Allowed

Central Bank of India v. M/S Shifa Opticals

DRT22 Jan 2025TA/2477/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of a dues of approximately Rs. 2.29 Crore along with interest. The bank proved the loan facility, security documents, and notice under Section 13(2) of SARFAESI Act. Defendants were absent, leading to an ex-parte order directing payment within 30 days.

What did the court decide?

The defendants were directed to pay Rs. 2,29,64,457 along with pendentelite and future interest @13.20% per annum and costs within 30 days.

Central Bank of India versus M/S Shifa Opticals — Insolvency and Bankruptcy | DRT (2025)

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T.A. No.2477 of 2022

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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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T.A. No. 2477 of 2022

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Central Bank of India 13-B, Netaji Subhash Marg Darya Ganj, New Delhi-110002 Applicant

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Versus

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M/s Shifa Opticals Through its proprietor Mr. Sarfafaj Ahmed

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2nd Floor, Gali Seerus Wali Naya Bans, Delhi-110006

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Mr. Sarfafaj Ahmed s/o Sh.Samir Ahmed 1250, Katra Hussain Mirza, Farash Khana, Chandni Chowk, Delhi-110006

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Mr. Mazhar Khan s/o Sh.Babu Khan A-642, Gali No.17, Shri Ram Colony Khajoori, Dayalpur, Delhi-110094 Defendants

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Present: Mr. Rajesh Sharma, Counsel for the applicant bank

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Date of Institution: 24.12.2021 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 24.12.2021 filed before DRT-III, Delhi and then transferred to DRT-I Delhi through Sh.Ashwini Sagar, 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.2,29,64,457/- (Rupees

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sa-

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T.A. No.2477 of 2022

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Two Crore Twenty Nine Lacs Sixty Four Thousand Four Hundred Fifty Seven only) together with pendentelite and future interest @15.20% per annum with monthly rest from the date of filing of this application till its realization along with costs.

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The brief farts of the case are that at the request of defendant no.1 being proprietor of Shifa Opticals in trading business of optical instruments was sanctioned Cash Credit facility of Rs.1,95,00,000/- (Rupees One Crore Ninety Five Lacs only) on 15.07.2016 against current assets including stock and book debts of defendant no.1 and mortgage of property of defendant no.2 who stood as guarantor for the credit facility availed by defendant no.1 @12.18% interest per annum by the applicant bank.

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That in order to avail the aforesaid loan facility, the defendant no.1 through defendant no.2 executed Agreement of Hypothecation to secure Cash Credit against Goods, Letter of Hypothecation for Book Debts, Supplementary Agreements, Promissory note, Letter of Waiver, Letter of Continuity, Letter of Interest, Consent Clause, Declarations, Affidavit, Guarantors' Consent and Undertaking all dated 20.07.2016. Further, defendant no.3 executed Guarantors Consent Form and Deed of Guarantee dated 20.07.2016 in favour of applicant bank.

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That in order to secure the loan facility, defendant no.3 created equitable mortgage of property by depositing original title deeds of the immovable property being Vacant property land area 122 sq.yards bearing Property No.1253/A, out of Khasra No.8 & 9, Village Jafrabad, Gali No.39/7, Jafrabad, Shandara, Delhi-32 with the applicant bank.

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T.A. No.2477 of 2022

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The defendant no.2 and 3 executed Balance Confirmation Letter dated 01.07.2019 acknowledging the debt towards the applicant bank.

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It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendants failed to maintain financial discipline and failed to comply with the terms and conditions despite of several requests / reminders but the defendants failed to regularize the account with the applicant bank due to which the account was classified as NPA on 29.11.2018 by the applicant bank as per RBI guidelines but defendants neglected to pay the dues, hence the applicant bank has approached this tribunal for recovery of its 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 17.12.2018 was issued and applicant bank taken the possession of mortgage property and sold under Sarfaesia Act and adjusted the sale proceeds in the account.

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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 20.08.2024, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence 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 Ashwini Sagar, authorized representative of the applicant bank who has proved the documents as Power of Attorney Exhibit A-1, Loan Application Exhibit A-2, Sanction Letter Exhibit A-3, Agreement of Hypothecation Exhibit A-4, Letter of Hypothecation — Book 50‘

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T.A. No.2477 of 2022

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Debts Exhibit A-5, Supplementary Agreements Exhibit A-6 (colly), Promissory Note Exhibit A-7, Letter of Waiver Exhibit A-8, Letter of Continuity Exhibit A-9, Letter of Interest Exhibit A-10, Consent Letters Exhibit A-11(colly), Declaration and Undertaking Exhibit A-12, Affidavit Exhibit A-13, Guarantors' Consent Letters Exhibit A-14, Deed of Guarantee Exhibit A-15, Balance Confirmation Letter Exhibit A-16, Demand Notice u/s 13(2) with postal receipts Exhibit A-17, Certified Statement of Account under Bankers' Book of Evidence Act Exhibit A-18.

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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.

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ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.2,29,64,457/- (Rupees Two Crore Twenty Nine Lacs Sixty Four Thousand Four Hundred Fifty Seven only) together with pendentelite and future interest @13.20% per annum from the date of filing of this application till the date of realization and costs failing which the aforesaid amount shall be recovered from the sale of hypothecated current assets

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T.A. No.2477 of 2022

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including stocks and book debts. In case of shortfall, the same shall be recovered from the sale of movable and immovable personal properties of the defendants.

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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 be sent to all concerned free of cost.

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

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(Dictated and pronounced in open court) Dated: 22.01.2025

Central Bank of India v. M/S Shifa Opticals

Case brief

What is this about?

What did the court decide?

Central Bank of India v. M/S Shifa Opticals

Case brief

What is this about?

What did the court decide?

What the court decided

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