CANARA BANK vs M/S ROHAN INTERNATIONAL, on 2 November 2023

1. 1. **M/s Rohan International**, through its Proprietor Sri Atul Kumar Agarwal, R/o 5/516 B, Shakti Nagar, Goolar Road, Aligarh – 202001.

2. 2. **Sri Atul Kumar Agarwal**, S/o Sri Krishna Kumar Gupta, R/o 5/516 B, Shakti Nagar, Goolar Road, Aligarh – 202001.

3. 3. **Smt. Neena Agarwal**, W/o Sri Atul Agarwal, R/o R/o 5/516 B, Shakti Nagar, Goolar Road, Aligarh – 202001.

...Defendants.

Present:

<tr> <td><b>For the Applicant</b></td> <td>: Shri Awadhesh Kumar Pal, Advocate</td> </tr> <tr> <td><b>For the Defendants</b></td> <td>: None</td> </tr> </table>

**Dated: 02.11.2023****JUDGMENT**

1- The Applicant bank has made this application u/s 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, now Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 28.09.2020, against the defendants to recover its debts from defendants of Rs. 5,07,27,222.32ps. alongwith pendentelite and future interest at the contractual rate i.e. @ 17.25% per annum with monthly rests and @ 2% penal interest awarded, with costs till realization.

Subsequently, the case record of the present Original Application No. 888 of 2014 has been transferred to this Tribunal in view of Notification of Government of India, Ministry of Finance dated 15.02.2017 thus the case has been re-numbered as TA 01 of 2020.

2- The application has been duly registered and numbered as above.

3- The brief facts of the case of the applicant bank as stated in the application are as under- The applicant bank is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act 1970 having its Registered Office at 112, J.C. Road, Bangalore – 560002 (Karnataka) and Branches all over India including one of its Branch at Gooler Road, Aligarh, U.P.

The brief facts of the case as contained in its original application are that the Defendant No. 1 is a proprietorship firm of which

Defendant No. 3 stood as guarantor for the said credit facility. The Defendant No. 2 for self and on behalf of Defendant No. 1 approached the Applicant Bank for grant of financial assistance in the shape of OCC facility of Rs. 40.00 Lacs and Packing Credit/ Foreign Bill of Exchange/ FDB of Rs. 30.00 Lacs and submitted loan application.

After considered the request of the Defendant No. 2 for self and on behalf of Defendant No. 1 and verification of the loan documents, the applicant Bank had sanctioned OCC facility of Rs. 40.00 Lacs and Packing Credit/ Foreign Bill of Exchange/ FDB of Rs. 30.00 Lacs for working capital together with interest vide sanction letter dated 21.05.2007.

Upon sanction of the aforesaid Credit Facilities, the Defendant No. 1 & 2 as borrowers and Defendant No. 3 as guarantor, had executed, signed several security and loan documents and guarantee agreement on 24.05.2007 in favour of the Applicant Bank.

Further, the Defendant No. 2 for self and on behalf of defendant No. 1 approached the applicant bank and requested for additional facilities of loan. The applicant bank considered the same and sanctioned the OCC facility of Rs. 40.00 Lacs, Packing Credit of Rs. 50.00 Lacs, Foreign Bill of Exchange/ FDB of Rs. 30.00 Lacs, Sub-Limit Advance against DDB of Rs. 5.00 Lacs and Standby Credit of Rs. 5.00 Lacs together with interest vide sanction letter dated 07.11.2007 and in consideration thereof, the defendant No. 1 & 2 as borrowers and defendant No. 3 as guarantor had executed and signed several security loan documents and guarantee agreement on 07.11.2007 in favour of the Applicant Bank.

Further, the Defendant No. 2 for self and on behalf of defendant No. 1 approached the applicant bank and requested for renewal of loan accounts. The applicant bank considered the same and sanctioned the facilities of Rs. 125.00 Lacs and additional limit of Packing Credit of Rs. 15.00 Lacs and Foreign Bill of Exchange/ FDB of Rs. 35.00 Lacs, aggregating Rs. 175.00 Lacs together with interest vide sanction letter dated 06.10.2008 and in consideration thereof, the defendant No. 1 & 2 as borrowers and defendant No. 3 as guarantor had executed and signed several security loan documents and guarantee agreement on 06.10.2008 in favour of the Applicant Bank.

