Allowed

Bank of Baroda v. Messrs Vivek Agro Industries and Another

DRT23 Jan 2025OA/1976/2022

Case brief

AI extract

What is this about?

Bank of Baroda approached the DR Tribunal for recovery against M/s Vivek Agro Industries and proprietor for a total debt of Rs. 2,07,27,175.68. The Tribunal allowed the application, uniformly granted simple interest at 7.55%, and directed issue of a Recovery Certificate.

What did the court decide?

Debt of Rs. 2,07,27,175.68 with simple interest at 7.55% p.a. allowed; Recovery Certificate issued; future claims attachable to personal assets.

Bank of Baroda versus Messrs Vivek Agro Industries and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1976/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.10.2022

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DATE OF DECISION: 23.01.2025

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Bank of Baroda, a Body Corporate, with perpetual succession constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act of 1970, having its Registered Head Officer at Baroda Bhawan, R.C. Dutt Road, Alkapuri Baroda 390007, Gujrat and Branch office at various places in India and overseas, including a branch at Khanna, Ludhiana through Sh. Kedar Nath, Chief Manager and Constituted Attorney.

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……..Applicant

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Versus

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M/s Vivek Agro Industries Near Atwal Palace, Bhattian, Adjoining Nirankari Satsang Bhawan, G.T. Road, Khanna, District Ludhiana through its Proprietor Sh. Puneet Soodan

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Sh. Puneet Soodan S/o Sh. Satinder Pal Soodan Prop. of M/s Vivek Agro Industries Near Atwal Palace, Bhattian, Adjoining Nirankari Satsang Bhawan, G.T. Road, Khanna, District Ludhiana.

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2^nd Address : Sh. Puneet Soodan S/o Sh. Satinder Pal Soodan, Street No.2, Tiwari Street, Peer Khana Road, Khanna, District Ludhiana.

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………. Defendants

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Advocates:

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Argued by Sh. P.K. Sharma, Advocate for the applicant Present Sh. C.K. Jangra, Advocate for Defendants (through VC)

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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.2,07,27,175.68p (Rupees Two Crore Seven Lacs Twenty Seven

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Thousand One Hundred Seventy Five And Paise Sixty Eight Only). The Original Application has been filed through Sh. Kedar Nath, Chief Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 17.12.1999, 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 defendant no.2 had approached the applicant for grant of Overdraft Limit of Rs.140.00 Lacs vide Loan application dated 14.05.2001, which is Annexure A2 to this OA. Further, defendant no.1 through its proprietor defendant no.2 had again approached the applicant for enhancement of Overdraft Limit to Rs.1.42 Crore vide Loan application dated 26.11.2014, which is Annexure A22 to this OA. Thereafter, defendant no.1 through its proprietor defendant no.2 had approached the applicant for BGECLS Loan of Rs.16.44 Lacs to this OA. Further, defendant no.1 through its proprietor defendant no.2 had again approached the applicant for BGECLS Loan of Rs.14.00 Lacs vide Loan application, which is Annexure A59 to this OA and further approached the bank for WCTL of Rs.37.65 Lacs and Rs.4.71 Lacs to this OA. Further, defendants again approached the bank for restructuring the OD/BGECL/BCECL/WCTL Loans vide Consent Letter for Restructuring & Request for restructuring of WCLT dated 20.09.2021 & 11.10.2021, which are Annexures A77 to A79 to this OA.

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The applicant sanctioned Overdraft Limit of Rs.140.00 Lacs vide Sanction Letter dated 04.01.2013, which is Annexure A3 to this OA. Later, applicant bank again sanctioned for enhancement of Overdraft Limit of Rs.1.42 Crore vide Sanction Letter dated 26.11.2014, which is Annexure A23 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, applicant bank sanctioned for BGECLS Loan of Rs.16.44 Lacs vide Sanction Letter dated 22.06.2020, which is Annexure A44 to this OA. Further, applicant bank again sanctioned for BCECLS Loan of Rs.14.00 Lacs vide Sanction Letter

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dated 22.05.2020, which is Annexure A60 to this OA and further applicant bank sanctioned for WCTL of Rs.37.65 Lacs and Rs.4.71 Lacs vide Attestation Memo dated 18.10.2021, which is Annexure A75 to this OA. Further, applicant bank sanctioned for Restructuring the OD/BGECL/BCECL/WCTL Loans vide Draft Sanction Letter dated 18.10.2021, which is Annexure A80 to this OA. 4. Defendant No.2 had mortgaged his immovable properties i.e. (i) Property having area measuring 1K-12M situated Village Bhattian, H.B. No.328, Tehsil Khanna, District Ludhiana vide Registered Mortgaged Deed bearing v asika No.3601 dated 0 3.11.2008. (ii) Property having area measuring 0K-17M (500 Sq. Yards) situated Village Bhattian, H.B. No.224, Tehsil Khanna, District Ludhiana vide Registered Mortgaged Deed bearing v asika No.789 dated 22.05.2003. (iii) Property having area measuring 0K-13M (3454 Sq. feet) situated Plot no.12A, Country Home Colony, Samrala Road, Tehsil Khanna, District Ludhiana vide Equitable Mortgaged of Sale Deed bearing v asika No.4502 dated 2 2.11.2020 as per Jamabandi for the year 2012-2013 & 2014-2015 along with their translations, which are Annexures A81 to A92 to this OA. Documents executed:-Attestation Memo, D.P. Note, General form of Guarantee, Composite hypothecation agreement, Letter of undertaking, Letter of cost, Instrument of hypothecation of books debts, Letter of sole proprietorship, Letter of continuity security, An undertaking not to withdraw deposit by the Partner/Directors etc., Power of attorney in respect of book debts facility, Draft undertaking, Extension of mortgage by deposit of title deeds, Annexure A & B, Letter of Confirmation of Mortgage, Declaration in the matter of mortgage by deposit of title deed & Affidavit of Sh. Puneet Soodan & Smt. Darshna Soodan relating to the property, all dated 15.01.2013, which are Annexures A4 to A21 to this OA; Attestation Memo, Letter of continuity security, D.P. Note, Second extension of mortgage by deposit of tilte deeds, Letter of confirmation of mortgage, Declaration

