Allowed

Axis Bank v. M S Mamta Enterprises

DRT26 Apr 2023OA/580/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an IA for issuing a consent decree based on an out-of-court settlement between Axis Bank and four debtors. The debtors agreed to pay Rs. 2.2 crores, and the bank agreed to release specific mortgaged properties post-repayment.

What did the court decide?

Issuance of Recovery Certificate noting settlement of Rs. 2.2 crores; release of mortgaged properties and guarantees upon full and timely repayment.

Axis Bank versus M S Mamta Enterprises — Insolvency and Bankruptcy | DRT (2023)

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

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DEBTS RECOVERY TRIBUNAL JAIPUR

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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.580/2022 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 MAMTA ENTERPRISES

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Having its Office at Plot No. C-231, Bhamashah Mandi,

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(Krishi Upaj Mandi Samiti)

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Distt. Kota, Rajasthan-324009

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Through its proprietor Ms. Snehlata Jain

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2. MS. SNEHLATA JAIN

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Proprietor of Mamta Enterprises

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117, Behind Petrol Pump

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Bajrang Dall Mill Ki Gali,

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Kotari, Gordhanpura, Kota

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Rajasthan – 324007 Also at :

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Plot No. C-231, Bhamashah Mandi,

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(Krishi Upaj Mandi Samiti)

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Distt. Kota, Rajasthan-324009

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3. M/S UTTAM TRADING COMPANY

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Prop. of Mr. Shiv Kumar Jain

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C-156, Krishi Upaj Mandi Samiti,

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Kota, Rajasthan - 324009

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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,

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Kotari, Gordhanpura, Kota

Rajasthan - 324007

Defendants

ss*

OA No.577 of 2022

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The Applicant Bank and Defendants have filed joint I.A. no.55/2023 in O.A. no. 580/2022 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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The Defendants have requested to settle the account by paying a sum of Rs. 2,20,00,000/- 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-42.

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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 situated at C-156, Krishi Upaj Mandi Samiti, Kota (Rajasthan) belonging to M/s Uttam Trading Company (Proprietor Mr. Shiv Kumar Jain) admeasuring 1400 sq. ft (20 ft x 70 ft) and bounded by; East: Road 40 feet West : Road 60 feet South: C-157 North: C-155 (ii) Property i.e. Shop and godown no. C-231, Block C, Krishi Upaj Mandi Samiti, Kota, Rajasthan and admeasuring 1400 sq. ft. (20 ft x 70 ft) belonging to M/s Mamta Enterprises (Proprietor Ms. Snehlata Jain) and bounded by; East: Plot No. C-232 West: Plot No. C-230 North: Road 40 feet South: Road 60 feet (iii) Land and building situated at Khasra No. 1851/54, Village Mandana, Tehsil Ladpura, Kota admeasuring 8400 sq. mtrs standing in the name of M/s Uttam Commodities & Warehousing ((Proprietor Divyanshu Jain) and bounded by; East: Remaining land of Khasra No. 54 West: Other Land North: Land Khasra No. 64 South: Road (iv) Land and building situated at House Kothari, Gordhanpura, Kota admeasuring 6112 sq.ft. standing in the name of Ms. Snehlata Jain and bounded by East: Road 21 feet wide West: Land Kishan Lal Kanhaiyalal Baran North: Road 28 feet wide South: Road and House of Vazir Mohammad including hypothecation shall be released post successful settlement/repayment of dues pertaining to M/s Mamta Enterprises. The release of personal guarantees will be done post OTS settlement of group accounts i.e. M/s Mamta

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OA No.577 of 2022

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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. 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. 7,53,40,031.23 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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OA No.577 of 2022

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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 MAMTA ENTERPRISES Having its Office at Plot No. C-231, Bhamashah Mandi, (Krishi Upaj Mandi Samiti) Distt. Kota, Rajasthan-324009 Through its proprietor Ms. Snehlata Jain
Certificate Debtor No. 2	MS. SNEHLATA JAIN Proprietor of Mamta Enterprises 117, Behind Petrol Pump Bajrang Dall Mill Ki Gali, Kotari, Gordhanpura, Kota Rajasthan – 324007 Also at : Plot No. C-231, Bhamashah Mandi, (Krishi Upaj Mandi Samiti) Distt. Kota, Rajasthan-324009
Certificate Debtor No. 3	M/S UTTAM TRADING COMPANY Prop. of Mr. Shiv Kumar Jain C-156, Krishi Upaj Mandi Samiti, Kota, Rajasthan - 324009
Certificate Debtor No. 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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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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OA No.577 of 2022

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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.580/2022

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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

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Applicant Bank

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Versus

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1. M/S MAMTA ENTERPRISES

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Having its Office at Plot No. C-231, Bhamashah Mandi, (Krishi Upaj Mandi Samiti)

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Distt. Kota, Rajasthan-324009

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Through its proprietor Ms. Snehlata Jain

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2. MS. SNEHLATA JAIN

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Proprietor of Mamta Enterprises

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117, Behind Petrol Pump

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Bajrang Dall Mill Ki Gali,

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Kotari, Gordhanpura, Kota

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Rajasthan – 324007 Also at : Plot No. C-231, Bhamashah Mandi, (Krishi Upaj Mandi Samiti) Distt. Kota, Rajasthan-324009

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3. M/S UTTAM TRADING COMPANY

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Prop. of Mr. Shiv Kumar Jain C-156, Krishi Upaj Mandi Samiti,

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Kota, Rajasthan - 324009

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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,

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OA No.577 of 2022

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Kotari, Gordhanpura, Kota

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Rajasthan - 324007

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Defendants

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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 (VivekSaxena) Date : 26.04.2023 PRESIDING OFFICER DRT-Jaipur

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Axis Bank v. M S Mamta Enterprises

Case brief

What is this about?

What did the court decide?

Axis Bank v. M S Mamta Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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