Allowed

Bank of India v. M/S Fire Flex Pvt. Ltd.

DRT17 Oct 2023OA/189/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Bank of India under Section 19 RDB Act for recovery of Rs. 26.84 lakhs outstanding as an NPA. The bank proved the case via affidavit and documents. Defendants defaulted on interest and remained absent. The tribunal allowed the OA with liberty to sell hypothecated assets and issue a recovery certificate.

What did the court decide?

OA allowed with costs; liberty to sell hypothecated properties; liberty to proceed against other properties; office directed to issue Recovery Certificate.

Bank of India versus M/S Fire Flex Pvt. Ltd. — Arbitration | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL . I, KARNATAKA

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AT BENGALURU

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Dated this the t7th day of October,2OZ3

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Present: SRI IMTI AZ ALI

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Hon'ble Presiding Officer

oAIBe/2022

BETWEEN:

BANK OF INDIA

Branch- Banaswadi

255, L't Flooc Anjanadri Towers HRBR Layout, BENGALURU - 560 043 Represented by iB Chief Manager and Principal Officer of the Branch Ms. Seema Kumari

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...APPLICANT

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AND:

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M/s. FIRE FLEX PvT. LTD.,

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Represented by its Directors 404, Site No.11 &'1.2, Khatha No.34B Manjunatha Nagar, 2nd Cross Lakshminarayana Temple Road BENGALURU^.560 043

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2. Mr.D. ROBIN BOUN

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S/o K.R. David Pramodhan No.106, 1st Main Road Ex Servicemen Colony

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Banaswadi, BENGALURU - 560 043

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MRS. KAMALAKSHI DAVID W/o K.R. David Pramodhan No.106, 1st Main Road Ex-Servicemen Colony

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Banaswadi, BENGALURU - 560 043

.. DEFENDANTS

OA.N}.789/ 12022

Counsel on rpcord/aooeared for: Applicant : Sri K. Raveendran Defendants No.1to 3 i Ex-parte

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FINAL ORDER

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The present OA has been filed by the Applicant Bank under Section 19 of the Recovery of Debs and Bankruptcy Act, L993, seeking recovery of money of Rs.26,84,574.99 (Rupees Twenty Six Lakhs Eighty Four Thousand Five Hundred Seventy Four and paise Ninety Nine onlyJ together with cosB, interest, etc.

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The case ofthe Applicant Bank is that, the Defendant No.1 is a Company of which defendans No.2 and 3 are the Directors engaged in the business of supply, instalhtion, maintenance of Fire Protection System for High Rise Buildings and Residential ApartnenB. The First Defendant Company has approached the Applicant Bank for sanction of Cash Credit for ib business for the purpose of Business expansion and paymens at Bengaluru. Accordingly, the Applicant Bank has considered the said request of the defendant for grant of the above said Cash Credit Facility and sanctioned a Cash Credit Facility vide sanction Letter dated 03.02.2014 and disbursed the same to the tune of Rs.30,00,000/- to the ban account of Defendant No.1 viz., C.C. Account

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OA.No.r89 //2022

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No.843730110000010.

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In order to secure the ban, the DefendanB have executed various documenb such as; On Demand promissory Note, Agreement, Hypothecation Cum Loan Agreement, Loan Bearer Letter in Form L 435, Draft Dechration to be obtained from the Borrower and Acknowledgement of Debf /securities etc.

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FurtheX, the Applicant Bank submitted that, the Defendans have agreed to repay the Cash Credit Facility of Rs.30,00,000/_ On Demand abng with agreed rate of interest i.e. 1,2.850/o per annum with monthly resb.

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Furthef, the Defendans have agreed to repay the Loan with variable rate of interest, as applicabb from time to time as per the directions ofthe Head Office / Cental Office ofthe Applicant Bank and penal interest in case of default and keep the accounB regular by paying installmenb as and when due to the satisfaction of the Applicant Bank, as detailed in the OA by the Applicant Bank.

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The Defendanb after availing the said Cash Credit Facility as stated above, they have failed to adhere to the terms and conditions

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oA.No.789//2022

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ofthe sanction. Further;^{they havefailed to paythe interest accrued} there upon in spite of^{several demandsand requesb by the} Applicant Bank. Since the^{defendanb failed to adhereto the terms} and conditions of sanction^{and failed to cbar the dues,as such the} Applicant Bank was then^{constainedto classifythe above said Cash} Credit Facility as^{NPA. Thereafter, the ApplicantBank has issueda} Legal Notice Dated 30.10.2021^{to the defendanbrecalling the entire} out-standings in the ban^{account of the DefendanE, but even after} the above said notice, the^{defendanb have failedto clear the loan} dues.

