Allowed

Axis Bank v. M/S Uttam Foods

DRT26 Apr 2023OA/577/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the joint application seeking issuance of a consent decree upon settlement between Axis Bank and four debtors. The court directed the Recovery Officer to realize the settled amount under Section 25 and 28 of the RDBFI Act based on the Debt Recovery Certificate issued.

What did the court decide?

Issuance of Recovery Certificate under Section 19(22) RDBFI Act and fixing costs of Rs. 1,51,250.

Axis Bank versus M/S Uttam Foods — Contract and Commercial Disputes | DRT (2023)

¶1

FORM NO. 9 [See Regulation-24(1)]

¶2

DEBTS RECOVERY TRIBUNAL JAIPUR RECOVERY CERTIFICATE

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UNDER SUB-SECTION 22 OF SECTION 19 OF THE RECOVERY OF DEBTS DUE TO THE BANKS AND FINANCIAL INSTITUTION ACT, 1993 AS AMENDED FROM TIME TO TIME

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O.A No.577/2022 DATE OF DELIVERY OF ORDER 26.04.2023

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M/S AXIS BANK LIMITED,

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Branch Office – 414, Shopping Center, Kota, Rajasthan and O-15, Green House, Ashok Marg, C-Scheme, Jaipur, through its Authorized Signatory

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Applicant Bank

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Versus

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1. M/S UTTAM FOODS

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Having its Office at F-56, Kuber Industrial Area, Village Ranpur, Dist. Kota, Rajasthan- 324005

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Through its proprietor Rohit Jain

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2. MR. ROHIT JAIN PROPRIETOR

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M/s Uttam Foods

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R/o Plot No. 117, Behind Petrol Pump Bajrang Dall Mill Ki Gali,

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Kotari, Gordhanpura, Kota

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Rajasthan - 324007

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3. M/S UTTAM INDUSTRIES

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Prop. Shiv Kumar Jain,

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E-422, IPIA, Kota, Rajasthan - 324005

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4. MR. SHRI SHIV KUMAR JAIN

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R/o H.No. 117 Behind Petrol Pump

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Bajrang Dall Mill Ki Gali, Kotari, Gordhanpura, Kota Rajasthan - 324007

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Defendants

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The Applicant Bank and Defendants have filed joint I.A. no.50/2022 in O.A. no. 577/2022 and stated that settlement has been arrived between the parties and prayed therein for issuance of a consent decree. The I.A. is allowed.

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ss*

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OA No.577 of 2022

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¶28

The Defendants have requested to settle the account by paying a sum of Rs. 1.60 Crores with respect to full and final payment which is to be paid latest by 28.02.2023.

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The Bank considering their request has agreed and issued settlement letter dated 06.09.2022, the copy of the settlement letter dated 06.09.2022 is submitted herewith and marked as Annexure/Exhibit A-43.

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All the Defendants undertake to make the repayment as per the settlement letter dated 06.09.2022 and the Bank shall release the immovable properties situated at (i) Property i.e. Land and Building at Plot No. F-54, Kuber Industrial Area, Ranpur, Kota (Rajasthan) admeasuring 2925 sq.mtrs belonging to M/s Uttam Foods and bounded by (Cross Collateral in Uttam Trading Company) North; Road South; E-1 East: Road West: F-53 (ii) Property i.e. land and building at Plot No. E-422, IPIA, Kota (Rajasthan), admeasuring 45041.36 sq.ft belonging to M/s Uttam Industries boundfed as under (Cross Collateral in Uttam Trading Company) East : Plot No. 403 West: Road North : Plot No. E-421 South: Plot No. 422 (A) including hypothecation shall be released only after settlement/repayment of dues pertaining to M/s Uttam Trading Company and M/s Uttam Foods. The release of personal guarantees will be done post settlement of group accounts i.e. M/s Mamta Enterprises, M/s Uttam Foods and M/s Uttam Trading & Co.

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The Defendants also undertake that in the event of default of any of the said amount, the settlement shall stand automatically revoked and the Bank shall be at liberty to take legal recourse in respect of recovery of the full loan amount/entire dues/loan amount as per the original sanctions and loan agreements and other agreements in the loan account together with up to date interest, penal interest, costs and damages. Further, in such an eventuality, part amount, if any paid by the Borrower/Guarantors/Mortgagors under the said settlement offer shall be treated as amount paid towards reduction of the total amount payable by the Borrower/Guarantors/Mortgagors shall not be refundable.

