Allowed

Bank of India v. Charan

DRT27 Nov 2024OA/256/2023

Case brief

AI extract

What is this about?

In an original application under S. 19 of the Recovery of Debts and Bankruptcy Act, the Debts Recovery Tribunal allowed the Bank of India to recover an agricultural term loan default of Rs. 29,01,067.82 plus interest from the borrower and guarantor, ordering the issuance of a Recovery Certificate.

What did the court decide?

Defendants directed to pay Rs. 29,01,067.82 with 12% interest; Recovery Certificate issued; Injunction against transfer of assets.

Bank of India versus Charan — Contract and Commercial Disputes | 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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(Presiding Officer - Hon'bte Shri Ram Niwas Patet)

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Originol Applicotion No. - 256/23

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Bank of lndia, lndira Nagar, Burhanpur (M.P.) Applicant

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Versus

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Shri Charan Singh, 5/o Shri Prabhu Singh, R/o Vittage-Nimbapur, Tehsit-Khaknar, District-Burhanpur (M. P. )

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Shri Gyan 5ingh, 5/o Shri Ratan Singh, R/o Gram-Shankarpur, Post-Khurd, Tehsil-Khaknar, Distt.-Burhanpur (M.P.) ..... Defendants

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CounseI for the Appticant : Shri Atok Mishra, Advocate Defendants : Ex-parte

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JUDGMENT l^{D at e d : 77-N} ove m be r, 20 24)

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The Appticant-Bank has fited the present Originat Apptication uls 19 of Recovery of Debts and Bankruptcy Act on 15/02/23 against the Defendants for recovery of Rs. 29,01,067.82 (Rupees Twenty Nine Lac, One Thousand Sixty Seven and Paisa Eighty Two 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, the Appticant Bank sanctioned Kisan Credit Card Limit of Rs. 9.50 lac on 14/06/12 which was subsequently converted/merged to Agricutture Term Loan on 03/03/16. ln consideration of the sanction of credit facitity the Defendant No.-1 as borrower and Defendant No.-2 as guarantor in addition to execution of loan documents have also created charge under the provisions of M.P. Krishi Udhar Pravartan Tatha Piakriyan Upbandh (Bank) Adhiniyam 1972 over the immovabte property, i.e., Agricutture land at Khasra No.-158, Gram-Sirpur, Tehsit-Khaknar, DistrictBurhanpur, area measuring 5.070 hectare; betonging to Defendant No.-1. The Defendant No-1 availed the credit facility and atso executed

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oA256/23

Acknowledgement of Debt & Security lastly on^{22102/22but did not adhere} to financiat disciptine. The account^{was ctassifiedas NPAand the} Defendants faited to liquidate the outstanding dues despite^{issuanceof Legal} Notice on 28/08122 by the Appticant Bank. The Appticant-Bank^{has relied} upon the documents at Ex. A-1 to A-18 which were^{proved by Shri Yogesh} Pati[, 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 17 /01 124. There is therefore, no reason to disbetieve the contentions of the Bank. Considering the facts of the case, I opine that the Defendants are jointLy and severalty tiabte to pay the ctaim amount together with interest and costs. The Appticant-Bank in its apptication has claimed interest @12.60%^p.a. with hatf-yearty rests. However, I feel it fair and reasonable to grant interest @12% p.a. simpte pendentetite and future ti[[ realization of the dues. The mortgaged/charged property is tiabte to be sold for recovery of amount due along with the personal properties and assets of the Defendants,

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The Original Application is atlowed and it is ordered as under-

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i) The Defendants do pay jointty and severally Rs. 29,01,067.82 (Rupees Twenty Nine Lac, One Thousand Sixty Seven and Paisa Eighty Two onty) together with pendentetite and future interest @'12% per annum simpte from the date of fiting of the OA, i.e., 15102/23, with costs titl its reatization.

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ii) The Appticant Bank is entitted to se[[ the mortgaged/charged as wetl as personal properties and assets of the Defendants for realization of its dues. The Defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, atienating or in any way deating with their properties/assets without first paying the claim of the Appticant Bank.

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iii) A Recovery Certificate be issued uls 19(77) of Recovery of Debts and Bankruptcy Act. The appticant bank may file a memo of cost within 7 days for preparing Recovery Certificate. Judgment pronouhced in the open court on this 27th Day of November,2024.

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Presidine Officer

Bank of India v. Charan

Case brief

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Bank of India v. Charan

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