Allowed

Bank of Baroda v. M/S Sandrembi Foods Products

DRT18 Jul 2023OA/233/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the Bank of Baroda's application for issuance of a recovery certificate against the unlimited liability of the erstwhile M/S Sandrembi Food Products, noting the filed acknowledgment of debt validated the claim despite NPA status. Costs were awarded.

What did the court decide?

Issuance of recovery certificate for Rs. 33,41,754.85 p.a. interest from 24.04.2022, costs of application, and charge on hypothecated/personal assets.

Bank of Baroda versus M/S Sandrembi Foods Products — Banking and Recovery | DRT (2023)

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O.A. 2332022/DRf^.Guvahati

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal of Assam, Nagaland. Meghalaya, Manipur, MizoEm, Arunachal pradesh & Tripura)

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Before Shri Shiv Sharan Oubev. Presidinq Officer

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O.A. No.233/2022

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ln the matter of - BANK OF BARODA lmphal Branch, Thangal Bazar, lmphal, Manipur-795001

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..Appticant

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Vs.

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I. M/S SANDREMBI FOOD PRODUCTS Represented by its proprietorMr Ajanta Moirangthem, Tentha Khongbal, P.O Wanhjing Toubal District 795148, lmphal, Manipur.

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MR AJANTA MOIRANGTHE @ IOIRANGTHEM AJANTA SINGH Tentha Khongbal. P.O Wanhjing. Toubal District 795148, lmphal, Manipur

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Defendants

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Presence of the Counsel^:

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: Sri Bikash Sharma, For the Applicant Sri Hemen Das. Sri Dhanjit Kumar Nath, Advocates. For the Defendants : None(ex-parte)

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Dated :18.07'2023

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JUDGMENT

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This is an application^{under section 19 of the Recovery of Oebts Due to} Banks and Financial lnstitutions^{Act, 1993 ,iled by the BANK oF BARODA, lmphal} Branch, Thangal Bazar,^{lmphal,Manipur-795001,with a prayer to issueRecovery} certificate for the sum of^{Rs' 33,41,754.85 (RupeesThirty ThreE Laca Forty One} Thousand Seven Hundred^{Fifty Four and Paise Eighty Fivelonlyas on 23'04'2022} only against the defendants^{jointly and severally withcost, pendentelite and future}

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:H,*m^"P'q

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O.a. 2332022/ORf 4u\l.halt

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interest at contractual rate of 11.80%^per annum at^{monthly rests till realization, along} with other relief.

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A few facts^giving rise to the^present application^{are as under.}

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The defendants had approached and requested the applicant bank to sanction of working capital Limit amounting Rs. 10,11,000/- as Cash Credit Loan^& Rs. 22,39,000/- as a Term Loan and after considering lhe^said application,^the applicant bank had sanctioned a credit facility of^{Rs. 10,11,000/- as Cash CreditLoan} & Rs. 22,39,000/- as a Term Loan vide Sanction Letter dated 08.10.2018 under CGSTMSE scheme, inter alia at an interest of at the time of sanction where capital loan (floating) interest rate @1 1.80%^per annum under^(floating option 3% above one year MCLR + Strategic Premium Per Annum with monthly rests), payable and compounded at monthly rests with annual rest clause for Cash Credit. The loan is covered under CGTMSE Scheme. The Term Loan was repayable in monthly installments of Rs 27641.97 in 84 equal monthly instilmenls including 3 months moratorium period. The defendants executed necessary loan documents on the same day on 08.10.2018, such as Composite Hypothecation Agreement, D.P. Note & Sole Proprietorship, Letter Continuing Security, Declaration cum- Undertaking-cumAuthority, Letter of Authority to make payment directly to the dealers,^power of Attorney in respect of Book Debts Facility. The proprietor of the defendant No. 1 executed unconditional and irrevocable Guarantee on 08.10.20'18 vide General Form of Guarantee in favour of the applicant bank, guaranleeing the repayment of the dues under the loan agreement. The Cash Credit Loan Account number is 10160500008378 and Term Loan Account is 10'160600013635.

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The defendants had availed the loan facilities from the applicant bank but have not paid the outstanding amount as per terms and condition made with the applicant bank in spite of repeated demands and request by the applicant bank. As the loan accounts were running extremely irregular and due to non-payment of principal

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tudw;,T*z Pr€3iding Offcdr I U DRT, Guwahati

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O.A. 233/2022lDRTCN.h.ti

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amount and interest, the said accounts were classified as a NPA on 2A12.2021. fhe proprietor of defendant No. I had also executed a Letter of Acknowledgement dated 07.10.2021, acknowledging that the defendant has the liability of Rs. 31,70,582.57 payable to the applicant bank towards the Cash Credit and Term Loan. After the accounts became NPA the applicant bank issued notices for repayment of the due amount, but the defendants have neither chosen for repayment of the remaining installments in the term loan accounl nor approached to lhe applicant bank for settling the term loan account nor renewed the cash credat loan account.

