Allowed

Idbi Bank v. M/S E R Trading Company

DRT23 Jul 2024OA/1188/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed IDBI Bank's application for recovery of dues amounting to Rs. 2.15 crore from trading company partners who were joint borrowers and guarantors. The court granted interest and directed issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 2,15,37,293.00 along with interest; injunction against dealing with properties; recovery certificate issued.

Idbi Bank versus M/S E R Trading Company — 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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cAhtP couRT AT RATPUR (C.C.)

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(Presiding Officer - Hon'bte Shri Ram Niwas Patet)

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Originol Application No. - 1188122

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lDBl Bank Ltd., Mantratay Branch, 1tt Ftoor, NRDA Utitity Buitding, Behind Mahanadi Bhawan, Mantratay Comptex, Naya Raipur (C.G.) 492002

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..... Appticant

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Versus

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01 ) M/s E. R. Trading Company, Through its PartnersMr. lqbat Singh Bhatta &

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St. Tashmeet Kaur Bhatta, Neha Dormitory, Station Road, Gurudwara, Raipur 9C.G.) 492001

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lqbat Singh Bhatta, 5/o Shri Gurmeet Singh Bhatta

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Smt. Tashmeet Kaur Bhatla, W/o Shri lqbat Singh Bhatta

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(2 & 3 R/o Ftat No.-602, Btock B-02, VIP Karishma Apartment, Shankar Nagar, Raipur, C.G. 492001)

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..... Defendants

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Counsel for the Appticant : Shri Amit Garg, Advocate Defendants : Ex-parte

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JUDGMENT

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(Dated : 23'd July, 2024)

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The Appticant-Bank has fited the present Original Apptication u/s 19 of Recovery of Debts and Bankruptcy Act on 29109/22 against the Defendants for recovery of Rs. 2,15,37,293.00 (Rupees Two Crore, Fifteen Lac, Thirty Seven Thousand, Two Hundred and Ninety Three onty) atong with interest and other retiefs as stated.

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The brief facts of the case are that on the request of Defendant No.-1 through its partners Defendant No.-2 & 3, the Appticant Bank sanctioned Cash Credit Limit of Rs. 95 Lac and Term Loan of^Rs. 5^Lac aggregating Rs. 100 Lac on 27112117 which^{was subsequenttyrevised on}

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oA I 188122

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Oll}Bll8 as Cash Credit^{Limit of Rs. 195 Lac and Term Loan of Rs. 3.11 Lac} aggregating Rs.^{198.11 Lac as wetl as Working CapitatTerm Loan(WCTL)of} Rs. 39,01 ,9531- on^{2OlO5/20. ln considerationof the sanction of credit} facitities the Defendant^{No.-1 as borrower and Defendant No.-2&,3 in their} individuaI capacity as^{guarantorsin addition to executionof loanand} guarantee documents have atso^{created equitabtemortgageover the} immovabte properties^{by Defendant No.-2, i.e.,}

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i) Att the piece and^parce[ of^{lmmovabtePropertyadmeasuring} 23000 sq.ft. bearing^{Khasra No.-178/2, Sheet No.-60,Ptot No.-2/42,New} Shanti Vihar Cotony,^{MaujaDanganiya,P.H.No.-104158, W.No.-69, Tehsit&} District-Raipur^(C.G .)⁴⁹²⁰⁰¹ ;

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ii) Att the piece and^parcel of^{immovablepropertybearing Ptot} Ph. No.^-24112, P.H.^{No.-106A162,Comprisingarea 1180 sq.ft.,RNM Raipur-} 1, Ward No.-20, lndira^{Gandhi Ward, Mouja-Raipur Khas,Station Road,Tehsil} & District-Raipur^{(C.G.) 492001.}

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The Defendants avaited the credit^{facitities but failed to [iquidate the} outstanding dues despite^{issuance of Recatl Noticeslastty on 24108121 and} initiation of action under the Securitisatron^{Act by the AppticantBank. The} Appticant-Bank has retied upon^{the documentsat Ex. A-1 to A-21 whichwere} proved by Shri Afsar Hussain, Manager and^{Branch Head.}

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Despite service of notice, the Defendants^{neitherappeared nor} fited written statement. They^{wereproceededex-parte vide order dated} 16101/23. There is therefore,^{no reason to disbelievethe contentionsof the} Bank. Considering the facts of the^{case, I opine that the Defendantsare} jointty and severatty tiabte to pay the ctaim amount together with interest and costs. The Appticant-Bank in its apptication^{has claimed interestat} contractuat rate with monthty rests.^{However,I feel it fair and reasonabte} to grant interest @10%^p.a. for credit facilities^{aggregating Rs. '198.11 Lac} and interest @ 7% p.a. for WCTL account simpte^{pendentetiteand future titl} reatization of the dues. The mortgaged^properties are liabte to^{be sold for} recovery of amount due atong with the^{personalproperties} and^assets of the Defendants.

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The Originat Apptication is attowed and it is ordered as under-

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i) The Defendants do pay^jointty and severatly Rs. 2,15,37,293.00 (Rupees Two Crore, Fifteen Lac, Thirty Seven Thousand, Two Hundred and Ninety Three onty) together with pendentelite and future interest @10% p.a.

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oA 1 188122

for credit facitities aggregating Rs. 198.11^{Lac and interest@ 7% p.a. for} WCTL account simple from the date of fiting^{of the OA, i.e.,29109/22, with} costs titt its reatization.

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ii) The Appticant Bank is entitted to^{setl the mortgagedas wetlas} personat properties and assets of the Defendants for reatization^{of its dues.} The Defendants are hereby restrained by^means of^{injunctionfrom} depteting, transferring, encumbering, atienating^{or in any way dealingwith} their properties/assets without first^{paying the ctaim of the AppticantBank.}

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iii) A Recovery Certificate be issued u/s^{19(22) of Recoveryof} Debts and Bankruptcy Act. The appticant^{bank may fite a memo of cost} within 7 days for preparing Recovery Certificate.

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Judgment pronounced in the open court on this^{23'd Day of Juty, 2024al} Camp Court Raipur.

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9' "h ( Niwas Pa tel,) Presidine Officer

Idbi Bank v. M/S E R Trading Company

Case brief

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What did the court decide?

Idbi Bank v. M/S E R Trading Company

Case brief

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