Allowed

Indian Bank, v. Messrs Maya Processors Pvt. Ltd. and Others

DRT17 Oct 2023OA/1534/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Indian Bank for recovery of Rs.1.90 Crore against a private limited company and its directors/guarantors. The court reduced the claimed interest rate to 10% p.a., ordered a Recovery Certificate, and directed sale of mortgaged properties.

What did the court decide?

Recovery of Rs.1,90,01,037.46 plus costs and simple interest at 10% p.a. Ordered; Recovery Certificate issued.

Indian Bank, versus Messrs Maya Processors Pvt. Ltd. and Others — Company and Corporate | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1534/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.06.2022

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DATE OF DECISION: 17.10.2023

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Indian Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai having its Zonal Office at Ludhiana and amongst other places a Branch at Kalsi Nagar, GT Road, Dada Motors, Dholewal Chowk, Ludhiana 141003 through Sh. Daya Shankar, Assistant General Manager, duly constituted Power of Attorney holder of the Bank and Principal officer

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……..Applicant

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Versus

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M/s Maya Processors Pvt. Ltd., having its Regd. Office at 13, Partap Colony, Model Gram, Ludhiana, 141002 through its Directors

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Sh. Sushil Guleria S/o Late Sh. Duryodhan Singh, R/o 59, Partap Colony, Model Gram, Ludhiana 141002 (Director of defendant no.1)

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Smt. Shashi Kanta W/o Late Sh. Duryodhan Singh, R/o 59, Partap Colony, Model Gram, Ludhiana 141002 (Director of defendant no.1)

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Smt. Shilpa Guleria W/o Sh. Sushil Guleria, R/o 59, Partap Colony, Model Gram, Ludhiana 141002 (Guarantor)

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………Defendants

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Advocates:

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Argued by Ms. Manjari Joshi, counsel proxy for Sh. Rajiv Joshi, counsel for the applicant Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial

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Institutions Act, 1993, against the defendants for recovery of Rs.1,90,01,037.46p (Rupees One Crore Ninety Lacs One Thousand Thirty Seven and Forty Six Paisa only). The Original Application has been filed through Sh. Daya Shankar, Assistant General Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 31.01.2014 and Notification dated 04.03.2020, which are Annexures A1 and A1/A to this OA.

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The brief facts of the OA are that the defendant no.1 through its directors defendants no.2 and 3 had approached the applicant bank from time to time for the grant of OCC of Rs.1.00 Crore, MTL of Rs.0.50 crore and later for the renewal and restructuring of OCC by carving out FITL of Rs.3.90 Lacs and also for the IND-MSE Covid emergency loan of Rs.10.43 Lacs. 3. The applicant Bank sanctioned the OCC of Rs.1.00 Crore, MTL of Rs.0.50 crore and later renewed and restructured the OCC Limit by carving out FITL of Rs.3.90 Lacs and also sanctioned the IND-MSE Covid emergency loan of Rs.10.43 Lacs vide Sanction Letters dated 18.05.2017, 29.01.2020 and 29.04.2020, which are Annexures A3, A17 and A25 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants no.2 and 3 had mortgaged their immovable properties detailed as: (i) Equitable mortgage of factory, land and building measuring 1893 sq. yards situated at Opposite Marble market, Pakhowal road, Near Thakur Colony (Basant city), Hadbast no.279, Village Daad, District Ludhiana, Punjab in the name of defendants no.2 and 3 vide Gift Deed bearing Vasika no.12238 dated 18.03.2010 along with its translation, which is Annexure A11 to this OA; and (iii) Equitable mortgage of land and building measuring 166 sq. yards situated at Opposite Marble market, Pakhowal road, Near Thakur Colony (Basant city), Hadbast no.279, Village Daad, District Ludhiana,

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Punjab in the name of defendant no.2 vide Transfer Deed bearing Vasika no.7184 dated 28.10.2013 along with its translation, which is Annexure A12 to this OA.

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Documents executed:- Board Resolution dated 18.05.2017, which is Annexure A2 to this OA; D.P. Notes, Agreement of Hypothecation of movables, Medium Term loan, Agreement for Open Cash Credit, Letter from Borrower for disclosure of information and Agreement of Guarantee all dated 19.05.2017, which are Annexures A4 to A10 to this OA; Letter from third party to bank for extension of equitable mortgage dated 22.05.2017, which are Annexures A13 and A14 to this OA; Request letter dated 15.01.2020, which is Annexure A15 to this OA; Board Resolution dated 26.01.2020, which is Annexure A16 to this OA; D.P. Note, Agreement of Hypothecation of movables, Funded Interest Term loan Agreement, Medium Term loan Agreement and Agreement of Guarantee all dated 29.01.2020, which are Annexures A18 to A22 to this OA; Letter from third party to bank for extension of equitable mortgage dated 03.02.2020, which are Annexures A23 and A24 to this OA; D.P. Note, Agreement of Hypothecation of movables, Medium Term loan Agreement and Agreement of Guarantee all dated 29.04.2020, which are Annexures A26 to A29 to this OA; Letter from third party to bank for extension of equitable mortgage dated 01.05.2020, which are Annexures A30 and A31 to this OA; Relevant extract from Register of Mortgages, which is Annexure A32 to this OA; CERSAI Registration dated 15.06.2017, which is Annexure A33 to this OA; Board Resolution dated 31.10.2019, which is Annexure A34 to this OA; Letter of Acknowledgement of debt dated 01.11.2019, which is Annexure A35 to this OA; Recall notice dated 07.05.2022, which is Annexure A36 to this OA; Statement of accounts along with MOI, which are Annexures A37 to A40 to this OA, Demand Notice dated 07.09.2020, which is

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Annexure A41 to this OA and Possession notice dated 10.11.2020, which is Annexure A42 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.1,90,01,037.46p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 25.09.2023. 7. In support of the OA, affidavit of Sh. Daya Shankar, Assistant General Manager, Indian Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A42 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.1,90,01,037.46p (Rupees One Crore Ninety Lacs One Thousand Thirty Seven and Forty Six Paisa only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest

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@13.05%p.a. in OCC Limit (inclusive of @2%p.a. penal interest); @13.05%p.a. in MTL (inclusive of @2%p.a. penal interest); @13.15%p.a. in FITL (inclusive of @2%p.a. penal interest) and @10.75%p.a. in IND Covid Emergency Loan (inclusive of @2%p.a. penal interest) with monthly rests in all the accounts from 01.06.2022 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @10.00%p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,90,01,037.46p (Rupees One Crore Ninety Lacs One Thousand Thirty Seven and Forty Six Paisa only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 02.11.2023. 15. Copy of this order be given dasti to the applicant bank and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the Open Tribunal. Dated: 17.10.2023

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank, v. Messrs Maya Processors Pvt. Ltd. and Others

Case brief

What is this about?

What did the court decide?

Indian Bank, v. Messrs Maya Processors Pvt. Ltd. and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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