Allowed

Bank of Baroda v. M/S Sbs Concepts Limited

DRT13 Jan 2025OA/251/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank original application for recovery of Rs. 5.73 crores plus interest against non-appearing defendants. The court directed recovery from sale of hypothecated and mortgaged assets.

What did the court decide?

Decree of recovery for Rs. 5,73,57,104.03 plus interest; issuance of recovery certificate to Debt Recovery Officer for enforcement against hypothecated and mortgaged assets.

Bank of Baroda versus M/S Sbs Concepts Limited — Contract and Commercial Disputes | DRT (2025)

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 251 of 2023

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Bank of Baroda Zonal Office Stressed Asset Recovery Branch 4th Floor, Rajendra Bhawan Rajendra Place New Delhi-110008 Applicant Versus 1. M/s SBS Concepts Ltd. Regd Office: 31, FIE Patparganj Industrial Area Patparganj East Delhi-110092 2. Sh.Balram Singh s/o Ram Avtar Singh Director / Guarantor R/o 177, 2nd Floor, Saini Enclave Vikas Marg Extension, Delhi-110092 3. Ms.Lalit Kala Singh w/o Sh.Balram Singh (Director / Guarantor) R/o 177, 2nd Floor, Saini Enclave Vikas Marg Extension, Delhi-110092 4. Sh.Akhil Singh s/o Sh.Balram Singh (Director / Guarantor) R/o 177, 2nd Floor, Saini Enclave Vikas Marg Extension, Delhi-110092 5. Sh.Arvind Kumar Singh s/o Kamendra Singh Guarantor R/o Plot No.13, Flat No.D003, Dwarkadham Apartment, Sector-23, Dwarka, New Delhi110075 Defendants Present: Sh.Saugat Sinha, Counsel for applicant bank Date of Institution: 15.02.2023 Date of Pronouncement: 13.01.2025

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O.A. No.251 of 2023

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FINAL ORDER

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This original application has been filed by the applicant bank on 15.02.2023 through Shri Suresh Chander, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act,1993 against the defendants for recovery of a sum of Rs.5,73,57,104.03 (Rupees Five Crores Seventy Three Lacs Fifty Seven Thousand One Hundred Four & paisa Three only) as on 24.01.2023 together with pendentelite and future interest with monthly rests from 24.01.2023 till its realization with costs.

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The brief facts of the case are that at the request of defendant No.2 to 4 being directors of defendant no.1, the applicant bank sanctioned Cash Credit of Rs.150.00 lacs (Rupees One Crores Fifty Lacs only), Demand Loan under BGECL of Rs.117.00 lacs (Rupees One Crore Seventeen Lacs only) and Working Capital Term Loan of Rs.320.00 lacs (Rupees Three Crore Twenty Lacs only) on 04.09.2015, 4.04.2020, 10.07.2020 and 21.12.2021 @13.40%, @9.25%, • 7.85% rate of interest respectively and 2% penal interest on •efault in installment or interest against hypothecation of stocks, •ook debts, plant & machinery to be purchased as prime ecurity and collateral security of mortgage of property owned •y defendant no.5 who stood as guarantor for the credit facilities availed by defendant no.1 with applicant bank. The defendant o.1 accepted the sanction of term loan with terms and onditions approved through Board Resolution dated 2.12.2015, 10.07.2020 and 21.12.2021 of defendant no.1.

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That in order to avail the loan facilities, the defendant no.2 5 being directors / guarantor of defendant no.1 accepted anction letters and executed Power of Attprney for Book Debts,

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O.A. No.251 of 2023

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Loan cum Hypothecation Agreement, General Form of Guarantee, Demand Promissory Note, Declaration cum Undertaking cum Authority, Letter of Undertaking, Undertaking not to withdraw deposit, Declaration of Mortgage by Deposit of Title Deeds, Supplemental Memorandum of Entry, Affidavits, Confirmation of Creation / Extension of Mortgage, Undertaking for Unconditional cancellation of Undrawn Commitments, Letter of Continuing Security, Declaration u/s 293 of Companies Act, Letter of Confirmation, Modification Deed for Restructuring of Loans on 04.09.2015, 12.12.2015, 10.07.2020, 13.07.2020, 24.04.2020, 30.03.2021 and 21.12.2021 respectively with applicant bank.

