Allowed

Union Bank of India v. M/S Rakhi Agro

DRT20 Dec 2023OA/249/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under Section 19 RDB Act for recovery of a loan of Rs. 23.75 Lac. The court directed the respondent to pay the principal amount with interest at 11% per annum and granted a recovery certificate while restraining the defendant from transferring assets.

What did the court decide?

Order for payment of principal and interest at 11% p.a.; issuance of Recovery Certificate u/s 19(2); injunction against alienation of assets.

Union Bank of India versus M/S Rakhi Agro — Contract and Commercial Disputes | DRT (2023)

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DEBTS RECOVERY TRIBUNAL : JABALPUR (for the States of Madhya pradesh and Chhattisgarh)

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

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Original Application No. _ 249/2023

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Union Bank of India, Vijay Nagar, Jabalpur (M.p)

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Applicant

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Versus

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IWs Rakhi Agro, Through its ProprietorMs. Rakhi Choudhary D/o ShriBabloo^prasad Choudhary Gram- Panchayat Richhai, Tehsil- Panagar, District- Jabalpur (M.p)

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A,lsq At- West Kariya pathar, Near School, Babatola, District-Jabalpur

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Defendant

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Counsel for the Applicant : Shri Vivek Shukla, Advocate Defendant : Ex-parte

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JUDGMENT (Dated r zOs n....U[ zOzfy

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The Applicant-Bank has filed the present Original Application u/s l9 of Recovery of Debts and Bankruptcy Act on 07102123 against the Defendant for recovery of Rs. 27,16,2371_ (Rupees Seventy Two Lac, Sixteen Thousand, Two Hundred and Thirty Seven only) along with interest and other reliefs as stated.

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The brief facts of the case are that on the request of Defendant, the Applicant Bank sanctioned Cash Credit Limit of Rs.9.50 Lac and Term Loan of Rs.14.25 Lac aggregating

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oA249/23^.

Rs.23.75 Lac on 0510812020. In consideration of aforesaid sanctions the Defendant executed requisite loan documents. The Defendant availed the credit facilities but failed to liquidate the outstanding dues despite issuance of Legal Notice dated 28112122 by the Applicant Bank. The Applicant-Bank has relied upon the documents at Ex. A-l to A-15 which were proved by Shri Premnidhi Mishra, Chief Manager.

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Despite service of notice, the Defendant neither appeared nor filed written statement. He was proceeded ex-parte vide order dated 04109123. There is therefore, no reason to disbelieve the contentions of the Bank. Considering the facts of the case, I opine that the Defendant is liable to pay the claim amount together with interest and costs. The Applicant-Bank in its application has claimed interest @11.20% p.a. with monthly rests for Cash Credit Account and interest @ll55o/o p.a. with monthly rests for Term Loan Account. However, I feel it fair and reasonable to grant interest @ll% p.a. simple pendentelite and future till realization of the dues for both the loan accounts. The personal properties and assets of the Defendant are liable to be sold for recovery ofamount due.

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The Original Application is allowed and it is ordered as under-

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i) The Defendant do pay Rs. 27,16,2371- (Rupees Seventy Two Lac, Sixteen Thousand, Two Hundred and Thirfy Seven only) together with pendentelite and future interest @ll% per annum simple for both the loan accounts from the date of filing of the OA, i.e., 07102123, with costs till its realization.

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iD The Applicant Bank is entitled to sell the personal properties and assets of the Defendant for realization of its dues. The Defendant is hereby restrained by means of injunction from depleting, transferring, encumbering, alienating or in any way dealing with his^{properties/assets} without first^paying the claim of the Applicant Bank.

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iii) A Recovery Certificate be issued u/s 19(22) ot Recovery of Debts and Bankruptcy Act. The applicant bank may file a memo of cost within 7 days for preparing Recovery Certificate.

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Judgment pronounced in the open court on this 20th Day of December,2023.

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.2>,/ >' 7 Ni was Patel) Presidins Officer

Union Bank of India v. M/S Rakhi Agro

Case brief

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Union Bank of India v. M/S Rakhi Agro

Case brief

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