Allowed

Indian Bank v. Shree Contractors

DRT7 Jun 2023OA/558/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank’s original application for recovery of dues from the defendants who failed to repay a sanctioned credit limit. The defendants were held jointly and severally liable to pay the principal amount with simple interest, and a recovery certificate was directed to be issued.

What did the court decide?

Directing the defendants to pay Rs. 24,56,868.00 with simple interest at 12% p.a., restraining disposal of assets, and issuing a recovery certificate.

Indian Bank versus Shree Contractors — 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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Original Application No. - 558122

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lndian Bank, (erstwhite Attahabad Bank) Kaudia, Distt.^-Narsinghpur (M.P. ) 487555

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..... Applicant

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Versus

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M/s Shree Contractors,

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01 ) Through its ProprietorShri Ajay Dixit

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1. Shri Ajay Dixit, S/o Shri Om Prakash Dixit

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(Both at Vittage-Koudia, Tehsit-Gadarwara, District-Narsinghpur, M.P. 487 551) Defendants

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Counsel for the Appticant : Shri Rajendra Singh Parmar, Advocate Defendants : Ex-parte

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JUDGMENT

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(Dated : OTth JuneJo23)

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The Appticant lndian Bank, erstwhite Atlahabad Bank which was amatgamated with lndian Bank vide Gazette Notification dated 04/03/20, has fited the present Original Apptication u/s 19 of Recovery of Debts and Bankruptcy Act on 02/05/22 against the Defendants for recovery of Rs. 24,56,868.00 (Rupees Twenty Four Lac, Fifty Six Thousand, Eight Hundred and Sixty Eight onty) along 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.-2, the Appticant Bank sanctioned Cash Credit Limit of Rs. 20 Lac on 30/08/14 and in consideration of the same the Defendant No.-1 & 2 executed requisite loan and guarantee documents. The Defendants avaited the credit facility but faited to tiquidate the outstanding dues despite issuance of Recall Notice on 03/03/21 by the Applicant Bank. The Appticant-Bank has retied upon the documents at Ex A-1 to A-10 which were proved by Shri Mithun Kuar Giri, Branch Manager.

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Despite service of notice, the Defendants neither appeared nor fited written statement. They were proceef ex-parte vide order dated

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oA ss8l22

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16/01 123. There is therefore,^{no reasonto disbetieve the contentionsof the} Bank. Considering the facts of^{the case,I opine that the Defendantsare} jointty and severally tiabte to pay the ctaim amount together with interest and costs. The Appticant'Bank^{in its appticationhas ctaimedinterest @12%} p.a. with monthty rests. However, I feel it fair and^{reasonabte to grant} interest @12%^p.a, simpte^{pendentetiteand future ti[[ realization of the} dues. The^{personal properties} and^{assetsof the Defendants are liabteto be} sold for recovery of amount due.

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The Originat Apptication is attowed and it^{is orderedas under-}

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i) The Defendants do^{pay jointty} and severatly Rs.^24,56,868.00 (Rupees Twenty Four Lac, Fifty Six Thousand, Eight Hundred and Sixty Eight onty) together with pendentelite and future interest @12%^{per annum simpte} from the date of fiting of the OA, i.e.,02/05/22, with costs titl^its reatization.

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ii) The Appticant Bank is entitted to setl the^{personal properties} and assets of the Defendants for realization of its dues.^{TheDefendantsare} hereby restrained by means of injunction from depteting, transferring, encumbering, atienating or in any way deating with their^{properties/assets} without first paying the ctaim of the Appticant Bank.

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iii) A Recovery Certificate be issued uls 19(72) of^Recoveryof Debts and Bankruptcy Act. The appticant bank^may fite 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 07th June,} _2021

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--Yo1--

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l' (Ram Niwas Patet) Presidinq Officer

Indian Bank v. Shree Contractors

Case brief

What is this about?

What did the court decide?

Indian Bank v. Shree Contractors

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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