Allowed

Jammu and Kashmir Bank Ltd. v. M/S Gupta Traders

DRT16 Oct 2023TA/84/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal confirmed a bank's claim for recovery of an outstanding loan of Rs.22,06,931.55 with interest. The court allowed the applicant's case against the defendants, who appeared ex parte, and ordered the issuance of a recovery certificate directed for distribution of sale proceeds.

What did the court decide?

Recovery of Rs.22,06,931.55 with interest from defendants; issuance of Recovery Certificate; distribution of sale proceeds via Recovery Officer.

Jammu and Kashmir Bank Ltd. versus M/S Gupta Traders — Contract and Commercial Disputes | 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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TA No: 84/2022

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Date of Institution: 05.11.2020

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Date of Decision: 16.10.2023

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Jammu and Kashmir Bank Ltd., having its Registered and Corporate Zonal Office, M.A. Road, Srinagar and Zonal Office at Rail Head Complex, Jammu and one of its Branch Office at Miran Sahib.

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……..Applicant

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Vs.

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M/s Gupta Traders at Village Qutab Nizam, Tehsil R.S. Pura, District Jammu through its sole proprietor Sh. Gourav Gupta S/o Late Sh. Puran Chand Gupta, R/o Ward No.10, R.S. Pura, Jammu.

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Gourav Gupta S/o Late Sh. Puran Chand Gupta, R/o Ward No.10, Tehsil R.S. Pura, District Jammu.

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Sonu Gupta S/o Sh. N.D. Gupta, R/o Village Chak Aslam, Tehsil R.S. Pura, District Jammu.

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Kanta Gupta Wd/o Late Sh. Puran Chand Gupta, R/o Ward No.10, Tehsil R.S. Pura, District Jammu.

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Preeti Gupta D/o Late Sh. Puran Chand Gupta, C/o Ward No.10, Tehsil R.S. Pura, District Jammu. Defendant Nos.2, 4 and 5 are the legal representatives of the deceased Sh. Puran Chand Gupta (Guarantor). Defendant No.2 is also one of the legal heir of the deceased Sh. Puran Chand Gupta.

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……….Defendants

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Advocates

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Sh. Vivek Verma, Counsel for the applicant bank. None for defendants.

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TA for the Recovery of Rs.22,06,931.55p with interest @11.65% per annum with monthly rests from 05.11.2020.

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ORDER

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On 05.11.2020, Jammu and Kashmir Bank, had filed a suit for the recovery of Rs.22,06,931.55p with interest against M/s Gupta Traders

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and others (defendants) in the Civil Court Jammu. However, vide order dated 29.09.2022, this suit was transferred by the Court of Additional District Judge, (Bank Cases), to DRT-I, Chandigarh.

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Bank’s case is that defendant No.1 is a proprietorship concern of defendant No.2. Sh. Puran Chand (now deceased) and defendant No.3 had stood guarantor. On 19.07.2017, bank had granted a Cash Credit of Rs.20.00 Lacs to defendant No.1 through defendant No.2 for business purpose. To secure the loan, Sh. Puran Chand (now deceased) and defendant No.3 had mortgaged their immovable properties (fully detailed in para No.3 of the application) and hypothecated all kind of stocks. The loan was chargeable to interest @11.65% per annum with monthly rests. On 05.11.2020, a sum of Rs.22,06,931.55p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, the suit.

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On 10.03.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Despite service of the summons, defendants failed to appear before this Tribunal and also failed to file WS, accordingly, defendants are proceeded ex parte. 4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Chander Shekar, Authorized Officer, along with the loan and security documents. 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 loan of Rs.20.00 Lacs and on 05.11.2020, a sum of Rs.22,06,931.55p was due. 6. Accordingly, the case of the bank for the recovery of Rs.22,06,931.55p (Rupees Twenty Two Lacs Six Thousand Nine

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Hundred Thirty One and Paisa Fifty Five Only) with interest @11.65% per annum with monthly rests from 05.11.2020, till the date of payment is hereby allowed with costs. The liability of defendants No.1, 2 and 3 would be joint and several. Bank can recover its dues by the sale of mortgaged immovable properties fully detailed in para No.3 of the application and hypothecated stocks as well as from the personal movable and immovable property(ies) of the defendants No.1, 2 and 3 The LRs of Sh. Puran Chand Gupta (now deceased) would be liable to the extent of property inherited by them from Sh. Puran Chand Gupta (Deceased).

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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 17.11.2023, who is directed to distribute the sale proceeds of the mortgage properties and hypothecated stocks 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: 16.10.2023 Presiding Officer DRT-1, Chandigarh Pankaj

Jammu and Kashmir Bank Ltd. v. M/S Gupta Traders

Case brief

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Jammu and Kashmir Bank Ltd. v. M/S Gupta Traders

Case brief

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