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That in order to secure the credit facilities, the defendant no.1 hypothecated the stocks, book debts, plant & machinery purchased as per details in favour of applicant bank.

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It has been submitted by the applicant bank that in order to secure the loan facilities sanctioned in favour of defendant no.1, the defendant no.5 created equitable mortgage of half share in non-agricultural land bearing Khata No.00177, Khata No.321 measuring 0.0407 hectare & Khata No.183, Khasra No.324, measuring 0.1390 hectare situated at Village Elhabans, Pargana & Tehsil Dadri, Dist. Gautam Budh Nagar, UP with applicant bank.

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The defendant no.1 filed Forms CHG-1 with Registrar of Companies, Delhi registering charge of Rs.40.00 lacs dated 24.04.2020, Rs.78.00 lacs dated 13.07.2020 and Rs.470.00 lacs dated 31.10.2011 and modified of 30.03.2021 of the applicant bank.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to

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O.A. No.251 of 2023

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discharge their liability in accordance with their contractual obligation and commitments as per terms and conditions of sanction despite regular follow up, requests and reminders. The account of defendant no.1 became irregular and account was classified as NPA on 29.10.2022 by the applicant bank as per RBI guidelines but defendant no.1 failed to regularize the account or clear the outstanding dues, hence the applicant bank has approached this Tribunal for recovery of their dues.

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Notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enibrcement of Security Interest Act 2002 dated 16.12.2022 was issued by the applicant bank to the defendants for repayment of entire dues but defendants failed to regularize the account.

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Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 06.03.2024, the defendant no.1 to 4 and vide order dated 01.08.2024, the defendant no.5 has been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Suresh Chander, authorized representative of the applicant bank who has proved the documents as General Power of Attorney, Master Data of Defendant no.1, Board Resolutions dated 12.12.2015, 10.07.2020 & 21.12.2021, Sanction Letters, Power of Attorney for Book Debt, Loan cum Hypothecation Agreement, General Form of Guarantee, Demand Promissory Note, Declaration cum Undertaking cum Authority, Letter of Undertaking, Undertaking not to withdraw deposit, Declaration of M'rtgage by Deposit of

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5d-

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O.A. No.251 of 2023

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Title Deeds, Supplemental Memorandum of Entry, Affidavits, Confirmation of Creation / Extension of Mortgage, Undertaking for Unconditional cancellation of Undrawn Commitments, Letter of Continuing Security, Declaration u/s 293 of Companies Act, Letter of Confirmation, Modification Deed for Restructuring of Loans, Notice u/s 13(2) dated 16.12.2022, Registration of Charges, Statement of Accounts, Valuation Report marked as Exhibit A-1 to Exhibit A39(colly).

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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In the light of the above discussions, the Original pplication deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants, jointly or everally, to pay to the applicant bank, within a period of 30 ays, a sum of Rs.5,73,57,104.03 (Rupees Five Crores Seventy hree Lacs Fifty Seven Thousand One Hundred Four & paisa hree only) together with pendentelite and future interest • 12.00% per annum from date of filing of this application till the ate of realization failing which the aforesaid amount shall be ecovered from the sale of hypothecated stocks, book debts,

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O.A. No.251 of 2023

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plant & machinery and mortgaged property being nonagricultural land bearing Khata No.00177, Khata No.321 measuring 0.0407 hectare & Khata No.183, Khasra No.324, measuring 0.1390 hectare situated a, Village Elhabans, Pargana & Tehsil Dadri, Dist. Gautam Budh Nagar, UP owned by defendant no.5. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 17.03.2025.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 13.01.2025

Bank of Baroda v. M/S Sbs Concepts Limited

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/S Sbs Concepts Limited

Case brief

What is this about?

What did the court decide?

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