Allowed

South Indian Bank Ltd. v. Messrs a S Constructions and Others

DRT23 Apr 2025OA/391/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for the recovery of a NPA loan of over Rs.1.29 Crore against corporate and individual defendants. It declared the sum recoverable with interest and directed issuance of a recovery certificate.

What did the court decide?

Recovery Certificate issued directing recovery of Rs.1,29,47,974.78 with 8.00% p.a. simple interest via sale of mortgaged or personal assets.

South Indian Bank Ltd. versus Messrs a S… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.391/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.03.2023

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DATE OF DECISION: 23.04.2025

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The South Indian Bank Limited(SIB), a banking company within the meaning of the Companies Act, 1956 having at Registered Office at Thrissur, Kerala State and one of its Branch Office at SCO-295, Ground Floor, Sector-20, Panchkula, Haryana-134117 through its Branch Manager and Attorney Holder Ms. Gitanjli

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……..Applicant

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Versus

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M/s A.S. Constructions, a partnership concern, through its partners Mrs. Rajni Goyal and Sh. Ashish Kumar having its Office at Office No.2, Cabin No.2, 1^st Floor, Bindal Time Square, Dhakoli, Kishanpura, SAS Nagar, Punjab 140603

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Smt. Rajni Goyal W/o Sh. Ajay Goel, partner M/s A.S. Constructions, having Office at Office No.2, Cabin No.2, 1^st Floor, Bindal Time Square, Dhakoli, Kishanpura, SAS Nagar, Punjab 140603

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2^nd Address: R/o Door #8, First Floor, Golden Enclave, Lohgarh, SAS Nagar, Mohali, Punjab-140603

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Sh. Ashish Kumar S/o Sh. Rajinder Kumar partner M/s A.S. Constructions, having Office at Office No.2, Cabin No.2, 1^st Floor, Bindal Time Square, Dhakoli, Kishanpura, SAS Nagar, Punjab 140603

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M/s Sky Infrastructures Pvt. Ltd. through its Director/Authorised Signatory, having its Registered Office at Shop No.25, Unicity Business Centre, Bhabhat, Zirakpur through its Directors Sh. Ajay Goel and Smt. Rajni Goyal

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Sh. Ajay Goel, Director M/s Sky Infrastructures Pvt. Ltd., having Registered Office at Shop No.25, Unicity Business Centre, Bhabhat, Zirakpur, Mohali-140603

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2^nd Address: 8, ground Floor, Green Field Homes, Kishanpura, Dhakoli, Mohali, SAS Nagar, Punjab-160104

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Sh. Rajinder Kumar S/o Sh. Madan Mohan, R/o Ground Floor, H No.48, LRC Homes, Kishanpura, Zirakpur

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2 OA NO.391/2023 THE SOUTH INDIAN BANK LIMITED VS M/S A.S. CUNSTRUCTIONS AND OTHERS

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Ms. Simla Devi W/o Sh. Rajinder Kumar, R/o Ground Floor, H. No.48, LRC Homes, Kishanpura, Zirakpur

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Sh. Rishab Garg S/o Sh. Kewal Kumar, R/o First Floor, H No.48, LRC Homes, Kishanpura, Zirakpur

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….……Defendants

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Advocates:

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Argued by Sh. Sumeer Bactor, Advocate for the applicant Defendant no.1 to 5 are ex-parte None for defendant nos.6 to 8

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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.1,29,47,974.78p (Rupees One Crore Twenty Nine Lacs Fourty Seven Thousand Nine Hundred Seventy Four and Paise Seventy Eight only). The Original Application has been filed through Ms. Gitanjli, Branch Manager, who is competent to institute the Original Application vide Power of Attorney dated 04.03.2022, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant for the grant of CCOL Limit of Rs.100.00 Lacs vide Loan Application dated 09.03.2020, which is Annexure A3 to this OA and further for UGECL of Rs.4.77 Lacs.

