Allowed

Bank of Baroda v. M/S Bhawani International

DRT11 Oct 2023OA/1206/2022

Case brief

AI extract

What is this about?

This order allowed the bank's application under the RDB Act for recovery of approximately Rs.2.11 crores against a partnership firm, its partners, and a guarantor. The court held that the bank proved its case and granted costs and sale of mortgaged property. A recovery certificate was directed.

What did the court decide?

Recovery of Rs.2,11,33,520.09 plus interest; Costs awarded; Order for realization from mortgaged and personal property; Recovery certificate issued.

Bank of Baroda versus M/S Bhawani International — Company and Corporate | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1206/2022

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Date of Institution: 13.06.2022 Date of Decision: 11.10.2023

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Bank of Baroda, Jalandhar, Punjab.

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……..Applicant

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Vs.

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M/s Bhawani International, a Partnership concern situated at Mubarakpur Sheikhe Hoshiarpur Road, Jalandhar (Punjab).

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Sh. Akash Bhola S/o Sh. Tarlok Nath Bhola, Partner M/s Bhawani International situated at Mubarakpur Sheikhe Hoshiarpur Road, Jalandhar (Punjab).

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2^nd Address:- R/o House No.278, Ramneek Avenue Pathankot Road, Jalandhar-Punjab.

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Smt. Tripta Bhola W/o Sh. Tarlok Nath Bhola, Partner M/s Bhawani International situated at Mubarakpur Sheikhe Hoshiarpur Road, Jalandhar (Punjab).

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2^nd Address:- R/o House No.278, Ramneek Avenue Pathankot Road, Jalandhar-Punjab.

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Sh. Tarlok Nath Bhola S/o Sh. Kotu Ram, R/o House No.278, Ramneek Avenue Pathankot Road, Jalandhar-Punjab.

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……….Defendants

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Advocates

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Sh. C. S. Pasricha, Counsel for the applicant bank. None for defendants.

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OA for the Recovery of Rs.2,11,33,520.09p with interest from 12.05.2022.

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ORDER

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Bank of Baroda (erstwhile Vijaya Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.2,11,33,520.09 with interest against M/s Bhawani International and Others (defendants).

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On 26.06.2018, Bank of Baroda, filed the present OA against the defendants, with the averments that defendant no.1 is a partnership firm

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and defendant nos.2 and 3 are its partners. Defendant no.4 is the guarantor. Initially, at the request of defendant no.1, bank had granted a Term Loan facility of Rs.40.00 lacs; Cash Credit Hypothecation Loan facility of Rs.30.00 lacs and SL Machinery Facility of Rs.12.00 lacs for business purpose. Thereafter, at the request of defendants, various loan facilities were granted by the bank from time to time and the last loan facility was granted on 15.02.2021. Defendants had executed all the relevant documents. To secure the loan, defendant no.3 had mortgaged her immovable property comprising land and building of plot situated at Industrial Zone, Mubarakpur Sheikhe, Hoshiarpur Road, Jalandhar, Punjab (fully detailed in para 5.7 of the OA). The various loan facilities were chargeable to different rate of interest. On 11.05.2022, a sum of Rs.2,11,33,520.09p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 17.08.2022, defendants filed written statement, wherein they alleged that the application is not maintainable; signatures are forged on the alleged documents; application has not been filed by an authorized person; amount claimed in the OA is highly excessive; the recovery is barred by limitation; the account has wrongly been declared NPA.

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During the proceedings, the applicant bank had initiated the SARFAESI proceedings and filed a copy of the sale certificate issued by the bank before this Tribunal. As per copy of the sale certificate, applicant bank sold the secured asset for a sum of Rs.25,94,000/-. 5. In order to prove its case, the Bank has placed on record the affidavit of Mr. Tribhuvan Prakash Sharma, Authorized Representative along with the loan and security documents and marked them as Exhibit A-1 to A-91.

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I have perused the evidence on the record. Defendants have led no evidence to prove the contentions raised in their written statement. I am of the considered view that the Bank has proved its case that it had advanced the various loan facilities to the defendants and on 11.05.2022, a sum of Rs.2,11,33,520.09p was due.

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Accordingly, the application of the bank for the recovery of Rs.2,11,33,520.09p (Rupees Two Crore Eleven Lacs Thirty-Three Thousand Five Hundred Twenty And Paise Nine Only) with interest @11.10% per annum with monthly from 12.05.2022, till the date of payment is hereby allowed with costs against defendant nos.1 to 4. The liability of defendant nos.1 to 4 would be joint and several. Bank can recover its dues by sale of the mortgaged properties, fully detailed in para 5.7 of the OA, as well as from the personal movable and immovable property(ies) of defendants. The amount recovered, after selling the mortgaged property(ies), shall be appropriated towards the dues of the bank and file revised statement of account before the Recovery Officer

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concerned

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Pending IAs, if any, stand disposed of. 9. Recovery Certificate be issued accordingly. 10. Parties are directed to appear before Recovery Officer on 14.11.2023, who is directed to distribute the sale proceeds of the mortgage property as per the provisions of Section 19(20-AB) of the Act . 11. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open court. (A S Narang) Dated: 11^th October, 2023 Presiding Officer DRT-1, Chandigarh

Bank of Baroda v. M/S Bhawani International

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/S Bhawani International

Case brief

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What did the court decide?

What the court decided

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