Allowed

Axis Bank v. Raj Tractors

DRT3 Aug 2023OA/431/2022

Case brief

AI extract

What is this about?

In this Debts Recovery Tribunal order, Axis Bank filed an Original Application for recovery of dues. The Tribunal allowed the application against the first three defendants as joint and severally liable. It granted interest at 10% p.a. and directed issuance of a Recovery Certificate under Section 19(2)(a). The application against Bank of Baroda was dismissed as no violation occurred.

What did the court decide?

The first three defendants were directed to pay Rs. 91,84,215 along with future interest at 10% p.a. simpliciter and a Recovery Certificate was ordered to be issued.

Axis Bank versus Raj Tractors — 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'ble Shri Ram Niwas Patet)

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Originol Application No.^- 431122

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Axis Bank Ltd., SBB Department, Ptot No. Z-13, 2nd Ftoor, M.P. Nagar, Bhopat (M.P.)

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Applicant

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Versus

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01 ) Raj Tractors, Through its ProprietorMr. Rajendra Baboo Sharma, 92l1, lndrapasth Cotony, Ahamadpur Road, Near Jain Mandir, Vidisha (M.P.)464001; Atso at: Ward No.-12, Mukharji Nagar, Sagar Road, Raisen (M.P.)464551

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1. Mr. Rajendra Baboo Sharma, S/o Mr. Rameshwar Sharma

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Mrs. Rajni Sharma, W/o Rajendra Sharma

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(2&3atH.No.-92, lndrapastha Cotony, Vidisha, M.P.464001)

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04). Bank of Baroda, Through its Branch Manager, Vidisha (M.P.) 464001 Defendants

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Counsel for the Applicant : Shri Adamya Bajpai, Advocate Defendants : Ex-parte

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JUDGMENT

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(Dated : 03'd August, 2023)

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The Appticant-Bank has fited the present Original Application u/s 19 of Recovery of Debts and Bankruptcy Act on 14103/22 against the Defendants for recovery of Rs. 91,84,215.00 (Rupees Ninety One Lac, Eighty Four Thousand, Two Hundred and Fifteen only) atong 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.-1, the Appticant^Bank agreed to take over existing credit facilpes of^Defendant No.'l^from

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oA43ll22

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Defendant No.-4^{Bank and sanctionedSBB Overdrafttimit of Rs' 90 Lac and} Bank Guarantee of^{Rs' 40 Lac on 22tO9l2O to DefendantNo'-1 & 2' ln} consideration of^{the same, the Defendant No'-1 throughits Proprietoras} borrower and^{Defendant No.-3 as guarantorin additionto execution of toan} and guarantee^{documentshave atso created equitabte mortgageover the} immovabte^{property,i'e., ResidentialHousesituated at Ward No'-32 Otd'} New 35, area 3780 sq.ft.,^{Indrapasth Cotony, Ahmedpur Road, Vidhisha;} betonging to Defendant^{No.-3.The Appticant-Banktook over twotoan credit} facitities of Defendant^{No.-1and issued DDNo.-284363dated02111/200f} Rs. 14 Lac and^{DD No.'284363 dated 02111120 0f Rs. 69'69,205' The} Defendant No.-4^{presented and got ctearedthe DD issuedby the Appticant-} Bank but did not^{give credit of the amountto the account of Defendant} No.-1. The Bank of^{Baroda has given written undertakingthat paper witl be} released onty after ctosure of^{other creditfacititiesand have atso not} released the titte deeds^{nor did they give NOC or closure Letter' The} Defendants have stitt not^{providedoriginat documentsfor creation of} equitabte mortgage towards^{security of the overdraft facitity sanctionedby} the Appticant-Bank. The^{Defendant No.-1availed the credit facitity except} Bank Guarantee but the^{retevantDefendantsfaited to liquidate the} outstanding dues despite^{issuance of Legal Noticeon 26/11121 by the} Appticant Bank. The Appticant-Bank^{has retied upon the documentsat Ex A-1} to A-16 which were^proved by^{Shri ShivamSharma, Assistant Manager (Law).}

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Despite service of notice, the Defendants^{neitherappeared nor} fited written statement. They were^{proceededex-parte vide order dated} 01l07t22. Admittedty constructive^{mortgage was not created in favour of} the Appticant-Bank as the Defendants^{have not depositedthe originaltitte} deed with the Appticant-Bank. Thus relief^{againstthe altegedmortgage} cannot be granted in favour of Appticant'Bank.^So far^{as retief against} Defendant No.-4 is concerned the Appticant-Bank^{has issued Demand Drafts} and took over two loan accounts of^{Defendant No.-1 fromDefendant No.'4} Bank. Giving credit of the amount towards the^{loan account of Defendant} No.-1 is between Defendant No.-1 and Defendant^{No.-4 and admittedly the} Defendant No.-4 Bank of Baroda had^givenwritten undertaking^{that paper} witl be reteased onty after ctosure of atl the other credit facilities^like BGCLS Loon of Rs. 7 Lac ond Guarantee Limit of^Rs. 25^{Loc. Therefore,the} Defendant No.-4 has not viotated any conditions by not^{releasingthe title} documents, etc., since Bank of Baroda has to secure^{the dues in the loan} 17

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oA 431122

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accounts of Defendant^{No.-1sanctionedand maintainedwith it whichis} prior to the sanction of toan by^{the Appticant-Bank. consideringthe facts of} the case, I opine that^{the Defendant No.-1 to 3 are jointty and severalty} tiabte to^pay the^{ctaim amount togetherwith interestand costs. Thus no} order is^passed against^{Defendant No.-4 Bank of Baroda.The Appticant-Bank} in its apptication^{has ctaimedinterest @10%p.a. with monthty rests.} However, I feet it fair^{andreasonabteto grant interest@10% p'a' simpte} pendentetite and future titt^{reatizationof the dues.The personalproperties} and assets of the^{Defendantsexctuding the propertymortgaged with} Defendant No.-4^{Bank are liabte to be sotd for recovery of amount due'}

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The Originat Application^{is attowed and it is orderedas under-} i) The Defendant^{No.-1 to 3 do pay jointLyand severattyRs'} 91,84,215.00^{(Rupees Ninety One Lac, Eighty Four Thousand, TwoHundred} and Fifteen onty)^{togetherwith pendentetiteand future interest @10%per} annum simp[e^{from the dateof fiting of the oA, i.e., 14103122, with costs} titI its reatization.

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ii) The Appticant Bank^{is entittedto sett the personal properties} and assets of the^{Defendant No.-1 to 3 exctudingthe proPertymortgaged} with Defendant^{No.-4Bank for reatization of its dues. The DefendantNo.-1} to 3 are hereby^{restrained by means of injunction fromdepteting'} transferring, encumbering,^{atienating or in any way dealing with their} properties/assets without^{first paying the ctaim of the ApplicantBank'}

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iii) A Recovery^{Certificate be issued uls 19(22) of Recoveryof} Debts and Bankruptcy^{Act. The appticant bank may file a memo of cost} within 7 days for^{preparingRecoveryCertificate'}

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Judgment^{pronouncedin the open court on this Day of 03'dAugust'2023}

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F (Ram wa s Patel) Presidine Officer

Axis Bank v. Raj Tractors

Case brief

What is this about?

What did the court decide?

Axis Bank v. Raj Tractors

Case brief

What is this about?

What did the court decide?

What the court decided

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