Further, the Defendant No. 2 for self and on behalf of defendant No. 1 approached the applicant bank and applied for sanction of loan facilities of Rs. 247.50 Lacs and submitted loan application dated 03.02.2009. The applicant bank considered the same and sanctioned the OCC facility of Rs. 40.00 Lacs, Packing Credit of Rs. 135.00 Lacs, FDB of Rs. 65.00 Lacs, Sub-Limit DDB of Rs. 5.00 Lacs aggregating Rs. 245.00 Lacs together with interest vide sanction letter dated 23.03.2009 and in consideration thereof, the defendant No. 1 & 2 as borrowers and defendant No. 3 as guarantor had executed and signed several security loan documents and guarantee agreement on 31.03.2009 in favour of the Applicant Bank.

Further, the defendants approached the applicant bank and requested for a Bank Guarantee of Rs. 40.00 Lacs which was allowed by the Applicant Bank and subsequently the said Bank Guarantee was renewed to Rs. 350.00 Lacs upto 26.11.2011.

Further, the defendants applied for Adhoc Packing Credit of Rs. 50.00 Lacs which was permitted by the Applicant Bank by means of order dated 15.12.2009 and inconsideration thereof, the defendants executed the Bank's loan documents and guarantee agreement on 17.12.2009.

Further, the defendants applied for additional Adhoc Packing Credit of Rs. 50.00 Lacs which was permitted by the Applicant Bank by means of order dated 23.03.2010 and inconsideration thereof, the defendants executed the Bank's loan documents and guarantee agreement on 23.03.2010, 10.06.2010.

Further the defendant no. 1 & 2 signed renewal of their loan account on 23.03.2011 regarding facilities of Rs. 400.00 Lacs and executed a pronote of Rs. 95.00 Lacs along with counter Indemnity Letter for Bills dated 23.03.2011.

Further, the defendants applied for additional Adhoc Packing Credit of Rs. 40.00 Lacs which was sanctioned by the Applicant Bank dated 14.02.2013 and inconsideration thereof, the defendants executed the Bank's loan documents and guarantee agreement on 15.02.2013.

Further, the defendant No. 2 applied for a Car Loan on 07.05.2010 which was sanctioned for Rs. 11.44 Lacs and the said loan executed and signed by the defendant under Canara Mobile Loan agreement dated 17.06.2010 against hypothecated the primary security of vehicle bearing Registration no. UP 81 AJ 5650, Chasis No. 153CAN302521 and Engine No. R18A15404644 namely Honda Siaz Car in favour of the Applicant Bank.

In order to secure the due repayment in respect of the aforesaid Credit Limit facilities, the defendant No. 2 & 3, created equitable mortgage of his immovable properties by way of deposit of title deed in favour of the Applicant Bank. The details of the mortgaged properties are mentioned herein below and more details are mentioned in para 5.24.1 to 5.24.4.4 of OA.

1. i. Khasra No. 213, Kasba Kol, Near Nagla Molvi, Pargana and Tehsil Kol. District Aligarh, U.P.

2. ii. Khasra No. 199 area 200 Sq. Yard (167.20 Sq.Mtr) situated in Kasba Kol, Bankey Mohalla, Shakti Nagar, Kol, District Aligarh.

3. iii. Khasra No. 213 area 295 Sq. Yard (246.70 Sq.Mtr) situated in Kasba Kol, Bankey Mohalla, Shakti Nagar, Kol, District Aligarh.

4. iv. Khasra No. 213 area 500 Sq. Yard Nagla Molvi, Pargana and Tehsil Kol. District Aligarh, U.P.

The Defendants availed the aforesaid loan/credit facility but failed to maintain financial discipline as per terms and conditions of the loan agreement due to which loan account become irregular. Despite repeated reminders and persuasion, the defendants failed to regularize the loan account. Consequently, the said account of the Defendants were classified as NPA on 31.03.2013 and recalled by Applicant Bank. Thereafter, Applicant Bank served Notice dated 30.04.2013 and Demand Notice dated 28.05.2013 u/s 13(2) of the SARFAESI Act to the Defendants to repay the outstanding dues but the defendants failed to make the payments of outstanding dues. Even after receipt of Demand Notice, the defendants failed to pay any heed towards liquidating the dues of the Applicant Bank, hence, the Applicant Bank proceeded further and took over Symbolic Possession and issued Possession Notice u/s 13(4) of the SARFAESI Act on 07.11.2013 and also preferred and application before the District Magistrate for taking over Physical possession of the mortgaged properties vide order dated 22.09.2014, ACM (first) Aligarh was directed to take suitable steps under the Securitization Act with the help of police to take possession of the mortgaged properties and submit compliance report dated 27.05.2014. Accordingly, the applicant Bank has moved this O.A. to recover public money.

