Allowed

Bank of India v. Messrs Radiant Cottex and Others

DRT24 Dec 2024OA/471/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Bank of India's application to recover approximately Rs.5.17 crores from defaulting borrowers. The court fixed a uniform simple interest rate of 8% per annum and ordered the issuance of a recovery certificate following ex-parte proceedings.

What did the court decide?

Total sum of Rs.51,73,898.99 with costs and uniform simple interest @8% p.a. is declared recoverable; Recovery Certificate issued; enforcement from hypothecated or personal assets permitted.

Bank of India versus Messrs Radiant Cottex and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.471/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.03.2023

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DATE OF DECISION: 24.12.2024

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Bank of India, a body corporate constituted under the Banking companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head office at "Star House" C-5, Brock-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and having its Zonal Office at Surya Kiran Complex, 1^st Floor, Phase-II, The Mall, Near Rakh Bagh, Civil Lines, Ludhiana and amongst various branches having its Branch at Jamalpur, adjoining Amber Garden Resort, Bhamian Road, Jamalpur Awana, Ludhiana, through its duly constituted attorney and authorized officer of applicant Sh. Simar Preet Singh.

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……..Applicant

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Versus

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M/s Radiant Cottex, 597/1, St. No.3, Kailash Nagar, New Oswal Hospital, Ludhiana 141010 through its proprietor

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Smt. Sarika Salhotra W/o Sh. Sunny Salhotra, proprietor M/s Radiant Cottex, R/o H. No.15, Nakodar Road, opposite Nari Niketan, Linc Colony, Jalandhar-1, Jalandhar 144003

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Sh. Sunny Salhotra S/o Sh. Mahal Chand Salhotra, R/o H. No.15, Nakodar Road, opposite Nari Niketan, Linc Colony, Jalandhar-1, Jalandhar 144003

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….……Defendants

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Advocates:

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Argued by Sh. Satish Jaswal, Advocate proxy for Sh. Mouhit k. Goel, Advocate for the 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.51,73,898.99p (Rupees Fifty One Lacs Seventy Three Thousand Eight Hundred Ninety Eight and Ninety Nine Paisa only). The Original

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Application has been filed through Sh. Simar Preet Singh, Authorized Officer o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.02.2016, which is Annexure A2 to this OA.

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The brief facts of the OA are that defendants had approached the applicant for the grant of OCC Limit of Rs.25.00 Lacs vide Loan Application dated 05.03.2016, which is Annexure A4 to this OA and further from time to time defendants approached the applicant for enhancement of OCC limit upto Rs.35.00 Lacs and grant of various credit facilities i.e. Term Loan of Rs.3.50 Lacs, WCTL of Rs.3.00 Lacs and FITL of Rs.3.60 Lacs vide Loan application dated 18.06.2021, which is Annexure A38 to this OA .

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The applicant sanctioned the OCC Limit of Rs.25.00 Lacs vide Credit Sanction dated 18.05.2016, which is Annexure A5 to this OA and further from time to time applicant sanctioned the enhancement of OCC limit upto Rs.35.00 Lacs and grant of various credit facilities i.e. Term Loan of Rs.3.50 Lacs, WCTL of Rs.3.00 Lacs, FITL of Rs.3.60 Lacs and ECLGS Term Loan of Rs.2.50 Lacs vide Credit Advice dated 10.08.2017, 18.05.2020, 13.07.2020 and 26.11.2021, which are Annexures A12, A21, A29 and A41 to this OA the terms and conditions were duly accepted by the defendants.

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Defendant no.2 had mortgaged her immovable properties i.e. House measuring 872.22 Sq. Yards situated at Village Sherpur Kalan, Tehsil and District Ludhiana vide Equitable Mortgage of Gift Deed bearing vasika no.13100 dated 23.08.1990 and Jamanbandi for the year 2008-2009 along with their Translations, which are Annexures A53 and A54 to this OA.

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Documents executed:- Valuation report dated 01.03.2021, which is Annexure A1 to this OA; Legal Report dated 22.03.2016, which is Annexure A3 to this OA; Demand Promissory Note, Letter of declaration, Undertaking and Authority, Declarations by Borrower, Hypothecation Cum Loan Agreement and Affidavit cum undertaking all

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dated 18.05.2016, which are Annexures A6 to A11 to this OA; Demand Promissory Note, Letter of declaration, Undertaking and Authority, Declarations by Borrower, Hypothecation Cum Loan Agreement, Affidavit cum undertaking and MCLR Agreement all dated 30.10.2017, which are Annexures A13 to A19 to this OA; Acknowledgment of Debt dated 19.03.2020, which is Annexure A20 to this OA; Demand Promissory Note, Letter of declaration, Undertaking and Authority, Declarations by Borrower, Hypothecation Cum Loan Agreement, Affidavit cum undertaking and RBLR Agreement all dated 19.05.2020, which are Annexures A22 to A28 to this OA; Demand Promissory Note, Letter of declaration, Undertaking and Authority, RBLR Agreement and Supplemental Loan cum Hypothecation Agreement dated 13.07.2020, which are Annexures A30 to A33 to this OA ; Acknowledgment of Debt dated 13.07.2020 and 19.06.2021, which are Annexures A34 to A36 and A40 to this OA; Supplemental Term Loan agreements dated 19.06.2021, which are Annexures A37 and A39 to this OA; Demand Promissory Note, Letter of declaration, Undertaking and Authority, RBLR Agreement and Supplemental Loan cum Hypothecation Agreement, Declarations by Borrower, Affidavit cum undertaking and Acknowledgements of Debt all dated 26.11.2021, which are Annexures A42 to A52 to this OA and Statements of accounts and Memorandum of Interest along with Certificate under Banker’s Book Evidence Act, which are Annexures A55 to A60 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.51,73,898.99p, 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. 6. 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 19.12.2024.

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In support of the OA, affidavit of Sh. Simar Preet Singh, Authorized Officer, Bank of India has been filed. 8. Heard arguments and perused record. 9. 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 A60 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. Defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum Rs.51,73,898.99p (Rupees Fifty One Lacs Seventy Three Thousand Eight Hundred Ninety Eight and Ninety Nine 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.20%p.a. in CC Limit and Interest @11.35%p.a. in Term Loans from 28.03.2023 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 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.

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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.51,73,898.99p (Rupees Fifty One Lacs Seventy Three Thousand Eight Hundred Ninety Eight and Ninety Nine 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 provision8s 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

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on 14.02.2025.

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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. Pronounced by me in the open Tribunal .

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Dated: 24.12.2024

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

Bank of India v. Messrs Radiant Cottex and Others

Case brief

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Bank of India v. Messrs Radiant Cottex and Others

Case brief

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