Allowed

Union Bank of India v. M/S v S Fashion Studio

DRT27 Jun 2023OA/258/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the original application filed by Union Bank of India for recovery of dues from the proprietors/exploiters of Fashion Studio, granting an injunction and order for sale of properties. Interest was fixed at 10.50% p.a.

What did the court decide?

Declaration granting the claim for Rs. 40,39,847.75 with interest at 10.50% p.a., sale of assets, recovery certificate, and injunction. Costs and Certificate under Section 19 issued.

Union Bank of India versus M/S v S Fashion Studio — Contract and Commercial Disputes | 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'bte Shri Ram Niwas Patel)

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Original Application No. - 258122

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Union Bank of lndia, (Erstwhite Andhra Bank) City Centre, Gwatior

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Appticant

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Versus

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M/s V.S. Fashion Studio,

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Through its ProprietorMs Vinni Shivhare, University Road, Kamatdeep Apartment, Behind Big 5hop, Govindpuri, Gwalior (M.P.l 474011

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Atrs Vinni Shivhare, D/o Mr. Pradeep Shivhare,

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Rlo E-4, Ramanuj Nagar, Govindpuri, University Road, Gwatior (M.P.) 474011 Defendants

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Counsel for the Appticant : Shri Shubham Nanepag,^Advocate Defendants : Ex-parte

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JUDGMENT

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(Oatea : Zlm.lune, ZOZI)

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The Appticant-Bank has fited the^present Originat^Apptication uls 19 of Recovery of Debts and Bankruptcy^Act on^{11/01122against the} Defendants for recovery of Rs. 40,39,847.75^{(RupeesFourtyLac,Thirty Nine} Thousand, Eight Hundred Fourty Seven and^{Paisa Seventy Fiveonty)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 erstwhite} Andhra Bank sanctioned Term Loan of^{Rs. 3.50 Lac on21/01117 and Open} Cash Credit Limit of Rs. 22 Lac on22l11l17.ln^{considerationof the sanction} of said credit facitities the^{Defendants executed requisite loan documents.} The Andhra Bank was amatgamated^{with the UnionBankof lndia with effect} from01 l04l70 vide Notification^{dated 04/03120. The Defendantsavaited the} credit facitities but faited^{to liquidate the outstandingdues despiteissuance} of Legat Notice lastly on^{17 111121bythe Apptica n} Bank. The Applicant-

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oA258t22

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Bank has retied upon the documents at Ex. A-1 to A-9 which were proved by Shri Pranav Tiwari, Branch Manager.

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Despite service of notice, the Defendants neither appedred nor fited written statement. They were proceeded ex-parte vide order dated 23101 123, There is therefore, no reason to disbelieve the contentions of the Bank. Considering the facts of the case, I opine that the Defendants are jointty and severatty tiabte to pay the claim amount together with interest and costs. The Appticant-Bank in its apptication has ctaimed contractuat rate of interest with monthly rests. However, I feel it fair and reasonabte to grant interest @10.50% p.a. simpte pendentelite and future till reatization of the dues. The personal properties and assets of the Defendants are liabte to be sotd for recovery of amount due.

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The Originat Application is altowed and it is ordered as under-

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i) The Defendants do pay jointty and severally Rs. 40,39,g47.75 (Rupees Fourty Lac, Thirty Nine Thousand, Eight Hundred Fourty Seven and Paisa seventy Five onty) together with pendentetite and future interest @1 0.50% per annum simple from the date of fiting of the OA, i.e., 1 1 I 01 /ZZ, with costs till its reatization.

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ii) The Appticant Bank is entitted to sell the personal properties and assets of the Defendants for realization of its dues. The Defendants are hereby restrained by means of injunction from depteting, transferring, encumbering, atienating or in any way deating with their properties/assets without first paying the ctaim of the Appticant Bank.

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iii) A Recovery Certificate be issued uls 19(ZZl of Recovery of Debts and Bankruptcy Act. The appticant 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 Day of27th June, 2023.

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(Ram lwas tet) Presidine Officer

Union Bank of India v. M/S v S Fashion Studio

Case brief

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Union Bank of India v. M/S v S Fashion Studio

Case brief

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