Allowed

The South Indian Bank Ltd. v. Sanco Industries Ltd.

DRT6 Apr 2024TA/414/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an ex-parte application filed by The South Indian Bank Ltd. for recovery of dues of approximately Rs. 13.62 crores from a borrower company and its guarantors after they defaulted on sanctioned credit facilities and failed to regularize the account.

What did the court decide?

Directing the defendants to pay Rs. 13,62,26,320.43 with interest within 30 days or recover the same from the sale of mortgaged and hypothecated properties.

The South Indian Bank Ltd. versus Sanco Industries… — Contract and Commercial Disputes | DRT (2024)

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T.A. No.414 of 2022

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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T.A. No. 414 of 2022

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The South Indian Bank Ltd. 18„ Pusa Road, Metro Pillar No.94 Karol Bagh, New Delhi-110005 Applicant

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Verss 1. Sanco Industries Ltd. Corporate Office: D-161, Suraj Mal Vihar Delhi-110092

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Sativ,4ala, TehSil Paonta Sahib Himachal Pradesh-173025

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Also at: 9/51, Bazar Vishwas Nagar, Deihi-110032

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Sanjay Gupta s/o Om Prakash Gupta Rio C-56, Suraj Mal Vihar, Delhi, 410092

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3, Rita Gupta w/o Sanjay Gupta R/o C-56, Suraj Mal `Mar, Deih110092

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Sicihant Gupta s/o Sanjay Gupta R/o C-56, Suraj Mal Vihar, Delhi-11002

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Shashi Garg w/o Pawan Kumar Garg B-256, Surat Mal Vihar Delhill0092 •

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Mrs_Shakuntala Gupta w/o Om Prakash Gupta R/o C-56, Suraj Mal Vihar, Dethi-11G092

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T.A. No.414 of 2022

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Om Prakash Gupta s/o Babu Ram R/o C-56, Suraj Mal Vihar, Delhi-110092

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Mansi Gupta D/o Sanjay Gupta R/o C-56, Suraj Mal Vihar, Delhi-110092

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Sanjay Gupta HUF Through its Karta Sanjay Gupta R/o C-56, Suraj Mal Vihar, Delhi-110092 Defendants

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Present: Shri S.K.Garg, Counsel for the applicant the bank

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Date of Institution: 11.09.2019 Date of Pronouncement: 06.04.2024

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FINAL ORDER

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This original application has been filed by the applicant bank on 11.09.2019 before DRT-III, Delhi and then transferred to DRT-I, Delhi through Shri Praveen Joy, authorized representative of the applicant bank, under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.13,62,26,320.43 (Rupees Thirteen Crore Sixty Two Lacs Twenty Six Thousand Three Hundred Twenty and paisa Forty Three only) as on 02.09.2019 together with pendentelite and future interest ©10.55% per annum with monthly rest from 03.09.2019 till the date of realization and costs.

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The brief facts of the case are that on the request of defendant no.1, being limited company and defendant no.2 to 9 being guarantors as well as defendant no.5 being

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T.A. No.414 of 2022

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mortgagor of her property, the applicant bank sanctioned Cash Credit Open Loan of Rs.9.50 crores (Rupees Nine Crores Fifty Lacs only) @10.55% interest per annum with monthly rest, LC of Rs.5.00 crores and Forward Contract limit of Rs.5.00 crore on 03.11.2016 against pari passu first charge on entire current assets of defendant no.1 and equitable mortgage of entire second floor of property bearing no.D-819, New Friends Colony, New Delhi owned by defendant no.5. The applicant bank entitled to charge 2% penal interest on overdue amount.

