Allowed

Central Bank of India v. Messrs Asd International and Another

DRT19 Dec 2024OA/274/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of an NPA of Rs.1.42 crores against the defendants. The court uniformly adjusted interest to 8% p.a. from the date of filing and upheld the measure for sale of mortgaged properties.

What did the court decide?

The defendants were ordered to pay Rs.1,42,06,537.90 jointly and severally with costs and simple interest @8% p.a. Recovery was directed from mortgaged properties under the SARFAESI Act or by attachin

Central Bank of India versus Messrs Asd International and… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.274/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.02.2024

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DATE OF DECISION: 19.12.2024

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Central Bank of India, a body corporate constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970 having its Central Office at Chander-Mukhi Building, Nariman Point, Mumbai-400021 and one of its branch situated at Daresi Road, Ludhiana, Punjab-141008 through its Authorized Officer and Power of Attorney Holder Sh. Sardar Kumawat.

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……..Applicant

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Versus

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M/s ASD International, through its Proprietor situated at B- XXIII-1903, Plot No.141, Janakpuri Road, Industrial Area-A, Ludhiana, Punjab-141007.

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Smt. Meenu Gupta W/o Sh. Pardeep Gupta, Proprietor M/s ASD International, R/o House No. 3454, Chandigarh Road, Ludhiana Punjab-141007.

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….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. J.S. Sehgal, Advocate for applicant 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 Rs.1,42,06,537.90p (Rupees One Crore Forty Two Lacs Six Thousand Five Hundred Thirty Seven And Ninety Paisa Only). The Original Application has been filed through Sh. Sardar Kumawat, Authorized Officer o f the applicant, who is competent to institute the Original

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Application vide Power of Attorney dated 21.05.2018, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 1 & 2 had approached the applicant for the grant of CC Limit of Rs.90.00 Lacs and Term Loan of Rs.10.00 vide Loan application dated 20.01.2017. Further defendants approached the applicant for FITL Term Loan of Rs.12,81,813.00 and WCTL of Rs.4,27,148.00. Later defendants again approached the applicant for grant of GECL WCTL of Rs.28.87 Lacs.

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The applicant sanctioned the CC Limit of Rs.90.00 and Term Loan of Rs.10.00 Lacs vide Sanction Letter dated 20.01.2017, which is Annexure A2 to this OA. Further applicant sanctioned the FITL Term Loan of Rs.12,81,813.00 and WCTL of Rs.4,27,148.00. Later applicant again sanctioned the GECL WCTL of Rs.28.87 Lacs and the terms and conditions were duly accepted by the defendants.

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Defendant no.2 had Mortgaged her immovable properties i.e.:Property measuring 250 Sq. yards bearing MC No. BXXIII-1903, Plot no.141, situated at Village Dholewal, Industrial Area-A, Ludhiana, Punjab vide Equitable Mortgage of Sale Deed bearing Vasika no. 12419 dated 09.09.2016 along with its translation, which is Annexure A16 to this OA and Tatimanama Deed bearing Vasika no.17708 dated 20.12.2016, which is Annexure A17 to this OA.

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Documents executed:- D.P. Note, Letter of waiver, Letter of continuity, Letter of variation, Agreement of hypothecation, Supplementary Agreements, Articles of Agreement & Assignment of Book Debts all dated 20.01.2017, which are Annexures A3 to A10 to this OA; D.P. Note, Letter of waiver, Letter of continuity, Letter of interest variation & Agreement of hypothecation all dated 31.01.2020, which are Annexures A11 to A15 to this OA; Memorandum of deposit of title deed dated 20.01.2017, which is Annexure A18 to this OA; Agreement of funded term loan for interest charged & Debtor Creditor Agreement dated 26.03.2021, which are Annexures A19 & A20 to

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this OA; Officer Letter and Acceptance letter, Working capital term loan agreement, Supplementary agreement, Declaration/ Undertaking, Articles of Agreement & Letter of interest variation all dated 28.12.2021, which are Annexures A21 to A26 to this OA; Demand notice dated 17.04.2023, which is Annexure A27 to this OA; Symbolic possession notice dated 01.07.2023, which is Annexure A28 to this OA and Statements of Accounts with certificate which are Annexures A29 to A32 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 loan accounts there was a debit of Rs.1,42,06,537.90p, which is recoverable and the defendants were served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 16.12.2024.

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In support of the OA, affidavit of Sh. Sardar Kumawat, Authorized Officer and Power of Attorney, Central Bank of India has been filed.

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Heard arguments and perused record.

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It was argued by learned proxy counsel 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 A32 to this OA, it is proved that the defendants approached applicant 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 applicant. 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

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proved that applicant is entitled to recover a sum of Rs.1,42,06,537.90p (Rupees One Crore Forty Two Lacs Six Thousand Five Hundred Thirty Seven And Ninety Paisa Only) along with interest from the defendants, Jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest detailed as:

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a. claimed interest @13.05%p.a. in CC Limit

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b. claimed interest @10.50%p.a. in WCTL c. claimed interest @12.50%p.a. in FITL d. claimed interest @9.50%p.a. in GECL

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with monthly rests in all from 07.01.2024 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 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.1,42,06,537.90p (Rupees One Crore Forty Two Lacs Six Thousand Five Hundred Thirty Seven And Ninety Paisa Only) Jointly and severally, with costs, current and future simple interest @8.00%p.a. in all loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties

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of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant 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 05.02.2025.

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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: 19.12.2024

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

Central Bank of India v. Messrs Asd International and Another

Case brief

What is this about?

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Central Bank of India v. Messrs Asd International and Another

Case brief

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