Allowed

State Bank of India v. Ms Beekay Industries

DRT17 Sept 2024OA/480/2023

Case brief

AI extract

What is this about?

This Debts Recovery Tribunal allowed an application by State Bank of India against M/s Beekay Industries for recovery of a defaulted loan. The Tribunal determined the due amount as Rs. 1,05,08,594/-, including interest, and issued a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for Rs. 1,05,08,594/- with interest @ 7.40% p.a. to be recovered by sale of mortgaged/hypothecated assets and other personal movable/immovable assets.

State Bank of India versus Ms Beekay Industries — Contract and Commercial Disputes | DRT (2024)

OA 480 of 2023 1 Jl

DRT. PATN A

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶6

Presiding Officer : Shri Kaushalendra Yadav

¶7

OA Case No. 480 of 2023

¶8

State Bank of India. SAR B. 2"d Floor. Patna Main Branch Building. West Gandhi Vlaidan Patna- 1

¶9

. . . . . . .Applicant

¶10

¶11

I . M/s Beekay Industries through its proprietor Sri Anand Sharma having its unit situated at Kumhrar Near Kumhrar Railway Crossing Patna-26.

¶12

Anand Sharma S/o Kishori Lal Sharma R/o Chamdoriya in front of Ar)'a Smaj Mandir. Nagla Patna City-800008 PAN no. AKPPS6949H.

¶13

. . . Defendants

¶14

Present:

¶15

For the Applicant : Shri S.K. Singh. Advocate For the Defendants : None

¶16

Dated: 17.09.2024

¶17

JUDGMENT

¶18

The Applicant bank has made this application u/s 19 of the Recovery ot Debts and Bankruptcy Act. 1993 (here-in-after referred to as Act) on 14.9.2023 against the defendants to recover its debts from defendants of Rs.1.05,08.594/- as on 30.6.2023 along with pendente-lite and future interest at the contractual rate from 1.7.2023 with costs till realization

¶19

The application has been filed with the contention that the applicant bank. is a body corporate. constituted under the State Bank of India Act 1955 having its corporate office at Madam C:ama Road. Mumbai-400021 and one of its Local Head Offices at West Gandhi Maidan. Patna- 1 and one of its Branch at SBI SME Boring Road Branch Patna from where the account migrated for its recovery and resolution to SARB. 2"d Floor of its Patna Main Branch Building. West Gandhi Maidan-Patna-80000 1

¶20

Defendant no 1 is proprietorship nun and defendant no. 2 is proprietor of defendant no. 1. Defendants approached the bank for grant of cash credit facility of Rs.108 lakh on 19.7.2017. which was sanctioned by the bank on 19.8.2017. Defendants further approached the bank for restructuring of existing credit facilities on 25.3.2021. which was sanctioned cash credit Rs.90 lakh.

OA 480 of 2023 1.J I

DRT, PATN A

WCL of Rs.20 lakh. FITL of Rs.8 lakh by the bank on 31 .3.2021. Defendants executed the revival letter on 18.8.2020. Defendants executed the various loan documents. As per the letter of arrangement dated 31.3.2021 the applicable rate of interest for cash credit 1.50% above MCLR- 1 year EBLR-6.65% falling therewith. on daily products with monthly rest. Present effecting rate was 8.15% p.a. wherever expedient. interest rate is directly link to the credit risk assessment of the borrower. The applicable rate of interest FITL was 7.40% p.a. WCL of Rs.20 lakh repayable in 36 installment including moratorium of 6th months of Rs.66.667/- starting from 1.10.2021. The FITL was to be repaid in 12 monthly installment of RS.63,083/- each with the first installment commencing on 1 .4.2021 and the last installment falling due on 3 1.3.2022.

¶25

After availing the sanctioned credit facilities defendants became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank and avoiding the repayment of its dues to the bank. in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 2.5.2023

¶26

Since. the defendants failed and neglected in spite of several reminders to make payment of the dues recoverable to the bank, hence this application has been filed by the bank.

¶27

The total liability in the loan account is Rs.1.05,08,594/- with pendentelite and future interest at the contractual rate from 1.7.2023 till the realization.

¶28

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 30.10.2023. requiring them to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules. 1993.

¶29

Despite the registered summons/notices. the defendants have appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to mle WS. but no written statement has been filed within statutory period. Accordingly right to file written statement has been closed. 7. To prove its case. the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also

(an

OA 480 of 2023 IJ I

ORT1 PATN A

given evidence on affidavit by way of affidavit by Shri Shashi Ran.jan Choudhary. Chief Manager of the applicant bank. The details of documents are as follows:

