Allowed

The South Indian Bank Limited v. M/S Als Satellite Education Private Limited

DRT22 Jan 2025OA/890/2023

Case brief

AI extract

What is this about?

DrT-I Delhi allowed the bank"s original application for recovery of dues. The Tribunal directed defendants to pay the outstanding principal with interest and costs, and permitted recovery from hypothecated and mortgaged properties.

What did the court decide?

Defendants directed to pay Rs.4,17,36,838.31 plus interest and costs; recovery directed from sale of mortgaged and hypothecated properties.

The South Indian Bank Limited versus M/S Als Satellite… — Banking and Recovery | DRT (2025)

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O.A. No.890 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 890 of 2023

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The South Indian Bank Ltd. 18, Pusa Road, Metro Pillar No.94 Karol Bagh, New Delhi-110005 Applicant

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Versus

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M/s ALS Satellite Education Pvt. Ltd. 1st & 2nd Floor, Aggarwal Auto Mall Shalimar Place, District Centre Shalimar Bagh New Delhi-110088

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M/s Alternate Learning Systems Ltd. 1st & 2nd Floor, Aggarwal Auto Mall Shalimar Place, District Centre Shalimar Bagh New Delhi-110088

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Also at:

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B-191 ALS House, Commercial Complex Mukherjee Nagar, Delhi-110009

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Renju Jojo Mathew E-32, E Block, Ashok Vihar Phase I, North West, Delhi-110052

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Jojo Thayil Mathew E-32, E Block, Ashok Vihar Phase I, North West, Delhi-110052

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Preeti Sharma

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H.No.38-D, Arjun Apartment Vikas Puri, New Delhi-110018

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6. Shashank Atom

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H.No.38-D, Arjun Apartment Vikas Puri, New Delhi-110018

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O.A. No.890 of 2023

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Manoj Kumar Singh 206, SFS Flat, Dr. Mukherjee Nagar Delhi-110009 8. Manish Kumar Gautam D-187, Ashok Vihar Phase I Delhi-110052 Defendants

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Present: Shri S.K.Garg, Counsel for the applicant bank

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Date of Institution: 16.11.2023 Date of Pronouncement: 22.01.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 16.11.2023 through Shri Kaushik Basak, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.4,17,36,838.31 (Rupees Four Crore Seventeen Lacs Thirty Six Thousand Eight Hundred Thirty Eight and paisa Thirty One only) as on 14.11.2023 together with pendentelite and future interest on

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Rs.3,43,21,351.12 @16.50%

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Rs.37,83,971.81 @9.90%

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Rs.36,31,515.38 @9.25% per annum with monthly rest plus penal interest @2% per annum from 15.11.2023 till the date of realization and costs.

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The brief facts of the case are that defendant nod is a limited company whereas defendant no.2 as Corporate Guarantor and defendant no.3 to 8 are as personal guarantors as well as defendant no.2 to 7 are mortgagors of their

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O.A. No.890 of 2023

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respective properties for credit facilities availed by defendant no.1 sanctioned by the applicant bank. On the request of defendant no.1, the applicant bank sanctioned Term Loan of Rs.187.00 lacs (Rupees One Crore Eighty Seven Lacs only) @10.80% interest per annum to be repayable in 84 EMI of Rs.3,18,230/- on 07.10.2016 for purchase of fixed assets for setting up 6 VSAT Training Studios for conducting education classes. The applicant bank renewed the limit on 08.03.2018 sanctioning Overdraft limit of Rs.300.00 lacs as Working Capital and Term Loan of Rs.187.00 lacs @9.50% interest per annum subject to change from time to time and same were renewed on 27.03.2019. Further, on the request of defendant no.1, the applicant bank sanctioned ECLGS of Rs.81.40 lacs on 10.06.2020 @9.00% interest repayable in 48 EMI of Rs.2,26,112/- from 09.07.2021 with moratorium of 12 months and interest to be served when debited. These loan facilities were sanctioned by the applicant bank against hypothecation of current assets and mortgage of properties owned by defendant no.2 to 7 and lastly renewed on 23.03.2021. The defendants are liable to pay 2% penal interest above the agreed rate of interest on due dates in case of default in payment of interest and installments.

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That in order to avail the said loan facilities, the defendant no.1 along with other defendants executed Credit Facility Agreement (TL), Agreement of Hypothecation, Agreement of Guarantees on 07.10.2016; Demand Promissory Note, Credit Facility Agreement for Operating Loan Accounts (Overdraft General), Agreement of Guarantees, Agreement of Hypothecation on 13.03.2018 & 14.05.2019. Further, on 10.06.2020, defendant no.1 executed Credit Facility Agreement(ECLGS), Supplemental Agreement of

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O.A. No.890 of 2023

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Hypothecation, Acknowledgement of Receipt of Copy of Documents on 10.06.2020 and 17.11.2020.

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The defendant no.1 along with other defendants executed Acknowledgement of Debt and Security on 07.10.2016, 13.03.2018, 26.04.2019, 14.05.2019 and 17.11.2020 towards the applicant bank.

