Allowed

Canara Bank v. N S Engineering

DRT5 Aug 2024OA/692/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Canara Bank against M/s N.5. Engineering and the proprietor for recovery of an NPA loan. The order directed payment of the claim amount, imposition of interest, sale of mortgaged property, and issuance of a Recovery Certificate.

What did the court decide?

Directed defendants to pay Rs. 23,61,830 with 9.50% p.a. interest, restrained them from disposing of assets, and ordered issuance of Recovery Certificate under S. 19(7).

Canara Bank versus N S Engineering — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL JABALPU R

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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. - 692/22

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Canara Bank, SME Bhitai, Distt.-Durg (C.G.)

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Appticant

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Ve rsus

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M/s N.5. Engineering,

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01 ) Through its ProprietorMr. Nitesh Kumar Sonteke, Ptot No.-187, Engineering Park, HlA, Hathkhoj, Bhitai, District-Durg (C.G.) 490021

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1. Mr. Nitesh Kumar Sonteke, S/o Shri Yadorao Sonteke, 418, Kosa Nagar, Bhilai, District-Durg (C.G.) 490021 Defendants

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CounseI for the Appticant : Shri Vinay Tripathi, Advocate Defendants : Ex-parte

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JUDGMENT ( oate Jl o sir-lu gu st, zo2a)

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The Applicant-Bank has fited the^present Original^Application uls 19 of Recovery of Debts and Bankruptcy^{Act on 31 /05122 against the} Defendants for recovery of Rs. 23,61,830.00^{(RupeesTwenty ThreeLac,} Sixty One Thousand, Eight Hundred and Thirty^{onty) along with interest and} other reliefs as stated.

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?. The brief facts of the case are that on the^requestof Defendant No.-1 through its Proprietor Defendant^{No.-2,the AppticantBank} sanctioned Term Loan of Rs. 19 Lac and^{Cash Credit Limitof Rs. 4..75 Lac on} 24103/17 and the cash credit limit^{was lastly renewedon 70108/20. ln} consideration of the sanction of credit^{facilitiesthe Defendants in addition} to execution of loan documents, have also^{created equitabtemortgage over} the immovabte^property by Defendant^No.-2, i.e.,^{Ptot No.-187,totalptot} area 9899 sq.ft., situated at Engineering^{Park, Heavy lndustriaIArea,} Hathkhoj, Bhitai, district-Durg^{(C.G.) 490021.TheDefendantsavailed the} credit facitities and atso executed^{Acknowtedgment of Debt & Security.The} accounts were ctassified^{as NPA and the Defendants faited to tiquidatethe}

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)

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oA692t22

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outstanding dues despite^{issuanceof Recat[Noticeby the ApplicantBank'} The Appticant-Bank has retied^{upon the documents at Ex. A'1 to A'26 which} were proved by Shri Sandeep Kumar^{Deshmukh, Senior Manager.}

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Despite service of notice, the Defendants^{neitherappeared nor} fited written statement. They^{wereproceededex-parte vide order dated} 12/06123, There is therefore, no reason^{to disbetieve the contentionsof the} Bank. Considering the facts of the case, I^{opine that the Defendantsare} jointty and severally liable to pay the claim amount together with interest and costs. The Appticant-Bank^{in its apptication though ctaimed interest,} has no specifically mentioned the rate of interest. However,^{I feet it fair} and reasonable to^grant interest @9.50%^p.a. simpte^{pendenteliteand future} tilt reatization of the dues, The mortgaged^property is tiabte^{to be sotd for} recovery of amount due atong with the^{personalproperties} and^{assets of the} Defendants.

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The Original Application is atlowed and it is ordered^as under-

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i) The Defendants do pay^jointty and severally Rs. 23,61,830.00 (Rupees Twenty Three Lac, Sixty One Thousand, Eight Hundred and Thirty only) together with^pendentetite and future^interest @9.50%^perannum simpte from the date of fiting of the OA, i.e.,31/05/27,^{with costs} ti[[^its reatization.

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ii) The Applicant Bank is entitled to selt the mortgaged as wetl^as personal properties and assets of the Defendants for reatization of its dues. The Defendants are hereby restrained by means of^{injunctionfrom} depteting, transferring, encumbering, atienating^{or in any way deating with} their properties/assets without first^paying the^{claim of the Applicant Bank.}

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iii) A Recovery Certificate be issued u/s 19(72) of^{Recovery of} Debts and Bankruptcy Act. The applicant^{bank may file a memo of cost} within 7 days for^preparing Recovery Certificate.

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Judgment pronounced in the open^{court on this 05th Day of August,2024.}

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,v "-\ (Ra iwas Pa Presidin Off icer

Canara Bank v. N S Engineering

Case brief

What is this about?

What did the court decide?

Canara Bank v. N S Engineering

Case brief

What is this about?

What did the court decide?

What the court decided

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