Allowed

State Bank of India v. Nilesh Rathore

DRT6 Aug 2024OA/413/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of dues of Rs. 44,53,783.36. The court decreed payment of principal, interest, and costs, issued a recovery certificate under Section 19, and restrained respondents from transferring mortgaged assets.

What did the court decide?

Defendants to pay Rs. 44,53,783.36 with interest and costs; recovery certificate issued under Section 19; injunction against transferring assets.

State Bank of India versus Nilesh Rathore — 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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(Presiding Officer - Hon'bte Shri Ram Niwas Patet)

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Originol Application No.^- 413122

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State Bank of lndia, Stressed Assets Recovery Branch, 5, Y. N. Road, lndore (M.P.)

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..... Appticant

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Versus

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Shri Nitesh Rathore, Si o Shri Harinarayan Rathore, Rlo7611, Vivekanand Nagar Cotony, Agar Matwa (M.P.);

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Proprietor of M/s Sai Traders, 7611 , Vivekanand Nagar Cotony, Agar Matwa (M.P.)

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Shri Harinarayan Rathore, S/o Mangital Rathore, Rlo7611, Vivekanand Nagar Cotony, Agar Matwa (M.P.) ... Defendants

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Counsel for the Appticant : Shri Wajid tyAetr,^Advocate

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Defendants : Ex-parte

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JUDGMENT 1^{o at e a-Io ora} u^g u ii, zo24l

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The Appticant-Bank has fited the^present Originat Apptication uls 19 of Recovery of Debts and Bankruptcy Act on 14/03/22 against the Defendants for recovery of Rs. 44,53,783.36 (Rupees Fourty Four Lac, Fifty Three Thousand, Seven Hundred Eight Three and Paisa Thirty Six onty) atong with interest and other reliefs as stated.

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The brief facts of the case arr3 that on the request of Defendant No.-1, the Appticant Bank sanctioned Cash Credit Limit of Rs. 15 Lac on 22/08114 which was further enhanced to Rs. 30 Lac on 15109115, Term Loan of Rs. 5 lac on 01101118 and atso sanctioned FITL of Rs.1,93,2541- as per RBI Covid-19 Regutatory Package 2020. ln consideration of the sanction of credit facitities the Defendant No.-1 and borrower and Defendant No.-2 as guarantor in addition to execution of loan and guarantee documents have atso extended/creaGd equitabte mortgage over the immovabte property, i.e ., Residential House No.-7611, situated at Ward No.-

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oA 41322

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18, Vivekanand Nagar Cotony, Agar Matvra, Ptot area726.30 sq.ft.,^betonging to Defendant No.-2. The Defendant No.-1 avaited the credit facitities^and atso executed Batance Confirmation Letters tastty on³¹ /03/20 &^Revival tetter on 03/1 1/20. The accounts were subsequentty became NPA and^the Defendants failed to tiquidate the outstanding dues despite issuance of Legat Notice on 10/02/22 by the Appticant Bank. The Appticant-Bank has retied upon the documents at Ex. A-1 to 4-26 which were proved by Shri Tamrat l-a[ Kori, Chief Manager.

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Despite service of notice, the Defendants neither appeared rror fited written statement. They were proceeded ex-parte vide order dated 18/03/24. There is therefore, no reason to disbetieve the contentions of the Bank. Considering the facts of the case, I opine that the Defendants Ert'€ jointty and severatty tiabte to pay the ctaim amount together with interest and costs. The Appticant-Bank in its apptication has ctaimed interr:st @14.05%^p.a. with monthly rests in cash credit & FITL account and interest @11.00%^p.a. with monthty rests in Term Loan account. However, I feet it fair and reasonabte to grant interest @12% p.a. in cash credit & FITL accournt and interest @11% p.a. in term toan account simpte pendentetite and futurre titt reatization of the dues. The mortgaged property is tiabte to be sotd I'or recovery of amount due atong with the personal properties and assets of the Defendants.

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The Original, Apptication is atlowed and it is ordered as under-

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i) The Defendants do pay jointty and severatty Rs. 44,53,783.36 (Rupees Fourty Four Lac, Fifty Three Thousand, Seven Hundred Eight Three and Paisa Thirty Six onty) together with pendentetite and future interest @12%^p.a. in cash credit & FITL account and interest @11% p.a. in term loan account simpte from the date of fiting of the OA, i.e. , 14103122, with co:sts titt its reatization.

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ii) The Appticant Bank is entitted to setl the mortgaged as wetl as personal properties and assets of the Defendants for reatization of its dur:s. The Defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, atienating or in any way dealing with their properties/assets without first paying the ctaim of the Applicant Ban1.r.

oA 413122

iii) A Recovery Certificate be issued u/s 19(27) of Recovery of Debts and Bankruptcy Act. The appticant bank may fite a memo of cost within 7 days for preparing Recovery Certificate.

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Judgment pronounced in the open court on this 06th Day of August, 2024.

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9^
b'
( Patet)
Presidine Officer

State Bank of India v. Nilesh Rathore

Case brief

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State Bank of India v. Nilesh Rathore

Case brief

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