Allowed

Bank of India v. M/S Regal Refreshments Co.

DRT23 Jul 2024OA/148/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the appellant bank's original application for recovery of dues of approximately 83.50 lakhs. The court decreed the joint and several liability of the proprietors and the company, granted a recovery certificate, and imposed an injunction on the defendants to prevent alienation of assets pending payment.

What did the court decide?

Award of Rs. 83,50,985.26 with interest at 10.30% p.a.; issuance of Recovery Certificate under S. 19(2)(a); injunction against alienation of assets.

Bank of India versus M/S Regal Refreshments Co. — Banking and Recovery | 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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CAMP COURT AT RATPUR (C.G.)

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

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Original Application No. - 148123

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Bank of lndia, Power House, Bhitai (C.G.)

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..... Appticant

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Versus

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M/s Regat Refreshments Co., Through its Proprietor-

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Mr. Roshan Rizvi

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Mr. Roshan Rizvi,

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S/o Mr. Sageer Ahmed Rizvi

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(Both at23416, Near Bazar Chowk,

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Vittage & Post-Pouara, Distt.-Durg, C.G.)

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Defendants

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Counsel for the Appticant : Shri Atok Mishra, 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 uls 19 of Recovery of Debts and Bankruptcy Act on 09/02123 against the Defendants for recovery of Rs. 83,50,985.26 (Rupees Eighty Three Lac, Fifty Thousand, Nine Hundred Eighty Five and Paisa Twenty Six 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 Proprietor Defendant No.-2, the Appticant Bank sanctioned Cash Credit (Hypothecation) Limit of Rs. 5 Lac and Term Loan of Rs.44 Lac on 19107116 and in consideration of the same the Defendants in addition to execution of loan documents have atso created equitabte mortgage over the immovabte property of Defendant No.-2, i.e., Khasra No.23416, Vitlage-Pauwara, PH No.-44, Tehsit & District-Durg (C.G.), area measuring 6000 sq.ft. The Defendants avaited the credit facitities and atso executed Acknowtedgment of Debt & Security tastty on 12/07172 but faited to [iquidate the outstanding dues despite issuance of Reca[[ Notice on 03109/17 and initiation of action under the Securitisation Act by the

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oA 148123

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Appticant Bank. The Appticant-Bank has retied upon the documents at Ex A-1 to A-23 which were^proved by Shri Sumit Sikdar, 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 20/12/23. There is therefore, no reason to disbetieve the^contentions of^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 ctaimedinterest} @10.30%^p.a. with^{monthty rests.However,lfee[ it fair and reasonabteto} grant interest @10.30% p.a. simpte pendentetite and future titt^{reatization of} the dues. The mortgaged^property is tiabte to^{be sotd for recoveryof} amount due atong with the^{personalpropertiesandassets of the Defendants.}

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The Originat Apptication is atlowed^and it^{is orderedas under-} i) The Defendants do^{pay jointty} and^{severatty Rs. 83,50,985.26} (Rupees Eighty Three Lac, Fifty Thousand, Nine^{Hundred Eighty Five and} Paisa Twenty Six onty) together with^{pendentetiteand future interest} @10.30%^{per annum simptefrom the date of fiting of the OA, i.e.,09102/23,} with costs titt its reatization.

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ii) The Appticant Bank is entitted to^{setl the mortgaged as wetl as} personal properties and assets of the^{Defendantsfor realizationof its dues.} The Defendants are hereby^{restrained by means of injunctionfrom} depteting, transferring, encumbering,^{atienating or in any way deating with} their properties/assets without^{first paying the ctaim of the Applicant 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 fite a memo of cost} within 7 days for^{preparingRecoveryCertificate.}

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

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:7' (Ram Niwas Patet) Presidine Officer

Bank of India v. M/S Regal Refreshments Co.

Case brief

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Bank of India v. M/S Regal Refreshments Co.

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