Allowed

Canara Bank v. M/S Jass Designers and Another

DRT13 Dec 2024OA/965/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's application for recovery of dues granted under Section 19 of the RDBFI Act, 1993. Erasing the claimed rates, the court granted uniform simple interest at 8% per annum and ordered issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.25,07,046.53 plus interest at 8% p.a. from date of filing. Issue of Recovery Certificate.

Canara Bank versus M/S Jass Designers and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.965/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.07.2024

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DATE OF DECISION: 13.12.2024

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Canara Bank is a Nationalized Bank and body corporate constituted under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act 1980 having its head office at Head Office at # 112 JC Road Bangalore and among others a branch at Phase-7 District SAS Nagar Mohali Punjab.

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……..Applicant

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Versus

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M/s Jass Designers, SCO 60, Sector-71, Mohali, Through its Proprietor Ms. Jassika Gill.

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Ms. Jassika Gill D/o Palvinderjit Singh R/o House No. 1474, Phase 10, Mohali-160062.

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….……Defendants

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Advocates:

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Argued by Ms. Hemlata Issar, 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.25,07,046.53p (Rupees Twenty Five Lacs Seven Thousand Forty Six And Fifty Three Paisa Only). The Original Application has been filed through Ms. Deepika Dogra, Authorized Representative o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 16.07.2024, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant nos. 1 & 2 had approached the applicant for the grant of CC Limit of Rs.15.00 Lacs and term loan of Rs.10.00 vide Loan Application dated 15.09.2022, which is Annexure A2 to this OA.

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The applicant sanctioned the CC Limit of Rs.15.00 and further term loan of Rs.10.00 Lacs vide Sanction Letter dated 30.09.2022, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant had Hypothecated its movable assets i.e. Clothing and other articles, Stock, Book Debts and Furniture and Fixture and Capital goods purchased out of Bank Finance vide Hypothecation Deed and Cash Credit Agreement both dated 30.09.2022, which are Annexures A7 and A10 to this OA Documents executed:- Letter of proprietorship dated, Take Delivery letter to DPN, Pronote, , Request letter for Overdraft, Letter of Undertaking all dated 30.09.2022, which are Annexures A3, A5, A6, A8, A9 and A11 to this OA; Reminder Letter dated 25.10.2023, which is Annexure A12 to this OA and Accounts Statements along with computer certificate dated 06.07.2024, which are Annexures A13 & A14 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.25,07,046.53p, 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 09.12.2024. 7. In support of the OA, affidavit of Ms. Deepika Dogra, Authorized Representative, Canara Bank h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned 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 A14 to this OA, it is proved that the defendants

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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. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,07,046.53p (Rupees Twenty Five Lacs Seven Thousand Forty Six And Fifty Three 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.

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In so far as pendent elite and future rate of interest is concerned the applicant in relief clause has claimed interest @12.85%p.a. in CC Limit and interest @14.20%p.a. in Term Loan with monthly rests from 01.07.2024 the realization. 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 both 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.25,07,046.53p (Rupees Twenty Five Lacs Seven Thousand Forty Six And Fifty Three Paisa Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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

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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 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.01.2025. 15. 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 . Dated: 13.12.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Canara Bank v. M/S Jass Designers and Another

Case brief

What is this about?

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Canara Bank v. M/S Jass Designers and Another

Case brief

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