Allowed

Uco Bank v. M/S Parmeshwar Industries

DRT14 Jan 2025OA/1453/2022

Case brief

AI extract

What is this about?

The applicant-bank filed an original application seeking recovery of loan dues including interest. The tribunal examined the case on merits ex-parte due to the non-appearance of the defendants and allowed the application.

What did the court decide?

Defendants to pay Rs. 1,23,93,366.20 with simple interest at 9.45% p.a. (cash credit) and 7.50% p.a. (term loan) pending realization; recovery certificate to be issued under Section 19(2)(b).

Uco Bank versus M/S Parmeshwar Industries — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY^{TRIBUNAL : JABALPUR}

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(for the States of Madhya Pradesh^{and Chhattisgarh)}

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oAMP COURT AT^{TNDORE (tt.P.)}

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(Presiding Officer^- Hon'ble^{Shri RamNiwas Patet)}

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Original APPlicotion^{No. - 1453/22}

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UCO Bank, Gram-Piptiahana,^lndore(M.P. )

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Appticant

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Ve rs us

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01 ) M/s Parmeshwar^lndustries, Through Partners, 701 , Fortune^Ambience, 4/2 South Tukoganj,^lndore; Atso at: Godown^{No.-2, Pigdumbar,} 3/2 Behind Mittat^{Cotd Storage,} A.B. Road, Rau, lndore

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lshita KaPoor^Arora, W/o Vedant Arora

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Tarun Arora, S/o Surendra Kumar^Arora

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Vedant^Arora, S/o Shri^YogeshArora

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(2 to 4 Partners of M/s Parmeshwar^lndustries, 701 , Fortune Ambience, 4/2 South Tukoganj, lndore) Defendants

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Counset for the Appticant :^{Shri TarangChelawat,Advocate} Defendants : Ex-Parte

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JUDG MENT

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(Dated: 14th January 2025)

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The Appticant-Bank has^{fited the present Original Apptication} u/s 19 of Recovery of^{DebtsandBankruptcyAct on 15112/72 against the} Defendants for recovery of^{Rs. 1,23,93,366.20(Rupees One Crore,Twenty} Three Lakh, Ninety^{Three Thousand,ThreeHundred Sixty Six and Paisa} Twenty onty) atong^{with interestand other retiefsas stated.}

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oA t453l2z

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The brief facts of the case are that on the request of Defendant No.-1 to 3, the Appticant Bank sanctioned Cash Credit Limit of Rs. 'I Crore on 24109/20 and Additionat Working Capital Term Loan of Rs. 24 Lakh under GECL on 21 /12/21 and in consideration of the same the Defendant No.-1 through its Partners as borrower and Defendant No.-4 in his personat capacity as guarantor have executed requisite loan and guarantee documents. The Defendants have also executed Partnership Deed as we[[ as Retirement cum Admission Deed whereby Mr. Tarun Arora Defendant No.-3 is the Retiring Partner and Mr. Vedant Arora Defendant No.-4 is the lncoming Partner. The Defendants avaited the credit facitities and atso executed Letter of Renewal on 30103/22 but were poor in repayments. The accounts became NPA and the Defendants faited to liquidate the outstanding dues despite issuance of Legal Notice on 06110/27. by the Appticant Bank. The Applicant-Bank has relied upon the documents at Ex. A-1 to A-18 which were proved by Shri Mayank Jain, Asstt. Genera[ Manager.

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Despite service of notice, the Defendants neither appeared nor fited written statement. They were proceeded ex-parte vide order dated 26/10/23, There is therefore, no reason to disbetieve the contentions of the Bank. Considering the facts of the case, I opine that the Defendants are jointty and severatty liable to pay the ctaim amount together with interest and costs. The Appticant-Bank in its apptication has claimed interest @9.45% p.a. with monthty rests in cash credit account and interest @7.50% p.a. with monthty rests in term loan account, However, I feet it fair and reasonabte to grant interest @9.45% p.a. simpte in cash credit account and interest @7.50% p.a. simple in term toan account pendentelite and future tit[ reatization of the dues. The personat properties and assets of the Defendants are t'iabte to be sold for recovery of amount due.

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The Original Appt'ication is at[owed and it is ordered as under-

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i) The Defendants do pay^jointty and severatty Rs. 1,23,93,366.20 (Rupees One Crore, Twenty Three Lakh, Ninety Three Thousand, Three Hundred Sixty Six and Paisa Twenty onty)^together with^{pendenteliteand} future interesl @9.45y" p.a. simple in cash cred'it account and^interest @7.50%^p.a. simpte^{in term loan account fromthe date of fiting of theOA,} i.e.,15/12122, with costs tit[ its reatization.

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oA. t453/22

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ii) The Appticant Bank is entitted to sett the^{personal properties} and assets of the Defendants for realization^{of its dues. The Defendants are} hereby restrained by means of^{injunctionfrom depteting,transferring,} encumbering, atienating^{or in any way deating with theirproperties/ assets} without first^paying the ctaim^{of the ApplicantBank.}

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iii) A Recovery Certificate^{be issueduls 19(22\ of Recoveryof} Debts and Bankruptcy^{Act. The appticant bank may fite a memoof cost} within 7 days for^{preparingRecoveryCertificate.}

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Judgment^{pronouncedin the open courton this Day of 14th January,2025at} Camp Court lndore.

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( o' ( m as et) Presiding Officer

Uco Bank v. M/S Parmeshwar Industries

Case brief

What is this about?

What did the court decide?

Uco Bank v. M/S Parmeshwar Industries

Case brief

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