Allowed

Central Bank of India v. M/S D.S. Impex

DRT13 Jan 2025TA/678/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of Rs.4.72 crores. The court observed the case was unrebutted, found the defendants liable, and directed recovery of the principal amount, pending interest, and realization through hypothecated assets or property sale.

What did the court decide?

Defendants directed to pay Rs.4,72,65,296/- plus 12.50% pending interest within 30 days; recovery to be effected from hypothecated stocks, book debts, or sale of mortgaged property with recovery certi

Central Bank of India versus M/S D.S. Impex — Contract and Commercial Disputes | DRT (2025)

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T.A. No.678 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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T.A. No. 678 of 2023

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Central Bank of India Link House, 3, Press Area Bahadur Shah Zafar Marg New Delhi-110002 Applicant Versus 1. M/s D.S.Impex hrough its partners t : D/55-561 1st & 2nd Floor, Old Double Story Market Lajpat Nagar-IV, New Delhi-110024 2. Sh.Sandeep Goswami s/o Ram Kishan Partner of D.S.Impex R/o D/55-56, 1st & 2nd Floor, • Id Double Story Market Lajpat Nagar-IV, New Delhi-110024 lso at: First Floor, front side portion of property Plot No.21, Ring Road, Lajpat Nagar IV New Delhi-110024 lso at: B-4/158, Block B-4, amuna Vihar, Delhi-110053 lso at: 132, 3rd Floor, Chitra Vihar ear Laxmi Nagar, New Delhi-110092 Mrs.Divya Goswami w/o Sh.Sandeep Goswami artner of D.S.Impex /o B-4/158, Block B-4, amuna Vihar, Delhi-110053

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T.A. No.678 of 2023

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Also at: D/55-56, 1st &2ndFloor, Old Double Story Market Lajpat Nagar-IV, New Delhi-110024
Also at:
First Floor, front side portion of property Plot No.21, Ring Road, Lajpat Nagar IV New Delhi-110024
Also at:
132,3rdFloor, Chitra Vihar Near Laxmi Nagar, New Delhi-110092 Defendants
Present: Shri S.A.Khan, Counsel for the applicant bank Date of Institution: 01.06.2020 Date of Pronouncement: 13.01.2025
FINAL ORDER

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This original application has been filed by the applicant bank on 01.06.2020 before �Delhi & then transferred to DRT-I, Delhi through Shri Anil Kumar, authorized representatives of the applicant banks under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.4,72,65,296/- (Rupees Four Crores Seventy Two Lacs Sixty Five Thousand Two Hundred Ninety Six only) as on 19.03.2020 @12.50% rate of interest with monthly rests plus @2% penal interest from 20.03.2020 till the date of realization and costs.

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The brief facts of the case are that on the request of defendant no.1 through its partners being defendant no.2 & 3, the applicant bank sanctioned Cash Credit facility of Rs.300.00 lacs (Rupees Three Crores only) on 01.03.2016 against hypothecation of entire stocks including raw materials, work in

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T.A. No.678 of 2023

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progress and finished goods etc. and receivables as well mortgage of property owned by defendant no.2.

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In order to avail the credit facility, the defendant no.1 through their partners submitted loan application dated 29.01.2016 and executed Sanction Letter dated 01.03.2016, Partnership Form, Demand Note, Letter of Waiver, Letter of Interest, Agreement of Hypothecation to secure Demand Cash Credit against Goods, Letter of Continuity, Letter of Hypothecation of Book Debts, Form of Guarantee for Advances nd Credit, Power of Attorney for Book Debts on 08.03.2016.

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That in order to secure the credit facility sanctioned by he applicant bank, the defendant no.2 created mortgage of roperty i.e. First Floor, Front side Portion bearing Plot No.21, ing Road, Lajpat Nagar IV, New Delhi admeasuring 162.57 q.meters by depositing title deed along with chain of ocuments of the property with applicant bank on 11.03.2016 nd duly charged in CERSAI.

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It has been submitted by the applicant bank that the efendants acknowledged their liability by executing balance nd security confirmation letter dated 23.03.2017.

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It has been submitted by the applicant banks that after vailing the aforesaid loan facility, the defendants miserably ailed and neglected to pay the interest in the accounts and ailed to maintain financial discipline as per terms and onditions despite various notices and reminders. The loan ccount was classified as NPA on 01.07.2018 as per extant RBI uidelines and issued legal notice dated 07.03.2020 for s.4,70,41,664/- to clear the outstanding dues.

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T.A. No.678 of 2023

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Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 06.07.2018 for Rs.3,66,41,416/- issued to the defendants calling upon them to pay the entire outstanding dues with the applicant bank.

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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 15.01.2024, he defendants have been proceeded ex-parte as they have not ppeared before the Tribunal and even written statement, vidence and affidavit of assets have not been filed by the • efendants.

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In order to prove its case, the applicant bank has filed its -vidence by way of affidavit of Shri An:: Kumar, authorized epresentative of the applicant bank who have proved the •ocuments as Power of Attorney Ex.AW-1/1, Loan Application x.AW-1/2, Sanction Letter Ex.AW-1/3(colly), Partnership Form x.AW-1/4, Demand Note Ex.AW-1/5, Letter of Waiver Ex.AW1/6, Letter of Interest Ex.AW-1/7, Agreement of Hypothecation o Secure Demand Cash Credit against Goods Ex.AW-1/8, etter of Continuity Ex.AW-1/9, Letter of Hypothecation of ook Debts Ex.AW-1/101 Forms of Guarantee Ex.AW-1/11 & 2, Power of Attorney for Book Debts Ex.AW-1/13, Agreement f Hypothecation of Book Debts Ex.AW-1/14, Visitor slip of •epositing Title Deed Ex.AW-1/15(colly), Title Documents of •roperty Ex.AW-1/16(colly) to AW1/28, Letters Ex.AW/29(colly), Notice u/s 13(2) Ex.AW-1/30(colly), Legal Notice x.AW-1/31(colly), Statement of Cash Credit Account Ex.AW/32, Certificate u/s 2A of Bankers Book of Evidence Act x.AW-1/33, Letter of Acknowledgement Ex.AW-1/34(colly).

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T.A. No.678 of 2023

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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 pplication deserves to be allowed. ORDER

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I, allow this OA and direct the defendants to pay to the pplicant bank, jointly or severally, within a period of 30 days, sum of Rs.4,72,65,296/- (Rupees Four Crores Seventy Two acs Sixty Five Thousand Two Hundred Ninety Six only) along ith pendentelite interest @12.50% interest from 20.03.2020 ill the date of realization, failing which the aforesaid amount hall be recovered from hypothecated stocks, book debts etc. nd sale of mortgaged property i.e. First Floor, Front side ortion bearing Plot No.21, Ring Road, Lajpat Nagar IV, New elhi admeasuring 162.57 sq.meters. In case of shortfall, the ame shall be recovered from sale of movable and immovable roperties of defendants.

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

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T.A. No.678 of 2023

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 17.03.2025.

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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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591-

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

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(Dictated and pronounced in open court) Dated: 13.01.2025

Central Bank of India v. M/S D.S. Impex

Case brief

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Central Bank of India v. M/S D.S. Impex

Case brief

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