Allowed

State Bank of India v. M/ S Bhagwati Industries

DRT19 May 2023OA/431/2022

Case brief

AI extract

What is this about?

Allowing the original application filed by the respondent Bank for recovery of dues, the court held the borrowers jointly liable for the principal amount, future interest, and costs. The judgment issued a recovery certificate enabling the bank to sell mortgaged and hypothecated assets for debt realization.

What did the court decide?

Order recovered Rs 25,40,3796.21 with future interest at 8.65% (Cash Credit) and 10.40% (Term Loan)准许 sale of mortgaged and hypothecated assets for recovery.

State Bank of India versus M/ S Bhagwati Industries — Banking and Recovery | DRT (2023)

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“ORIGINALAPPLICATION” No. 431 of 2022

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIVEK SAXENA

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PRESIDING OFFICER

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O.A. NO. 431 OF 2022

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DATE OF DELIVERY OF ORDER 19.05.2023

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STATE BANK OF INDIA

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Branch – SARB, Matrix Mall, Jawahar Nagar, Jaipur through its Chief Manager

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…..Applicant Bank…..

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VERSUS

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1. M/S BHAGWATI INDUSTRIES

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Office – Village Hisaniya, Tehsil Mandal,

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District Bhilwara

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2. MR. PRITHVIRAJ SUKHWAL

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S/o Sh. Laxmi Narayan Sukhwal

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1252, Village Hisaniya, Tehsil Mandal,

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……Defendants…..

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Counsel for the Applicant Bank Sh. Alok Garg Defendants Ex parte

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JUDGMENT

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This Original Application was filed by Applicant Bank against Defendants on 28.03.2022 for recovery of an amount of Rs 25,40,796.21/- with pendentlite and future interest and cost.

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As per O.A., Defendants approached the Applicant Bank for financial assistance. After due consideration, credit facility was sanctioned by the Applicant Bank in favour of Defendants. Defendants failed to maintain financial

OA No. 431 of 2022

discipline and therefore, their loan account was classified as NPA. Applicant Bank has therefore, filed this original application for recovery of its dues against the Defendants.

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Defendants is proceeded ex parte on 01.11.2022.

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Heard arguments and perused the record.

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As stated supra, the Applicant Bank filed the evidence affidavit coupled with the recitals in the documents, viz Exhibit A/1 to A/13 marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendants. Hence, I hold that the Defendants are jointly & severally liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

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In the result, this O.A. No. 431 of 2022 is allowed declaring that:-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 25,40,796.21 (Rupees Twenty Five Lac Forty Thousand Seven Hundred Ninety Six and Twenty One Paisa only) with future interest at the rate of 8.65% p.a. (in Cash Credit Account) & 10.40% p.a. (in Term Loan Account) (Simple) from 28.03.2022 till the date of realization.

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b) The applicant bank is entitled to recover the above amount by sale of hypothecated plant & machinery and mortgaged property – Land and shed bearing Araji no. 2160/1480 at Village Hisaniya Tehsil Mandal, District Bhilwara admeasuring 632 sq.mtrs. in the name of Defendant No. 2 as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

OA No. 431 of 2022

The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 19.08.2023 .

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Prepare Recovery Certificate accordingly.

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A copy of the Judgment and Recovery Certificate be given or sent by registered post to each of the parties free. A copy of the Recovery Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law.

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur (Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order pronounced in the open court today i.e. 19.05.2023 .

OA No. 431 of 2022

BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIVEK SAXENA

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PRESIDING OFFICER

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O.A. NO. 431 OF 2022

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DATE OF DELIVERY OF ORDER 19.05.2023

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RECOVERY CERTIFICATE

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(UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993)

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STATE BANK OF INDIA

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Branch – SARB, Matrix Mall, Jawahar Nagar, Jaipur through its Chief Manager

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…..Applicant Bank…..

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VERSUS

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1. M/S BHAGWATI INDUSTRIES

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Office – Village Hisaniya, Tehsil Mandal,

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District Bhilwara

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2. MR. PRITHVIRAJ SUKHWAL

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S/o Sh. Laxmi Narayan Sukhwal

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1252, Village Hisaniya, Tehsil Mandal,

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……Defendants…..

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Recovery Certificate for Rs. 25,40,796.21

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In terms of final order dated 19.05.2023 passed by this Tribunal in the above mentioned case, it is ordered that the-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 25,40,796.21 (Rupees Twenty Five Lac Forty Thousand Seven Hundred Ninety Six and Twenty One Paisa only) with future interest at the rate of 8.65% p.a. (in Cash Credit Account) & 10.40% p.a. (in Term Loan

OA No. 431 of 2022

Account) (Simple) from 28.03.2022 till the date of realization.

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b) The applicant bank is entitled to recover the above amount by sale of hypothecated plant & machinery and mortgaged property – Land and shed bearing Araji no. 2160/1480 at Village Hisaniya Tehsil Mandal, District Bhilwara admeasuring 632 sq.mtrs. in the name of Defendant No. 2 as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 19.08.2023 .

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor.

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This Certificate has been issued under my signatures and seal of the Tribunal on this 19.05.2023 .

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 431 of 2022

BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIVEK SAXENA

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PRESIDING OFFICER

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O.A. NO. 431 OF 2022

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DATE OF DELIVERY OF ORDER 19.05.2023

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SCHEDULE TO RECOVERY CERTIFICATE

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MEMO OF COST

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STATE BANK OF INDIA

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Branch – SARB, Matrix Mall, Jawahar Nagar, Jaipur

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through its Chief Manager

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…..Applicant Bank…..

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VERSUS

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1. M/S BHAGWATI INDUSTRIES

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Office – Village Hisaniya, Tehsil Mandal,

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District Bhilwara

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2. MR. PRITHVIRAJ SUKHWAL

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S/o Sh. Laxmi Narayan Sukhwal

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1252, Village Hisaniya, Tehsil Mandal,

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……Defendants…..

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S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	28,000.00
2	Process Fee (Inc. Publication)	94.00
3	Advocate Fee	1,250.00
4	Commission/Receiver/Valuation	NIL
5.	Miscellaneous Charges	NIL
	Total	29,344.00

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Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 431 of 2022

19.05.2023

Counsel: Sh. Alok Garg, Counsel for Applicant Bank Defendants are ex parte

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Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepisd accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015 and after verification place the same before the Tribunal.

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 431 of 2022

19.05.2023

Counsel:

Sh. Alok Garg, Counsel for Applicant Bank Defendants are ex parte

¶112

The Tribunal vide order dated 19.05.2023 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

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The Registrar vide order dated 19.05.2023 verified the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. Recovery Certificate is prepisd accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record.

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 431 of 2022

DEBTS RECOVERY TRIBUNAL, JAIPUR

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ORIGINAL APPLICATION NO. 431 of 2022

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The Recovery Certificate prepisd in compliance of order dated 19.05.2023 passed by Hon’ble Presiding Officer, DRT, Jaipur in Original Application No. 431 of 2022 Title State Bank of India Vs M/s Bhagwati Industries & Anr. has been checked and may be verified.

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Section Officer

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Assistant Registrar

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On the basis of the report of Section Officer the Recovery Certificate is verified. The Recovery Certificate is placed below for the signature of Hon’ble Presiding Officer please.

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Assistant Registrar

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Hon’ble Presiding Officer

OA No. 431 of 2022

State Bank of India v. M/ S Bhagwati Industries

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/ S Bhagwati Industries

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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Case details

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