Allowed

State Bank of India v. M/S Raj & Sons

DRT21 Mar 2024OA/1524/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by SBI Bank for recovery of Rs. 33,41,784.41 along with interest against a proprietorship firm and its proprietor, directing a payment deadline and recovery certificate issuance.

What did the court decide?

Recovery of Rs. 33,41,784.41 with interest at 6% per annum granted; payment deadline specified; recovery via sale of mortgaged property authorized in case of default.

State Bank of India versus M/S Raj & Sons — 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: 1524/2023

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Date of Institution:09.11.2023

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Date of Decision: 21.03.2024

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SBI Bank at SMEC, SCO Nos. 9-10, Sector-25, First Floor, GT Road, Near Truck Union, Panipat, Haryana

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……..Applicant

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Vs.

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M/s Raj & Sons, a Proprietorship Firm, at Plot Nos.28-29, New Makhija Colony, Panipat (Haryana)-132103, through its Proprietor, Smt. Sushila Devi w/o Shri Raj Kumar Mann.

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lInd Address:

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At Shed No. 2, Derbi Dairy, Jattal, District Panipat (Haryana)-132103

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Smt. Sushila Devi w/o Shri Raj Kumar Mann, Proprietor of M/s Raj & Sons, r/o House No.A-10, Sugar Mills Colony, Panipat (Haryana)-

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132103

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……….Defendants

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Advocates

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Sh. Vivek Verma Advocate along with Ms Kirti Sandhu, Manager Law for the applicant bank

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Sh. Rakesh Maan, Advocate for the defendants

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OA for the Recovery of Rs.33,41,784.41/- with interest

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@6% per annum from the date of OA.

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ORDER

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SBI Bank (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.33,41,784.41 with interest against M/s Raj & Sons and another (defendants).

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Defendant No.1 is Proprietorship concern of defendant No.2. Bank’s case is that on 14.01.2020, it had granted Cash Credit Limit of Rs. 10 lakh and Term Loan of Rs. 27 lakh and on 24.01.2023, it had granted Term Loan (GECL) of Rs. 11.16 lakh to defendant Nos. 1 and 2 for business purpose. To secure the loan facility, defendant No.2 had mortgaged her residential properties bearing plot No. 29 measuring 110 Square Yard and plot No. 28 measuring 110 Square Yard (fully detailed in Para No.3(A) of the application). The loan facilities were chargeable to interest @11.05% per annum with monthly rests for Cash Credit, @11.05% per annum with monthly rests for Term Loan and @9.65% per annum with monthly rests for Term Loan(GECL). On 05.11.2023, a sum of Rs. 33,41,784.41 was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 02.12.2023, summonses were sent to the defendants by registered post, which were duly served. 4. In order to prove its case, the Bank has placed on record the affidavit of Sh. Ramesh Kumar Sachdeva, Chief Manager (Maintenance) along with the loan and security documents and marked them as Exhibit A1 to A18. 5. 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 Cash Credit Limit of Rs. 10 lakh, Term Loan of Rs. 27 lakh and Term Loan (GECL) of Rs. 11.16 lakh and on 05.11.2023, a sum of Rs. 33,41,784.41 was due. 6. Accordingly, the application of the bank for the recovery of Rs. 33,41,784.41 (Rupees Thirty Three Lakh Forty One Thousand Seven Hundred Eighty Four and Forty One Paisa Only) with interest at the rate of 6% per annum is allowed with costs from the date of OA till the date

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of payment, provided the payment is made on or before 31.07.2024. The bank would be entitled to recover its dues by the sale of the mortgaged property in case the payment is not made on or before 31.07.2024. The contractual rate of interest would be payable by the defendants, in case of default in payment.

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7.	Pending IAs, if any, stand disposed of.
8.	Recovery Certificate be issued accordingly.
9.	Parties are directed to appear before	Recovery Officer on
29.0	4.2024, who is directed to distribute the	sale proceedsof the
mort	gage propertyas 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 R	ecovery Officer as well as the parties.
Pron Date	ounced in the open court d: 21.03.2024	(A S Narang) Presiding Officer DRT-2, Chandigarh (Additional charge)

State Bank of India v. M/S Raj & Sons

Case brief

What is this about?

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State Bank of India v. M/S Raj & Sons

Case brief

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