Allowed

Bank of India v. M/S Dash Paper Plast Pvt. Ltd.

DRT22 Dec 2023OA/397/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's original application for recovery of debts. The court held the borrowers and guarantors jointly and severally liable to pay the claim amount with interest and costs, and directed issuance of a recovery certificate.

What did the court decide?

Defendants to pay Rs. 10,88,03,086.04 with interest at 10.75% p.a.; Recovery Certificate to be issued; Injunction on disposal of assets.

Bank of India versus M/S Dash Paper Plast Pvt. Ltd. — 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 Patet)

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Original Application No. - 397122

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Bank of lndia, 25, Bhoj Marg, Freeganj, Ujjain (M.P.) 456010

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..... Appticant

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Versus

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M/s Dash Paper Plast h/t. Ltd., Through its DirectorsMr. Kaushal Bhayat, Mrs. Hemtata Verma, Mr Bhupendra Singh Verma & Mr, Ram Shankar Yadav, 253/1, Pingteshwar, Maxi Road, Ujjain (M.P.) 456 010

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1. Mr. Kaushal Bhayal, S/o Mr. Dinesh Bhayal, R/o 201, Va[tabh Nagar, Bagheshwari Road, Ujjain (M.P.)

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1. Mrs. Hemtata Verma, W/o Mr. Atul Verma

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1. Mr. Bhupendra Singh Verma, S/o Mr. Atul Verma

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(3 & 4 R/o A-9120, MlG, Basant Vihar, lndore Road, Ujjain, M.P.)

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1. Mr. Ram Shankar Yadav, Rl o 253 I 1, Pingleshwar, Ujjain (M.P.)

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1. M/s Gotden Potypack lndustries, Through its Partners-t\rir. Dinesh Bhayal, Mr. Bhupendra Verma, lvls. Laxmi Solanki, Mr. Sunil Solanki, Vitlage-Pingteshwar, Tehsit & Distt.-Ujjain (M.P.)

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O7l Mr. Dinesh Bhayal, S/o Mr. Madhav Ji Bhayat, R/o 201, Val[abh Nagar, Bagheshwari Road, Ujjain (M.P.)

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1. fuls. Laxmi Sotanki, D/o Mr. Bhagwan Sotanki, 133, lndrapuri Colony, lndore (M.P.)

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oA397t22

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Mr. Sunil Solanki, S/o Mr. Chandra Shekhar Solanki, Rlo 1044, Khatwata Tank, lndore (M.P.) Defendants

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Counsel for the Appticant : Shri Ashish Shroti, Advocate Defendants : Ex-parteEx-parte

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: Ex-parteEx-parte

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JUDGMENT (Dated : 22 December, 2023)

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The Applicant-Bank has fited the present Originat Apptication uls 19 of Recovery of Debts and Bankruptcy Act on 08t03122 against the Defendants for recovery of Rs. 10,88,03,086.M (Rupees Ten Crore, Eighty Eight Lac, Three Thousand Eighty Six and Paisa Four onty) atong with interest and other reliefs as stated.

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The brief facts of the case are that on the request of Defendant No.-1 through its Directors, the Appticant Bank sanctioned Term Loan of Rs. 207 Lac, CC (hypothecation of Stock) Limit of Rs. 50 Lac and CC (hypothecation of Book Debt) Limit of Rs. 10 l_ac on 051 11 t 11 . The CC Limit of Rs. 50 Lac which was subsequently enhanced to Rs. 165 Lac and Rs. 10 Lac was subsequentty ctosed. On the further request of the Defendant Company the Applicant-Bank sanctioned Term Loan of Rs. 182 Lac and an additionat timit of Rs. 15 tac was sanctioned on 26112112 and fresh Term Loan-lll of Rs. 289 Lac for purchase of Ptant & Machinery, Term Loan-lV of Rs. 167 Lac for purchase of immovabte assets and fresh CC Limit of Rs. 225 Lac on 1Bl1Zl17 . The existing Term Loan-l of Rs. 207 Lac was reduced to Rs. 165 Lac on 18112117. On the further request of the Defendant Company, the AppticantBank restricted its existing account and sanctioned Term Loan-V of Rs. 24.45 Lac and Term Loan-Vl of Rs. 44.60 Lac on 15/06/19. ln consideration of the sanction of credit facilities the Defendant Company as borrower and Defendant No.-2 to 9 as guarantors in addition to execution of toan and guarantee documents have also created equitabte mortgage over the immovable property of Defendant No.-1, i.e.,

