Lakhs 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 29.11.2019 i.e., Annexure-A/4 to A/11.

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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 in his personal capacity 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 29.11.2019 in favour of the applicant Bank in consideration for the above said loan facilities which is annexed and marked as Exhibit A-12 and also executed Annexure-I, CIBIL under taking for publication her name in the news paper in case of default annexed herewith and marked as Exhibit A-13

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That the defendants failed/neglected to comply with the terms and condition of Sanction of credit facilities. The Loan facilities and account of defendant became highly irregular. The interest charged to account was not repaid by the defendant No. 1 in time. The defendants were persistently being advised to comply with terms and condition of sanction of loan facilities and to repay the over dues or excess outstanding and to rectify the irregularities of account through verbal persuasion and written communication and personal meetings of the various level Bank Officers. All these efforts of the Bank for regularization of Accounts of defendant no. 1 did not yield any favorable result. The written persuasion/letter Dated 15.04.2020 & 05.10.2020 are annexed herewith and marked as Exhibit-A-14 & A-15. The applicant

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bank is also effort through Lok Adalat to regularization the account and relies of outstanding but this proceeding did not yield favorable result. The Notice of Lok Adalat annexed and marked as Exhibit-A-16 and its postal receipt is annexed herewith and marked as Exhibit-A-17

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That the defendant no. 2 verified the loan account of defendant no. 1 firm time to time and accepted the balance correct therefore the defendant no. 2 on behalf of the firm defendant no. 1 and executed the Acknowledgement of Debt Dated 24.03.2021 and confirm the Balance. These Balance confirmations are annexed herewith and marked as Exhibit18.

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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 the defendant failed or neglect to repay the dues of the applicant Bank and failed to adhere to the terms & condition of the agreement executed, despite several demands by the applicant Bank. Ultimately a registered recall notice was served on Dated 02.04.2021 upon the defendant by the applicant Bank the Recall Notice is annexed herewith and marked as Exhibit-19 and its postal receipt is annexed and marked as Exhibit-20 and the same is served upon him. But the defendant did not repay the outstanding loan amount.

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That as per the practice prevailing in the applicant Bank, An account of the defendant maintained in the Book’s of applicant Bank. The Account Books are maintained in the ordinary and regular course of the Business as per provisions of the Banker’s Book of Evidence Act in which entries regarding interest charged, payments and receipt and dues are dully reflected. The same are done in present case. A copy of WCTL account has been prepared as per provisions of the Banker’s Book of Evidence Act is submitted herewith and marked as Exhibit-21. Under these circumstances the

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applicant Bank submits that there is now amount dues and payable jointly and severally by the defendants are as under:-

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Amount dues	:	Rs.	21,81,724.13
Interest	:	Rs.	2,58,029.00
Total	:	Rs,	24,39,803.13

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(Rs. in words Twenty Four Lakh Thirty Nine Thousand Eight Hundred Three and thirteen paisa)

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That recoverable dues with interest up to 31.05.2022 against the defendants is Rs. 24,39,803.13 (Rs. Twenty Four Lakh Thirty Nine Thousand Eight Hundred Three and thirteen paisa ) 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 account of the said loan of the defendants dully certified under the Banker’s Book of Evidence Act is filed as Exhibit A-22 with certificate.

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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 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 is 10.50 % p. a. with monthly rest. The Applicant Bank is entitled for same rate of interest till realization of amount. The defendants have also accepted the rate of interest charged and also acknowledged the same from time to time and no 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 Statement for rate of interest is annexed herewith and marked as Exhibit A- 23.

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That the cause of action inter alia arose on Dated 08.08.2019 when loan application was submitted to the applicant Bank, on Dated 27.11.2019 and 29.11.2019 when loan was sanctioned and on Dated 29.11.2019 when various security

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documents were executed by the defendants and on Dated 24.03.2021 when the Balance confirmation has executed by the defendant and 02.04 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 PRESENT- SHRI VIVEK SAXENA

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PRESIDING OFFICER

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O.A. NO. 1064 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 U Turn Nice Collection a proprietorship firm through proprietor Sh. Surya Prkash Kumawat, R/o, 234, Oswal Soap, Khatipura Road, Jhotwara, Jaipur-302012

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Sh. Surya Prakash Kumawat s/o Sh. Mangal Chand Kumawat proprietor of M/s U-Turn Nice Collection a proprietorship firm, r/o, Gram- Naradpura, Jalsu, Jaipur

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…………….Defendants

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Recovery Certificate for Rs. 24,39,803.13/-

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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 24,39,803.13 (Twenty Four Lakh Thirty Nine Thousand Eight Hundred Three and Thirteen Paisa Only) with pendentelite future interest @ 10.00% p.a. (simple) from the date of filing the original

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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 PRESENT- SHRI VIVEK SAXENA

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PRESIDING OFFICER

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O.A. NO. 1064 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 U Turn Nice Collection a proprietorship firm through proprietor Sh. Surya Prkash Kumawat, R/o, 234, Oswal Soap, Khatipura Road, Jhotwara, Jaipur-302012

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Sh. Surya Prakash Kumawat s/o Sh. Mangal Chand Kumawat proprietor of M/s U-Turn Nice Collection a proprietorship firm, r/o, Gram- Naradpura, Jalsu, Jaipur

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…………….Defendants

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S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	27,000.00
2	Process Fee (Inc. Publication)	124.00
3	Advocate Fee	1,250.00
4	Commission/Receiver/Valuation	NIL
5.	Miscellaneous Charges	NIL
	Total	28,374.00

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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. 1064 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. 1064 of 2022 Title- Union Bank of India Vs M/s. U Turn Nice Collection & 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 U Turn Nice Collection

Case brief

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Union Bank of India v. M/S U Turn Nice Collection

Case brief

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