Allowed

Central Bank of India v. Jay Kay Contractors and Another

DRT19 Nov 2024OA/1984/2022

Case brief

AI extract

What is this about?

In this original application, the Debt Recovery Tribunal allowed the Central Bank of India to recover Rs. 1,01,20,436/- with interest at 8% p.a. against the Defendants for breach of loan agreements. The Tribunal also directed the issue of a Recovery Certificate.

What did the court decide?

Direct recovery of Rs. 1,01,20,436/- with 8% simple interest. Issued Recovery Certificate. Ordered attachment/sale of assets under SARFAESI Act.

Central Bank of India versus Jay Kay Contractors and Another — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1984/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.11.2022

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DATE OF DECISION: 19.11.2024

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Central Bank of India, a Body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Central Office at Chander Mukhi, Nariman Point Mumbai and a Branch office amongst other places at amongst other places at NAC, Manimajra, Chandigarh through its general Power of Attorney cum branch Manager Sh. Alok Upadhyay.

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. … …..Applicant Versus

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Jay Kay Contractors through its proprietor Smt. Jasveer Kaur W/o Sh. Nirmal Singh, Plot No.201, Sector-4, Pandwala Road, Mubarakpur, Tehsil Derabassi, District Mohali.

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IInd Address : Plot No.202, Sector-4, Pandwala Road, Mubarakpur, Tehsil Derabassi, District Mohali.

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IIIrd Address : House No.1131, Sector-69, Mohali, Pincode-160062.

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IVth Address : House No.2012, Sector-69, Mohali, Pincode-160062.

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Smt. Jasveer Kaur W/o Sh. Nirmal Singh, Plot No.201, Sector-4, Pandwala Road, Mubarakpur, Tehsil Derabassi, District Mohali.

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IInd Address : Plot No.202, Sector-4, Pandwala Road, Mubarakpur, Tehsil Derabassi, District Mohali.

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IIIrd Address : House No.1131, Sector-69, Mohali, Pincode-160062.

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IVth Address : House No.2012, Sector-69, Mohali, Pincode-160062.

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Defendants

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Advocates:

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Argued by Sh. Abhineet Taneja, Advocate for the applicant (through VC) Defendants are ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

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Rs.1,01,20,436.00p (Rupees One Crore One Lac Twenty Thousand Four Hundred Thirty Six Only). The Original Application has been filed through Sh. Alok Upadhyay, Branch Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 13.02.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for grant of Cash Credit Limit of Rs.80.00 Lacs & Term Loan of Rs.19.00 Lac vide Loan Application dated 23.04.2021, which is Annexure A2 to this OA. 3. The applicant sanctioned Cash Credit Limit of Rs.80.00 Lacs & Term Loan of Rs.19.00 Lac vide Sanction Letters dated 17.06.2021, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had hypothecated its movable assets i.e. Hypothecated all Machinery and hypothecated all goods and other tangible Moveable Property such as products, stock in trade and goods, whether finished or raw or in process of manufacture and all articles manufactured there from lying at Plot No.208, Sector-4, Pandwala Road, Mubarakpur, Tehsil Derabassi District Mohali vide Loan cum Hypothecation Agreement, Supplementary Agreements, Agreement of Hypothecation of books debits, Agreement of Hypothecation to secured Demand Case Credit dated 02.07.2021, which are Annexure A4 to A8 to this OA.

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Documents executed:- DP Note along with Letter of Continuity dated 02.07.2021, which is Annexure A9 to this OA; Demand Notice dated 30.07.2022, which is Annexure A10 to this OA and Statements of Accounts with certificate, which are Annexures A11 & A12 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.1,01,20,436.00p, which is recoverable and the defendants were served recall notices but they did not repay the

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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 13.11.2024. 7. In support of the OA, affidavit of Sh. Alok Upadhyay, Branch Manager, Central Bank of Bank h as been filed.

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Heard arguments and perused record.

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It was argued by learned counsel through Video Conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A12 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, 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.1,01,20,436.00p (Rupees One Crore One Lac Twenty Thousand Four Hundred Thirty Six 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @8.35%p.a. in Cash Credit Limit & @8.65%p.a. in Term Loan along with penal interest @2.00%p.a. with monthly rests in both from 31.07.2022 till the realization. The Tribunal is of the considered opinion that sometimes inappropriate 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 defendant, quantum of loan and prevalent market

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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 @08.00%p.a. in both 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.1,01,20,436.00p(Rupees One Crore One Lac Twenty Thousand Four Hundred Thirty Six Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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 Tribunal on 13.12.2024.

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Copy of this order be given dasti to the applicant 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: 19.11.2024

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

Central Bank of India v. Jay Kay Contractors and Another

Case brief

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Central Bank of India v. Jay Kay Contractors and Another

Case brief

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