Allowed

Punjab National Bank v. M/S Gulab Chand Rikhabhchand and Company

DRT26 Jul 2024OA/1183/2022

Case brief

AI extract

What is this about?

In an original application under s.19 of the Recovery of Debts and Bankruptcy Act, the Court allowed the Bank's claim for recovery of dues along with interest and granted a Recovery Certificate, setting the mortgaged and personal properties of the respondents liable.

What did the court decide?

Debent to pay Rs. 4,52,74,404.81 with interest; mortgaged and personal properties to be set for realization; Recovery Certificate issued under s.19(2); stay on asset disposal.

Punjab National Bank versus M/S Gulab Chand Rikhabhchand… — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL : JABALPUR

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(for the States of Madhya Pradesh and Chhattisgarh)

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cAt P couRT AT RAIPUR^(C.G.)

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(Presiding Officer Hon'ble Shri Ram Niwas Patet)

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Originol Applicotion No. - 1183/22

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Punjab National Bank, Circte SASTRA, Raipur (C.G.)

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Appticant

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Versus

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M/s Gutabchand Rikhabhchand & Company, 01 ) Through Prop.-Late Subhash Chand Jain, R/o Shop No.-9, Sona Tower, Near Agrasen Chowk, Bhaistan Road, Ramsagarpara Ward No.-17, Raipur CG 492001; Factory at: Khasra No.-217l36 at Birgaon, PH No.-101 , RIC Dharsiwa 1, Jawahar La[ Nehru Ward Ward No.-6, Raipur 492001; Atso at: 48/1382, Besides Wadiya Nursery, Behind Chhattisgarh Co[tege, Bairaon Bazar, Raipur 492001

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Smt. Swati Jain, Wife & Legat Heir of Late Subhash Chand Jain, R/o Shop No.-9, Sona Tower, Near Agrasen Chowk, Bhaistan Road, Ramsagarpara Ward No.-17, Raipur CG 492001 Defendants

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Counse[ for the Appticant : Shri Adamya Bajpai, Advocate Defendants : Ex-parte

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JUDGMENT

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(Dated : 26'h July, zo24)

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The Applicant-Bank has fited the present Original Apptication u/s^'19 of Recovery of Debts and Bankruptcy Act on 13/09122 against the Defendants for recovery of Rs. 4,52,74,404.81 (Rupees Four Crore, Fifty Two Lac, Seventy Four Thousand, Four Hundred Four and Paisa Eighty One onty) atong with interest and other reliefs as stated.

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The brief facts of the case are that on the request of Defendant No.-1, the Appticant Bank sanctioned Cash Credit Limit of Rs. 300 Lac on 15/01 /18 which was subsequentty renewed in the year 2018 and in

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oA 1183t22

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consideration of the same the Defendant No.-1 as borrower and Defendant No.-2 as guarantor in addition to execution of loan and^guarantee documents have also created equitable mortgage over the immovable^property, i.e.,

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i) Shop No.-9, Sona Tower, Near Agrasen Chowk, Bhaistan Road, Ramsagarpara Ward No.-17, Khasra No.-394^(Part) at Ptot No.-55^(Part), Ground Floor, RNM Raipur, Tehsit & District-Raipur^(C.G.) admeasuring 300 sq.ft.;

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ii) Diverted Residential Ptot situated at Mauja Gondwara, Yati Yatan La[ Ward, Ward No.-4, P.H. No.-108, Part of Khasra No.-128/102/2-3, RNM 1, Raipur C.G., admeasuring 6990 sq.ft.; iii) Factory Land & Building Khasra No.-217l36 at Birgaon, PH No.101, RIC Dharsiwa 1, Jawahar La[ Nehru Ward Ward No.-6, Raipur (C.G.) admeasuring 21 31 3 sq.ft.

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The Defendants avaited the credit facitities but faited to liquidate the outstanding dues despite issuance of Recall Notice on 22/10120 and initiation of action under the Securitisation Act by the Appticant Bank. The Appticant-Bank has retied upon the documents at Ex. A-1 to A-24 which were proved by Shri Sachin Kumar, Chief Manager.

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Despite service of notice, the Defendants neither appeared nor fited written statement. They were^proceeded ex-parte vide order dated 15112123. There is therefore, no reason to disbetieve the contentions of the Bank. Considering the facts of the case, I opine that the Defendants are jointty and severatly liabte to pay the ctaim amount together with interest and costs. The Applicant-Bank in its apptication^has ctaimed^interest @9.60% p,a. with monthty rests. However, I feet it fair and reasonabte to^grant interest @9.60%^p.a. simpte^pendentetite and^future titl^{reatizationof the} dues. Perusal of record reveats that the^Proprietor of^{DefendantNo.-l} concern Subhash Chand Jain expired^{and Defendant No.-2 is the [ega[ heir} and also the^guarantor for the^{credit facility granted to Defendant No.'1} concern. Thus the Appticant'Bank^{is entittedto setl the assets of deceased} Subhash Chand Jain inherited by^{Defendant No.-2. The mortgaged properties} are tiabte to be sotd for^{recovery of amount due atong with the personal} properties and assets of the Defendants.

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The Originat Apptication is allowed^{and it is orderedas under-} i) The Defendants do^{pay jointty and severallyRs'4,52,74,404.81} (Rupees Four Crore, Fifty Two^{Lac, Seventy Four Thousand, FourHundred}

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)

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oA tt83t22

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Four and Paisa Eighty One onty) together with pendentelite and future interest @9.60% per annum simple from the date of fiting of the OA, i.e., 13/09122, with costs titl its realization.

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ii) The Applicant Bank is entitted to setl the mortgaged as we[[ as personal properties and assets of the Defendants for reatization of its dues. The Appticant-Bank is atso entitted to selt the assets of deceased Subhash Chand Jain inherited by Defendant No.-2. The Defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, atienating or in any way deating with their properties/ assets without first paying the claim of the Appticant Bank.

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iii) A Recovery Certificate be issued uls 19(22) of Recovery of Debts and Bankruptcy Act. The appticant bank may file a memo of cost within 7 days for preparing Recovery Certificate.

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Judgment pronounced in the open court on this 26th Day of Juty, 2074 at Camp Court Raipur.

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(Ram Niwa s t) Presidinq Officer

Punjab National Bank v. M/S Gulab Chand Rikhabhchand and Company

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Gulab Chand Rikhabhchand and Company

Case brief

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What did the court decide?

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