Allowed

Indian Bank v. M/S Anisha Embroidery and Another

DRT12 Jul 2024OA/164/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of dues of Rs. 26,38,648.87 from the defaulting borrower. The court granted uniform simple interest at 8% per annum and directed the issuance of a recovery certificate under the RDBFI Act and SARFAESI Act.

What did the court decide?

Recovery of Rs. 26,38,648.87 plus simple interest at 8%p.a., issuance of recovery certificate.

Indian Bank versus M/S Anisha Embroidery and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.164/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.02.2023

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DATE OF DECISION: 12.07.2024

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Indian Bank, a body corporate, constituted under the Banking Companies Acquisition and Transfer of Undertaking act 1970, having its Corporate Office at PB No. 5555, 254-260, Avvai Shanmugam Salai, Royapettah, Chennai and its branches throughout India and amongst other branches one of its Branch Office at Ludhiana Branch, Chowk Clock Tower, Ludhiana through its constituted attorney Sh. Amarjit Singh, Chief Manager, Indian Bank, Ludhiana who is also the Principal Officer of the plaintiff/applicant bank.

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……..Applicant

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Versus

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M/s Anisha Embroidery through its Proprietor Sh. Paran Mahto S/o Sh. Halkhori Mahto, B-34, Street No. 11, Hargovind Nagar, Near Chander Nagar, Civil City, Ludhiana, Punjab

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Sh. Paran Mahto S/o Sh. Halkhori Mahto Sole Proprietor M/s Anisha Embroidery, B-34, St. No.-11, Hargovind Nagar, Near Chander Nagar, Civil Lines, Ludhiana, Punjab

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………Defendants

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Advocates:

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Argued by Sh. Ashok Kumar Verma, Advocate for the Applicant Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.26,38,648.87p (Rupees Twenty Six Lacs Thirty Eight Thousand Six Hundred Forty Eight and Paisa Eighty Seven only). The Original Application has been filed through Sh. Amarjit Singh, Chief Manager o f the applicant bank, who is competent to institute the Original

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Application vide Power of Attorney dated 13.10.2014, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its proprietor i.e. defendant no.2 had approached the applicant bank for the grant of Term Loan I (Covered under CGTMSE) of Rs.20.00 Lacs under and Further again approached the bank for the grant of Term Loan II (Covered under CGTMSE) of Rs.20.00 Lacs vide Loan Application dated 14.09.2017, which is Annexure A9 to this OA. Later defendant No.1 through its proprietor i.e. defendant no.2 had approached the applicant bank for the grant of IND-GECLs-Covid 19 Term Loan of Rs. 4.31 Lacs vide Loan Application dated 22.06.2020, which is Annexure A17 to this OA.

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The applicant Bank sanctioned the Term Loan I (Covered under CGTMSE) of Rs.20.00 Lacs vide Sanction Letter dated 21.07.2016, which is Annexure A2 to this OA and thereafter sanctioned a Term loan II (Covered under CGTMSE) of Rs.20.00 Lacs vide Sanction Letter dated 25.09.2017, which is Annexure A10 to this OA. Later sanctioned the IND-GECLs-Covid 19 Term Loan of Rs.4.31 Lacs vide Sanction Letters dated 22.06.2020 which is Annexure A18 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had hypothecated its movable properties i.e. 3 Computerized Embroidery Machines, Stocks i.e. all tangible moveable stock, lying at Borrower’s place and/or in transit and/or elsewhere vide Agreement of hypothecation of Moveable dated 22.07.2016, 25.09.2017 and 24.06.2020, which are Annexure A4, A12 and A20 to this OA. Documents executed:- Demand Promissory Notes, Medium Term Loan Agreements D-36, Letters from the borrower/s for disclosure of information F-164, Declarations by the borrower on details of relatives etc. F-172 and Declarations by Sole Proprietor all dated 22.07.2016 and 25.09.2017 which are Annexures A3, A5 to A8 & A11, A13 to A16 to this OA; Demand Promissory Note, Medium Term Loan

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Agreement D-36, D-11 all dated 24.06.2020, which are Annexures A19 and A21 to this OA; Letter of Acknowledgment of Debt cum security dated 13.08.2020, which is Annexure A22 to this OA and Statements of Accounts with certificates, which are Annexures A23 to A25 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.26,38,648.87p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 30.04.2024.

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In support of the OA, affidavit of Sh. Amarjit Singh, Chief Manager, Indian Bank has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A25 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.26,38,648.87p (Rupees Twenty Six Lacs Thirty Eight Thousand Six Hundred Forty Eight and Paisa Eighty Seven only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.50%p.a. plus penal interest @2%p.a. in all accounts with monthly rests from 20.01.2023 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,38,648.87p (Rupees Twenty Six Lacs Thirty Eight Thousand Six Hundred Forty Eight and Paisa Eighty Seven only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 01.08.2024.

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Copy of this order be given dasti to the applicant bank and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal .

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Dated: 12.07.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. M/S Anisha Embroidery and Another

Case brief

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Indian Bank v. M/S Anisha Embroidery and Another

Case brief

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