Allowed

State Bank of India v. Karan Apparels

DRT20 Jul 2023OA/282/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the State Bank of India's application for recovery of dues from borrowers and guarantors, confirming principal amounts and adjusting interest rates.

What did the court decide?

Recovery of principal dues of approx Rs. 66.71 Lakhs with adjusted interest rates; issuance of Recovery Certificate under Section 19(2).

What the court decided

State Bank of India versus Karan Apparels — Execution and Attachment | 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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Originol Applicotion No.^- 282/22

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State Bank of lndia, Stressed Assets Recovery Branch, 3RD Ftoor, Zonat Office, Vijay Nagar, Jabatpur (M.P.)

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Appticant

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Versus

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01 ) M/s Karan Apparets, Through its ProprietorSanjay Makkar, 5/o Late Kundanlat Makkar, Shop No. 14-15, 1't Ftoor, Katanga Crossing, Gorakhpur, Jabalpur (M.P.)

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0U Mrs. Chandrakanta Makkar, W/o Late Kundanla[ Makkar

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1. Gulshan Makkar, S/o Late Kundanlal Makkar

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1. Neeraj Makkar, S/o Late Kundantat Makkar

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(2 to 4 at 131 1, Vivekanand Ward, Yadav Co[ony, Jabatpur)

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1. M/s S.M. Enterprises, Through its PartnersSanjay Makkar and Chetan Makkar Shop No.-10-'1 1, Chopra Chamber, Katanga Crossing,' Gorakhpur, Jabatpur

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1. Sanjay Makkar, 5/o Late Kundantal Makkar

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1. Chetan Makkar, S/o Mr. Kamal Makkar

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(6 & 7 at 1311, Vivekanand Ward, Yadav Cotony, Jabatpur)

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1. M/s D.M. Enterprises, Through its Proprietor' Mrs Divya Makkar W/o SanjaY Makkar, Shop No. 11-12, Chopra Chamber, Katanga Crossing, Gorakhpur, Jabalpur; Atso at: 1311, Vivekanand Ward, Yadav Cotony, JabalPur

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)

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oA282122

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M/s karan^{Shes NXT&. Accessories,} Through its Proprietor-Sanjay^Makkar, Shop No. G-45, ChoPra^Chamber, Katanga Crossing, Gorakhpur,^Jabatpur; Atso at: 1311, Vivekanand^Ward, Yadav Cotony, JabatPur Defendants

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Counsel for the Appticant :^{Shri VivekShukta,Advocate} Defendants : Ex'Parte

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JUDGMENT (Dated : 20th July, 2023)

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The Appticant-Bank has fited^{the present Originat Apptication} uts 19 of Recovery of^{Debts and BankruptcyAct on 21lOZl22against the} Defendants for recovery of^{Rs.66,71,412.00 (Rupees Sixty Six Lac,Seventy} One Thousand, Four Hundred^{and Twetveonty) alongwithinterestand other} retiefs as stated.

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The brief facts of the case are that^{on the requestof} Defendant No.-'l through its Proprietor^{Defendant No.-2,the AppticantBank} sanctioned Cash Credit Limit of^{Rs. 20 Lac on December 2010 which was} renewed from time to time and lastty on04104/18^{and FundedlnterestTerm} Loan (FITL) of Rs. 80,152l' as^per circutar^{dated 23/05120. Furtheron} request of Defendant No.-5 through its^{Partners DefendantNo.'6 and 7, the} Appticant-Bank sanctioned working capital limit of^{Rs. 20 Lac on 30/07113} which was subsequentty renewed lastty on 03104118.^{Atso on request of} Defendant No.-8 through its Proprietor, the^{Applicant-Banksanctioned} working capital limit of Rs.20 Lac on 05/09/13 which was subsequentty renewed lastty on 04104118 which was again renewed/sanction Cash Credit timit of Rs. 0.50 Lac, FITL of Rs. 0.84 Lac & WCTL of Rs. 11.58 Lac on 30110120. On further request of Defendant No.-9 through its Proprietor, the Appticant-Bank sanctioned working capital limit of Rs. 20 Lac on 28/09/'13 which was subsequentty renewed tastty on 04104118. ln consideration of the sanction of credit facitities the Defendant No.-1, 5, I & 9 as borrowers and Defendant No.-2 to 4, 6 in their individual capacity as^guarantors in addition to execution of loan and^guarantee documents have atso created equitabte mortgage over the immovabte property, i.e., Shop No.-11, 12, 13, 14 &. 15 total area 1179.5 sq.ft. (1/4 undivided interest on the side of Chopra Chambers), Mouja-Gorakhpur, Chopra Chambers, Gorakhpur, constructed after dismantling Bungalow No.-655, Sheet No.-289 Ptot No.-501 /1 Old New

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oA282122

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501 119 &.501 121 , George D'sitva Ward, Tehsil & District-Jabalpur; betonging to Kundan Lat Makkar (since deceased). The Defendants availed the credit facitities but faited to tiquidate the outstanding dues despite issuance of Legal Notice on 05102122 and initiation of action under the Securitisation Act by the Appticant Bank. The Appticant-Bank has retied upon the documents at Ex. A-1 lo A-27 which were proved by Shri Manmohan Anand, Chief Manager.

