Dismissed

Ms Himgiri Commercial and Trading Enterprise Private Limited v. the Baghat Urban Co. Operative Bank Ltd.

DRT6 May 2024SA/15/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal-I, Chandigarh dismissed a Securitization Application filed under the SARFAESI Act. The court noted the absence of a company resolution and held that delays over five years rendered omissions in the notice non-consequential, finding no merit in the challenge.

What did the court decide?

The Securitization Application filed under Section 17 of the SARFAESI Act was dismissed for lack of merit.

Ms Himgiri Commercial and Trading Enterprise Private Limited… — Banking and Recovery | DRT (2024)

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SA No.15/2023

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DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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SA No.15 of 2023 M/s Himgiri Commercial & Trading Enterprise Private Limited and others Versus A.O. The Baghat Urban Coo-Bank Limited and another

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06.05.2024 Item No.16

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Argued by: Sh.Satish Jaswal, Counsel for the Applicants. Sh.Yogesh Jain, Counsel for Respondent No.1/Bank. None for Respondent No.2.

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M/s Himgiri Commercial & Trading Enterprise Private Limited and others (Applicants) have filed this Securitization Application under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), against A.O. The Baghat Urban Coo-Bank Limited and another (Respondents).

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Admittedly, in the year 2017, Applicant No.1 had availed CC Limit of Rs.20 lacs and Term Loan of Rs.10 lacs, from the Respondent Bank. To secure the loan, Applicant No.2 and 3 had created security in respect of the property, fully detailed in para No. 5(i) of the application. Since, Applicants fail to make the payment of the loan, Bank initiated the SARFAESI proceedings and issued the notice under Section 13(2) of the SARFAESI Act in the year 2019, demanding a sum of Rs.34 lacs in the CC account and Rs.10 lacs and odd sum in Term Loan account. It is admitted on the record that since the issuance of the notice under Section 13(2), Applicants have not made any payment to the Bank. It is alleged that in the notice under Section 13(2) the date of declaration of the account as NPA has not been mentioned and Bank has charged more interest than agreed by the Applicants. Accordingly, it is submitted the notice issued under Section 13(2) of the SARFAESI Act, be set aside.

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On the other hand, Mr.Jain states that there is no resolution of the company for filing the present SA. Further, Applicants have never challenged the issue of rate of interest during the last seven years. Mr.Jain submitted that there is no merit in the present SA and the same be dismissed.

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SA No.15/2023 DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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I have considered the rival contentions.

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Applicants have not produced on the record any resolution of the company for filing the present SA. Be that as it may, more than five years have been expired since the issuance of the notice under Section 13(2). The non-mentioning of the date declaring the account NPA, is of no consequence. As per the Bank, no payment has been made right from 2019, till date. Earlier to this, Applicants have not raised the issue of higher rate of interest. Accordingly, I am of the considered view that there is no merit in the present SA. The same is hereby dismissed .

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All the pending IAs, if any, are also disposed of, accordingly.

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Registrar is directed to send a copy of this order to all the parties, as per

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rule. Thereafter, file be consigned to record room after due compliance.

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Pronounced in open court. MANOJ/06.05.2024

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(A S Narang) Presiding Officer DRT-I, Chandigarh

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Ms Himgiri Commercial and Trading Enterprise Private Limited v. the Baghat Urban Co. Operative Bank Ltd.

Case brief

What is this about?

What did the court decide?

Ms Himgiri Commercial and Trading Enterprise Private Limited v. the Baghat Urban Co. Operative Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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