¶34

SI,No	Descriptionof Documents Photocopies	Dateof Execution	Amount	Signatur Executa	eof nts	IAnn No
1	Loanapplication	19.7.2017	Rs. 108 lakh	e
a	Arrangement letter	19.8.2017	Rs. 108 lakh	Bank		a
’)J	Agreementofloan cum hyDothecat ion	19.8.2017	Rs. 108 lakh	Defendants		/1j
4	mD	19,8.2017	Rs. 108 lakh	e
5	Certificateof regrstry					5
6	e loan application	125.3.2021	Rs.90lakh	e
7	e arrangement		CCRs,90lakh WCLRs.20 lakh FITLRs.8 lakh	in accepte defendan	dby ts
8	Guarantee agreement	31.3.2021	Rs. 118 lakh	Defendant l	no.	8
9	Supplemental agreement	31.3.2021	Rs. 118 lakh	Defendant 1&2	no.	9
10	mD	3 1.3.2021	Rs. 118 lakh	Defendant 1 & 2	no.	10
11	PDR	3 1.3.2021	Rs.118 lakh	Defendant l	no.	11
Il	Legalnotice	22.6.2023		Bankadv.		Il
1 3	Statement account O	30.6.202 3	Rs.1,05.08.594/-	Bank		13

¶35

8 Heard arguments and perused the case record.

¶36

Ld. Counsel of applicant bank submitted that the defendants have taken the loan and utilized the same and also executed the various loan documents to secure the loan. Further. submitted that the claim of the bank has been proved by documentary evidence. All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant bank in its usual course of business. The interest /compound interest has been charged at such rates. and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India

OA 480 of 2023 IJ I

DRT, PATN A

It is further submitted by Id. Counsel of applicant bank that there is no staY granted by any Higher Court. in respect of the proceedings of the present OA and requested to issue recovery certificate. as claimed for. in OA.

¶41

11 . It has been established that defendants are living and carrying on their business in the state of Bihar. Cause of action also arose in the State of Bihar. The said claim on the date of filing of application exceeded Rs.20 lacs. The applicant bank is functioning within the jurisdiction of this Tribunal. Therefore. this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

¶42

On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has declared the account as NPA on 2.5.2023. whereas the present application has been filed on 14.9.2023. Even. it is counted for the purpose of Limitation. then it is established that the applicant bank has filed the case within the limitation period. As such. it is established that the present application has been filed well within the period of limitation.

¶43

Shri Shashi Ran.jan Choudhary. Chief Manager of the applicant bank. has filed the affidavit in support of contents of application and the documents as evidence and proved on oath the pleadings and documents of the applicant bank as stated above.

¶44

Section 19(3) of the Recovery of Debts and Bankruptcy Act. 1993 provides that the application u/s S.19 ( 1) shall be accompanied with true copies of all the documents relied on in support of the claim.

¶45

The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules. 1993. provides that if the defendant denies his liability to pay the claim made by the applicant. the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on veriflcation of the record sworn the affidavit in respect of the contents of the application and the documents as evidence.

¶46

The rule 12 (11 ) of the aforesaid Rules, provides that the provisions contained in section 4 of the Banker's Books evidence that Act. 1891 (18 of 1891) shall apply to a certified copy of an entry in a Banker-s Books furnished along with application filed under sub section 1 of section 19 by the applicant.

¶47

Section 4 of Banker’s Books evidence Act, 1891 runs as under-

OA 480 of 2023 1 J 1

DRTq PATN A

S.4. Mode of proof of entries in bankers’ books.–Subject to the pro\isions o.f this Act. a certi.fled copy c)/ cmy entry in a banker’s bc)ok shall in all legal proceedings he received as prinra .facie evidence qf the existence of such entrY. and shall be adnritted as evidence Qf The ltlcllters. transactions and accounts therein recorded in everY case \there. and to the same extent as. the original emIr\’ itself is no\t bv Icm adnrissihle, but not fUrther or otherwise,

¶52

As such the certified true copies of the documents are admissible in evidence. The statement of account maintained in the ordinary course of business is not only admissible but shall be taken as the correct statement of account. more so since the entries in the statement of account have not been challenged.

¶53

On perusal of the application. documents. affidavit and on consideration of the arguments. it is proved that the defendants have applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with interests etc.. the defendants have executed various loan documents. as stated in the application and proved by aforesaid evidence. Defendants have neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Account.

¶54

The evidence discussed above goes to establish that the amount of loan as mentioned in the O. A.. was availed by the borrower under the agreed terms and conditions for repayment with interest. The balance amount till 30.6.2023 has been proved to be Rs.1.05.08.594/- only by way of statement of account. There is nothing to prove the amount more than that disclosed in the aforementioned statement. As such this amount is recoverable till full and anal realization of the claim .

¶55

In my view, facts of the case stand proved by evidence of the applicant bank. Accordingly. the applicant bank is entitled to recover from defendants jointly and severally of Rs.1.05.08.594/- along with pendente-lite and future interest @ 7.40% p.a. with compounded monthly rests from 14.9.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly. to meet the ends of justice.

¶56

ORDER

¶57

In the result. the application of the applicant bank is allowed and debt is determined with costs against the defendants. The defendants are hereby jointly

OA 480 of 2023 1.J I

DRT? PATN A

and severally. ordered to pay the applicant bank its debt amounting to Rs. 1.05.08.594/- along with pendente-lite and future interest @ 7.40% p.a. with compounded monthly rests from 14.9.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶62

It is made clear that any amount deposited by the defendants. be deducted in the claim amount. if not deducted.