The interest /compound interest has been charged at such rates, and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

Since, the defendants have failed and neglected in spite of several reminders to make payment of the dues recoverable to bank, hence this application has been filed by the bank.

4- U/s 19 (4) of the Act & Rule 11 of the DRT [Procedure] Rules, 1993, copies of application & paper book were sent by this Tribunal to the defendants by registered/speed post on 05.05.2022, and summons/notices issued requiring the defendants to show-cause within 30 days of the service of summons/notices as to why relief prayed for, should not be granted.

Against the registered summons/notices, the defendants have appeared through their counsel before this Tribunal to contest the case and filed vakalatnama. The sufficient time has been given to the defendants to defend their case, but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed exparte against the defendants on 30.10.2023.

5- To prove its case, the applicant Bank has referred attested copies of various documents before this Tribunal on 28.09.2020. The applicant bank has also given evidence on affidavit by way of affidavit of Shri P.K. Saxena, Branch Manager of the applicant bank. The details of documents are as follows. :-

<thead> <tr> <th>Sl.No</th> <th>Description of Documents(Attested copies)</th> <th>Date of Execution</th> <th>Amount [In lacs]</th> <th>Signature of executants</th> <th>Ex./ Ann. No.</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Copy of General Power of Attorney</td> <td>13.06.1998</td> <td>-----</td> <td>Bank</td> <td>A- 1</td> </tr> <tr> <td>2</td> <td>Copy of Sanction Order</td> <td>21.05.2007</td> <td>Rs. 30.00<br/>&amp; Rs.<br/>40.00</td> <td>Def. No. 1<br/>&amp; 2 and<br/>Bank</td> <td>A- 2</td> </tr> </tbody> </table>

<tr> <td>3</td> <td>Hypothecation Agreement</td> <td>24.05.2007</td> <td>Rs.70.00</td> <td></td> <td>A- 3</td> </tr> <tr> <td>4</td> <td>Pronote</td> <td>24.05.2007</td> <td>Rs. 70.00</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A- 4</td> </tr> <tr> <td>5</td> <td>Guarantee Agreement</td> <td>24.05.2007</td> <td>Rs. 70.00</td> <td>Def. No. 3</td> <td>A- 5</td> </tr> <tr> <td>6</td> <td>Letter Evidencing Deposit<br/>of Title Deeds</td> <td>24.05.2007</td> <td>Rs. 70.00</td> <td>Def. No. 2<br/>&amp; 3</td> <td>A-6</td> </tr> <tr> <td>7</td> <td>Renewal</td> <td>07.11.2007</td> <td>Rs. 80.00</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A- 7</td> </tr> <tr> <td>8</td> <td>Sanction Memorandum</td> <td>07.11.2007</td> <td>Rs. 135.00</td> <td>-----</td> <td>A-8</td> </tr> <tr> <td>9</td> <td>Supplemental Common<br/>Hypothecation Agreement</td> <td>07.11.2007</td> <td>Rs. 135.00</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-9</td> </tr> <tr> <td>10</td>

<td>07.11.2007</td> <td>Rs.20.00</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-10</td> </tr> <tr> <td>11</td> <td>Letter Evidencing Deposit<br/>of Title Deeds</td> <td>31.10.2007</td> <td>Rs. 150.00</td> <td>Def. No. 2<br/>&amp; 3</td> <td>A- 11</td> </tr> <tr> <td>12</td> <td>Guarantee Agreement</td> <td>07.11.2007</td> <td>Rs.140.00</td> <td>Def. No. 3</td> <td>A- 12</td> </tr> <tr> <td>13</td> <td>Renewal</td> <td>06.10.2008</td> <td>Rs. 180.00</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A- 13</td> </tr> <tr> <td>14</td> <td>Application</td> <td>16.09.2008</td> <td>-----</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A- 14</td> </tr> <tr> <td>15</td> <td>Supplemental Common<br/>Hypothecation Agreement</td> <td>06.10.2008</td> <td>Rs.175.00</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A- 15</td> </tr> <tr> <td>16</td>

