Allowed

Bank of India v. Ms Khan Cycles Auto Stores through Its Prop-Mohd Sabir Khan

DRT24 Jul 2025OA/692/2023

Case brief

AI extract

What is this about?

Defendants failed to repay a cash credit facility creating an equitable mortgage. Tribunal allowed the applicant bank's original application, directing joint payment of dues, payout of interest, a moratorium, and issuance of a recovery certificate.

What did the court decide?

Defendants to pay jointly and severally Rs. 45,39,186.92 with interest; recovery certificate to be issued.

Bank of India versus Ms Khan Cycles Auto Stores… — Contract and Commercial Disputes | DRT (2025)

GONTD. ORDER. SHEET

PAGE NO.

CASE NO.

DATE	DESCRIPTION OFTHEORDER	REMARK
oA 692/73 74/07t75	JudgmentpronouncedintheOpenCourtCamp at Raipur.CopyofJudgmentbeissuedtothePartiesas perrules.Recordbeconsignedto theRecordRoom. (R P et) P tcer DR atpur CampC rt:Raipur	l]dqretr Lc.o f,rlolurarl1 7r<,/^LAt ,-"

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DEBTS RECOVERY TRIBUNAL : JABALPUR

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(for the States of Madhya Pradesh and Chhattisgarh)

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cAttP couRT AT RAIPUR^(C.G.)

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(Presiding Officer - Hon'ble Shri Ram Niwas Patet)

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Originol Applicotion No.' 692¹ 23

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Ban k of lndia,

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Tetibandha, Raipur (C.G.)

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Applicant

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Versus

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01 ) M/s Khan Cycles & Auto Stores, Through its ProprietorMohd. Sabir Khan, Ward No.-4, Golbazar, Tehsit-Thankhamariya, District- Bemetara^(C.G. )

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Mohd. Sabir Khan, S/o Late Mohd. Khatit Khan, Ward No.-14, Musatman Mohalla, Tehsit-Thankhamariya, District-Bemetara^(C.G. )

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Mohd. Zubair Atam, 5/o Sakiruddin,

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R/o D-5, Simran City, Chorasiya Colony, Santoshi Nagar, Raipur (C.G.) Defendants

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Counsel for the Appticant : Shri Shubh Choudha,^Advocate

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Defendants : Ex-parte

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JUDGMENT

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(Dated : 24tn July,2o25t

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The Appticant-Bank has fited the^present Originat^Apptication u/s 19 of Recovery of Debts and Bankruptcy^{Act on 01 104173against the} Defendants for recovery of Rs. 45,39,186.92^(Rupees Fourty^{Five Lakh,Thirty} Nine Thousand, One Hundred Eighty Six and Paisa Ninety^{Twoonty) along} with interest and other reliefs as stated.

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2, The brief facts of the case are that on the^{request of} Defendant No.-'l through its Proprietor Defendant No.-2, the^{ApplicantBank} sanctioned CC Limit of Rs. 30 Lakh on 09/05117 and in consideration^{of the} same the Defendant No.-1 & 2 as borrower and Defendant^{No.-3as guarantor} in addition to execution of toan and^guarantee documents^{haveatsocreated}

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oA 692123

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equitable mortgage over the immovabte^property, i.e.,^Land bearing^Khasra No.-555/3 (otd Khasra No.'475/1, 475/3 &. 466/'l), situated at Mouja Thankhamariya, Tehsi[-Thankhamariya, District- Bemetara^(C.G.), admeasuring 0.190 hectare; belonging to Defendant No.-2. The Defendants availed the cash credit [imit and atso executed Letter of Acknowledgment of Debt/Securities on 26/03/19 but did not maintain repayment schedute. The account was ctassified as NPA and the Defendants failed to liquidate the outstanding dues despite issuance of Demand Notice on 01 /01 /19 by the Applicant Bank. The Appticant-Bank has relied upon the documents at Ex A-1 to A-17 which were proved by Ms Swati Shinde, Chief 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 692/23. There is therefore, no reason to disbelieve the contentions of the Bank. Considering the facts of the case, I opine that the Defendants are jointly and severatly liabte to pay the ctaim amount together with interest and costs. The Applicant-Bank in its apptication has ctaimed interest @11.20%^p.a. with monthty rests. However, I feel it fair and reasonabte to grant interest @11.20yo p.a. simpte pendentetite and future titl realization of the dues. The mortgaged property is tiabte to be sotd for recovery of amount due along with the personal properties and assets of the Defendants.

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The Originat Application is allowed and it is ordered as under-

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i) The Defendants do pay^jointty and severatty Rs. 45,39,186.92 (Rupees Fourty Five Lakh, Thirty Nine Thousand, One Hundred Eighty Six and Paisa Ninety Two only) together with pendentelite and future interest @11.20%^per annum simpte from the date of fiting of the OA, i.e.,^{01 I} 04123, with costs titl its realization.

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ii) The Applicant Bank is entitted to se[L the mortgaged as we[[ as personal properties and assets of the Defendants for realization of its dues. The Defendants are hereby restrained by means of injunction from depteting, transferring, encumbering, alienating or in any way deating with their properties/assets without first paying the claim of the Appticant Bank.

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oA 691123

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iii) A Recovery Certificate be issued uls¹⁹⁽⁷²⁾ of^Recoveryof Debts and Bankruptcy Act. The applicant bank^may fite a^{memo of cost} within 7 days for preparing Recovery Certificate.

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Judgment pronounced in the open^{court on this 24th Day of Juty, 2025 at} Camp Court Raipur.

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01
a tet)
Presidine Off icer

Bank of India v. Ms Khan Cycles Auto Stores through Its Prop-Mohd Sabir Khan

Case brief

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Bank of India v. Ms Khan Cycles Auto Stores through Its Prop-Mohd Sabir Khan

Case brief

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