Allowed

Bank of India v. Maa Reva Food Products

DRT25 Nov 2024OA/98/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Jabalpur, allowed the bank's original application for recovery of a credit loan and term loan. The court ordered joint and several liability for the defendants, fixed interest rates, issued an injunction against asset transfer, and directed the issuance of a recovery certificate under Section 19(2).

What did the court decide?

Defendants ordered to pay Rs. 87,90,231.65 with interest at 9.65% p.a. simple; injunction against alienating assets; Recovery Certificate issued under Section 19(2).

Bank of India versus Maa Reva Food Products — 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 Pate[)

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Original Application No. - 98122

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Bank of lndia, Saket Nagar, lndore (M.P.)

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Appticant

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Versus

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M/s Maa Reva Food Products,

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01 ) Through its ProprietorMr. Jaywant Ranpise, Maa Avenue, 1 13-8, Rajendra Nagar, lndore (M.P.)

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1. Mr. Jaywant Ranpise, S/o Mr. Yashwant Ranpise, Rlo 392, Shiv City, Nihalpura Mundi, lndore (M.P.) Defendants

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Counsel for the Appticant : Shri Ashish Shroti, Advocate

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Defendants : Ex-parte

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JUDGMENT

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loated^{:-ZEsNovernber} ,20241

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'l . The Applicant-Bank has fited the present Original Application u/s 19 of Recovery of Debts and Bankruptcy Act on 10/01 122 against the Defendants for recovery of Rs, 87,90,231.65 (Rupees Eighty Seven Lac, Ninety Thousand, Two Hundred Thirty One and Paisa Sixty Five onty) along with interest and other reliefs as stated.

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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 Cash Credit Limit of Rs. 15 Lac (against hypothecation of Stock), Working Capital Cash Credit Limit of Rs. 10 Lac against hypothecation of book-debts (within Overatl cash credit timit of Rs. 15 Lac) and Term Loan of Rs. 64 Lac aggregating Rs. 79 Lac on 27/02/18. ln consideration of the sanction of credit facilities the Defendants executed requisite loan dqcuments on.73/03/18. The Defendants availed the credit facitities and atso executed Letters of Acknowtedgment of Debt/Securities on 17/03/21 but faited to liquidate the outstanding dues despite issuance of Demand Notice on 01 /04/21 by the Appticant Bank. The Appticant-Bank has relied

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oA98t22

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upon the documents at Ex. A-1 to A-17 which were proved by Shri Umesh Kumar, Chief Manager.

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Despite service of notice, Counsel Shri Shreyas Pandit Advocate fited his Vakalatnama on 29/07/27 and atso marked his presence on 18109/24 but on the next date of hearing, i.e,,01 /10124, none appeared on behatf of the Defendants and were therefore proceeded ex-parte on this date. The Defendants have atso not filed written statement within the stipulated period. Thus there is no reason to disbelieve the contentions of the Bank. Considering the facts of the case, I opine that the Defendants are jointty and severatty liabte to pay the claim amount together with interest and costs. The Appticant-Bank in its apptication has ctaimed interest @9.65% p.a. with monthty rests. However, I feel it fair and reasonabte to grant interest @9,65y" p,a. simple pendentetite and future titl realization of the dues. The personal properties and assets of the Defendants are liabte to be sotd for recovery of amount due.

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The Originat Application is atlowed and it is ordered as under-

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i) The Defendants do pay jointty and severatty Rs. 87,90,231.65 (Rupees Eighty Seven Lac, Ninety Thousand, Two Hundred Thirty One and Paisa Sixty Five only) together with pendentetite and future interest @9.657o per annum simple from the date of fiting of the OA, i.e., 10/01/22, with costs t itI its realization.

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ii) The Appl,icant Bank is entitled to se[[ the personal properties and assets of the Defendants for realization of its dues. The Defendants are hereby restrained by means of injunction from depteting, transferring, encumbering, atienating or in any way deating with their properties/ assets without first paying the ctaim of the Appticant Bank.

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

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Judgment pronounced in the open court on this^{25th Day of November,20}

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t)' iwatf^^,' tet) Presidine Officer

Bank of India v. Maa Reva Food Products

Case brief

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Bank of India v. Maa Reva Food Products

Case brief

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