Allowed

Canara Bank v. M/S Sahil Medicos and Another

DRT17 Jan 2025OA/1108/2024

Case brief

AI extract

What is this about?

Cannara Bank sought recovery of Rs.25,41,570 from M/s Sahil Medicos under Section 19 of RDBFI Act, 1993. The Tribunal allowed the application ex-parte, modified the interest rate to 8% p.a., and ordered recovery through sale of hypothecated/mortgaged properties.

What did the court decide?

Recovery of Rs.25,41,570 plus 8% p.a. simple interest; chargeable on hypothecated/mortgaged properties.

Canara Bank versus M/S Sahil Medicos and Another — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1108/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.09.2024

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DATE OF DECISION: 17.01.2025

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Canara Bank a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 having its Registered Head Office at 112, JC Road, Bangalore-560002 and having its branches all over India and inter-alia a Branch Office at SCF No. 51, Phase- 10, Mohali-160062 through its Chief Manager Sh. Kamaljeet Singh duly Constituted Attorney and Principal Officer of the applicant.

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……..Applicant

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Versus

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M/s Sahil Medicos through its Proprietor Sh. Sahil S/o Sh. Kuldeep Singh

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1^st Address :- SCF-33, Phase -10, Mohali-160062

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2^nd Address :- House No. 162, Azad Nagar, Balongi, Mohali 160055

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Sh. Sahil S/o Sh. Kuldeep Singh

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1^st Address :- SCF-33, Phase -10, Mohali-160062

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2^nd Address :- House No. 162, Azad Nagar, Balongi, Mohali 160055

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………Defendants

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Advocates:

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Argued by Sh. Vikas Goel, Advocate for the applicant Defendants are ex-parte

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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

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Rs.25,41,570.00 (Rupees Twenty Five Lacs Forty One Thousand Five Hundred and Seventy only). The Original Application has been filed through Sh. Kamaljeet Singh, Chief Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 10.01.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its proprietor i.e. defendant no.2 had time to time approached the applicant for the grant of Cash Credit Limit of Rs.10.00 Lacs and further for its enhancement to Rs. 21.00 Lacs and also for its renewal vide Loan Application dated 19.12.2020, 27.10.2021 and 25.01.2023 and again approached the Term Loan of Rs. 2.00 Lacs vide Disbursement Request Format of Loans, which are Annexures A2,

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A9, A16 & A21 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.10.00 Lacs and further sanctioned its enhancement to Rs.21.00 Lacs and also sanctioned its renewal vide Letter of Sanction dated 19.12.2020 and 27.10.2021, which are Annexures A3 & A10 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had hypothecated its movable properties i.e. Plants, machinery, stocks and Book debts vide Deed of Hypothecation dated 28.12.2021, which is Annexure A17 to this OA. Documents executed:- Cash Credit Agreement, Demand Promissory

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Note, Request for Overdraft facilities, Guarantee Agreement, Guarantee covering Letter all dated 19.12.2020, which are Annexures A4 to A8 to this OA; Supplemental Cash Credit Agreement, Pronote, Link Letter in respect of Enhancement of credit facilities, Letter of Renewal, Letter of Proprietorship all dated 27.10.2021, which are Annexures A11 to A15 to this OA; Disbursement Request format of loans, Pronote, Letter of Proprietorship, Application Form fir Loans to Micro, Small & Medium Enterprises (MSMEs) all dated 28.12.2021, which are Annexures

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A18 to A20 to this OA; Cash Credit Agreement, Pronote, Acknowledgement of Debts all dated 25.01.2023, which are Annexures A22 to A24 to this OA; Cash Credit Loan Statement, Term Loan Statement along with Consolidated statement of Two Loan Accounts which are Annexures A25 to A27 .

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.25,41,570.00, 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 08.01.2025.

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In support of the OA, affidavit of Sh. Kamaljeet Singh, Chief Manager, Canara Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned counsel 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 A27 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,41,570.00 (Rupees Twenty Lacs Forty One Thousand Five Hundred and Seventy only) along with interest from the defendants,

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jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

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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 @11.25%p.a. in Cash Credit and @9.25%p.a. in Term Loan plus penal interest @2.00%p.a. from 01.08.2024 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 both the loan accounts 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.25,41,570.00 (Rupees Twenty Lacs Forty One Thousand Five Hundred and Seventy only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 27.02.2025.

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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: 17.01.2025

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

Canara Bank v. M/S Sahil Medicos and Another

Case brief

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Canara Bank v. M/S Sahil Medicos and Another

Case brief

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