<td>06.10.2008</td> <td>Rs. 20.00</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A- 16</td> </tr> <tr> <td>17</td> <td>Letter Evidencing Deposit<br/>of Title Deeds</td> <td>06.10.2008</td> <td>Rs. 175.00</td> <td>Def. No. 2<br/>&amp; 3</td> <td>A- 17</td> </tr> <tr> <td>18</td> <td>Guarantee Agreement</td> <td>06.10.2008</td> <td>Rs. 175.00</td> <td>Def. No. 3</td> <td>A- 18</td> </tr> <tr> <td>19</td> <td>Application</td> <td>03.02.2009</td> <td>Rs. 247.50</td> <td>Def.</td></tr></table>

<tr> <td>28</td> <td>Guarantee Agreement and Letter Evidencing Deposit of Title Deeds</td> <td>24.11.2009</td> <td>Rs. 350.00</td> <td>Def. No. 3</td> <td>A-28</td> </tr> <tr> <td>29</td> <td>Acknowledgements</td> <td>24.11.2009</td> <td>Rs.<br/>4788192.9<br/>9 &amp; Rs.<br/>466845/- &amp;<br/>Rs.<br/>6366912/-<br/>&amp; Rs.<br/>16393039/-<br/>&amp; Rs.<br/>221938/-</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-29</td> </tr> <tr> <td>30</td> <td>Order for Adhoc PC.</td> <td>15.12.2009</td> <td>Rs. 50.00</td> <td>Bank</td> <td>A-30</td> </tr> <tr> <td>31</td> <td>Supplemental Common Hypothecation Agreement</td> <td>17.12.2009</td> <td>Rs. 400.00</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-31</td> </tr> <tr> <td>32</td>

<td>17.12.2009</td> <td>Rs. 50.00</td> <td>Bank</td> <td>A-32</td> </tr> <tr> <td>33</td> <td>Guarantee Agreement</td> <td>17.12.2009</td> <td>Rs. 400.00</td> <td>Def. No. 3</td> <td>A-33</td> </tr> <tr> <td>34</td> <td>Letter Evidencing Deposit of Title Deeds</td> <td>17.12.2009</td> <td>Rs. 400.00</td> <td>Def. No. 2<br/>&amp; 3</td> <td>A-34</td> </tr> <tr> <td>35</td> <td>Pronote, Supplemental Common Hypothecation Agreement and Continuation of Guarantee Letter</td> <td>23.03.2010</td> <td>Rs. 400.00</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-35</td> </tr> <tr> <td>36</td> <td>Supplemental Common Hypothecation Agreement, Pronote Letter From Guarantor</td> <td>10.06.2010</td> <td>-----</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-36</td> </tr> <tr> <td>37</td> <td>Renewal of Loan Account</td> <td>23.03.2011</td> <td>-----</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-37</td> </tr> <tr> <td>38</td>

<td>23.03.2011</td> <td>Rs. 95.00</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-38</td> </tr> <tr> <td>39</td> <td>Acknowledgements</td> <td>23.03.2011</td> <td>Rs.<br/>22613838/-<br/>, Rs.<br/>12459.38,<br/>Rs.<br/>4361574.1<br/>8, Rs.<br/>1220695/-</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-39</td> </tr> <tr> <td>40</td> <td>Application, Debtor Creditor Agreement, Letter of Undertaking, pronote and Debt Restructuring Agreement</td> <td>23.02.2012</td> <td>-----</td> <td>Def. No. 1,<br/>2 &amp; 3</td> <td>A-40</td> </tr> </table>

