Allowed

Canara Bank v. Messrs S R Agro Tech and Others

DRT17 Dec 2024OA/309/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs.3.33 Crores and granted a uniform simple interest rate of 8% per annum on all loan accounts, ordering attachment and sale of properties if dues remain unsatisfied.

What did the court decide?

Recovery of Rs.3,32,93,648.54 plus uniform simple interest at 8% p.a. from filing date; enforcement via sale of hypothecated assets.

Canara Bank versus Messrs S R Agro Tech and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.309/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.01.2024

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DATE OF DECISION: 17.12.2024

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Canara Bank, Branch Office at Leela Bhawan, Patiala, Punjab represented through its duly authorized signatory/Power of Attorney Sh. Baljinder Singh S/o Sh. Puran Singh, Branch Manager.

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……..Applicant

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Versus

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M/s S.R. AGRO TECH, through its partners Village Choura, Sanaur Road, Patiala-147001.

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Sh. Rohit Garg S/o Sh. Sushil Kumar Garg, Partner M/s S.R. Agro Tech, R/o 14-A, Bhupindra Nagar, Behind Excise Taxation Office, Patiala, Punjab-147001.

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Sh. Sahil Bansal S/o Sh. Naresh Bansal, Partner M/s S.R. Agro Tech, R/o House No.281, Choudhary Colony, Ward No.5, Tappa Barnala, Punjab-148108.

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Sh. Sushil Kumar Garg S/o Sh. Madan Lal, Partner, M/s S.R. Agro Tech, R/o 14-A, Bhupindra Nagar, Behind Excise Taxation Office, Patiala, Punjab.

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………Defendants

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Advocates: Argued by Sh. Nitin Gupta, Advocate for the applicant Defendants are ex-parte

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FINAL ORDER 1. 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.3,32,93,648.54p (Rupees Three Crore Thirty Two Lacs Ninety Three Thousand Six Hundred Forty Eight and Fifty Four Paisa only). The Original Application has been filed through Sh. Baljinder Singh, Branch

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Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 24.02.2014, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Cash Credit Limit of Rs.35.00 Lacs and Term Loan I of Rs.215.00 Lacs and further approached the applicant for grant of GECL I of Rs.38.00 Lacs and GECL II of Rs.43.90 Lacs. Thereafter defendants from time to time approached the applicant for renewal credit facilities vide request letters dated 23.06.2020, 23.06.2021 & 02.12.2022 which are Annexures A16, A18, A19 & A30 to this OA. Thereafter, the defendants again approached the applicant for the Term Loan II of Rs. 20.00 Lacs.

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The applicant sanctioned the Cash Credit Limit of Rs.35.00 Lacs and Term Loan I of Rs.215.00 Lacs and further sanctioned GECL I of Rs.38.00 Lacs and GECL II of Rs.43.90 Lacs vide Sanction Letter dated 15.06.2020, which is Annexure A10 to this OA. Thereafter from time to time applicant sanctioned renewal of credit facilities vide Sanction Letters dated 23.06.2020, 18.12.2021, 02.12.2022 & 17.03.2023, which are Annexures A17, A20, A29 & A32 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable properties detailed as under: a) Equitable Mortgage of Residential House No.14-A measuring 0B3½Biswas (183.33 Sq. Yards) situated at Bhupindra Nagar, Behind Excise and Taxation Office, Patiala, Punjab vide equitable Mortgage of sale deed bearing vasika no.6955, dated 04.07.2006 along with its translation which is Annexure A4 to this OA owned by defendant no.4.

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b) Equitable Mortgage of Showroom of land measuring 1K-8 M situated at Peer Khanna Road, Tehsil Tapa Mandi, District Barnala, Punjab vide equitable Mortgage of transfer deeds

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bearing vasika no.1268 dated 10.08.2016 and vasika no.1099, dated 18.07.2016, along with their translation which is Annexure A3 to this OA owned by defendant no.2. c) SMT of Land measuring 08K-00M situated at Village Sanaur, Tehsil and District Patiala, Punjab vide Registered Mortgage deed bearing vasika no.900 dated 25.10.2018 and Sale Deed bearing vasika no.2552, dated 05.10.2018, along with their translations, which is Annexure A5 to this OA owned by defendant no.1.

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Documents executed:- Common Hypothecation, Pronote, Guarantee Agreements dated 26.10.2018, which are Annexures A2, A6 to A9, to this OA; Agreement cum Deed of Hypothecation, Take Delivery Letter to DPN, Pronote, LEDTD regarding title deeds all dated 25.06.2020, which are Annexures A11 to A15 to this OA; Agreement cum Deed of Hypothecation dated 21.12.2021, which is Annexure A21 to this OA; Pronote dated 18.12.2021, which is Annexure A22 to this OA; Partnership Letter dated 06.12.2021, which is Annexure A23 to this OA; Letter of Undertaking and Letter to DPN both dated 18.12.2021, which are Annexures A24 & A25 to this OA; Supplemental common Hypothecation Agreement dated 21.12.2021, which is Annexure A26 to this OA; LEDTD regarding Title Deeds dated 18.12.2021, which are Annexures A27 & A28 to this OA; Letter from Guarantors dated 02.12.2022, which is Annexure A31(Colly) to this OA; Supplemental common Hypothecation Agreement, Guarantee Agreements, Subordination Agreement, Link Letter, Partnership Letter, LEDTD regarding Title Deeds dated 17.03.2023, which are Annexures A33 to A41 to this OA; Acknowledgement of debt and security interest letters dated 21.03.2023, which is Annexure A42(Colly) to this OA; Notices dated 28.10.2021, 18.11.2022, 12.11.2022, 25.08.2023 & 22.08.2023 along with Postal Receipts, which are Annexures A43 to A44 to this OA

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and Statements of accounts along with certificate which are Annexures A45 to A50 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.3,32,93,648.54p, which is recoverable and the defendants were served recall notices but they 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 13.12.2024. 7. In support of the OA, affidavit of Sh. Baljinder Singh, Branch Manager, Canara Bank has been filed. 8. Heard arguments and perused record. 9. It was argued by learned 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 A50 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, all the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.3,32,93,648.54p (Rupees Three Crore Thirty Two Lacs Ninety Three Thousand Six Hundred Forty Eight and Fifty Four Paisa only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

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10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest detailed
as:
a. claimed interest @ 9.75% p.a. in CC Limit
b. claimed interest @ 13.15% p.a. in Term Loan I
c. claimed interest @ 9.25%p.a. in GECL I and GECL II
d. claimed interest @ 9.50% p.a. in Term Loan II
from the date of filing of the present Original Application till realization. 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.
11. In the result, the application is allowed declaring that the
defendants are liable to pay to the applicant a total sum of
Rs.3,32,93,648.54p (Rupees Three Crore Thirty Two Lacs Ninety Three
Thousand Six Hundred Forty Eight and Fifty Four Paisa 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 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 applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal

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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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 31.01.2025. 15. 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: 17.12.2024

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

Canara Bank v. Messrs S R Agro Tech and Others

Case brief

What is this about?

What did the court decide?

Canara Bank v. Messrs S R Agro Tech and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Case details

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