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That in order to avail the said loan facilities, the defendant no.1 authorized defendant no.2 to execute security documents approved through Board Resolution dated 15.11.2016 and defendant no.2 to 9 executed Sanction Letter dated 03.11.2016. Further, defendant no.2 executed DP Note, Credit Facility Agreement, Credit Facility Agreement for Inland/Import Letter of Credit, Agreement for Merchant Forward Transaction limit, Agreement of Hypothecation, Agreement of Guarantee by defendant no.2 to 9, Undertaking/Declaration by defendant no.1, Letter from Coparceners of Defendant no.9, General Terms and Conditions for Credit Facilities with application bank.

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In order to secure the credit facilities, defendant no.5 created equitable mortgage by deposit of title deeds of her property being entire second floor measuring 2206 sq.ft. with complete terrace rights with 40% undivided individual and impartiable ownership rights in land total area 492 sq.yds bearing no.D-819, New Friends Colony, New Delhi on 06.12.2016 with the applicant bank. The charge with ROC Delhi and Haryana filed and registered on 06 12.2016.

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T.A. No.414 of 2022

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the borrower company failed to maintain financial discipline as per terms and conditions as Import Letters of Credit were devolved for payment, the account was classified as NPA as per RBI guidelines. As the defendants failed to regularize the account with the applicant bank, ultimately, the applicant bank classified the account as NPA on 25.06.2018 and issued notice dated 07.07.2018 & 18.07.2018 recalling the loan facilities but defendants did not responded to the notices. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 19.07.2018 was issued by applicant bank but failed to invoke any positive response from the defendants.

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Notices of this O.A. were issued to the defendants and despite of proper service the defendants have chosen to absent from the proceedings. As per order dated 07.03.2020, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

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In order to prove its case, the applicant bank has filed , its evidence by way of affidavit of Shri Praveen Joy, authorized representative of the applicant bank who has proved the documents as Power of Attorney Ex.AW-1/1, Sanction Letter Ex.AW-1/2, Board Resolution dated

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T.A. No.414 of 2022

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15.11.2016 Ex.AW-1/3(Colly), DP Note, Credit Facility Agreement (CCOL), Credit Facility Agreement for Inland/Import LC, Agreement for Merchant Forward Transaction, Agreement of Hypothecation, Agreement of Guarantee, Undertaking/Declaration, Letter from Coparcenars, General Terms and Conditions are Ex.AW-1/4 to AW-1/12 respectively, Declaration from Mortgagor Ex.AW1/13, Affidavit Ex.AW-1/14, Copies of Title Deeds and Confirmation Ex.AW-1/15 & Ex.AW-1/16, Letter to defendant with Postal Receipts Ex.AW-1/17 to Ex.AW-1/19(Colly), Notice under Section 13(2) of SARFAESI Act Ex.AW-1/20, Postal Receipts Ex.AW-1/21(Colly), Statement of Account duly certified under Bankers' Book Evidence Act Ex.AW-1/22.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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(I) I, allow this OA and direct the defendants, jointly or severally, to pay to the applicant bank within a period of 30

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T.A. No.414 of 2022

days, a sum of Rs.13,62,26,320.43 (Rupees Thirteen Crore Sixty Two Lacs Twenty Six Thousand Three Hundred Twenty and paisa Forty Three only) as on 02.09.2019 together with pendentelite and future interest @12.55% per annum with monthly rests from 03.09.2019 till the date of realization with cost, failing which the aforesaid amount shall be recovered from the sale of hypothecated current assets of defendant no.1 as well as sale of mortgaged property i.e. entire second floor measuring 2206 sq.ft. with complete terrace rights with 40% undivided individual and impartiable ownership rights in land total area 492 sq.yds bearing no.D-819, New Friends Colony, New Delhi of defendant no.5. In case of shortfall, the same shall be recovered from sale of movable and immovable properties of defendant no.1 to 9.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 04.06.2024.

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(IV) Copies of final order as well as Recovery Certificate are to be sent to all concerned free of cost.

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5C1f, /) .-0 2'11 (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 06.04.2024

The South Indian Bank Ltd. v. Sanco Industries Ltd.

Case brief

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The South Indian Bank Ltd. v. Sanco Industries Ltd.

Case brief

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