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In order to secure the credit facilities, defendant no.1 hypothecated the current assets and other assets created out of bank finance in favour of the applicant bank duly registered with Registrar of Companies.

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It has been submitted that in order to secure the credit facilities availed by defendant no.1, the following properties were equitable mortgage by depositing original property documents with the applicant bank on 07.10.2016 and 14.05.2019 and further extended on 10.06.2020:

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Commercial Unit No.101, 1st Floor, Aggarwal Auto Mall, District Centre, Shalimar Place, Shalimar Bagh, Delhi measuring 989.32 sq.metre owned by defendant no.2; Commercial Unit No.102, 1st Floor, Aggarwal Auto Mall, District Centre, Shalimar Place, Shalimar Bagh, Delhi measuring 989.32 sq.metre owned by defendant no.7; Commercial Unit No.201, Second Floor, Site II, District Centre, Shalimar Bagh, New Delhi measuring 989.32 sq.metre owned by defendant no.3 and 4;

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Commercial Unit No.202, Second Floor, Site II, District Centre, Shalimar Bagh, New Delhi measuring 989.32 sq.metre owned by defendant no.5 and 6.

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0.A. No.890 of 2023

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The above securities are also general security for the limits availed by defendant no.2 to 7 and applicant bank reserve its right to recovery of their dues by filing separately and already filed OA no.570/2023 before DRT-I Delhi against defendant no.2.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to maintain financial discipline as per terms and conditions and to operate the account without any response from the defendants. Ultimately, the applicant bank classified the account as NPA on 30.04.2023 as per RBI guidelines and issued recall notice on 14.06.2023 but to no avail but defendants did not respond. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 14.07.2023 was issued by applicant bank but failed to invoke any positive response from the defendants.

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Notices of this O.A. were issued to the defendants and despite of proper service the defendants have chosen to absent from the proceedings. As per order dated 17.10.2024, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, ciidence and affidavit of assets have been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Kaushik Basak, authorized representative of the applicant bank who has proved the documents as Power of Attorney, Sanction Intimation Letters,

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O.A. No.890 of 2023

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Board Resolution, Credit Facility Agreement (TL), Agreement of Hypothecation, Agreement of Guarantee, Acknowledgement of Debt & Security, Letter of Deposit of Title Deeds/Sale Deeds, Confirmations, Demand Promissory Note, Credit Facility Agreement (OD), Supplemental Agreement of Hypothecation, Agreement of Guarantees, Acknowledgements of Debts & Security, Agreement of Hypothecation, Copy of Deed of Declaration, Letter confirming Deposit of Title Deed and copy of Sale Deed, Sanction Intimation of ECLGS, Acknowledgement of Receipt of Copy of Documents, on various dates, Renewal of Limits letter dated 17.11.2020, Statement of Account duly Certified under Bankers' Book Evidence Act, Certificate of Registration of Charge with ROC, CERSAI Assets ID marked as Ex.AW1/1 to AW1/71 (colly).

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts

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In the light of the above discussions, the Original Application deserves to be allowed.

sci

O.A. No.890 of 2023

ORDER

I, allow this OA and direct the defendants, jointly or severally, to pay to the applicant bank within a period of 30 days, a sum of Rs.4,17,36,838.31 (Rupees Four Crore Seventeen Lacs Thirty Six Thousand Eight Hundred Thirty Eight and paisa Thirty One only) as on 14.11.2023 together with pendentelite and future interest as under:

¶52

Rs.3,43,21,351.12 @12.00%

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Rs.37,83,971.81 @11.90%

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Rs.36,31,515.38 @11.25% per annum with monthly rest

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from 15.11.2023 till the date of realization with cost, failing which the aforesaid amount shall be recovered from the sale of hypothecated current assets of defendant no.1 as well as sale of mortgaged properties:

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Commercial Unit No.101, 1st Floor, Aggarwal Auto Mall, District Centre, Shalimar Place, Shalimar Bagh, Delhi measuring 989.32 sq.metre owned by defendant no.2; Commercial Unit No.102, 1st Floor, Aggarwal Auto Mall, District Centre, Shalimar Place, Shalimar Bagh, Delhi measuring 989.32 sq.metre owned by defendant no.7; Commercial Unit No.201, Second Floor, Site II, District Centre, Shalimar Bagh, New Delhi measuring 989.32 sq.metre owned by defendant no.3 and 4;

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Commercial Unit No.202, Second Floor, Site II, District Centre, Shalimar Bagh, New Delhi measuring 989.32 sq.metre owned by defendant no.5 and 6.

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In case of shortfall, the same shall be recovered from sale of movable and immovable properties of defendant no.1 to 9.

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O.A. No.890 of 2023

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 24.03.2025.

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(IV) Copies of final order as well as Recovery Certificate are to be sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 22.01.2025

The South Indian Bank Limited v. M/S Als Satellite Education Private Limited

Case brief

What is this about?

What did the court decide?

The South Indian Bank Limited v. M/S Als Satellite Education Private Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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