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The applicant bank thus became constrained to file the present Original Application for the remvery of Rs. 33,41,754.85 (Rupee3 Thirty Three Laca Forty One Thousand Seven Hundred Fifly Four and Paise Eighty Five only as on 23.M.2O22 along with interest and cost of the application.

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After filing of the OA the Tribunal issued notices upon the defendants through registered post and the applicant bank filed service report on 01.09.2022 and brought on record the postal receipls along with track consignment report which shows that the notices have not been served upon the defendants. Thereafrer the Tribunal ordered paper publication of notice upon the defendants and the applicant bank issued notices to the defendants on 14.09.2022 through Paper Publication in two newspapers namely "lmphal hee P/ess'and 'Sanaleiba(. Even after issuance of notice through paper publication also there was no representalion on behalf of the defendants either by the counsel or lhe person and hence the defendants were set ex-parte on 06.02.2023 and the matter was posted for hearing on behalf of the applicant bank. Today also there is no representation on behaf of the defendants.

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Supporting the claim of the applicant bank Sri Amitabh Pathak, Chief Manager of the applicant bank fled evidence on afiidavit coupled with the security documents ma*ed as Exhibit -1 to 13, supporting the claim of the applicant bank.

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Heard the learned counsel for the applicant bank who prayed for issuance of

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trw

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O.A. 233/20221D RTGMhali

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Recovery Certificate against the defendants^{as per pleadingsmade in the Application,} supported by evidence on affidavit^{of their witnesswho affirmed on oath the execution} of the security and other documents by the defendants^{and also execution of their own} documents relied upon, which have been^{marked exhibits.}

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considering lhe facts and circumstances of the case,^I am^{of the considered} view that the documents filed^{by theapplicant bankare supportingtheclaimof the} applicant bank and establishing the^{liabilityof the defendants.lt is proved that the} defendants are liable to^pay to the^{applicantbank the claim madein the Original} Application. The loan was obtained^{and documents} have^{been executedon} 08.10.2018. The^proprietor of^defendantNo. t^{had also executed a Letter of} Acknowledgement daled^{07.'10.2021, acknowledgingthat the defendanthas the} liability of Rs. 31,70,582.57^{payable to the applicant bank towardsihe Cash Credit and} Term Loan. The above^{Acknowledgementof Debts and Securitygiven by the} defendant is surviving^{the limitation for tiling the OA,the account became NPAon} 2A.e.2021 and the OA^{has been filed} on^{23.06.2022. Hence,the OA is filed well} within the^period of limitation^{and this Tribunal having a jurisdictionto adjudicate the} Original Application.

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Considering the unchaltenged/^{unrebufted version of Sri Amitabh Pathak' the} applicant's witness^{and all the documents marked as exhibits' including duly certified} copy of the statement^{of accountalongwith interest calculation sheet maintained by} the applicant Bank^{in it's regular course of business,I hold that the applicantis entitled} to get the Recovery Certificate^{as prayed for'}

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ln the result, the^{present OriginalApplication No. 233 of 2022is allowed with} cosl as under:-

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i) The defendants No. 1 & 2^{are jointlyand severallyliable to pay to the} applicant bank a sum of^{R8. 33,41,754.85(RupgesThirtyThree Laca}

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:k-iltr?h"v

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O"A" 233r2022/DRT.Guwahrti

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Forty Ons Thousand Sovon Hundred Fifty^{Four and Paiss Eighty Five)} only with^pendentelite and future interest @11.80%^{p.a. with monthlyrests} lrcm 24.04.2022 till the date of^{full paymenurealizationand also costof the} apPlication.

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ii) The charge of the cettiticated amount^{be kept alive on hypothecated properties} as described in 3A of the OA till the amount^{is realizedin full.}

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iii) The applicant bank is entitlod^{to proceed againstlhe secured items towards} recovery of the debts.

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iv) The applicant bank^{is entitled} to^{proceedagainst the personal assets and} properties of the defendants towards recovery of the debts.

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v) The applicant bank is entitled to the^{costsof the O.A. which includes the} advocate fees of the appllcant^{bank. Applicantis directed to file the cost} memo within 2 weeks from today.

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vi) lssue Recovery Certilicate accordingly for a sum^{Rs. 33,41,754.85 (Rupees} Thidy Thrse Laca Forty One Thousand Seven^{HundrodFiftyFour and} P.bo Eighty Five) only in favour of the^{applicantbankagainstthe} defendants No. 1&2.

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vii) Communicate copy of this order to the concemed^parties.

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This order is dictated and corrected by the undersigned.

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Judgment dated 186 July 2023, signed and^pronounced in the Tribunal today

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under my signature.

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Copy of the JudgmenuFinal Order be uploaded in lhe Tribunal's Website and file be consigned to Record Room.

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Sbrc/ig11ii.,.I"J,^1 (Shiv Sharan'DdEd$ - U Presiding Oflicer DRT, Guwahati.

Bank of Baroda v. M/S Sandrembi Foods Products

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/S Sandrembi Foods Products

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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