Allowed

Bank of India v. M/S Indian Tanneries

DRT13 Jul 2023OA/621/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under Section 19 of the RDB Act for recovery of Rs.60,21,174/- with interest against the proprietorship firm, sole proprietor, and guarantor, directing sale of mortgaged property and hypothecated stocks.

What did the court decide?

Recovery of Rs.60,21,174/- with interest allowed; liability joint and several; property to be sold for dues.

Bank of India versus M/S Indian Tanneries — Company and Corporate | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 621/2022

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Date of Institution: 28.03.2022 Date of Decision: 13.07.2023

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Bank of India, Branch Office amongst other places, at Avtar Nagar, Jalandhar, (Punjab).

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……..Applicant Vs.

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M/s Indian Tanneries, 3470/1125, Bootan Mandi, Opposite Baba Khera Peer, Jalandhar, (Punjab) through its Proprietor, Sh. Gaurav Mahey – 144003.

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Sh. Gaurav Mahey S/o Sh. Surinder Mahey, R/o H.No.648, Guru Teg Bahadur Nagar, Jalandhar, (Punjab) – 144003.

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Sh. Sahil Mahey S/o Sh. Surinder Mahey, R/o H.No.648, Guru Teg Bahadur Nagar, Jalandhar, (Punjab) – 144003.

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……….Defendants

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Advocates

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Sh. Anil Malhotra, proxy Counsel for Ms. Meena Malhotra, Counsel for the applicant bank.

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Defendants – ex parte

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OA for the Recovery of Rs.60,21,174/- with interest @10.50% per annum with monthly rests from 28.03.2022.

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ORDER

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Bank of India, (Applicant Bank) has filed this application under

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Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.60,21,174/- with interest against M/s Indian Tanneries and others (defendants).

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Bank’s case is that defendant No.1 is a proprietorship firm and defendant No.2 is its sole proprietor. Defendant No.3 had stood guarantor. On 27.01.2016, bank had granted a CC Limit of Rs.48.00 Lacs to defendant No.1 through its sole proprietor i.e. defendant No.2 for

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business purpose. To secure the loan, Defendant No.3 had mortgaged his Commercial property measuring 19.25 Marla, situated in Chanan Nagar, Basti Sheikh, Jalandhar, (Punjab) (fully detailed in para No.V(8) of the application) and hypothecated stocks and book debts. Further, on 22.09.2020, at the request of defendant No.1 through defendant No.2 bank had granted a Funded Interest Term Loan of Rs.2,84,675.67p. The loan was chargeable to interest @10.50% per annum with monthly rests. On 28.03.2022, a sum of Rs.60,21,174/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 29.04.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 18.01.2023, they were proceeded ex parte . 4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Ashok Kumar, Chief Manager along with the loan and security documents and marked them as Exhibit A-1 to A-25. 5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the above said facilities and on 28.03.2022, a sum of Rs.60,21,174/- was due. 6. Accordingly, the application of the bank for the recovery of Rs.60,21,174/- (Rupees Sixty Lacs Twenty One Thousand One Hundred and Seventy Four Only) with interest @10.50% per annum with monthly rests from 28.03.2022, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged Commercial property measuring 19.25 Marla, situated in Chanan Nagar, Basti Sheikh, Jalandhar, (Punjab) (fully detailed in para No.V(8) of the application)

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and hypothecated stocks and book debts of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 14.08.2023, who is directed to distribute the sale proceeds of the mortgage property and hypothecated stocks and book debts as per the provisions of Section 19(20-AB) of the Act .

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A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.

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Pronounced in the open court. (A S Narang) Dated: 13.07.2023 Presiding Officer DRT-1, Chandigarh

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Pankaj

Bank of India v. M/S Indian Tanneries

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S Indian Tanneries

Case brief

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What did the court decide?

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