Allowed

Canara Bank v. Deep jyoti Agency

DRT14 Feb 2025OA/815/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed Canara Bank's application for recovery of dues against Deep Jyoti Agency and the legal heirs of the deceased proprietor. The court directed payment with interest, sanctioned sale of mortgaged and personal assets, and issued a remand for preparation of a recovery certificate.

What did the court decide?

The recipients to pay ₹47,59,295.71 with interest; mortgaged and personal assets to be sold; injunction against transferring assets; Recovery Certificate to be issued.

Canara Bank versus Deep jyoti 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 Applicotion No. - 815/24

Canara Bank,

Dhamtari (C.G.)

Appticant

Versus

1. M/s Deep Jyoti Agency, Prop. Late Prashant Gupta, Opp. DCH Raipur Road, Dhamtari (C.c.) 493773

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02), Mrs. Bhawna Gupta, W/o Prashant Gupta

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1. Mr. Aditya Gupta, S/o Prashant Gupta

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(2 & 3 Legat Heir of Prashant Gupta, R/o SV Bhai Patel Ward, Goyal Auto Galu,

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Ward No.-5, Dhamtari, C.G. 493773) Defendants

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Counsel for the Appticant : Shri Vinayak Parasar, Advocate

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Defendants : Ex-parte

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JUDGMENT

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(Dated : t76 feUruary, ZOZS)

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The Appticant-Bank has fited the present Original Application uls 19 of Recovery of Debts and Bankruptcy Act on 03/06/24 against the Defendants for recovery of Rs. 47,59,295.71 (Rupees Fourty Seven Lakh, Fifty Nine Thousand, Two Hundred Ninety Five and Paisa Seventy One 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, the Appticant Bank sanctioned GECL of Rs.4 Lakh on 20/06120, CFITL of Rs. 1,83,128/- on 17/06121 and OD/OCC of Rs. 40 Lakh on 17/05/23. ln consideration of the sanction of credit facilities the Defendant in addition to execution of toan documents has atso created equitab[e mortgage over the immovable property, i.e., att the part & parcel of residential buitding situated at Hatkeshar Survey No.-551 , 557/21, Khala No.-898, PC No.-1, RIC Bhothti, Dhamtari, C.G., area 512 sq.ft. The Defendant avaited the credit facitities and atso executed Batance

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oA 815124

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confirmationonl2lo5/23butfaitedtotiquidatetheoutstandingdues despite initiation^{of action underthe securitisationAct by the Appticant} Bank. The Appticant-Bank^{has retied uponthe documents at Ex' A-1 to A'19} which were^{proved by Shri RakeshSahu, SeniorManager'}

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Despite service of^{notice,the Defendantsneitherappeared nor} fited written statement.^{They were proceededex-partevide order dated} 12111 174. Perusal of^{recordreveals that Defendant No'-1 wasa} proprietorship concern of Prashant Gupta who has since deceased.^The Defendant No.-2 &^{3 are being impteaded beingLegatHeirs of deceased} borrower/ Proprietor of^{Defendant No.-1 PrashantGupta and have not} executed loan/security^{documents in their persona[ capacity. Thus the} tiabitity of Defendant^{No.-2 and 3 is restrictedto the valueof estate/assets} inherited by them from^{the deceased PrashantGupta. Consideringthe facts} of the case, I opine that^{the Defendants are jointly and severatlyliabte to} pay the ctaim amount together with^{interestand costs. The Appticant-Bank} in its apptication has claimed^{interest@11 .95% p'a. and for GECL 9.5% with} monthty rests. However, I^feet it^{fair and reasonabteto grant interest} @11.95%^{p.a. simpte and for GECL 9.5% p.a. simplependenteliteand future} titt reatization of the^{dues. The mortgaged property is tiabte to be sotd for} recovery of amount due^{atong with the personalproperties and assets of the} Defendant No.'1 and deceased^{Prashant Guptainherited by DefendantNo"2} and 3.

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The Originat Apptication is attowed^{and it is orderedas under-} i) The Defendants do^{pay jointtyand severatly Rs.47'59,295'71} (Rupees Fourty Seven Lakh, Fifty Nine^{Thousand, Two HundredNinety Five} and Paisa seventy one^{onty)together with pendentetite and futureinterest} @11.95%^{p.a.simpte and for GECL9.5% p.a. simple from the dateof fiting of} the OA, i.e., 03106124, with^{costs titt its realization.The tiabitity of} Defendant No.-2 and 3^{is restricted to the value of estate/assets inherited} by them from the deceased^{Prashant Gupta.}

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ii) The Appticant Bank is entitLed^{to setl the mortgagedas wetlas} personal properties and assets of the^{Defendant No.-1 concerned and} deceased Prashant Gupta^{for reatizationof its dues. The DefendantNo'-2} and 3 are hereby restrained^{by meansof injunction from depleting,} transferring, encumbering,^{atienatingor in any way deatingwiththe}

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oA 815/24

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properties/ assets of Defendant No,-1 M/s Deep Jyoti Agency and deceased Prashant Gupta without first^paying the ctaim of^{the ApplicantBank'}

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'iii) A Recovery Certificate be issued uls 19(22\ of Recovery of Debts and Bankruptcy Act. The appticant 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 14th Day of February,2075.}

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(Ra m Niwas Pa
Presidin Officer

Canara Bank v. Deep jyoti Agency

Case brief

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Canara Bank v. Deep jyoti Agency

Case brief

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