Allowed

Bank of India v. Aaryan Industries

DRT27 Mar 2023OA/63/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Bank of India for recovery filed dues against borrower firms and individuals. The court directed payment of principal, fixed interest rates, and authorized the sale of mortgaged and personal assets.

What did the court decide?

Defendants ordered to pay Rs. 1.12 Cr along with interest; mortgaged and personal properties to be sold; Recovery Certificate issuable.

Bank of India versus Aaryan Industries — Banking and Recovery | DRT (2023)

¶1

DEBTS RECOVERY TRIBUNAL : JABALPUR

¶2

(for the States of Madhya Pradesh and Chhattisgarh)

¶3

(Presiding Officer - Hon'ble Shri Ram Niwas Patel)

¶4

Original Application No. -63/2022

¶5

Bank of India, Kanchanbaug, District- Indore (M.P)

¶6

Applicant

¶7

Versus

¶8

I M/s Aaryan Industries, Through its ProprietorRinu Jain,

¶9

At- I 3, Shihurkar Complex, 3-Imli Bazar,Indore

¶10

2 Rinu Jain,

¶11

Wo Pavan Jain,

¶12

R/o 405, Clerk Colony,

¶13

Indore (M.P)

¶14

Defendants

¶15

Counsel for the Applicant : Shri Shreyas Dubey, Advocate

Defendants

: Ex-parte

JUDGMENT

(Dated : 27th March,2023)

¶20

The Applicant-Bank has filed the^present Original Application u/s 19 of Recovery of^{Debtsand BankruptcyAct on} lll01l22 against the Defendants for^recovery of^Rs. 1,12,53,0431-^(Rr-rpees One Crore,^{Twelve Lac, Fifty Three} Thousand and Forly Three only)^{along with interestand other} reliefs as stated.

¶21

¶22

oA 63122

¶23

The brief facts of the case^{are that on the request of} Defendant No.l through its^{proprietorDefendant No'2, the} Applicant Bank sanctioned^{Term Loan of Rs.42Lac and Cash} Credit of Rs.55 Lac aggregating^{Rs.97 Lac on 20103117 which} were subsequently renewed and^{the rvorking capital rvas raiscd} to Rs. 55 Lac, Term Loan^{was reducedto Rs. 3l.52Lac, FITL-1} of Rs.6.47 Lac and FITL-2^{of Rs.l .25 Lac aggregating to Rs.} 94.24 Lac on 25ll0ll9. ln^{considerationol the samethe} Defendant No.1 through its^{proprietorDefendantNo.2 in} addition to execution of^{loan documentshave also created} ecluitable mortgage ovcr the^{immovable propefiy, i.e., Shop} No.13, Shihurkar Complex^{constructedon the Plot No.3 situated} at Silemal Bafna Marg, Indore^{admeasuring73 sq' ft. (6.78 sq.} ft. mts); belonging to Del'endant^{No.2. The DelendantNo.1} through its proprietor^{DefendantNo.2 availed the creditfacilities} but failed to liquidate the outstanding^{dues despiteissuance of} Recall Notice dated^05104121 by^{the Applicant Bank.The} Applicant-Bank has relied upon the^{documentsat Ex. A-1 to A-} 33 which were^proved by Shri^{Pankaj Bhandari, Senior} Manager.

¶24

Despite service of notice, the^{Defendantsneither} appeared nor filed written statement,^{They were proceededex-} parte vide order dated 21109122. There is therefore,^{no reason to} disbelieve the contentions of the Bank. Considering^{the facts of} the case, I opine that the^{Def-endants are jointly and severally} liable to pay the claim amount together with^{interest and costs.} The Applicant-Bank in its application^{has claimed interest} @')955%^{p.a. with monthll'r'ests lbr Cash Credit Account,}

¶25

¶26

oA 63t22

¶27

interest @10.05% p.a. with monthly rests for Term Loan, interest @6.85% p.a. with monthly rests for FITL (WCTL) and FITL accounts. However, I feel it fair and reasonable to grant interest @9.50% p.a. for cash credit account, interest @10% p.a. for term loan account and intercst @6.50% p.a. flor both FITL accounts simple pendentelite and future till realization of the dues. The mortgaged properly is liable to be sold for recovery of amount due along with the personal properties and assets of the Defendants.

¶28

The Original Application is allowed and it is ordered as under-

¶29

i) The Defendants do pay jointly and severally Rs. 1,12,53,0431- (Rupees One Crore, Twelve Lac, Fifty Three Thousand and Forty Three only) together with pendentelite and future interest @9.50% p.a. for cash credit account, interest @10%^{p.a. for term loan account and interest} @6.50%^{p.a. for} both FITL accounts per annum simple from the date of filing of the OA, i.e.,1ll0ll22, with costs till its realization.

¶30

ii) The Applicant Bank is entitled to sell the mortgaged as well as personal properties and assets oI the Defendants for realization of its dues. The Defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, alienating or in any way dealing with their properlies/assets without first paying the claim of the Applicant Bank.

¶31

¶32

oA 63172

¶33

iii) A Recovely Ccrtillcate be issued u/s I 9(22) of Recovery of Debts and Bar-rkruptcy Act. The applicant bank may file a memo of cost within 7 days for preparing Recovery Certificate.

¶34

.ludgment pronounced in [he open court on this 27'l' Day of March, 2023.

¶35

oL'>> (Ram twas P erli Presiding Officer'

Bank of India v. Aaryan Industries

Case brief

What is this about?

What did the court decide?

Bank of India v. Aaryan Industries

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

Sarthak Seeds and Agrotech Propriter of Shri Ram Lakhan Meena versus Icici Bank Limited

Punjab National Bank versus M/S Amandeep Hotel Pvt. Ltd.

Smt Urmila Jonwal Wo Shri Suresh Jonwal versus Tata Capital Housing Finance Limited

Bank of India versus Hanu Enterprises

Ms Mehar Enterprises versus Canara Bank

Shri Rohit Sethi versus Aditya Birla Housing Finance Ltd.