Indian Bank v. M/s Shreya Tractors
Case brief
What is this about?
The Debts Recovery Tribunal, Patna, allowed an application filed by Indian Bank to recover a dues of Rs. 56,09,846.58 plus interest from M/s Shreya Tractors and its proprietors. The bank alleged that the defendants failed to repay a sanctioned working capital loan that turned non-performing. The defendants did not appear before the tribunal despite notices and publication. Relying on documentary evidence and the principle that unchallenged bank statements are prima facie evidence, the tribunal determined the debt amount and issued a recovery certificate.
What did the court decide?
The application was allowed. The defendants were ordered to jointly and severally pay Rs. 56,09,846.58 plus pendente-lite and future interest at 11.85% p.a. with monthly rests from the date of filing till realization along with costs. Secured assets were attached and a Recovery Certificate was issued.