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i) Diverted Land Survey No.-25312, admeasuring 0.20 hect. (2000 sq.mtr.) situated at Vittage-Pingleshwari, PHN 32l50, Tehsit & District-Ujjain (M.P.);

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ii) Diverted Land Survey No.-254, admeasuring 0.10 hect. (2000 sq.mtr.) situated at Vittage-Pingleshwari, PHN 32150, Tehsit & District-Ujjain (M.P.);

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oA397122

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iii) Diverted Land Survey No.-25313, admeasuring 0.20 hect. (1000 sq.mtr.) situated at Viltage-Pingleshwari, PHN 32150, Tehsit & District-Ujjain (M.P.);

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iv) Diverted Land Survey No.-256, admeasuring 0.10 hect.⁽¹⁰⁰⁰ sq.mtr.) situated at Vittage-Pingleshwari, PHN 32l50, Tehsit & District-Ujjain (M.P.);

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v) Diverted Land Survey No.-253l1, admeasuring 0.320 hect. (3200 sq.mtr.) situated at Village-Pingleshwari, PHN 32150, Tehsil & DistrictUjjain (M.P.);

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vi) Diverted l-and Survey No.-228l1 &.2281?., admeasuring 0.560 hect. (5500 sq.mtr.) situated at Vittage-Pingleshwari,^{PHN32l50,Tehsit &} District-Ujjain^(M.P. ).

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fhe Defendant Company through its^{Directors availed the credit} facitities and also executed Letter of^{Acknowledgmentof debt/securities} lastly on 27 t16l19. The accounts became^{irregutarand the Defendantsfaited} to tiquidate the outstanding dues despite^{initiation of action underthe} Securitisation Act by the Appticant^{Bank. The Appl,icant-Bankhas relied upon} the documents at Ex. A-1 to^{A-97 whichwereprovedby Shri Bharat} Tahitiani, Chief lvlanager.

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Despite service of notice, the. Defendants^{neitherappeared nor} fited written statement. They^{were proceededex-parte vide order dated} OB1OZ1L3, There is therefore,^{no reasonto disbetieve the contentionsof the} Bank. Considering the facts of^{the case,I opine that the Defendantsare} jointty and severalty tiabte to pay the claim amount together^{with interest} and costs. The^{Appticant'Bankin its application has claimed interest} @10.75%^{p.a. with monthtyrests.However,lfeel it fair and reasonableto} grant interest @10.75%^p.a. simpte^{pendentelite and future titl reatizationof} the dues. The mortgaged^{propertiesare liable to be sotd for recoveryof} amount due along^{withthe personalpropertiesand assets of the Defendants'}

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The Originat Application^{is altowed and it is orderedas under'}

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i) The Defendants do^{pay jointty and severaltyRs'} 10,88,03,086.04^{(RuPeesTen Crore, Eighty Eight Lac,Three Thousand Eighty} six and Paisa Four^{onty) togetherwith pendentetite and future interest} @10.75%perannumsimplefromthedateoffitingoftheOA,i'e',08103122' with costs titl its^realization.

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oA397122

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ii) The Appticant Bank is entitled to sett the mortgaged as we[[ as 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, alienating or in any way dealing with their properties/assets without first paying the claim of the Applicant Bank.

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iii) 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 22nd Day of December,2023.

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9 1)' (Ram Niwas Patel) Presidine Officer

Bank of India v. M/S Dash Paper Plast Pvt. Ltd.

Case brief

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Bank of India v. M/S Dash Paper Plast Pvt. Ltd.

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