Allowed

State Bank of India v. M/S Ashok Agency

DRT22 Jan 2025OA/755/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application filed by State Bank of India for recovery of dues from borrowers and guarantors. It decreed the principal amount, awarded specific rates of simple interest for loan accounts, issued a recovery certificate, and restrained the respondents from alienating assets.

What did the court decide?

Direct respondents to pay Rs. 33,14,376 plus interest; issue Recovery Certificate; restrain alienation of assets.

State Bank of India versus M/S Ashok Agency — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL : JABALPUR

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(for the States of Madhya Pradesh and Chhattisgarh)

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

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Original Application No. - 755/22

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State Bank of lndia, Stressed Assets Recovery Branch, 3'd Ftoor, Zonat Office, Vijay Nagar, Jabatpur (M.P.) Appticant

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Versus

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1. M/s Ashok Agency, Through its ProprietorAni[ Kumar Jain, S/o Late Manohar La[ Jain

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1. Mrs. Hemtata Jain, W/o Late Ashok Kumar Jain

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1. Amit Kumar Jain, S/o Late Ashok Kumar Jain

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1. Ajit Kumar Jain, S/o Late Manohar La[ Jain

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1. Arvind Kumar Jain, S/o Late Manohar Lat Jain

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1. Jinesh Kumar Jain, 5/o Late Manohar La[ Jain

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(Att R/o 6, Ram Ward, Badi Bazariya, Bina Station, Sagar, M.P. 470113)

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Defendants

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CounseI for the Appticant : Shri Vivek Shukta, Advocate

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Defendants : Ex-parte

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JUDGMENT

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(Dated : 22nd January, 2025)

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The Appticant-Bank has fited the present Original Application uls 19 of Recovery of Debts and Bankruptcy Act on 30/05lZZ against the Defendants for recovery of Rs. 33,14,376.00 (Rupees Thirty Three Lakh, Fourteen Thousand, Three Hundred and Seventy Six onty) along with interest and other reliefs as stated.

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The brief facts of the case are that on the request of Defendant No.-1 through its Proprietor, the Appticant Bank sanctioned Cash Credit Limit of Rs. 1 0 Lakh on 28 /05 /07 which was subsequentty enhanced to

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oA755122

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Rs. 30 Lakh on 25/09109 and Funded^{lnterest Term Loan FITL OFRs.} 77,628.92 on 27/08120. ln consideration of the^{sanctionof creditfacitities} the Defendant No.-1 as borrower and Defendant^{No.-1 to 6 in their personal} capacjty as guarantors in addition to execution of^{loan and guarantee} documents have atso created equitabte^{mortgage over the immovabte} property, i.e., Nazul Khasra No.-407, Sheet No.-29D, Part of Ptot No.-5712, 5811, 58/2,58/3 &" 59/1, an area admeasuring²⁷⁰² sq'fl.'^{Nazul P[ot No.-} 58/3 Otd New No.-58/5, Part of Khasra No.'396 and Sheet^No.-29D,Shiv Ward, Bina, Tehsit-Bina, Distgrict-Sagar^(M.P.). The Defendant No.-1 avaited the credit facitities and also executed Revival Letters^{lastlyon 18/01 /18 and} Balance Confirmation Letters lastty on 31 /03/19. Then accounts were classified as NPA and the Defendants faited to liquidate the outstanding^dues despite issuance of Legal Notice on 18105/22 by the Appticant Bank. The Appticant-Bank has retied upon the documents at Ex. A-'l to A-18^{which were} proved by Shri Manmohan Anand, 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} 11 t12/23. There is therefore, no reason to disbetieve the^{contentionsof the} Bank. Considering the facts of the case, I opine that^{the Defendantsare} jointty and severally tiabte to pay the claim amount together with^interest and costs. The Appticant-Bank in^{its application has ctaimedinterestat} contractuaL rate with^{monthty rests but not mentioned the specificrate of} interest and it is teft btank.^{However, I feet it fair and reasonabteto grant} interest @10%^p.a. simpte^{in cash credit account and [email protected]%p.a.} simpte in FITL account^{pendentetite and future titl realizationof the dues.} The mortgaged^{propertyis tiabte to be sotd for recovery of amount due atong} with the personal^{propertiesand assets of the Defendants.}

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The Originat Apptication^{is attowed and it is orderedas under'}

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i) The Defendants do^{pay jointty and severatly Rs' 33,"14,376'00} (RupeesThirtyThreeLakh,FourteenThousand,ThreeHundredandSeventy six onty) together^{with pendentetite and future interest@10% p.a. simpte in} cash credit account^{and [email protected]%p.a.simpte in FITL account from the} date of fiting of^{the OA, i.e., 30 I 05 122, with costs titl its realization'}

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ii) The Appticant Bank^{is entitted to sett the mortgagedas we[[ as} personalpropertiesandassetsoftheDefendantsforrealizationofitsdues.

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oA755122

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The Defendants are hereby^{restrained by means of injunctionfrom} depteting, transferring, encumbering,^{alienating or in anyway deating with} their properties/assets without^{first paying the ctaim of the AppticantBank'}

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iii) A Recovery Certificate^{be issued uls 19(72\ of Recoveryof} Debts and Bankruptcy^{Act. The appticantbank may fite a memo of cost} within 7 days for^{preparingRecovery Certificate.}

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Judgment^{pronouncedin the open court on this22ndDay of January, 2025'}

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2 {
as Patet)
P dine Offi cer

State Bank of India v. M/S Ashok Agency

Case brief

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State Bank of India v. M/S Ashok Agency

Case brief

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