<tr> <td>41</td> <td>Request and Pronote</td> <td>15.02.2013</td> <td>Rs. 270.00<br/>&amp; Rs.<br/>40.00</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-41</td> </tr> <tr> <td>42</td> <td>Letter of Renewal,<br/>Supplemental Common<br/>Hypotheccation Agreement,<br/>Letter Evidencing Deposit<br/>of Title Deeds, Guarantee<br/>agreement</td> <td>15.02.2013</td> <td>Rs. 40.00</td> <td>Def. No. 2<br/>&amp; 3</td> <td>A-42</td> </tr> <tr> <td>43</td> <td>Acknowledgements</td> <td>08.03.2014<br/>&amp;<br/>10.03.2014</td> <td>Rs.<br/>25,77,761/-<br/>, Rs.<br/>31,39,235.<br/>24ps., Rs.<br/>72,24,880.<br/>20, Rs.<br/>27,506,781<br/>/-</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-43</td> </tr> <tr> <td>44</td> <td>Application, Agreement<br/>and Guarantee Agrèement<br/>with guarantee Covering<br/>Letter</td> <td>07.05.2010,<br/>17.06.2010</td> <td>Rs. 11.44</td> <td>Def. No. 1,<br/>2 &amp; 3</td> <td>A-44</td> </tr> <tr> <td>45</td> <td>Acknowledgement of Car<br/>Loan</td> <td>27.06.2012</td> <td>Rs.<br/>893055.62<br/>ps.</td> <td>Def. No. 1<br/>&amp; 2</td> <td>A-45</td> </tr> <tr> <td>46</td> <td>Sale Deed</td> <td>14.01.2003</td> <td>-----</td> <td>Def. No. 2<br/>&amp; 3</td> <td>A-46</td> </tr> <tr> <td>47</td> <td>Sale deed</td> <td>15.03.2005</td> <td>-----</td> <td>Def. No. 2<br/>&amp; 3</td> <td>A-47</td> </tr> <tr> <td>48</td> <td>Sale Deed</td> <td>28.01.2004</td> <td>-----</td> <td>Def. No. 2<br/>&amp; 3</td> <td>A-48</td> </tr> <tr> <td>49</td> <td>Sale Deed</td> <td>12.07.2001</td> <td>-----</td> <td>Def. No. 2<br/>&amp; 3</td> <td>A-49</td> </tr> <tr> <td>50</td> <td>Notice</td> <td>30.04.2013</td> <td>Rs.<br/>749316.30</td> <td>Bank</td> <td>A-50</td> </tr> <tr> <td>51</td> <td>Notice, Possession Notice,<br/>order passed by DM,<br/>Aligarh and Notice u/s<br/>13(2) of the Act for car<br/>loan</td> <td>28.05.2013,<br/>07.11.2013,<br/>22.09.2014,<br/>27.05.2014</td> <td>Rs.<br/>39,87,9192<br/>.68</td> <td>Bank</td> <td>A-51</td> </tr> <tr> <td>52</td> <td>Statement of all Loan<br/>Accounts together with<br/>Certificate issued by Bank</td> <td>-----</td> <td>-----</td> <td>Bank</td> <td>A-52</td> </tr> </table>

6- Opportunity of hearing has been fully given to both the parties, but despite several opportunities given to defendants, the defendants have not appeared to contest the case, hence, the exparte arguments of learned counsel for applicant bank were heard. Perused the case record and considered.

Ld. counsel of applicant bank submitted that the defendants have taken the loans and utilized the same and also executed the various loans documents to secure the loans. Further submitted that the claim of the bank has been proved by documentary and oral evidence. Ld. Counsel for the applicant bank further submitted that Rs. 24,56,000/- has been recovered from the Defendants after filing of T.A. Therefore, the Applicant Bank has entitled to receive (Rs. 5,07,27,222.32 – Rs. 24,56,000/-) = Rs. 4,82,71,222.32ps.

It is further submitted by ld. Counsel of applicant bank that there is no any stay granted by any Higher Court, in respect of the proceedings of the present TA and requested to issue recovery certificate, as claimed for, in TA.

7- It has been established that defendants are living and carrying on their business in the state of Uttar Pradesh. Cause of action also arose in the State of Uttar Pradesh. The said claim on the date of filing of application exceeded Rs. 20 lacs. The applicant bank is functioning within jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

8- On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 31.03.2013, whereas the present application has been filed on 28.09.2020. Even, it is counted for the purpose of Limitation, then it is established that the applicant bank has filed the case within the limitation period from the date of declaring the account as NPA. As such, it is established that present application has been filed well within the period of limitation.

9- In the affidavit of Shri P.K. Saxena, Divisional Manager of the applicant bank, has stated that he is well acquainted with the facts of the case and has on verification of record, sworn in the affidavit in support of contents of application and the documents as evidence and established on oath the pleadings and documents of the applicant bank as stated above.

The documents as stated above reveal that the defendants have applied for loans and the bank had sanctioned the loans and to secure the loans and for repayment of loans amount with interests etc., the defendants have executed various loan documents, which strength the case of the applicant bank.

The applicant bank has also furnished statement of account as above, which is not only admissible but shall be taken as correct statement of account, more so since the entries in the statement of account has not been challenged.

10- Since, the defendants were proceeded exparte, all contentions raised and documents produced by plaintiff remained unrebuted and the tribunal may act upon the affidavit of the applicant as per law. Defendants have neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Account, which is kept in due course of business, evidence on affidavit, which has supported the claim of the applicant bank, established to have fully correct and believable. Provisions contained in Section 4 of the Banker's Books Evidence Act, 1891 apply to certified copies of entries in banker's book furnished along with the application filed under section 19[1] of the Act. Hence, the entries in the Statement of Account are also proved.

