Invent Assets Securitisation & Reconstruction Pvt. Ltd. vs M/S J B GLOBAL SOURCING INDIA PVT LTD on 21 May 2024

J U D G M E N T

1. The Original Application has been filed by the Applicant against the Defendants before Ld. DRT-III, Mumbai, which stands transferred to this Tribunal as per Letter dt. 26.09.2016 of Ld. Registrar DRT-III, Mumbai and registered as TOA No. 64 of 2017. The OA has been filed by the Applicant filed by the Applicant against Defendant No.1 to 3 for recovery The Original Application has been filed by the Original Applicant i.e. State Bank of Patiala for recovery Rs.11,42,83,697.36 (Rupees Eleven Crore Forty Two Lakh Eighty Three Thousand Six Hundred Ninety Seven and Paisa Thirty Six only) under financing facility with further interest at the contractual rate with monthly rests from the date of filling of the O.A. till its realization.

2. During the pendency of the OA, the Original Applicant i.e. State Bank of Patiala assigned the debt due and payable by the Defendants along with all its right, title, interests and benefit in and to the facilities granted to the Defendants with any incidental right thereto including the assignment of and benefits under the financial instruments relating to the facility under which the said amount is recoverable in favour of the Applicant herein vide Assignment Agreement Dt.10.07.2014.

3. Facts as succinctly set out in the OA are that the Defendant No.1 is a firm and as per the request of the Defendants agreed to grant the credit facilities subject/inter alia to the term & condition as contained in the letter of arrangement dt. 03.03.2009 and also contained in the Hypothecation Agreement, Pledge Agreement Mortgage Deed, and only other Deeds/ Security documents as referred/contained in the said Agreement dt.05/03/2009.

4. In order to secure the aforesaid facilities, the Defendant no.1 executed the following loaning and security documents in favour of the State Bank of Patiala :-

a. Memorandum of Agreement executed by the Defendant No.1 dt.05.03.2009.

b. Agreement of Hypothecation of Goods and Assets Agreement executed by the Defendant No.1 dt.05.03.2009.

c. Guarantee Agreement executed by the Defendant No. 2 & 3 dt.05.03.2009.

5. It is also stated that Defendant No.4 vide their Board Resolution dt. 18.02.2009 resolved to extend corporate guarantee to the Applicant Bank in the event of Applicant Bank granting loan facility to Defendant No.1 and also executed the Guarantee Agreement for overall limit in favour of the Bank on 05.03.2009.

6. It is further stated that in pursuance of the Agreement of Loan dt.05.03.2009 and Agreement of Pledge dt. 05.03.2009 executed for the overall limit of Rs. 10 Crores by the Defendant No.1 and personal guarantee agreement by Defendant No.2 & 3, corporate guarantee Defendant No.4 the bank agreed to lend to the Defendant No.1 the individual limit at the contractual rate of interest.

7. Further in order to secure the said facilities Defendant No. 4 executed the memorandum of entry creating equitable mortgage charge in favour of the bank and depositing the documents of title, evidence deeds and more particularly specified in part A of the said documents.

8. However, after availing the said Credit Facilities, the Defendants failed to adhere to the terms and conditions of the Sanction of aforesaid Credit Facilities and neglected to make the payment to the State Bank of Patiala. Therefore, the Loan Accounts of the Defendant declared as NPA, on 03.03.2011. Thereafter, the State Bank of Patiala also issue notice dated 07.11.2013 called upon the Defendants to pay the outstanding dues but they failed to pay the dues. Hence, the present OA is filed.

9. Notices were issued to the Defendants. Defendant No. 1 to 4 put their appearance through counsel, however, despite opportunities no WS has been filled by the Defendants, therefore, the right to file WS of Defendant No. 1, 3 & 4 was closed vide order dt.27.03.2013. Despite service none appeared for Defendant No.2. Record reveals that since 16.10.2017 no one appeared on behalf of Defendant No. 1, 3 & 4.

10. The Applicant Bank has produced all the Original Loan documents and other relevant documents along with their Claim Affidavit filed on 07.04.2016 through its Vice President Dharmik Shah.

11. I have heard the Ld. Counsel for the Applicant Bank and perused the record. Ld. Counsel for the Defendant No.2 not raised any objection.

12. The witness of the Applicant Bank has fully corroborated the averments made in the OA, even otherwise the whole case of the Applicant Bank is based on documents and the witness has duly proved all these documents as against the Defendants. In my view there is no question of disbelieving the evidence led by the Applicant Bank and the Applicant Bank has proved its case beyond reasonable doubt. The liability of Defendant No.1 to 4 are joint and several.

13. In the light of above discussions, the Original Application deserves to be allowed against the Defendant No. 1 to 4.

O R D E R

(i) I allow the present OA and direct the Defendant No. 1 to 4 to pay to the Applicant, jointly and severally, within a period of 60 days, a sum of Rs.11,42,83,697.36 (Rupees Eleven Crore Forty Two Lakh Eighty Three Thousand Six Hundred Ninety Seven and Paisa Thirty Six only) under financing facility with further interest at the contractual rate with monthly rests from the date of filling of the O.A. till its realization. Failing which the aforesaid amount shall be recovered from the sale of mortgage properties and other personal moveable and immoveable assets of the Defendants.

(ii) Defendants is hereby directed not to deal with his properties till further direction of Ld. Recovery Officer.

(iii) Defendants shall also pay the cost and expenses of the OA.

(iv) Recovery Certificate be issued forthwith and be sent to the Recovery Officer of this Tribunal. Copy of this order be sent to the parties as per rules. File be consigned to record.

Place: Mumbai.

(Dr. Rekha G. Dhakar) Date : 21.05.2024

Presiding Officer, DRT-1, Mumbai SP/-