Allowed

State Bank of India v. M/S Kawadiya Sanitary

DRT24 Jan 2023OA/514/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of a flagged loan classified as NPA. The court held respondents jointly liable for the principal, interest, and costs, and issued a recovery certificate declaring the debt as due in terms of the 1993 Act.

What did the court decide?

The defendants were declared jointly and severally liable to pay Rs. 35,88,459/- with future interest of 14.65% p.a. A recovery certificate was issued by the Tribunal pursuant to Section 22 of the RDB

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

¶1

“ORIGINALAPPLICATION” No. 514 of 2022

¶2

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

¶3

PRESIDING OFFICER

¶4

O.A. NO. 514 OF 2022

¶5

DATE OF DELIVERY OF ORDER 24.01.2023

¶6

STATE BANK OF INDIA

¶7

Branch Office – Kharigram, Gulabpura, District Bhilwara

¶8

…..Applicant Bank…..

¶9

VERSUS

¶10

1. M/S KAWADIYA SANITARY

¶11

Through its Proprietor Sh. Rakesh Kawadiya S/o Sh. Dharmichand Kawadiya, Sthanak Gali, Bapu Bazar, Bijaynagar, Distt. Ajmer 305624

¶12

2. SHRI RAKESH KAWADIYA

¶13

S/o Shri Dharmi Chand Kawadiya,

¶14

Proprietor of M/s Kawadiya Sanitary,

¶15

R/o Sthanak Gali, Bapu Bazar,

¶16

Bijaynagar, Distt. Ajmer 305624

¶17

3. SMT. CHAND KANWAR

¶18

W/o Sh. Dharmi Chand Kawadiya

¶19

R/o Sthanak Gali, Bapu Bazar, Bijaynagar, Distt. Ajmer 305624

¶20

……Defendants…..

¶21

Counsel for the Applicant Bank Shri Anil K. Sharma Defendants Ex parte

¶22

JUDGMENT

¶23

This Original Application was filed by Applicant Bank against Defendants on 16.04.2022 for recovery of an amount of Rs 35,88,459/- with pendentlite and future interest and cost.

OA No. 514 of 2022

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 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.

¶28

Defendants were proceeded ex parte on 13.10.2022.

¶29

As stated supra, the Applicant Bank filed the evidence affidavit coupled with the recitals in the documents, viz Exhibit A/1 to A/15 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.

¶30

In the result, this O.A. No. 514 of 2022 is allowed declaring that:-

¶31

a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 35,88,459 (Rupees Thirty Five Lac Eighty Eight Thousand Four Hundred Fifty Nine only) with future interest @ 14.65% p.a. (Simple) from 16.04.2022 till the date of realization.

¶32

b) The applicant bank is entitled to recover the above amount by sale of mortgaged property – Residential Land Building Bhatewara Street, Bijaynagar, Distt. Ajmer 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.

¶33

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

¶34

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

OA No. 514 of 2022

Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 24.04.2023 .

¶39

Prepare Recovery Certificate accordingly.

¶40

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.

¶41

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

¶42

Order pronounced in the open court today i.e. 24.01.2023 .

¶43

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

OA No. 514 of 2022

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

¶48

PRESIDING OFFICER

¶49

O.A. NO. 514 OF 2022

¶50

DATE OF DELIVERY OF ORDER 24.01.2023

¶51

RECOVERY CERTIFICATE

¶52

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

¶53

STATE BANK OF INDIA

¶54

Branch Office – Kharigram, Gulabpura, District Bhilwara

¶55

…..Applicant Bank…..

¶56

VERSUS

¶57

1. M/S KAWADIYA SANITARY

¶58

Through its Proprietor Sh. Rakesh Kawadiya S/o Sh. Dharmichand Kawadiya, Sthanak Gali, Bapu Bazar, Bijaynagar, Distt. Ajmer 305624

¶59

2. SHRI RAKESH KAWADIYA

¶60

S/o Shri Dharmi Chand Kawadiya,

¶61

Proprietor of M/s Kawadiya Sanitary,

¶62

R/o Sthanak Gali, Bapu Bazar,

¶63

Bijaynagar, Distt. Ajmer 305624

¶64

3. SMT. CHAND KANWAR

¶65

W/o Sh. Dharmi Chand Kawadiya

¶66

R/o Sthanak Gali, Bapu Bazar, Bijaynagar, Distt. Ajmer 305624

¶67

……Defendants…..