¶63

Defendants are debarred from transferring. alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. The applicant may submit the certified copy of this Judgment and the Recovery Certificate before the Registrar/Sub- Registrar to endorse the charge over the secured assets.

¶64

Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued. on the basis of the order of the Tribunal to the Recovery Officer. The Recovery Officer shall realize the amount as per the certitlcate in the manner and mode prescribed under the Act from the defendants. by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants.

¶65

Parties are directed to appear before the Recovery Officer. DRT. Patna on 04.1 1.2024. The order be communicated accordingly.

¶66

Judgment signed, sealed. dated and pronounced in the open court on

¶67

"’"'”'’=”“"“"='="

¶68

Dictated &corrected by me.

¶69

,„;#/ JaY . N’ a'..+,\

¶70

[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patna

¶71

FORM NO. 9 [See Regulation 24( 1 )]

¶72

DEBTS RECOVERY TRIBUNAL PATN A

¶73

2nd Floor. ( A. B & F Wing) Karpuri Thakur Sadan. Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

¶74

RECOVER- CERTIFICATE UNDER SECTION 19(2) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRU PTC- ACT, 1993, AS ANIENDED FROM TIME TO TIME,

¶75

RC No. 196/2024 IN Case No: OA/480/2023

¶76

In the Matter of (CH- 1) STATE BANK OF INDIA SAR B 2ND FLOOR PATN A MAIN BRANCH BUILDING WEST GANDHI MAIDAN PATNA ,BIHAR -800001

¶77

Applicant(s)

¶78

¶79

(CD- 1) MS BEEKAY INDUSTRIES through its proprietor Sri Anand Sharma Having its Unit Situated at Kumhrar, Near Kumhrar Railway Crossing Patna .BIHAR -800026

¶80

Defendant(s)

¶81

(CD- 2) ANAND SHARMA

¶82

S 0- KISHORI LAL SHARMA RESIDENT OF C'HANIDORIYA. IN FRONT OF ARYA SM AJ MANDIR, NAGLA. PATN A CITY - 800008

¶83

Recovery CertifIcate for Rs 10508594.00 1 Rupees One Crore Five Lakh Eight Thousand Five Hundred Ninety Four Only_

¶84

In terms of final order dated 1 7/09/2024 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 10508594.00 along with cost, expenses and interest from the 14/09/2023 i.e. date of filing / with effective date of the OA/480/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶85

		Loan rpe	Int. Int I Type/Mode ’FRate	IEffective f Date	Order Date		Interest (as 0 Order Date	RC IAmount(Rs.)	Remark
	4S BEEKAY .NDUS-l'RIES		7.40	:1+/09/2033	117/09/2034	ll 0508594.00 i And Severally	!As on trder	10508594.00
!F2	,NAND HARNIA		>lnpound lterest /lonthly)	14/09/2023	ll7/09/2024.1	10508594.00 IAnd iSeverally	IAson

¶86

In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothecated assets ds well as other personal movable/ Immovable assets of the certificate debtors

¶87

The mol+gaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 .

¶88

Parties are directed to appear before ASHISH KUMAR . Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 04/ 1 1/2024

¶89

The Recovery Oftlcer shall realize the amt)unt as per this C'cnitlcate in the manner and mode prescribed under Sections 25 to 28 of the Recovel)' of Debts Due to Banks and Financial Institutions Act. ] 993 (as amended from time to time) from the above named Certificate Debtors.

¶90

This Certificate has been issued under my signature and seal of the Tribunal on this 1 7/09/2024

¶91

¶92

fM Registrar Debts Recovery Tribunal ParA a

¶93

/ PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶94

FORM NO. 10

¶95

[See Regulation 24(2)]

¶96

DEBTS RECOVERY TRIBUNAL PATNA

¶97

2nd Floor, ( A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

¶98

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

¶99

RC No. 196/2024

¶100

IN Case No: OA/480/2023

¶101

Applicant(s): STATE BANK OF INDIA Versus

¶102

Defendant(s): MS BEEKAY INDUSTRIES

¶103

	Item of Costs	!AmountinRs
	Feeon the application	150000
E	r	bc
3	nvocateFees	[0
	e	[0
5	;Miscellaneous Charges	Dc
	TotalCosts:Rs.	150000

¶104

Place: PATNA

¶105

Date: 1 7/09/2024

¶106

W PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶107

Note: Strike out whichever is not applicable

State Bank of India v. Ms Beekay Industries

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ms Beekay Industries

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Ramkrupa Building Material Supplyers versus Idfc First Bank Ltd.

Gaurav Pralhadbhai Pawar And Ors. versus State Bank of India

Bank of Baroda versus Haritbhai

Shubham Singh versus Authorised Officer Shubham Housing Development Finance Company Limited

Saurabh Bansal versus the Baghat Urban Co. Operative Bank Ltd.

Punjab National Bank versus Sangita Singh