Allowed

Bank of India v. Om Sai Fabrication

DRT22 Jul 2024OA/370/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Camp Court Raipur (C.G.), allowed an application filed by Bank of India against M/s Om Sai Steel Fabrication for recovery of Rs. 99,59,008.60. The tribunal directed defendants to pay dues with interest, sell mortgaged properties, and issued a Recovery Certificate.

What did the court decide?

Decreed payment of Rs. 99,59,008.60 with interest; directed sale of properties and issuance of Recovery Certificate; restrained transfer of assets.

Bank of India versus Om Sai Fabrication — Banking and Recovery | 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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CAMP COURT AT RAIPUR^(C.G.)

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(Presiding Officer - Hon'ble Shri Ram Niwas Patel)

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Original Application No. -37 0/2022

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Bank of India, Plot No.6, Civic Center, Bhilai (C.G) 490006

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..... Applicant

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Versus

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I M/s Om Sai Steel Fabricaion,

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Through its Proprietor-

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Mr. Arvind Netam,

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Reg. Office at- Plot No. 140,

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Engineering Park, Heavy Industrial Area,

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Hathkhoj, Bhilai, Districr Durg (C.G)

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2 Mr. Arvind Netam, S/o Mr. Shatruhan Singh,

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RJo Bhaisabod Kala, Bandhi Dadhi,

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District- Bemetara (C.G) 491335

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Def'endants

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Counsel for the Applicant : Shri Ashish Shroti, Advocate

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Defendants : Ex-parte

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JUDGMENT

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(Dated z 22'd July, 2024)

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The Applicant-Bank has filed the present Original Application r:/s 19 of Recovery of Debts and Bankruptcy Act on 04103122 against the Defendants for recovery of Rs. 99,59,008.60 (Rupees Ninety Nine Lac, Fifty Nine Thousand Eight and Paisa Sixty only) along^with interest and other reliefs as stated.

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The brief facts of the case are that on the request of Defendant No.l through its proprietor Defendant no.2, the Applicant Bank sanctioned Term Loan of Rs.45 Lac, CC Limit of Rs.30 Lac on

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oA370/22

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26105117 and FITL of Rs.3,67,100/- on 3ll01l19. In consideration of the aforesaid sanctions, the Defendants in addition to execution of loan documents have also created equitable mortgage over the leasehold property, i.e., Plot No.140, Situated at Engineering Park, Heavy Industrial Area, Hathkhoj, Bhilai, District-Durg, admeasuring 0.072 Hectare; leased out by Chhattisgarh State Industrial Development Corporation Ltd. The Defendants availed the credit facilities and also executed Acknowledgment of Debt & Securities letter dated 3ll01/19. The accounts became irregular and the Defendants failed to liquidate the outstanding dues despite issuance of Demand Notice dated 05105120 by the Applicant Bank. The Applicant-Bank has relied upon the documents at Ex. A-l to A-30 which were proved by Shri Rajesh Kumar Bains, AGM.

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Despite service of notice, the Defendants neither appeared nor filed written statement. They were proceeded ex-parte vide order dated 03/08/23. There is therefore, no reason to disbelieve the contentions ofthe Bank. Considering the facts ofthe case, I opine that the Defendants are jointly and severally liable to pay the claim amount together with interest and costs. The Applicant-Bank in its application has claimed interest @ 11% p.a. for Term Loan Account and Cash Credit Account and interest @ 10.20% p.a. for FITL Account with monthly rests. However, I feel it fair and reasonable to grant interest @11% p.a. for Term Loan Account and Cash Credit Account and interest @ 10.20o/o p.a. for FITL Account simple pendentelite and future till realization of the dues. The mortgaged property is liable to be sold forrecovery of amount due along with the personal properties and assets ofthe Defendants.

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

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i) The Defendants do pay jointly and severally Rs. 99,59,008.60 (Rupees Ninety Nine Lac, Fifty Nine Thousand Eight and Paisa Sixty only) together with pendentelite and future interest @11% p.a. for Term Loan Account and Cash Credit Account and interest @ 10.20%

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oA3'70122

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p.a. for FITL Account simple from the date of filing of the OA, i.e., 04103/22, with costs till its realization.

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ii) The Applicant Bank is entitled to sell the mortgaged as well 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, alienating or in any way dealing with their properties/assets without first paying the claim of the Applicant Bank.

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iii) A Recovery Certificate be issued uls 19(22) of Recovery of Debts and Bankruptcy Act. The applicant bank may file a memo of cost within 7 days for preparing Recovery Certificate. Judgment pronounced in the open court on this 22nd Day of July, 2024 at Camp Court Raipur. ,Rffi,' Presiding Officer

Bank of India v. Om Sai Fabrication

Case brief

What is this about?

What did the court decide?

Bank of India v. Om Sai Fabrication

Case brief

What is this about?

What did the court decide?

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