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In the light ofthese factors,^{it is contendedby the Applicant} Bank that, the Defendans^{are liable to pay a total sum of} Rs.26,84,574.99^{(RupeesTwentySix Lakhs EightyFour Thousand} Five Hundred Seventy^{Four and paise Ninety Nineonly)'}

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After filing this OA, Summons^{weresent to the DefendanB} through RPAD. Summons^sent to^{Defendans throughRPAD} remained unserved and^{returned with postal remarksas "D 1-} Insufficient Address and^{D2 and D3-No Such Person ". Thereafter} the Applicant Bank^{published the summonson 04.01.2023in two} Daily Newspapers " New^{IndianExpress" and "Samyuktha}

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oA.No.789//2022

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Karnataka". When the Defendanb were called out, the DefendanB

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remained absent and placed ex parte.

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To prove the case of the Applicant Bank, its Chief Manager_ Mr.Manoranjan Mishra has filed his affidavit by way of evidence and same was considered as evidence of AW.1 and marked at Ex.A1 and List of Documents came to be marked at Ex.A2 and i.1 documents came to be marked at Ex.A3 to Ex.A13.

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No evidence on behalf of the Defendanb.

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ArgumenB of Learned Counsel for the plaintiff / Applicant

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Bank heard and perused the records ofthe case.

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Folbwing points arise for my consideration:

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Whether^plaintiff / Applicant Bank proves iB case as contended in the phint / application?

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What Or&r?

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For the folbwing reasons, I answer the above_referred poinb in the folbwing manner:

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REASONS

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The Chief Manager of the Applicant Bank came to be examined as AW.1. His affidavit by way of evidence reiterated the

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oA.No.789l12022

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facts pleaded in the^plaint and^{his affidavit is also corroborated by} the above-referred Ex.A3 to^{A13 which clearly establishthe case of} the Applicant Bank to allow the^{presentOA. Addedto this,the} Defendants No.1 to 3^{have remained absentand hence placed ex} parte. Therefore, it is to be construed that Defendants^{No.1to 3 have} admitted the entire case^pleaded by^{the Applicant Bank in the} present OA.

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Therefore, for these reasons,^{presentOA is to be allowed} with costs as sought by the Applicant^Bank.

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ORDER

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Present OA stands allowed^{as prayedfor with interestand}

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costs.

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ln the event of failure of^{the Defendants to pay the said OA} amount, the Applicant Bank is^{at liberty to sell the Schedule} hypothecated movable^{properties as mentionedin the main} application in accordance^{with law as sought by the ApplicantBank} in the OA.

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In spite of sale of the^{Schedulehypothecatedmovable} properties as mentioned in the main application,^{if theOA amountis}

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oA.No.789/12022

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not fully realised, then the Applicant Bank is at liberty to proceed against the persons and other properties of the Defendants as required under law and also as advised.

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Applicant Bank shall file latest Memo of Calculation of OA amount together with interest, costs etc., to be paid by Defendants No.1 to 3 duly taking into account the amount/s, if any, paid by the Defendants No.1 to 3 and/or amount realised by sale ofassets, etc., during the intervening period after firing the oA, to enable the office to prepare Recovery Certificate for the amount to be paid by the Defendants No.1 to 3 to the Applicant Bank.

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Office is directed to issue Recovery Certificate as sought by the Applicant Bank in the OA and do the needful as required under the law forthwith.

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The Office is directed to issue, as far as possible, free copy of

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this order to the parties concerned.

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(Dictated to the Stenographer, after its transcription and necessary corrections, signed and pronouoced by me in the Open Court on this the 17th day of qctober, 2023J

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Yt^o'e (rMrtAz Arr) Presiding Officer DRT-1, Bengaluru

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oA.No.789//2022

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ANNEXURES

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Witnesses examined for the Applicant Bank

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AW-1 : Mr.Manoranjan Mishra, the Chief Manager ofthe Applicant Bank

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Documents marked on behalf of the Applicant Bank:

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Ex.A.1:

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: Affidavit Evidence of AW1

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: List of witnessesList of witnessesof witnesseswitnesses

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Ex.A2: : List of witnessesList of witnessesof witnesseswitnesses Ex.A3 to A13 : 11 documents.

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Witnesses Examined for the Defendants:

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NiI^.

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,a''o* (rMTrAZ Arr) Presiding Officer DRT-I, Bengaluru

Bank of India v. M/S Fire Flex Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S Fire Flex Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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