Allowed

Federal Bank v. Sh.

DRT18 Jun 2025OA/861/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Federal Bank's application for recovery of Rs.1,63,12,240.36p with interest against three defendant proprietors. The court found the bank proved the loan advance and directed recovery from mortgaged and personal properties, dismissing the ex parte application in favor of the applicant.

What did the court decide?

Recovery of Rs.1,63,12,240.36p with interest @17.58% per annum allowed; Recovery Certificate to be issued.

Federal Bank versus Sh. — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 861/2022 Date of Institution: 25.04.2022 Date of Decision: 18.06.2025

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The Federal Bank at 5 D/6, B.P. Neelam Railway Road, NIT, Faridabad, Haryana

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……..Applicant Vs.

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Sh. Tarun Virmani S/o Sh. Ashok Kumar Virmani, sole Proprietor of M/s KTM Electricals, 1K-8A, NIT Faridabad District Faridabad, Haryana-121001. Also at: 3355/A, Block-A, Gali No. 6, SGM Nagar, Faridabad, Haryana-121001.

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Smt. Monica Rani W/o Sh. Tarun Virmani, r/o 3355/A, Block-A, Gali No. 6, SGM Nagar, Faridabad, Haryana-121001.

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Sh. Sachin Virmani S/o Sh. Ashok Kumar Virmani, sole proprietor of M/s Khushi Trading Company at 3355/A, Block-A, Gali No. 6, SGM Nagar, Faridabad, Haryana-121001.

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Advocates

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Sh. Rakesh Gupta proxy Counsel for Sh. Sushil Grover, Counsel for the applicant bank Defendants- ex parte

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OA for the Recovery of Rs.1,63,12,240.36p with interest @17.58% per annum with monthly rests from 25.04.2022. ORDER

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The Federal Bank (Applicant Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.1,63,12,240.36p with interest against Sh. Tarun Virmani and Others (defendants). 2. Bank’s case is that on 15.07.2015, it had granted loans of Rs.45.00 Lacs to defendant Nos. 1 and 2 in the form of Cash Credit Facility-I and on 17.09.2015, Rs.36.00 Lacs in the form of Cash Credit Facility-II to defendant Nos. 1 and 3 for business purpose. To secure the loans, the defendant No. 1 had mortgaged his property (fully detailed in para No.3A of the application). The loans were chargeable to interest @13.90% per annum with monthly rests. On 22.04.2022, a sum of Rs.1,63,12,240.36p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 02.07.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 19.12.2022, they were proceeded ex parte . 4. In order to prove its case, the Bank has placed on record the affidavit of Sh. Prashant Mishra, Authorized signatory along with the loan and security documents and marked them as Exhibit A-1 to A-20. 5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.81.00 Lacs and on 22.04.2022, a sum of Rs.1,63,12,240.36p was due. 6. Accordingly, the application of the bank for the recovery of Rs.1,63,12,240.36p (Rupees One Crore Sixty Three Lacs Twelve Thousand Two Hundred Forty and Thirty Six Paisa Only) with interest

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@17.58% per annum with monthly rests from 25.04.2022, till the date of payment is hereby allowed with costs. The liability of defendant Nos.1 and 2 would be joint and several for Rs.89,50,295.06p and the liability of defendant Nos.1 and 3 would be joint and several for Rs. 73,61,945.30p . Bank can recover its dues by the sale of mortgaged property(ies) fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 23.07.2025 , who is directed to distribute the sale proceeds of the mortgage property(ies) as per the provisions of Section 19(20-AB) of the Act . 10. A copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.

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Pronounced in the open Court (A S Narang) Dated: 18.06.2025 Presiding Officer DRT-2, Chandigarh (Additional charge)

Federal Bank v. Sh.

Case brief

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Federal Bank v. Sh.

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