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in the matter of mortgage by deposit of title deed in respect of immovable, Affidavit of Smt. Darshna Soodan, Letter of sole proprietorship, Power of attorney in respect of book debts facility, Affidavits of Sh. Puneet Soodan, Extension of mortgage by deposit of title deed, General form of guarantee, An undertakings not to withdrawer deposit by the partners/directors etc. till the advances in liquidated, Composite Hypothecation Agreements, Hypothecation Agreements, Declarations in the matter of immovable, General form of guarantee, Letter of undertaking & Declaration cum undertaking cum authority all dated 10.01.2015, which are Annexures A24 to A32 & A34 to A43 to this OA; Annexure-B dated 22.05.2003, which is Annexure A33 to this OA; Attestation Memo, D.P. Note, Letter of sole proprietorship, Loan cum hypothecation agreement, General form of Guarantee, An undertaking to repay the amount of stamp duty, Undertaking letter from borrowers, Letter of installment with Acceleration clause, Declaration cum undertaking cum authority, Annexure A & B all dated 23.06.2020, which are Annexures A45 to A55 to this OA; Letter of confirmation of creation/extension of mortgage, Second extension of mortgage by deposit of title deeds & Declaration in the matter of mortgage by deposit of title deeds in the immovable all dated 24.06.2020, which are Annexures A56 to A58 to this OA; Attestation Memo, D.P. Note, Declaration cum undertaking cum authority, Loan cum hypothecation agreement, General form of Guarantee, An undertaking to repay the amount of stamp duty, An undertaking not to withdraw deposit by the partner/directors etc. till the advances is liquidated, Letter of installment with acceleration clause, Annexures A & B, Second extension of mortgage by deposit of title deeds & Declaration in the matter of mortgage by deposit of title deeds in the immovable all dated 19.05.2020, which are Annexures A61 to A72 to this OA; Confirmation of extension of mortgage dated 20.05.2020, which is Annexure A73 to this OA; Letter of sole proprietor dated 19.05.2020, which is Annexure A74 to this OA;

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Agreement for re-schedulement cum resolution interest recovery amount dated 18.10.2021, which is Annexure A76 to this OA; Letter issued by defendant no.1 in favour of plaintiff bank for no objection if the sale of its mortgaged properties dated 02.07.2022, which is Annexure A93 to this OA; Provisional Balance Sheet & List of Debitor and Creditor dated 31.03.2021, which is Annexure A94 to this OA; Three valuation reports prepared by the approved valuer of the bank dated 06.06.2022 & 24.06.2022, which are Annexures A95 to A97 to this OA; Letter of Acknowledgment of debts dated 15.01.2013, 10.03.2017, 24.02.2020, 25.06.2020 & 23.03.2020, which are Annexures A98 to A102 to this OA; Certificate of Statement of Accounts along with Certificate under Section 65-B of Indian Evidence Act, which are Annexures A103 to A108 to this OA; Legal notices sent to the defendants along with postal receipts dated 27.01.2022, which are Annexures A109 to A115 to this OA; Notice under Section 13(2) along with postal receipts, which is Annexure A116 to this OA; Possession notice under Section 13(4) dated 28.03.2022, which are Annexures A117 to A119 to this OA & Case pending in the Hon’ble High Court of Punjab & Haryana at Chandigarh, which is Annexure A120 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all loan accounts there was a debit of Rs.2,07,27,175.68p, 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 Sh. C.K. Jangra, Advocate appeared for defendants and filed his Power of Attorney. He has filed WS beyond stipulated period, which was not taken on record and defense of defendants was struck of on 10.01.2025.

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In support of the OA, affidavit of Sh. Kedar Nath, Chief Manager, Bank of Baroda h as been filed.

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Heard arguments of Ld. Counsel for applicant. Ld. Counsel for defendants appeared through video conferencing has not advanced any argument. Perused record. 9. 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 A120 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, 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.2,07,27,175.68p (Rupees Two Crore Seven Lacs Twenty Seven Thousand One Hundred Seventy Five And Paise Sixty Eight Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of 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 detailed as:

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a. claimed interest at 9.65%p.a. in CC Limit b. claimed interest at 8.00%p.a. in BCECL Accounts c claimed interest at 7.55%p.a. in GECL Term Loan Accounts 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 loans and prevalent market rates of interest which have gone drastically downhill in yester years, while

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @07.55%p.a. in 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.2,07,27,175.68p (Rupees Two Crore Seven Lacs Twenty Seven Thousand One Hundred Seventy Five And Paise Sixty Eight Only) jointly and severally, with costs, current and future simple interest @07.55%p.a. in 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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 05.03.2025 15. 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. Pronounced by me in the open Tribunal . Dated: 23.01.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of Baroda v. Messrs Vivek Agro Industries and Another

Case brief

What is this about?

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Bank of Baroda v. Messrs Vivek Agro Industries and Another

Case brief

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