Allowed

State Bank of India v. M/S Shri Radha Construction Company

DRT18 Mar 2024OA/1256/2023

Case brief

AI extract

What is this about?

The Presiding Officer of DRT-II Chandigarh allowed the bank's application under Section 19 of the RDB Act for recovery of Rs. 22,23,717/- with interest against a construction company and its proprietor, noting the defendants did not appear.

What did the court decide?

Application for recovery of Rs. 22,23,717/- with interest allowed; Recovery Certificate issued; Recovery Officer directed to distribute sale proceeds.

State Bank of India versus M/S Shri Radha Construction Company — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-II, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1256/2023 Date of Institution: 25.08.2023 Date of Decision: 18.03.2024

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SBI at SMEC Branch, E-20, Industrial Area, Yamunanagar, Haryana

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……..Applicant

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Vs.

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M/s Shri Radha Construction Company, a sole Proprietorship concern, having its office at House No.21, Krishna Colony, Opposite Narang Crockery, Tehsil Jagadhari, District Yamunanagar, Haryana-135001, through its sole Proprietor

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Smt. Deepti Chug W/o Sh. Anil Chug, sole Proprietor of M/s Shri Radha Construction Company, R/o House No.21, Krishna Colony, Opposite Narang Crockery, Tehsil Jagadhari, District Yamunanagar, Haryana-135001

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……….Defendants

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Advocates

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Sh. Yogesh Kumar, proxy counsel for Sh. Rakesh Gupta, Counsel for the applicant bank. Defendants- ex parte

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OA for the Recovery of Rs.22,23,717/- with interest @9.25% per annum with monthly rests from 25.08.2023.

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ORDER

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SBI (Applicant Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.22,23,717/- with interest against M/s Shri Radha Construction Company and another (defendants).

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Defendant No.2 is the Proprietor of defendant No.1. Bank’s case is that on 18.03.2019, it had granted CC Limit of Rs.20,00,000/- and GECL/WCTL Facility of Rs.4,02,000/- on 08.06.2020, to defendants for business purpose. The loans were chargeable to interest @11.55% per annum with monthly rests for CC Limit and @7.80% per annum with monthly rests for GECL/WCTL Facility. On 21.08.2023, a sum of Rs.22,23,717/ - was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 13.09.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 21.10.2023, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Jarnail Singh Mohi, Principal Officer and Chief Manager along with the loan and security documents and marked them as Exhibit A-1 to A-10.

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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 loans of Rs.20,00,000/- and Rs.4,02,000/- and on 21.08.2023, a sum of Rs.22,23,717/- was due. 6. Accordingly, the application of the bank for the recovery of Rs.22,23,717/- (Rupees Twenty Two Lakh Twenty Three Thousand Seven Hundred and Seventeen Only) with interest @9.25% per annum with monthly rests from 25.08.2023, 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 the hypothecated/personal movable and immovable property(ies) of the defendants. 7. Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 22.04.2024, who is directed to distribute the sale as per the provisions of Section 19(20-AB) of the Act . 10. 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: 18.03.2024 Presiding Officer DRT-2, Chandigarh (Additional charge)

State Bank of India v. M/S Shri Radha Construction Company

Case brief

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State Bank of India v. M/S Shri Radha Construction Company

Case brief

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