Allowed

Bank of Baroda v. K R Rental Services

DRT15 May 2024OA/581/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Bank of Baroda for recovery of dues against borrowers and a guarantor. The court ordered payment of principal and granted interest pending litigation, directed sale of mortgaged and personal assets, and ordered issuance of a Recovery Certificate.

What did the court decide?

Defendants jointly and severally to pay principal sums of Rs. 1,22,62,840.57 and Rs. 68,25,920.00 respectively with pendent lite interest; issuance of Recovery Certificate; injunction on asset disposa

Bank of Baroda versus K R Rental Services — 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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Original Application No. - 581 /23

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Bank of Baroda, Goyal Nagar, lndore

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Applicant

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Versus

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01 ) M/s K.R. Rental Services, Through its Proprietor 209 SR Compound, Lasydia Mori, Dewas Naka, lndore 452 001

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1. Mr. Mohd. Kaif Sheikh, S/o Mr. Aslam Sheikh, Rlo72, Taj Nagar, Khajrana, lndore 452 00'l

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1. Mr. Sabir Khan, S/o Mr. Liyakat Khan,

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R/o A-507, Shekhar Ptanet, B-5, P.U.4, Scheme No.-54, lndore Defendants

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Counse[ for the Appticant : Shri Arun Kumar Mishra, Advocate Defendants : Ex-parte

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JUDGMENT

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(Dated : 15th May, 2024)

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The Appticant-Bank has fited the present Original Apptication u/s 19 of Recovery of Debts and Bankruptcy Act on 25104/23 against the Defendants for recovery of Rs. 1,72,62,840.57 (Rupees One Crore Twenty Two Lac, Sixty Two Thousand, Eight Hundred Fourty and Paisa Fifty Seven onty) atong with interest and other retiefs as stated.

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Z. The brief facts of the case are that on the request of Defendant No.-1 through its Proprietor Defendant No.-2, the Appticant Bank sanctioned Term Loan of Rs.95 Lac under CGTSME Scheme on29/01 /19, Overdraft Limit of Rs. 20 Lac and Term Loan-ll of Rs. 30 Lac of Rs. 11 102120, additional Working Capitat Term Loan of Rs. 23.50 Lac on 10/06/70. ln consideration of the sanction of credit facitities the Defendant No.-'l & 2 as borrowers and Defendant No.-3 as guarantor for Rs. 73.50 Lac in addition to execution of toan and guarantee documents have atso created equitable

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oA 581/23

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mortgage over the immovable^property to secure^{credit facititiesaggregating} Rs.73.50 Lac, i.e., Survey No.-209, Part^{(209/'llMin-ll), PH 36 (otd 17),} Vittage-Lasudiya Mori, Tehsil & District-lndore,^{admeasuring 0,046 hectare;} betonging to Defendant No.'3.^{The Defendant No.-1 and 2 avaited the credit} facitities and also executed Letter of^{Acknowledgment} of^{Debts on} 26107 122. The accounts became^NPA and the^{Defendantsfaitedto liquidate} the outstanding dues despite issuance of Demand^{Notice dated11105122uls} 13(2) of the the Securitisation Act by^{the AppticantBank.The Appticant'} Bank has retied upon the documents at Ex. A-1^{to A-31whichwere provedby} Shri Bharat Kumar Jha, Chief Manager.

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Despite service of notice, the Defendants neither appeared^nor fited written statement. They were^proceeded ex-parte^{vide order dated} OBIOl/24. There is therefore, no reason to disbelieve^{the contentionsof the} Bank. Considering the facts of the case, I opine that the^{Defendantsare} jointty and severatty tiable to pay the claim amount together with interest and costs. Admittedty, Defendant No.'3 has not executed^guaranteeand created mortgage over his^property to secure the^{TermLoanof Rs. 95 Lac} but to secure credit facitities aggregating Rs. 73.50^{Lac and therefore,his} tiabitity is restricted to the dues in the said accounts onty^{and not for the} dues in the Term Loan account of Rs.^{95 Lac.The Appticant-Bankin its} apptication has ctaimed interest @13,90%^{p.a. withmonthtyrests.However,} I feet it fair and reasonabte to^grant interest @17/.^{p'a. simpte pendentetite} and future t'itt reatization of the dues. The^{mortgagedproperty is liabte to} be sotd for recovery of amount due atong with^{the persona[ properties and} assets of the Defendants.

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The Originat Application is allowed and it^{is orderedas under-}

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i) The Defendant No.'1 and 2 do^{pay jointtyand severatly Rs.} 1,22,62,840.57 (Rupees One Crore^{TwentyTwo Lac, Sixty TwoThousand,} Eight Hundred Fourty and Paisa^{Fifty Seven onty) and Defendant No"3do pay} jointty and severatty with Defendant No.-1 & 2 Rs. 68,25'920.00^(Rupees Sixty Eight Lac, Twenty Five^{Thousand,Nine Hundred and Twenty only)} together with^pendentetite and^{future interest@17Yoper annumsimple from} the date of fiting of the OA,^{i.e.,25104123,with costs titl its realization.}

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ii) The Applicant Bank is entitted to^{setl the mortgaged property} for reatization of dues in^{Overdraft account, Term Loan'llaccount and}

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oA 581/23

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Working Capital Term^{Loan account. The Appticant-Bank is further entitted} to sett the^{personalpropertiesand assets of the Defendantsfor realization of} its dues. The Defendants^{are hereby restrainedby means of injunction from} depleting, transferring,^{encumbering, atienatingor in anyway deating with} their properties/assets^{without first paying the ctaim of the AppticantBank'}

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iii) A Recovery^{Certificate be issued uls 19(22)of Recovery of} Debts and Bankruptcy^{Act. The appticant bank may fite a memo of cost} within 7 days for^{preparingRecoveryCertificate.}

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Judgment^{pronouncedin the open court on this'l5thDay of May, 2024'}

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\9
m Niwas Patet)
Pres 'idine Officer

Bank of Baroda v. K R Rental Services

Case brief

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Bank of Baroda v. K R Rental Services

Case brief

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