¶68

Recovery Certificate for Rs. 35,88,459/-

¶69

In terms of final order dated 24.01.2023 passed by this Tribunal in the above mentioned case, it is ordered that the-

¶70

a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 35,88,459/-

OA No. 514 of 2022

(Rupees Thirty Five Lac Eighty Eight Thousand Four Hundred Fifty Nine only) with future interest @ 14.65% p.a. (Simple) from 16.04.2022 till the date of realization.

¶75

b) The applicant bank is entitled to recover the above amount by sale of mortgaged property – Residential Land Building Bhatewara Street, Bijaynagar, Distt. Ajmer 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.

¶76

c) The applicant bank is entitled to the costs of the O.A. Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 24.04.2023 .

¶77

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.

¶78

This Certificate has been issued under my signatures and seal of the Tribunal on this 24.01.2023 .

¶79

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

OA No. 514 of 2022

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

¶84

PRESIDING OFFICER

¶85

O.A. NO. 514 OF 2022

¶86

DATE OF DELIVERY OF ORDER 24.01.2023 SCHEDULE TO RECOVERY CERTIFICATE

¶87

MEMO OF COST

¶88

STATE BANK OF INDIA

¶89

Branch Office – Kharigram, Gulabpura, District Bhilwara

¶90

…..Applicant Bank…..

¶91

VERSUS

¶92

1. M/S KAWADIYA SANITARY

¶93

Through its Proprietor Sh. Rakesh Kawadiya S/o Sh. Dharmichand Kawadiya, Sthanak Gali, Bapu Bazar, Bijaynagar, Distt. Ajmer 305624

¶94

2. SHRI RAKESH KAWADIYA

¶95

S/o Shri Dharmi Chand Kawadiya, Proprietor of M/s Kawadiya Sanitary,

¶96

R/o Sthanak Gali, Bapu Bazar,

¶97

Bijaynagar, Distt. Ajmer 305624

¶98

3. SMT. CHAND KANWAR

¶99

W/o Sh. Dharmi Chand Kawadiya R/o Sthanak Gali, Bapu Bazar, Bijaynagar, Distt. Ajmer 305624

……Defendants…..

OA No. 514 of 2022

S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	38,000.00
2	Process Fee (Inc. Publication)	118.00
3	Advocate Fee	1,250.00
4	Commission/Receiver/Valuation	NIL
5.	Miscellaneous Charges	NIL
	Total	39,368.00

¶105

Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 514 of 2022

24.01.2023

Counsel:

Sh. ANIL K SHARMA, Counsel for the Applicant Bank Defendants are exparte

¶112

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.

¶113

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

OA No. 514 of 2022

24.01.2023

Counsel:

Sh. ANIL K SHARMA, Counsel for the Applicant Bank Defendants are exparte

¶120

The Tribunal vide order dated 24.01.2023 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

¶121

The Registrar vide order dated 24.01.2023 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.

¶122

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

OA No. 514 of 2022

DEBTS RECOVERY TRIBUNAL, JAIPUR

¶127

ORIGINAL APPLICATION NO. 514 of 2022

¶128

The Recovery Certificate prepisd in compliance of order dated 24.01.2023 passed by Hon’ble Presiding Officer, DRT, Jaipur in Original Application No. 514 of 2022 Title State Bank of India Vs M/S Kawadaiya Sanitary & Ors. has been checked and may be verified.

¶129

Section Officer

¶130

Assistant Registrar

¶131

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.

¶132

Assistant Registrar

¶133

Hon’ble Presiding Officer

¶134

State Bank of India v. M/S Kawadiya Sanitary

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Kawadiya Sanitary

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Mr Resham Singh

Punjab National Bank versus Shri Shravan Lal Jat

Yes Bank versus Sherawali Earthmovers

Punjab National Bank versus M/S Green Farm Bio-Gen Limited

Punjab National Bank versus Sh Ramnarayan

State Bank of India versus Jitendra Mali