State Bank of India v. M/s Kamakhya Traders
Case brief
What is this about?
The Debts Recovery Tribunal at Patna decided an application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 filed by State Bank of India against two defendants. The defendants had availed a cash credit facility which subsequently became an NPA. After considering documentary evidence including loan agreements and account statements, the Tribunal established the liability of the defendants. It held that the application was within limitation and the Tribunal possessed jurisdiction. Consequently, the application was allowed, a recovery certificate was issued, and the account was attached.
What did the court decide?
The application is allowed. The defendants are ordered to pay Rs. 22,05,496.02 plus pendente-lite and future interest at 10% p.a. simple from 18.09.2024. A Recovery Certificate is directed to be issued under Section 19(22) to realize the amount. The mortgaged or hypothecated assets are attached.