Allowed

Bank of India v. M/S Shri Madhav Industries and Others

DRT24 Sept 2024OA/1058/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Bank of India's application for recovery of Rs.31,62,784.32p from the proprietor and members of M/s Shri Madhav Industries. The court fixed interest at 8% per annum and authorized recovery via sale of mortgaged properties.

What did the court decide?

Recovery of Rs.31,62,784.32p with interest at 8% p.a. and costs; Recovery Certificate issued; Recovery from sale of mortgaged properties authorized.

Bank of India versus M/S Shri Madhav Industries and Others — Cheque Dishonour | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1058/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.06.2023

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DATE OF DECISION: 24.09.2024

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head Office at Star House, C-5, G-Block, Bandra Kurla Complex, Bandra (East) Mumbai-400051 and having its Zonal Office at Surya Kiran Complex, 1^st Floor, Phase-II, The Mall, near Rakh Bagh, Civil Lines, Ludhiana and amongst various branches having its branch at Kochar Market, Model Gram, Ludhiana through its duly Authorized Officer of the applicant Sh. Simar Preet Singh, Chief Manager, Bank Of India, Ludhiana, Punjab.

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……..Applicant

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Versus

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M/s Shri Madhav Industries, Plot No. 24, Ram Nagar, Giaspura, Ludhiana, through its Proprietor.

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Sh. Gautam Jain S/o Sh. Chander Bhushan, Proprietor M/s Shri Madhav Industries, R/o Plot No.169, G.K. Estate, Bhamian Khurd, Ludhiana.

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Smt. Anju Rani W/o Sh. Chander Bhushan, R/o Plot No. 169, G.K. Estate, Bhamian Khurd, Ludhiana.

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Alternate Address: M/s Shri Madhav Industries, Plot No. 575/1, Jaspal Banger, Opposite G.K. Estate, Ludhiana, its Proprietor

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………Defendants

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Advocates:

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Argued by Sh. Satish Jaswal, Advocate proxy for Sh. Mouhit K. Goel, Advocate for the applicant Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant

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under Section 19 of the Recovery of Debts Due to Banks and Financial

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Institutions Act, 1993, against the defendants for recovery of Rs.31,62,784.32p (Rupees Thirty One Lacs Sixty Two Thousand Seven Hundred Eighty Four and Paisa Thirty Two only). The Original Application has been filed through Sh. Simar Preet Singh, Chief Manager o f the applicant who is competent to institute the Original Application vide Power of Attorney dated 04.02.2016, which is Annexure A3 to this OA.

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The brief facts of the OA are that the defendant No.1 through its proprietor i.e. defendant no.2 had approached the applicant for the grant of Cash Credit Limit of Rs.2.50 Lacs Term Loan-I of Rs.22.50 Lacs vide Loan Application dated 19.10.2019, which is Annexure A4 to this OA. Thereafter defendants again approached the applicant for grant of the Term Loan-II (GECL) of Rs.3.50 Lacs vide Loan Application dated 29.06.2020, which is Annexure A15 to this OA

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The applicant sanctioned the Cash Credit Limit of Rs.2.50 Lacs and Term Loan-I of Rs.22.50 Lacs vide Credit Sanction dated 08.11.2019, which is Annexure A5 to this OA. The applicant also sanctioned the Term Loan-II (GECL) of Rs. 3.50 Lacs and the terms and conditions were duly accepted by the defendants.

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Defendant no.3 had mortgaged her immovable properties i.e. Plot No.169 measuring 125 sq. yards situated at Village Bhamian Khurd (Abadi G.K. Estate), Hadbast No.180, Tehsil and District Ludhiana (Punjab) vide Registered Mortgaged Deed bearing vasika No.2018-19/106/1/3066 dated 1 8.09.2018 and Jamabandi for the year 2010-2011 along with their Translations , which are Annexures A25 & A26 to this OA.

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Documents executed:- Valuation Report dated 16.08.2018, which is Annexure A1 to this OA; Legal Opinion dated 21.08.2018, which is Annexure A2 to this OA; Demand Promissory notes, Hypothecation cum Loan agreement, Declaration by borrower, Letter of Declaration Undertaking & Authority, Declaration by borrower, Letter of Undertaking/Authority, Deed of Guarantee, RBLR Agreement all dated

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11.11.2019, which are Annexures A6 to A14 to this OA; Demand Promissory Note, Declaration by borrower, Deed of Guarantee, Supplemental Loan cum Hypothecation Agreement, RBLR Agreement, Declaration by borrower, Supplemental Term Loan Agreement when there is change in Repayment Schedule all dated 29.06.2020, which are Annexures A16 to A22 to this OA; Acknowledgement of Debt Securities dated 28.09.2021, which are Annexures A23 & A24 to this OA and Statements of accounts along with the Memorandum of Interest, which are Annexures A27 to A30 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.31,62,784.32p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 27.08.2024. 7. In support of the OA, affidavit of Sh. Simar Preet Singh, Chief Manager, Bank of India has been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A30 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, all the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of

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Rs.31,62,784.32p (Rupees Thirty One Lacs Sixty Two Thousand Seven Hundred Eighty Four and Paisa Thirty Two only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @14.15%p.a. in Cash Credit Limit and @14.15%p.a. in Term Loan-I and @11.25p.a. in Term Loan-II (GECL) from 05.06.2023 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.31,62,784.32p (Rupees Thirty One Lacs Sixty Two Thousand Seven Hundred Eighty Four and Paisa Thirty Two only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 16.10.2024. 15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal .

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Dated: 24.09.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. M/S Shri Madhav Industries and Others

Case brief

What is this about?

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Bank of India v. M/S Shri Madhav Industries and Others

Case brief

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