Allowed

Bank of India v. M/S Meetesh Trading Company and Another

DRT2 Jun 2025OA/1102/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application by Bank of India for recovery of Rs.29.66 lakhs from M/s Meetesh Trading Company and Ms. Kamlesh Sharma. The Tribunal fixed simple interest at 8% per annum and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.29,66,590 with simple interest @8% p.a. and issuance of a Recovery Certificate.

Bank of India versus M/S Meetesh Trading Company and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1102/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.09.2024

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DATE OF DECISION: 02.06.2025

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 with its Head office at Bank of India Star House, C-5, “G” Block, 2^nd Floor, Bandra Kurla Complex, Bandra (East), Mumbai – 400051 and one of its branches at Bhai Randhir Singh Nagar, Ludhiana through Ms. Gurleen Kaur, Senior Manager, Bhai Randhir Singh Nagar Branch, Ludhiana its Principal Officer and Authorized Officer.

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……..Applicant

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Versus

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1. M/s Meetesh Trading Company, 1743, New Prem Nagar, Near Las Vegas, PAU Hathi Complex Road, Ludhiana Through its Proprietor, Mrs. Kamlesh Sharma.

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2^nd Address:- M/s Meetesh Trading Company, CO 296, Major Sham Lal Road, Adjoining Hotel Friends Regency, Ferozepur Road, Ludhiana.

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3^rd Address:- House No.312/100, Block-j, Bhai Randhir Singh Nagar, Ludhiana.

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2. Ms. Kamlesh Sharma, Proprietor M/s Meetesh Trading Company 1743, New Prem Nagar, Near Las Vegas, PAU Hathi Complex Road, Ludhiana.

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2^nd Address:- Kamlesh Sharma, Proprietor M/s Meetesh Trading Company CO 296, Major Sham Lal Road, Adjoining Hotel Friends Regency, Firozpur Road, Ludhiana

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3^rd Address:- Ms. Kamlesh Sharma R/o House No.312/100, J- Block, Bhai Randhir Singh Nagar, Ludhiana.

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….……Defendants

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Advocates:

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Argued by, Sh. R.V. Mehra, Advocate for Applicant (through VC) Defendants are ex parte

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2 OA NO. 1102/2024 BANK OF INDIA VS M/S MEETESH TRADING COMPANY AND ANOTHER

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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.29,66,590.00 (Rupees Twenty Nine Lacs Sixty Six Thousand Five Hundred Ninety only). The Original Application has been filed through Ms. Gurleen Kaur, Senior Manager o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 21.06.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of CC Limit of Rs.15.00 Lacs vide Loan application dated 13.09.2016, which is Annexure A2 to this OA.

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The applicant sanctioned the CC Limit of Rs.15.00 Lacs vide Letter of Sanction dated 20.09.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had hypothecated its stocks and machinery vide Photostat copy of hypothecation of tangible moveable property dated 20.09.2016, which is Annexure A6 this OA.

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It is pertinent to mention here that the above mentioned hypothecated assets have been surreptitiously sold off by the defendants and now there is security available with the plaintiff Bank

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Documents executed: Demand Promissory note, Photostat copy of Demand Promissory note Bearer letter, Multipurpose document, Photostat copy of Letter of Declaration & Assurance, Letter of declaration/Undertaking & authority, Format for MCLR Agreement, Letter of undertaking, Nonpayment of guarantee all dated 20.09.2016, which are Annexures A4, A5 and A7 to A12 to this OA; Legal Notice

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3 OA NO. 1102/2024 BANK OF INDIA VS M/S MEETESH TRADING COMPANY AND ANOTHER

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dated 27.04.2021 along with postal receipts, which are Annexures A13 & A14 to this OA; Statement of Cash Credit limit account, which is Annexure A15 to this OA and the letters acknowledgement of debts and securities dated 30.04.2019 & 25.04.2022, which are Annexures A16 & A17 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.29,66,590.00p, 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.

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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 27.05.2025.

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In support of the OA, affidavit of Ms. Gurleen Kaur, Senior Manager, Bank of India, h as been filed.

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Heard arguments and perused record.

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It was argued by learned counsel (through Video

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Conferencing) 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 A17 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.29,66,590.00 (Rupees Twenty Nine Lacs Sixty Six Thousand

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4 OA NO. 1102/2024 BANK OF INDIA VS M/S MEETESH TRADING COMPANY AND ANOTHER

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Five Hundred Ninety only) rest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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 @13.50%p.a. along with penal interest @2.00%p.a. with monthly rests from 14.08.2024 till the realization.

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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 the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.29,66,590.00 (Rupees Twenty Nine Lacs Sixty Six Thousand Five Hundred Ninety only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account 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 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

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5 OA NO. 1102/2024 BANK OF INDIA VS M/S MEETESH TRADING COMPANY AND ANOTHER

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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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 26.06.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 02.06.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. M/S Meetesh Trading Company and Another

Case brief

What is this about?

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Bank of India v. M/S Meetesh Trading Company and Another

Case brief

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