Allowed

Central Bank of India v. M/S Sai Chain House

DRT20 Mar 2025OA/934/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application under Section 19 of the RDB Act for the recovery of Rs.32,28,557/- with interest against the respondent firm and its partners, who were absent. The court held that the bank proved its case and directed the issuance of a Recovery Certificate and distribution of sale proceeds.

What did the court decide?

The application for recovery of Rs.32,28,557/- with interest is allowed; a Recovery Certificate is to be issued.

Central Bank of India versus M/S Sai Chain House — Banking and Recovery | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

¶2

BEFORE: A S NARANG, PRESIDING OFFICER

¶3

OA No: 934/2023 Date of Institution: 10.02.2023 Date of Decision: 20.03.2025

¶4

Central Bank of India having its branches all over India and a branch at Heera Colony Old Chintapurni Road, Hoshiarpur, Punjab.

¶5

……..Applicant

¶6

Vs.

¶7

M/s Sai Chain House through its partner Sh. Amandeep Singh s/o Sh. Ashok Kumar, 4, Narain Nagar Street, Near Suki Choi Ashram, Hoshiarpur, Punjab.

¶8

Sh. Amandeep s/o Sh. Ashok Kumar, r/o H.No. 15, Civil Lines, Near Church, Hoshiarpur, Punjab.

¶9

Sh. Harsh Verma w/o Sh. Rakesh Verma , r/o 61 Adarsh Nagar, Jalandhar, Punjab.

¶10

Sh. Ranjiv Kumar s/o Sh. Satpal, r/o 316, W-4, Near M.C. Office Dasuya, Distt. Hoshiarpur, Punjab .

¶11

Sh. Ashok Kumar s/o Sh. Puran Singh, r/o H.No. B-4/960, Sheesh Mahal Bazaar, Hoshiarpur, Punjab.

¶12

2^nd Address: H.No. 15, Civil Lines, Near Church, Hoshiarpur, Punjab.

¶13

……….Defendants

¶14

Advocates

¶15

Ms. Shivangi Chauhan, proxy Counsel for Ms. Jasleen Kaur, Counsel for the applicant bank.

¶16

Defendants- ex parte .

¶17

OA for the Recovery of Rs.32,28,557/- with interest @14.25% per annum with monthly rests from 10.02.2023.

¶18

ORDER

¶19

Central Bank of India (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.32,28,557/- with interest against M/s Sai Chain House and others (defendants).

¶20

¶21

Bank’s case is that Defendant No.1 is a partnership firm of defendant Nos.2 to 4. On 11.02.2020, it had granted a loan of Rs.25.00 Lacs to defendant No.1 through defendant Nos.2 to 4 in the form of C.C Limit for business purpose. To secure the loan, Defendants had mortgaged their property (fully detailed in para No.3A of the application). Defendant No.5 stood as guarantor. The loan was chargeable to interest @14.25% per annum with monthly rests. On 31.01.2023, a sum of Rs.32,28,557/was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

¶22

On 22.05.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 02.09.2024, they were proceeded ex parte . 4. In order to prove its case, the Bank has placed on record the affidavit of Sh. Naresh Kumar Sarwal, Branch Manager along with the loan and security documents and marked them as Exhibit A-1 to A-30

¶23

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.25.00 Lacs and on 31.01.2023, a sum of Rs.32,28,557/- was due. 6. Accordingly, the application of the bank for the recovery of Rs.32,28,557/- (Rupees Thirty Two Lacs Twenty Eight Thousand Five Hundred Fifty Seven Only) with interest @14.25% per annum with monthly rests from 10.02.2023, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged property fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants. 7. Pending IAs, if any, stand disposed of.

¶24

¶25

Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 22.04.2025, who is directed to distribute the sale proceeds of the mortgaged property 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. Pronounced in the open Court. (A S Narang) Dated: 20.03.2025 Presiding Officer DRT-1, Chandigarh

Central Bank of India v. M/S Sai Chain House

Case brief

What is this about?

What did the court decide?

Central Bank of India v. M/S Sai Chain House

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Union Bank of India versus Manjit Singh

Union Bank of India versus Praveen Khan

Asset Reconstruction Company India Ltd. versus Sanjay Gupta

Shanthi Beulah Prince versus the Malleshwaram Co. Operative Bank Ltd.

Canara Bank versus M/S New Golden Traders

Sulakhan Singh versus PNB Housing Finance Limited