Allowed

Canara Bank v. M/S Jerath Group of Hospitals and Others

DRT10 Feb 2025OA/1200/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Canara Bank against M/s Jerath Group of Hospitals for recovery of an outstanding term loan of approx. Rs. 5.49 crore. The Tribunal held the defendants liable to pay the principal sum along with costs and interest.

What did the court decide?

Declarations of liability to pay principal sum with 08% p.a. interest; permission to recover via sale of mortgaged properties or attachment of personal assets; issuance of Recovery Certificate.

Canara Bank versus M/S Jerath Group of Hospitals and Others — Insurance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1200/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.9.2024

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DATE OF DECISION: 10.02.2025

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Canara Bank, a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at J.C. Road, Bangalore, and inter alia having a branch office at MSME Sulabh Branch Ludhiana (PB) through its Principal Officer Sh. Tarun Goyal, Manager

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……..Applicant Versus

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M/s Jerath Group of Hospitals, a Partnership firm having its place of business at 14 Link Road, Abadpura, Model Town, Adjoining State Bank of India, Jalandhar (PB)-144003 through its Partners.

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2^nd Address: Ground Floor, IInd Floor, MC No.112/3, Elite Arcade, The Mall Ludhiana (PB)-141001.

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3^rd Address: Singh Complex State Highway 25, Near Goraya Complex Kalanaur Road, Gurdaspur (PB)

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Sh. Prashant Jerath S/o Sh. Vinod Parkash Jerath, Partner M/s Jerath Group of Hospitals, R/o House No.299/300 Eldeco Greens Jalandhar (PB)-144001.

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2^nd Address: House No.180 Street no.4, central town Jalandhar (PB)-141001.

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3^rd Address: Flat no.601/B, 701/B, Building no.1, Oberoi Sky Heights, Oshiwara Lokhandwala complex, Andheri west Mumbai suburban, Mumbai Maharashtra, 400053.

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Smt. Rita Jerath W/o Sh. Vinod Parkash Jerath, Partner M/s Jerath Group of Hospitals, R/o House No.299/300 Eldeco Greens Jalandhar (PB)-144001.

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2^nd Address: House No.180 Street no.4, central town Jalandhar (PB)-141001.

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3^rd Address: Flat no.601/B, 701/B, Building no.1, Oberoi Sky Heights, Oshiwara Lokhandwala complex, Andheri west Mumbai suburban, Mumbai Maharashtra, 400053.

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….……Defendants

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Advocates:

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Argued by Sh. Yogesh Kumar, Advocate for the applicant Defendants is 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 Rs.5,49,26,626.93p (Rupees Five Crore Forty Nine Lacs Twenty Six Thousand Six Hundred Twenty Six and Paise Ninety Three Only). The Original Application has been filed through Sh. Tarun Goyal, Manager of the applicant, who is competent to institute the Original Application vide Letter of Authority dated 15.09.2022, 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 Term Loan of Rs.5.00 Crore vide Loan application dated 19.07.2023, which is Annexure A3 to this OA.

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The applicant sanctioned Term Loan of Rs.5.00 Crore vide Sanction Letter dated 31.08.2023, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants no.2 had mortgaged his immovable property i.e.

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(i) Commercial plot no.20 measuring 319.00 Sq. yards situated at Village Ayali Khurd, H.B. No.153, Main Humbran Road, Tehsil & District Ludhiana vide Equitable Mortgage of Sale Deed bearing vasika no.9540 dated 14.11.2017, which is Annexure A10 to this OA. (ii) C ommercial property measuring 63 Sq. yards (Super area 758 Sq. feet and Carpet Area 568 Sq. Feet) situated in Ground Floor, Shop No.202-A and 203 bearing MC No.B-19-112/2 (Elite Arcade Mall), Taraf Gehlewal, locality known as Mall Road, Tehsil & District Ludhiana vide Sale Deed dated 29.03.2023 along with their translations, which is Annexure A11 to this OA.

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Documents executed:-Partnership Deed dated 16.11.2022, which is Annexure A2 to this OA; D.P. Note, Deed of Hypothecation, Common Hypothecation Agreement, Guarantee Agreement, Partnership Letter & Conformation Letter all dated 01.09.2023, which are Annexures A5 to A9 & A12 to this OA; CERSAI dated 23.10.2023, which is Annexure A13 to this OA; Recall Notice dated 07.05.2024, which is Annexure A14 to this OA; Demand Notice u/s 13(2) dated 06.05.2024, which is Annexure A15 to this OA; Possession Notice dated 23.07.2024, which is Annexure A16 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A17 to this OA. 5. 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.5,49,26,626.93p, which is recoverable and the defendants was 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and he was proceeded ex-parte on 21.01.2025.

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In support of the OA, affidavit of Sh. Tarun Goyal, Manager, Canara Bank h as 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 A17 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. 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.5,49,26,626.93p (Rupees Five Crore Forty Nine Lacs Twenty Six Thousand Six Hundred Twenty Six and Paise Ninety Three Only) along with interest from the defendants, 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 @12.70%p.a. with monthly yearly rests from 02.09.2024 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 @08.00%p.a. in

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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 is liable to pay to the applicant a total sum of Rs.5,49,26,626.93p (Rupees Five Crore Forty Nine Lacs Twenty Six Thousand Six Hundred Twenty Six and Paise Ninety Three Only) with costs, current and future simple interest @08.00%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 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 11.03.2025

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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 . Dated: 10.02.2025

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

Canara Bank v. M/S Jerath Group of Hospitals and Others

Case brief

What is this about?

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Canara Bank v. M/S Jerath Group of Hospitals and Others

Case brief

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