Allowed

Bank of Baroda v. M/s Geeta Enterprise and Others

DRT24 Apr 2024OA/622/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Bank of Baroda for recovery of Rs. 26 lakhs from five defendants. Declaring defendants jointly and severally liable, the Court fixed interest at flat 10% p.a. instead of claimed rates and issued a Recovery Certificate.

What did the court decide?

Order declaring defendants liable to pay Rs. 26.29 Lacs with interest @ 10% p.a. and authorizing recovery through sale of hypothecated properties or attachment of personal assets via Recovery Certific

Bank of Baroda versus M/s Geeta Enterprise and Others — Money Laundering | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.622/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.04.2022

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DATE OF DECISION: 24.04.2024 Bank of Baroda, body corporate and a nationalized Bank under the
provisions of the Banking Companies (Acquisition and Transfer of
Undertakings) Act of 1970 with its Head Office at Baroda Bhavan, RC
Dutt Road, Alkapuri, Baroda-390007, Gujarat and amongst others a
branch at KKP Road, Sri Muktsar Sahib, Punjab through Sh. Vikas
Narang, Constituted Attorney and Chief Manager (transferee bank from
erstwhile Vijaya Bank) ……..Applicant Versus
1. M/s Geeta Enterprise, a sole proprietorship concern situated at Street No.3, Aman Colony, Thandewala Road, Sri Muktsar Sahib, Punjab through its proprietor Smt. Geeta Rani W/o Sh. Sanjeev Kumar Ghai
@Sanjiv Kumar (Borrower)
Also at: Street No.4, Dasmesh Nagar, Sri Muktsar Sahib, Punjab
2. Smt. Geeta Rani W/o Sh. Sanjeev Kumar Ghai @Sanjiv Kumar, R/o Gali No.8, Jodhu Colony, Sri Muktsar Sahib, Punjab-152026 (Sole proprietor/borrower)
3. Smt. Paljeet Sharma W/o Sh. Gian Chand Sharma, R/o Guru Teg Bahadur Nagar, Gali No.1, Udekaran, Sri Muktsar Sahib, Punjab- 152026
4. Sh. Mandeep Singh S/o Sh. Jasvir Singh, R/o Gali No.7, Guru Angad Nagar, Kotkapur Road, Sri Muktsar Sahib, Punjab
5. Sh. Sanjeev Kumar Ghai @Sanjiv Kumar S/o Sh. Roshan Lal, R/o Gali No.8, Jodhu Colony, Sri Muktsar Sahib, Punjab-152026 (Guarantors) ………Defendants

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Advocates: Argued by Ms. Sonal Chabra, counsel proxy for Sh. Pankaj Beri, counsel 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.26,29,390.96p (Rupees Twenty Six Lacs Twenty Nine Thousand Three Hundred Ninety and Ninety Six Paisa only). The Original Application has been filed through Sh. Vikas Narang, Chief Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 16.03.2015, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant No.1 through its proprietor i.e. defendant No.2 had approached the applicant bank for the grant of Cash Credit Limit under Credit Guarantee Fund Scheme for Stand Up India Loans (CGFSIL) of Rs.25.00 Lacs vide Loan Application dated 30.03.2019, which is Annexure A3 to this OA. 3. The applicant Bank sanctioned the Cash Credit Limit under Credit Guarantee Fund Scheme for Stand Up India Loans (CGFSIL) of Rs.25.00 Lacs vide Sanction Letter dated 30.03.2019, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 through its proprietor i.e. defendant No.2 had hypothecated its movable properties i.e. Electronic and household goods stored at Aman Colony, Gali no.3, Muktsar, Punjab vide Agreement cum Hypothecation Deed dated 30.03.2019, which is Annexure A5 to this OA. Documents executed:- Amalgamation scheme/Gazette notification dated 02.01.2019, which is Annexure A2 to this OA; Letter of access, which is Annexure A6 to this OA, Letter of guarantee dated 30.03.2019, which is Annexure A7 to this OA; Notice dated 20.03.2022 with postal receipts, which is Annexure A8 to this OA and Statements of account with certificate, which is Annexure A9 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit

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of Rs.26,29,390.96p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal. Defendant No.4 and son of defendant No.3 appeared in person. But later on due to non appearance they were proceeded ex-parte along with other defendants on 13.03.2024.

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In support of the OA, affidavit of Sh. Vikas Narang, Chief Manager, Bank of Baroda has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.26,29,390.96p (Rupees Twenty Six Lacs Twenty Nine Thousand Three Hundred Ninety and Ninety Six 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 account.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.60%p.a. plus penal interest @2%p.a. with monthly rests from 22.03.2022 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

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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 @10.00%p.a. in the loan account 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.26,29,390.96p (Rupees Twenty Six Lacs Twenty Nine Thousand Three Hundred Ninety and Ninety Six Paisa only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank 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 provisions of the SARFAESI Act, 2002. If the dues of the bank 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 on 01.05.2024.

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Copy of this order be given dasti to the applicant bank 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.

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Pronounced by me in the Open Tribunal.

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Dated: 24.04.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Bank of Baroda v. M/s Geeta Enterprise and Others

Case brief

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Bank of Baroda v. M/s Geeta Enterprise and Others

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