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Despite service of notice, the Defendants neither appeared nor fited written statement. They were proceeded ex-parte vide order dated 02103123. 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 severalty tiabte to pay the amount as ctaimed by the AppticantBank together with interest and costs. The Appticant-Bank in its application has claimed interest @14.75% p.a. with monthty rests in cash credit account of Defendant No.-'t , interest @1 1% p.a. with monthty rests in FITL account of Defendant No.-1, interest @10.55% p.a. with months rests in cash credit account of Defendant No.-5, interest @7.45% p.a. with monthly rests in WCTL account of Defendant No.-8, interest @11.55y" p.a. with month[y rests in FITL account of Defendant No.-8, interest @14.75% p.a. with monthty rests in cash credit account of Defendant No.-8 and interest @10.55% p.a. .with monthty rests in cash credit account of Defendant No.-9. However, I feel it fair and reasonable to grant interest @127o p,a. in cash credit account of Defendant No.-1, interest @11% p,a, in FITL account of Defendant No,-1, interest @10.50% p.a. in cash credit account of Defendant No.-5, interest @7.45%^p.a. in WCTL account of Defendant No.-8, interest @11.50%^p.a. in FITL account of Defendant No.-8, interest @12/" p.a, in cash credit account of Defendant No.-8 and interest @10.50% p.a. in cash credit account of Defendant No.-9 simple pendentelite and future titl reatization of the dues. The mortgaged property is tiable to be sotd for recovery of amount due atong with the personal properties and assets of the Defendants.

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

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i) The Defendant No.-1 to 4 do pay jointty and severa[y Rs. 15,02,994.00 (Rupees Fifteen Lac, Two Thousand, Nine Hundred and Ninety Four onty) due in Cash Credit Account No.-65104368859 and Rs.77,877.00 (Rupees Seventy Seven Thousand, Eight Hundred and Seventy Seven onty) due in FITL account No.-39605831522.

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oA282122

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ii) The Defendant No.'5 to 7 and 2 to 4^{do pay jointtyand} severalty Rs. 18,54,581 .00^{(Rupees Eighteen Lac, Fifty Four Thousand,Five} Hundred and Eighty One only) due in^{Cash Credit AccountNo.-55173151062.}

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iii) The Defendant No.-8, 2 to 4 and 6 do^{pay jointty and severally} Rs. 12,60,963.00 (Rupees Twetve Lac, Sixty^{Thousand,Nine Hundredand} Sixty Three onty) due in WCTL account^{No.'39765898084,Rs. 89,477.00} (Rupees Eighty Nine Thousand, Four Hundred and Seventy Seven^{onty) due in} FITL account No.-39606253752 and Rs. 54,660.00^{(RupeesFifty Four} Thousand, Six Hundred and Sixty only) due in Cash Credit Account^No.- 651759931447.

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iv) The Defendant No.-9, 2 to 4 and 6 do^{pay jointty} and severatly Rs. 18,30,856.00 (Rupees Eighteen Lac, Thirty Thousand, Eight Hundred and Fifty Six onty) due in Cash Credit Account No.-65177956E71^.

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v) The Defendants do further pay^jointty and severalty pendentetite and future interest @12% p.a. in cash credit account of Defendant No.-1, interest @11%^p.a. in FITL account of^{Defendant No.-1,} interest @10.50% p.a. in cash credit account of Defendant No.-5, interest @7.45%^p.a. in^WCTL account^{of DefendantNo.'8, [email protected]%p.a. in} FITL account of Defendant No.-8, interest @12/o^p.a, in cash credit account of Defendant No.-8 and interest @10.50%^p.a. in cash credit account^of Defendant No.-9 simpte from the date of fiting of the OA, i.e.,21 102122, with costs titl its reatization.

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vi) The Appticant Bank is entitted to sett the mortgaged as well as personal properties and assets of the Defendants for rea[ization of its dues. The Defendants are hereby restrained by means of injunction from depteting, transferring, encumbering, atienating or in any^way dealing^with their properties/assets without first^paying the claim of the^{AppticantBank.}

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vii) A Recovery Certificate be issued uls 19(22) of^{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^{Day of 20th July,TOZ3.}

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s^D .,1.+a.-e-*. I (Ram Niwas Patet) Presidine Officer

State Bank of India v. Karan Apparels

Case brief

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What the court decided

State Bank of India v. Karan Apparels

Case brief

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What the court decided

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