Allowed

Indian Bank (Allahabad Bank) v. M/S Gayatri Textile Packing

DRT23 Apr 2024TA/9/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed for recovery of loan dues. The Applicant was directed to recover the principal amount along with interest from the sum of hypothecated assets, and a Recovery Certificate was to be issued immediately.

What did the court decide?

The Applicant is directed to recover Rs. 11,65,211.82 along with interest from the sale of hypothecated assets of the Defendant. A Recovery Certificate was issued forthwith.

Indian Bank (Allahabad Bank) versus M/S Gayatri Textile Packing — Banking and Recovery | DRT (2024)

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TA 9 of 2022

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Registered on: 11.08.2022

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Decided on: 23.04.2024

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IN THE DEBT RECOVERY TRIBUNAL-I AT MUMBAI TRANSFER ORIGINAL APPLICATION NO. 9 of 2022

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INDIAN BANK (erstwhile Allahabad Bank), a Banking Company incorporated under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Corporate Office at 254-260, Avvai Shanmugan Salai, Royapettah, Chennai, Tamil Nadu – 600 014 and having its Kalbadevi Branch situated at 635, Mistry Building, Dhodi Talao, J.S.S. Road, Kalbadevi, Mumbai – 400 002 now transferred to Fort Branch at Ground Floor, Indian Bank (e- Allahabad Bank Building), 37, Mumbai Samachar Marg, Fort, Mumbai- 400 023 through Mr. Sankar, Assistant General Manager

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…. APPLICANT

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VERSUS

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M/S. GAYATRI TEXTILE PACKING, Proprietor of Mr. Bhanwar Singh Rajpurohit, S/o, Bhoorsingh Chandarsingh Rajpurohit, having its address at 1467/11/201, Gala No. 201, 2^nd Floor, OM complex Anjur Phata, Bhiwandi, Thane- 421 302. And also at: Village Champakheri, Post Sirasana, via Merta, District Nagpur, Rajasthan- 341 510.

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… DEFENDANT

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_____________________________________________ Counsel for the Applicant : Advocate V. N. Ajikumar Counsel for the Defendant : Ex-parte

TA 9 of 2022

J U D G M E N T

The Original Application has been filed by the Applicant against the Defendant for recovery of Rs. 11,65,211.82 (Rupees Eleven Lakh Sixty Five Thousand Two Hundred Eleven and Paise Eighty Two Only) under the said cash credit facility together with interest thereon at the rate of 9.75 % p.a. compounded with monthly rests from the date of filing of the present TA till its realisation.

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Facts as succinctly set out in the present OA are that the Defendant through its proprietor Mr. Bhanwar Singh Rajpurohit has approached to the Applicant Bank who is carrying on Shirting business/ Shirting Packing etc. and requested for financial requirements Cash Credit facility of Rs. 10 Lakh for business development.

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It is also stated that pursuant to the said request, Applicant vide sanction letter dated 11.02.2016 sanctioned Cash Credit Facility of Rs. 10 Lakh.

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In consideration of sanction of the aforesaid facility, Defendant executed various security and loaning documents in favour of the Applicant which include Demand Promissory Note dated 11.02.2013 and Deed of Hypothecation dated 11.02.2016, the Defendant had created first charge on hypothecation on movables thereby all tangible movable machineries, plant, fixture, fitting and other installations, Cranes, furniture, computers & other accessories, vehicles together with spares, tools and accessories and all other articles lying in the premises situated at 1467/11/201, Gala No. 201, 2^nd Floor, OM complex, Anjur Phata, Bhiwandi.

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TA 9 of 2022

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However, after availing aforesaid facility, Defendant failed and neglected to repay the outstanding dues, thus the account was classified as NPA on 31.03.2017. Thereafter, the Applicant issued notice for recall of advance on 06.04.2017 and called upon the Defendant to pay the outstanding dues, but failed to do so. Hence, the present OA has been filed.

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Notice was issued to the Defendant. Despite service, none appeared on behalf of the Defendant nor any WS has been filed, he was proceeded ex-parte vide order dated 02.04.2024.

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Record reveals that after filing of the above original application by a Gazette Notification No. G.S.R. 156 (E) dated 04.03.2020 of Department of Finance Service, the Original Applicant (Allahabad Bank) has been amalgamated into Indian Bank w.e.f. 01.04.2020 thus, Indian Bank has been substituted in place and stead of Allahabad Bank.

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The Applicant Bank has produced all the Original Loan documents and other relevant documents along with their Claim Affidavit filed through Chief Manager Maithli Sharan Sanwla.

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I have heard the Ld. Counsel for the Applicant Bank and perused the record.

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The witness of the Applicant Bank has fully corroborated the averments made in the OA, even otherwise the whole case of the Applicant Bank is based on documents and the witness has duly proved all these documents as against the defendant. In my view there is no question of disbelieving the evidence led by the Applicant Bank and the Applicant Bank has proved its case beyond reasonable doubt.

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TA 9 of 2022

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In the light of above discussions, the Original Application filed by the Applicant Bank deserves to be allowed against the Defendant.

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O R D E R

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(i) I allow the present O.A. and direct the Defendant to pay to the Applicant, within a period of 60 days, a sum of Rs. 11,65,211.82 (Rupees Eleven Lakh Sixty Five Thousand Two Hundred Eleven and Paise Eighty Two Only) under the said cash credit facility together with interest thereon at the rate of 9.75 % p.a. compounded with monthly rests from the date of filing of the present TA till its realisation.

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(ii) Failing which the aforesaid amount shall be recovered from the sale of the hypothecated asset personal moveable and immoveable assets of the Defendant.

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(iii) Defendant is hereby directed not to deal with their properties till further direction of Ld. Recovery Officer.

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(iv) Defendant shall also pay the cost and expenses of the OA.

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(v) Recovery Certificate be issued forthwith and be sent to the Recovery Officer of this Tribunal.

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Copy of this order be sent to the parties as per rules.

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File be consigned to record.

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Place: Mumbai. (Dr. Rekha G. Dhakar) Date : 23.04.2024 Presiding Officer, DRT-1, Mumbai.

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Tjs/-

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Indian Bank (Allahabad Bank) v. M/S Gayatri Textile Packing

Case brief

What is this about?

What did the court decide?

Indian Bank (Allahabad Bank) v. M/S Gayatri Textile Packing

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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