Allowed

Uco Bank v. Angam Foods Private Limited

DRT13 Feb 2025OA/774/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application for recovery of outstanding loan dues of approximately Rs. 51 Lakhs. Following an ex-parte hearing, the court declared the defendants liable to pay the principal, an adjusted interest rate of 8% per annum, and costs, authorizing recovery via the sale of hypothecated assets.

What did the court decide?

Recovery of Rs.51,59,564.65 plus simple interest @8% p.a. from date of filing; issuance of Recovery Certificate.

Uco Bank versus Angam Foods Private Limited — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.774/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.06.2023

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DATE OF DECISION: 13.02.2025

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UCO Bank, a commercial Bank and a Government of India undertaking, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 10-B.T.M., Sarani, Kolkata-700001 (West Bengal), carrying on its Business of Banking in India and Abroad having its Branch amongst other places at Hans Raj Sharma Bhawan, Chandigarh-Ambala Highway, Derabassi, District SAS Nagar Mohali-140507(Punjab) through its Senior Manager, Sh. Varun, who is also the Principal Officer of the Applicant.

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……..Applicant

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Versus

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1. Angam Foods Private Limited, a Private Limited Company duly registered with Registrar of Companies under the Companies Act, Registered Office at Plot No.899, JLPL, Industial Area, Sector 82, SAS Nagar Mohali-140308 (Punjab), through its Directors. IInd Address : at B-002/09717, New Swaraj Nagar, Mundi Kharar, District SAS Nagar Mohali-140301 (Punjab).

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Sh. Satish Birla son of Sh. Kashmiri Lal, Director of Angam Foods Private Limited, Resident of House no.B-002/09717, New Swaraj Nagar, Mundi Kharar, District SAS Nagar Mohali-140301 (Punjab).

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Sh. Karan Birla son of Sh. Satish Birla, Director of Angam Foods Private Limited, Resident of House no.B-002/09717, New Swaraj Nagar, Mundi Kharar, District SAS Nagar Mohali-140301 (Punjab). ………. Defendants

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Advocates: Argued by Sh. Sanjay Sagar, Advocate proxy for Sh. Vivek Verma, Advocate for the applicant Defendants already ex parte

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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.51,59,564.65p (Rupees Fifty One Lacs Fifty Nine Thousand Five Hundred Sixty Four And Paise Sixty Five Only). The Original Application has been filed through Sh. Varun, Senior Manager of the applicant, who is competent to institute the Original Application vide Board Resolution dated 01.04.2021, which is Annexure A3 to this OA. 2. The brief facts of the OA are that the defendant no.1 through defendant no.2 & 3 had approached the applicant for grant of CC Limit of Rs.30.00 Lacs and Term Loan of Rs.20.00 Lacs vide Application for grant of credit facilities dated 04.03.2021, which is Annexure A2 to this OA to this OA. 3. The applicant sanctioned CC Limit of Rs.30.00 Lacs and Term Loan of Rs.20.00 Lacs vide Sanction Letter along with process note of both credit facilities dated 12.03.2021, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had hypothecated its movable Properties/Assets i.e. Food items and fixed assets, including machineries etc. vide Hypothecation of goods to secure a demand cash credit, Agreement relating to term loan dated 12.03.2021, which are Annexures A5 and A6 to this OA Documents executed:-Resolution of UCO Bank dated 16.07.2022, which is Annexure A1 to this OA; D.P. Note, 7 Guarantee Agreement of defendant no.1 to 3 all dated 12.03.2021, which are Annexures A7 to A10 to this OA; Acknowledgement of debt dated 07.09.2022, which is Annexure A11 to this OA; Notices dated 12.10.202, which is Annexure A12 to this OA; Recall Notice dated 31.12.2022, which is

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Annexure A13 to this OA; Legal Notice along with its postal receipts dated 11.01.2023, which is Annexure A14 to this OA and Statements of Accounts along with Banker Certificate, which are Annexures A15 & A16 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan accounts there was adebit of Rs.51,59,564.65p, 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 27.06.2024.

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In support of the OA, affidavit of Sh. Varun, Senior Manager, UCO Bank h as been filed.

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Heard arguments and perused record.

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It was argued by learned proxy 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 A16 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.51,59,564.65p (Rupees Fifty One Lacs Fifty Nine Thousand Five Hundred Sixty Four And Paise Sixty Five 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 @10.95%p.a. along with penal interest @2% in both the accounts with monthly rests from 14.06.2023 till the realization.

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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 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 @08.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.51,59,564.65p (Rupees Fifty One Lacs Fifty Nine Thousand Five Hundred Sixty Four And Paise Sixty Five Only) jointly and severally, with costs, current and future simple interest @08.00%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. 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 15.03.2025.

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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 . Dated: 13.02.2025

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

Uco Bank v. Angam Foods Private Limited

Case brief

What is this about?

What did the court decide?

Uco Bank v. Angam Foods Private Limited

Case brief

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What did the court decide?

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