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¶33

OA No.577 of 2022

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Further, the Respondent also undertake that in the event of any defult made by them, they shall not make any hindrance of any sort for recovery of full loan amount which is due against the aforesaid loan.

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If the Defendants fails to honour the settlement letter dated 06.09.2022, they would be liable to pay a sum of Rs. 7,56,67,019.31 as on 31.08.2022 together with further interest, penal interest, charges, etc. at contractual terms w.e.f. 01.09.2022 till date of final payment.

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The mortgaged properties mentioned in the OA shall only be released after the entire payment mentioned in the settlement letter dated 06.09.2022. If Defendants fail to pay the amount mentioned in the settlement letter as per the schedule mentioned in the settlement letter the Applicant Bank shall be at liberty to recover the outstanding loan amount. The Defendants shall not dispute the recovery proceedings in case they default in repayment of outstanding loan amount as per the settlement letter dated 06.09.2022.

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The Defendants further undertakes that neither they, nor their legal heirs/agents/servants or any other person will make any hindrance in recovery of outstanding loan amount and in auctioning the mortgaged property.

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The applicant bank is also directed to file the revised statement

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of account before the Ld. Recovery Officer of this Tribunal.

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The Certificate Debtors hereinafter referred to as:-

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Certificate Debtor No. 1	M/S UTTAM FOODS Having its Office at F-56, Kuber Industrial Area, Village Ranpur, Dist. Kota, Rajasthan- 324005 Through its proprietor Rohit Jain
Certificate Debtor No. 2	MR. ROHIT JAIN PROPRIETOR M/s Uttam Foods
	R/o Plot No. 117, Behind Petrol Pump Bajrang Dall Mill Ki Gali,
	Kotari, Gordhanpura, Kota Rajasthan - 324007
Certificate Debtor No. 3	M/S UTTAM INDUSTRIES Prop. Shiv Kumar Jain,

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¶44

OA No.577 of 2022

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¶46

	E-422, IPIA, Kota, Rajasthan - 324005
Certificate	MR. SHRI SHIV KUMAR JAIN
Debtor No. 4	R/o H.No. 117 Behind Petrol Pump
	Bajrang Dall Mill Ki Gali,
	Kotari, Gordhanpura, Kota
	Rajasthan - 324007

¶47

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 Debtors.

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This Certificate has been issued under my signatures and seal of the Tribunal on this 26.04.2023.

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(Vivek Saxena) PRESIDING OFFICER, Place : Jaipur DRT-Jaipur

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¶51

OA No.577 of 2022

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¶53

FORM NO. 10 [See Regulation-24(1)]

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DEBTS RECOVERY TRIBUNAL JAIPUR

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SCHEDULED TO RECOVERY CERTIFICATE MEMO OF COST

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O.A No.577/2022

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M/S AXIS BANK LIMITED,

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Branch Office – 414, Shopping Center, Kota, Rajasthan and O-15, Green House, Ashok Marg, C-Scheme, Jaipur, through its Authorized Signatory

¶59

Applicant Bank

¶60

Versus

¶61

1. M/S UTTAM FOODS

¶62

Having its Office at F-56, Kuber Industrial Area, Village Ranpur, Dist. Kota, Rajasthan- 324005

¶63

Through its proprietor Rohit Jain

¶64

2. MR. ROHIT JAIN PROPRIETOR

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M/s Uttam Foods R/o Plot No. 117, Behind Petrol Pump Bajrang Dall Mill Ki Gali, Kotari, Gordhanpura, Kota Rajasthan - 324007

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3. M/S UTTAM INDUSTRIES Prop. Shiv Kumar Jain, E-422, IPIA, Kota, Rajasthan - 324005

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4. MR. SHRI SHIV KUMAR JAIN R/o H.No. 117 Behind Petrol Pump Bajrang Dall Mill Ki Gali, Kotari, Gordhanpura, Kota Rajasthan - 324007

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Defendants

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¶70

OA No.577 of 2022

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¶72

Sr. No.	Item of Costs	Amount in Rupees
1.	Fee onthe application	1,50,000
2.	ProcessFees (Inc.Publication)	--
3.	AdvocateFees	1,250
4.	Commissioner/Receivers/Valuation/SecurityFee	NIL
5.	Miscellaneous Charges	NIL
	Total Costs	1,51,250

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Place : Jaipur Date : 26.04.2023

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(VivekSaxena) PRESIDING OFFICER DRT-Jaipur

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Axis Bank v. M/S Uttam Foods

Case brief

What is this about?

What did the court decide?

Axis Bank v. M/S Uttam Foods

Case brief

What is this about?

What did the court decide?

What the court decided

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