Allowed

Indian Bank v. M/S Sky Blue International and Another

DRT5 Jun 2025OA/153/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's application under Section 19 of the RDBFI Act for recovery of Rs.26.43 lakhs. The Tribunal reduced the claimed future interest rate to 8% per annum and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery certificate issued; defendants directed to pay Rs.26,43,354 with future simple interest at 8% per annum.

Indian Bank versus M/S Sky Blue International and… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.153/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.02.2025

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DATE OF DECISION: 05.06.2025

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Indian Bank, a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its corporate office at PB No.5555, 254-260, Avvai Shanmugam Salai, Royapettah, Chennai and its branches one of its branch office at Ludhiana Branch Chowk Clock Tower, Ludhiana through its constituted attorney Sh. Harish Mishra, Chief Manager, Indian Bank, Ludhiana Who is also the principal officer of the plaintiff/applicant.

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……..Applicant

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Versus

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M/s Sky Blue International, through its sole proprietor Sh. Manjeet Singh S/o Sh. Harpal Singh R/o Plot No.3, Kailash Nagar Road, Street No.1, Basti Jodhewal, Ludhiana-141003.

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Sh. Manjeet Singh S/o Sh. Harpal Singh, Sole Proprietor M/s Sky Blue International R/o Plot No.3, Kailash Nagar Road, Street

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No.1, Basti Jodhewal, Ludhiana-141003.

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2^nd Address : House No.2860/1, Street No. 6-/12, Gill Road, Chet Singh Nagar, Ludhiana-141003 .

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….……Defendants Advocates:

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Argued by, Sh. Varun Verma, Advocate for 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 Rs.26,43,354.00p (Rupees Twenty Six Lacs Forty Three Thousand Three hundred Fifty Four only). The Original Application has been filed through Sh. Amarjit Singh, Chief Manager, o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 13.10.2014, which is Annexure A1 to this OA.

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2 OA NO.153-2025

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INDIAN BANK VS M/S SKY BLUE INTERNATIONAL AND ANOTHER

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The brief facts of the OA are that the defendant no.1 through defendant no.2 had approached the applicant for the grant of Cash Credit Limit of Rs.25.00 Lacs.

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The applicant sanctioned the Cash Credit Limit of Rs.25.00 Lacs vide Sanction letter dated 18.11.2023, which is Annexure A3 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/assets i.e. Goods, Produced, Merchandise, Stock stored or to be stored from time to time and Book debts and Receivables vide Agreement for open cash credit limit dated 18.11.2023, which is Annexure A4 to this OA Documents executed: - Letter of authority dated 06.06.2023, which is Annexure A2 to this OA; Declaration by sole proprietor both dated 18.11.2023, which is Annexure A5 to this OA; Certificate, which is Annexure A6 to this OA; Legal notice dated 03.10.2024 along with postal receipts, which are Annexures A7 to A10 to this OA and Statement of account with certificate, which is Annexure A11 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 Rs.26,43,354.00p, 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. 6. 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 03.06.2025. 7. In support of the OA, affidavit of Sh. Amarjit Singh, Chief Manager, Indian Bank, has been filed. 8. Heard arguments and perused record.

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3 OA NO.153-2025 INDIAN BANK VS M/S SKY BLUE INTERNATIONAL AND ANOTHER

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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 A11 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.26,43,354.00p (Rupees Twenty Six Lacs Forty Three Thousand Three hundred Fifty Four 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 @11.85%p.a. (excluding penal interest @2.00%p.a.) from 04.02.2025 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,43,354.00p (Rupees Twenty Six Lacs Forty Three Thousand

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OA NO.153-2025

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INDIAN BANK VS M/S SKY BLUE INTERNATIONAL AND ANOTHER

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Three hundred Fifty Four 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 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 27.06.2025.

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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: 05.06.2025

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

Indian Bank v. M/S Sky Blue International and Another

Case brief

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Indian Bank v. M/S Sky Blue International and Another

Case brief

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