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The applicant sanctioned the CCOL Limit of Rs.100.00 Lacs vide Sanction Letter dated 17.03.2020, which is Annexure A4 to this OA and further for UGECL FITL of Rs.4.77 Lacs vide Sanction Letter dated 09.09.2020, which is Annexures A19 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant Nos.1 and 2 had mortgaged their immovable properties i.e. total land measuring 49K-4M detailed as a. Plot No.47 and 48 measuring 276(Sq. Yards) Situated in LRC, Homes at Village Kishanpura, Hadbast no.54, MC Zirakpur, SAS Nagar vide Equitable Mortgage of Sale Deed bearing vasika No.2019-

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3 OA NO.391/2023 THE SOUTH INDIAN BANK LIMITED VS M/S A.S. CUNSTRUCTIONS AND OTHERS

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20/13/1/10102 dated 30.12.2019, which are Annexures A13 to this OA. Documents executed:- Partnership Deed dated 01.04.2015, Dissolution Cum Partnership Deed dated 02.11.2018 and retirement Cum Partnership Deed dated 01.04.2019, which is Annexure A2 to this OA; Demand Promissory Note, Agreement of Hypothecation, Credit Facility Agreement for operating Loan Accounts, Open Loan Stock Statement, Declaration for Loan Availed, Partnership Declaration, Declaration Regarding the CCOL Availed, Agreement of Guarantee, Declaration from Mortgagor, Acknowledgement to be issued to the Mortgagor Letter Sent to the revenue Authorities all dated 17.03.2020, which are Annexures A5 to A12 and A16 to A18 to this OA; Non Encumbrance Certificate with its translation, which are Annexures A14 and A14T to this OA; Letter of Confirmation deposit of Title Deed dated 18.03.2020, which is Annexure A15 to this OA; Undertaking and Application Continuance of Securities FITL dated 09.09.2020, which are Annexures A20 and A21 to this OA; Recall Notice and Notice for Invocation of Guarantee both dated 19.05.2021, which are Annexures A22 and A23 to this OA: Notice U/s 13(2) of SARFAESI Act dated 25.05.2021 with postal receipts, which are Annexures A24 and A25 to this OA and Statements of accounts with Certificate and interest Chart, which are Annexures A26 and A27 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.1,29,47,974.78p, 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. G.S. Dhariwal, Advocate appeared on behalf of defendant nos.6 to 8 and filed his Power of Attorney but did not filed WS within

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4 OA NO.391/2023 THE SOUTH INDIAN BANK LIMITED VS M/S A.S. CUNSTRUCTIONS AND OTHERS

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stipulated period. Therefore, opportunity to file WS by defendant nos.6 to 8 was closed and their defense was struck of on 04.01.2024. No one appeared on behalf of defendant no.1 to 5 and they were proceeded exparte on 07.04.2024. 7. In support of the OA, affidavit of Sh. Munish Sharma, Authorised Officer , Kotak Mahindra Bank Limited, h as been filed. 8. Heard arguments of Ld. counsel for applicant. None appeared for defendants for arguments. 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 A27 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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, 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.1,29,47,974.78p (Rupees One Crore Twenty Nine Lacs Fourty Seven Thousand Nine Hundred Seventy Four and Paise Seventy 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.15%p.a. plus penal interest @2.00%p.a. with monthly rests from 15.03.2023 till the realization. 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

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5 OA NO.391/2023 THE SOUTH INDIAN BANK LIMITED VS M/S A.S. CUNSTRUCTIONS AND OTHERS

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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 both 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,29,47,974.78p (Rupees One Crore Twenty Nine Lacs Fourty Seven Thousand Nine Hundred Seventy Four and Paise Seventy Eight only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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 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 20.05.2025.

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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. Pronounced by me in the open Tribunal .

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Dated: 23.04.2025.

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

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6 OA NO.391/2023 THE SOUTH INDIAN BANK LIMITED VS M/S A.S. CUNSTRUCTIONS AND OTHERS

South Indian Bank Ltd. v. Messrs a S Constructions and Others

Case brief

What is this about?

What did the court decide?

South Indian Bank Ltd. v. Messrs a S Constructions and Others

Case brief

What is this about?

What did the court decide?

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