Allowed

Punjab and Sind Bank v. M/S Singh Hospitality and Resorts Private Limited

DRT11 Dec 2023TA/16/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 7.80 crores with interest, dismissing the defendants' defense as untenable. The Tribunal passed a recovery certificate and directed an auction of mortgaged and personal properties.

What did the court decide?

Recovery of Rs. 7,80,16,881/- with interest allowed; recovery certificate issued; direction to auction mortgaged and personal properties of defendants.

Punjab and Sind Bank versus M/S Singh Hospitality and Resorts… — Banking and Recovery | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

¶2

BEFORE: A S NARANG, PRESIDING OFFICER

¶3

TA No: 16 of 2022

¶4

Date of Institution: 03.06.2014 Date of Decision: 11.12.2023

¶5

Punjab And Sind Bank, Head Office at Bank House, 21, Rajindra Place, New Delhi and Zonal Office at Civil Lines, Gurdaspur, Punjab and branch amongst others is situated at M. H. Morh, Distt. Udhampur, J & K Bank.

¶6

……..Applicant

¶7

Vs.

¶8

M/s Singh Hospitality And Resorts Private Limited, Near MH Morh, NH-1A, Udhampur-182101.

¶9

Sh. Daljit Singh S/o Late Sh. Sant Singh, Managing Director, M/s Singh Hospitality And Resorts Private Limited, Near MH Morh, NH-1A, Udhampur.

¶10

Sh. Sarabjit Singh S/o Sh. Daljit Singh, Director, M/s Singh Hospitality And Resorts Private Limited, Near MH Morh, NH1A, Udhampur.

¶11

Sh. Daljit Singh S/o Late Sh. Sant Singh, R/o W. No.11, Near Sant Park, Jail Road, Udhampur (J & K) – 182101.

¶12

Sh. Sarabjit Singh S/o Sh. Daljit Singh, R/o W. No.11, Near Sant Park, Jail Road, Udhampur (J & K) – 182101.

¶13

……….Defendants

¶14

Advocates

¶15

Sh. Ajay Singla, counsel along with Sh. Shiva Nand Mishra, Authorized Officer of the applicant bank.

¶16

Sh. Devansh Khanna, counsel for defendants along with Sh. Daljit Singh/ Defendant no.2 in person.

¶17

TA for the Recovery of Rs.7,80,16,881/- with interest @15.25% per annum with monthly rests from 01.05.2014.

¶18

ORDER

¶19

On 03.06.2014, Punjab and Sind Bank, had filed a suit for the recovery of Rs.7,80,16,881/- with interest against M/s Singh Hospitality And Resorts Private Limited And Others (defendants) in the Civil Court Jammu. However, vide order dated 04.02.2022, this suit was transferred

¶20

¶21

by the Court of Principal District Judge, Udhampur, to DRT-I, Chandigarh.

¶22

Bank’s case is that on 01.06.2005, it had granted Term Loan Facility of Rs.4.00 lacs to defendant no.1 through its sole proprietor defendant no.2 for business purpose. Defendant nos.2 to 5 stood as guarantors. At the request of defendants, the said facility was enhanced from time to time and the last enhancement/renewal/reviewal was made, on 03.03.2009, from Rs.75.00 lacs to Rs.150.00 lacs, which were duly enhanced upto Rs.6,64,90,000/- from time to time. On 30.04.2014, an amount of Rs.7,80,16,881/- was due against the defendants. To secure the loan, Defendant no.1 through its sole proprietor defendant no.2 had mortgaged their immovable properties and also created hypothecation of stocks in trade (fully detailed in para No.3 of the application).

¶23

2(a). The assets and liability of the erstwhile M/s Singh Hotel and Restaurant were taken over by defendant no.1/ M/s Singh Hospitality And Resorts Pvt. Ltd., through its Directors /defendant nos.2 and 3 in the year 2011. On 30.04.2014, an amount of Rs.7,80,16,881/- was due against the defendants. Despite repeated requests, defendants did not make the repayment. Hence, the suit.

¶24

On 14.11.2014, defendants filed written statement, wherein they alleged that the application is not maintainable; the recovery is barred by limitation; amount claimed in the OA is highly excessive; the recovery is time barred; exorbitant rate of interest was charged by the applicant bank.

¶25

In order to prove its case, the Bank has placed on record the affidavit of Mr. Harminder Singh, Senior Manager, along with the loan and security documents.

¶26

¶27

5. At the time of arguments, counsel for the defendants conceded
that the OA may be allowed. He also stated that defendants would also
submit an OTS of Rs.14.50 crores within a week from today.
6. 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 loan of
Rs.6,64,90,000/- and on 30.04.2014, an amount of Rs.7,80,16,881/- was due.
7. Accordingly, the case of the bank for the recovery of
Rs.7,80,16,881/- (Rupees Seven Crore Eighty Lacs Sixteen Thousand
Eight Hundred Eighty-One Only) with interest @15.25% per annum
with monthly rests from 01.05.2014, 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 properties,
fully detailed in para No.3 of the application, as well as from the
personal movable and immovable property(ies) of the defendants.
8. Pending IAs, if any, stand disposed of.
9. Recovery Certificate be issued accordingly.
10. Parties are directed to appear before Recovery Officer on
16.01.2024, who is directed to distribute the sale proceeds of the
mortgage properties, as per the provisions of Section 19(20-AB) of the
Act.
11. A Copy of this order along with Recovery Certificate be sent to
the Recovery Officer as well as the parties.
Pronounced in the open court. (A S Narang)
Dated: 11^thDecember, 2023 Presiding Officer DRT-1, Chandigarh

Punjab and Sind Bank v. M/S Singh Hospitality and Resorts Private Limited

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. M/S Singh Hospitality and Resorts Private Limited

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

Icici Bank Limited versus Shiltu Nandi

Hdfc Bank versus Ranjit Singh

Icici Bank Limited versus Sh. Inderjeet Singh

Punjab National Bank (Oriental Bank of Commerce) versus M/S Ekavira International

Bank of Baroda versus Ishwarappa Sosaravi

Idbi Bank versus Revathi