BANK OF BARODA vs MANEET JAIN on 4 October 2023

J U D G M E N T

This is an application under Section 19(1) of the Recovery of the Debts due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 (for short, ‘the 1993 Act’) to recover Rs.22,81,322/- with future interest thereon from the date of presentation of the Original Application till payment/realization.

The defendant operated a current account no.17050200000773 with the applicant. On 30th March 2012, the defendant requested the applicant to grant temporary overdraft facility of Rs.14 lakhs. Based on the defendant’s request, the applicant allowed the temporary overdraft of Rs.14 lakhs. The defendant executed the demand promissory note and agreed to pay interest at the rate of 18% per annum. The defendant failed to repay the amount of Rs.14 lakhs. Therefore, on 30th September 2014, the applicant issued notice calling upon the defendant to pay Rs.21,24,469/- with interest at the rate of 18% per annum. The applicant issued another notice on 12th December 2014 calling upon the defendant to liquidate the entire outstanding. The defendant failed to repay the dues.

As of the date of preceding the filing of the Original Application, there was owing, due and payable by defendant to the applicant the aggregate sum of Rs.22,81,322/-. The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of the banking business.

Since defendants failed and neglected to make the payment, the applicant was left with no other alternate but to file the Original Application which was presented on 24th December 2014. Defendant was duly served with the summons and was set ex-parte on 4th March 2016.

The applicant has filed affidavit (exhibit-12) in lieu of examination in chief of Mr Anupam Shrivastav and list of documents (exhibit-13) thereby adducing in evidence the documents at

Exh-A to Exh-E, which are admitted in evidence, read, recorded and exhibited.

Mr Shinde submits that the temporary overdraft was granted on 30th March 2012 and the Original Application was presented in 24th December 2014 which is well within the time. The applicant requests the Tribunal to issue the Recovery Certificate for an amount in the sum of Rs.22,81,322/- with pendent lite and future interest at the rate of 18% per annum from the date of presentation of the Original Application, that is, 24th December till payment/realization. Request accepted.

The Tribunal have scrutinised and examined the allegations contained in the Original Application and analysed the evidence adduced by the applicant which has gone unchallenged, uncontroverted and unrebutted.

Upon careful scrutiny and the examination of the Original Application, analysing the evidence and giving due weightage to the documentary evidence adduced by the applicant, the Tribunal views that there is no reason to disbelieve the claim made by the applicant bank.

In view of the observations made hereinabove, Original Application filed by the applicant deserves to be granted.

Hence, the following order:

ORDER

(A) The Original Application No.1701 of 2016 is allowed with costs. (B) Defendant is ordered and directed to pay to the applicant the aggregate sum of Rs.22,81,322/- with pendent lite and future interest at the rate of 18% per annum from the date of presentation of the Original Application, that is, 24th December 2014 till payment/realization. (C) Issue Recovery Certificate. (D) The learned Registrar is directed to send a copy of the judgment and recovery certificate to the applicant and defendant by post and email.

Sd/- (Deepak M. Thakkar) Presiding Officer, DRT-2, Mumbai Nidhi