11- On consideration of the arguments and on perusal of the application, documents and affidavit, it is proved that the applicant bank has granted the loan facilities, documents were executed by the defendants and facilities were availed by the defendants as stated in the application.

12- Now, whether interest has been charged as per agreement and as per R.B.I. Guidelines?

13- The applicant bank has sought for recovery of a sum of Rs. 5,07,27,222.32ps. alongwith pendentelite and future interest at the contractual rate i.e. @ 17.25% per annum with monthly rests and @ 2% penal interest awarded,till realization. During the pendency of TA Rs. 24,56,000/- was recovered, therefore, Applicant Bank is entitled for Recovery of Rs. 4,82,71,222.32ps. only. (Rs. 5,07,27,222.32 – Rs. 24,56,000/-).

14- Learned Advocate appearing for applicant bank submits that the applicant bank has charged interest in terms of the agreements and that interest has been charged at such rates, and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

15- On consideration of the arguments and on perusal of the pleadings, documents and affidavit, it is proved that the applicant has charged interest against defendants in terms of documents and as per directives of R B I, but keeping the facts and circumstances of the case in mind, the defendants deserve some leniency in the rate of interest.

16- None of the defendants appeared before the Tribunal to contest the claim made by the applicant, therefore, it necessarily goes to establish that the claim made by the applicant bank is genuine and true. It is manifest that the defendants have not disputed the claim, therefore, the claim referred to the Tribunal is recoverable till full and final realization of the claim.

17- In Indian Bank Vs. Blue Jagers Estates Limited and others [2010] 8 SCC 129, the Hon'ble Supreme Court of India has observed as under- "The Court cannot lose sight of the fact that the bank is a trustee of public fund. It cannot compromise the public interest for benefiting private individuals. Those who take loan and avail financial facilities from the bank are duty bound to repay the amount strictly in accordance with the terms of the contract. Any lapse in such matters has to be viewed seriously and the bank is not only entitled but duty bound to recover the amount by adopting all legally permissible methods. Parliament enacted the act because it was found that legal mechanism available till then was wholly insufficient for recovery of the outstanding dues of the banks and Financial Institutions."

18- Facts of the case, in my view, are well proved by evidence of the applicant bank. The applicant bank is entitled to receive it's debts with interest, from defendants, jointly and severally **Rs. 4,82,71,222.32ps.** only. (Rs. 5,07,27,222.32 – Rs. 24,56,000/-) alongwith pendentelite and future interest @ 10% Simple per annum from 01.10.2014 till realization. So the final order may be passed accordingly, to meet the ends of justice.

ORDER

In the result, the application of the applicant bank is, allowed and debt is determined with costs against the defendants and it is, hereby, ordered that the applicant bank is entitled to receive it's debts with interest, from defendants, jointly and severally, amounting to **Rs. 4,82,71,222.32ps.** only. (Rs. 5,07,27,222.32 – Rs. 24,56,000/-) alongwith pendentelite and future interest @ 10% Simple per annum from 01.10.2014 till realization of the entire sum due and recoverable with costs.

In case of failure to repay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the *hypothecated assets /mortgaged properties of the Defendants in execution proceedings*. *The amount, if any, already recovered by sale of any hypothecated assets /mortgage properties or otherwise shall be adjusted towards the debt and only the balance amount shall be recoverable. If the dues of Applicant Bank still remain unsatisfied, the same shall be recovered by attachment and sale of the personal movable and immovable assets of the Defendants jointly or severally. The cost of litigation be also borne by the Defendants.*

*The Defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, alienating, selling or otherwise dealing with hypothecated assets/ mortgage properties or their other immovable/movable properties/estates without first paying the above claim of Applicant Bank/Certificate Holder.*

*In case, any of the Defendants expire, the legal representatives shall be liable to pay in proportion to the inheritance.*

Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued, on the basis of the order of the Tribunal to the Recovery Officer. The Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendants.

Pending I.As, if any, stands disposed off in the light of Judgment.

Parties are directed to appear before the Recovery Officer, DRT, Allahabad on 16.01.2024. The order be communicated accordingly.

Judgment signed, sealed, dated and pronounced in the open court on this 02^nd Day of November, 2023.

Dictated & Corrected by me.

[R' M. Kushawaha] Presiding Officer Debts Recovery Tribunal, Allahabad //ss//

[R. M. Kushawaha] Presiding Officer Debts Recovery Tribunal, Allahabad