Allowed

Indian Bank v. M/S Naivedhya Fly Ash Bricks

DRT1 Aug 2023OA/1270/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of outstanding dues. The court ordered joint and severally liable repayment with adjusted interest rates and issued an injunction against asset transfer.

What did the court decide?

To pay jointly and severally Rs. 49,59,809.00 with interest at 11% p.a. for cash credit and 12% p.a. for term loan; issue Recovery Certificate; restrain alienation of assets.

Indian Bank versus M/S Naivedhya Fly Ash Bricks — Arbitration | DRT (2023)

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DEBTS RECOVERY TRIBUNAL : JABALPUR

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(for the States of Madhya Pradesh and Chhattisgarh)

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(Presiding Officer - Hon'ble Shri Ram Niwas Patet)

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Original Application No. - 1270122

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lndian Bank, Batod (C.G.)

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..... Appticant

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Versus

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M/s Naivedhya Fty Ash Bricks, Proprietor-Smt. Amita Jain, Vitt-Hatdi (Sirrabhatta), Post-Sirrabhatta, Tehsit-Gunderdehi, District-Batod (Chhattisgarh)

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Smt. Amita Jain,

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W/o Sumit Kothari, i) C/o Paras Collection, Mahataxmi Market, Fulgaon Chowk, Durg (C.G.)

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ii) Vitt-Hatdi (Sirrabhatta), Post-Sirrabhatta, Tehsit-Gunderdehi, District-Balod (Chhattisgarh)

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Shri Mohan Lal Jain, S/o Moti La[ Jain,

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Nirma[ Bhawan Janpat Panchayat Road, Behind Samudayak Bhawan, Gunderdehi, Distt.-Batod (C.G.)

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Defendants

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Counsel for the Appticant : Shri R.K. Joshi, Advocate

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Defendants : Ex-parte

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JUDGMENT (Dated: 01 August, 2023)

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The Appticant-Bank has fited the^present Originat^Application u/s 19 of Recovery of Debts and Bankruptcy Act on^{04110122against the} Defendants for recovery of Rs. 49,59,809,00^{(Rupees Fourty Nine Lac, Fifty} Nine Thousand, Eighty Hundred and Nine onty) along^{with interest and other} retiefs as stated.

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The brief facts of the case are that on the^{request of} Defendant No.-1 through its Proprietor^{Defendant No.-2,the AppticantBank} (erstwhite AtLahabad Bank) sanctioned Cash Credit Limit of^{Rs. 5 Lac and} Term Loan of Rs. 25 Lac on 10t11-115.^{ln considerationof the credit facitities} the Defendant No,-1^&. 2 as^{borrower and DefendantNo'-3as guarantor in} addition to execution of^{toan documents, have also createdequitable}

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oA 1270122

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mortgage over the^{immovabteproperty, i.e., Khasra No'-35/7, Mauza Haldi} (Sirrabhatta), Patwari Hatka^{No.-52,RIC & Tehsit-Gunderdehi,under Gram} Panchayat Sarrabhatta,^{District'Batod; betongingto DefendantNo'-2' The} Defendant No.-1 & 2^{avaited the credit facititiesand atso executedLetter of} Acknowtedgment of^{Debt tasttyon 31/03122.The accounts becameirregutar} and the Defendants^{faited to tiquidate the outstandingdues despiteissuance} of Demands Notices^{tastty on 24108t22and initiationof actionunder the} securitisation Act^{by the AppticantBank. The Appticant-Bankhas retied upon} the documents at Ex.^{A-1 to A-18which were proved by Shri SanjayYadav,} Branch Manager.

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Despite service of notice, the^{Defendants neitherappeared nor} fited written statement.^{They wereproceededex-partevide order dated} 15t02123, There is therefore,^{no reasonto disbetieve the contentionsof the} Bank. Considering the^facts of^{the case, I opinethat the Defendantsare} jointty and severatly tiabte to pay the ctaim amount^{togetherwith interest} and costs. The Appticant-Bank^{in its apptication has ctaimedinterest} @1 1.05%^{p.a. with monthlyrests in cash credit account and [email protected]%} p.a. with monthly rests in term loan^{account. However, I feet it fair and} reasonabte to^grant interest @11%^{p.a. for cash creditaccount and interest} @12%^p.a. for^{term toan accountsimpte pendentelite and futuretitt} reatization of the dues.^{The mortgagedproperty is tiabte to be sold for} recovery of amount due^{atong withthe personatproperties and assets of the} Defendants.

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4 The Originat Apptication^{is atlowed and it is orderedas under'}

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i) The Defendants do^{pay jointty and severatly Rs. 49,59'809.00} (Rupees Fourty Nine Lac, Fifty Nine^{Thousand,Eighty Hundred and Nine only)} together with^{pendentelite and futureinterest@1 1% p.a. for cash credit} account and interest @12%^{p.a. for term loan account simplefromthe date} of fiting of the OA, i.e.,04110122,^{with costs ti[[ its realization'}

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ii) The Appticant Bank is^{entitled to setl the mortgagedas wetl as} personal properties and assets of the^{Defendantsfor realizationof its dues.} The Defendants are hereby^{restrained by means of injunctionfrom} depteting, transferring,^{encumbering, atienatingor in any way dealingwith} their properties/assets^{without first paying the claim of the AppticantBank.} -at -

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oA 1270122

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iii) A Recovery Certificate^{be issued uls 19(271 of Recoveryof} Debts and Bankruptcy Act.^{The appticantbank may file a memo of cost} within 7 days for^{preparingRecoveryCertificate.}

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Judgment^{pronouncedin the open court on this Day of 01't August,2023'}

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.g'l'D 7
(Ram Niwas Pateti
Presidin e Officer

Indian Bank v. M/S Naivedhya Fly Ash Bricks

Case brief

What is this about?

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Indian Bank v. M/S Naivedhya Fly Ash Bricks

Case brief

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