w w w . L a w y e r S e r v i c e s . i n



Union Bank of India V/S MRP Farm And Agro Research Centre and Others.


Company & Directors' Information:- K. N. C. AGRO LIMITED [Active] CIN = U01500WB2005PLC102657

Company & Directors' Information:- F AND K AGRO PRIVATE LIMITED [Active] CIN = U01111PN1980PTC014563

Company & Directors' Information:- R T AGRO PRIVATE LIMITED [Active] CIN = U15400MH1988PTC122934

Company & Directors' Information:- N M AGRO PRIVATE LIMITED [Active] CIN = U15209DL2000PTC103461

Company & Directors' Information:- K F AGRO PRIVATE LIMITED [Active] CIN = U01132PB1998PTC021937

Company & Directors' Information:- A G RESEARCH PRIVATE LIMITED [Strike Off] CIN = U85120TG2014PTC093661

Company & Directors' Information:- T K M AGRO LIMITED [Active] CIN = U01119TZ2000PLC009159

Company & Directors' Information:- M S AGRO PRIVATE LIMITED [Active] CIN = U01403WB2011PTC163653

Company & Directors' Information:- S K K AGRO PRIVATE LIMITED [Active] CIN = U01110DL2007PTC163157

Company & Directors' Information:- MRP AGRO PRIVATE LIMITED [Active] CIN = U15549MP2018PTC045542

Company & Directors' Information:- P N AGRO PVT LTD [Active] CIN = U01401WB1992PTC056261

Company & Directors' Information:- B R V AGRO PRIVATE LIMITED [Strike Off] CIN = U15139UP2007PTC034299

Company & Directors' Information:- A A AND A AGRO LIMITED [Converted to LLP] CIN = U01111DL1986PLC025101

Company & Directors' Information:- B. P AGRO INDIA PRIVATE LIMITED [Active] CIN = U15132DL2019PTC357421

Company & Directors' Information:- M Y AGRO PRIVATE LIMITED [Active] CIN = U51221DL2011PTC215043

Company & Directors' Information:- H R D AGRO PRIVATE LIMITED [Active] CIN = U15490PB2006PTC030412

Company & Directors' Information:- C F L AGRO PRIVATE LIMITED [Strike Off] CIN = U01409KA2001PTC028797

Company & Directors' Information:- L K AGRO PRIVATE LIMITED [Active] CIN = U15140MH1998PTC115185

Company & Directors' Information:- H D AGRO PRIVATE LIMITED [Strike Off] CIN = U01111MH1996PTC097451

Company & Directors' Information:- P C L AGRO PRIVATE LIMITED [Active] CIN = U74899DL1992PTC049537

Company & Directors' Information:- A S AGRO PRIVATE LIMITED [Active] CIN = U74899DL1989PTC040467

Company & Directors' Information:- S N N AGRO PRIVATE LIMITED [Active] CIN = U01114JH2016PTC008919

Company & Directors' Information:- R R S AGRO PRIVATE LIMITED [Strike Off] CIN = U15139DL2010PTC209756

Company & Directors' Information:- AGRO PRIVATE LIMITED [Strike Off] CIN = U51101KA1962PTC001475

Company & Directors' Information:- I AND D RESEARCH PRIVATE LIMITED [Active] CIN = U74140DL2003PTC118439

Company & Directors' Information:- D. J. AGRO PRIVATE LIMITED [Strike Off] CIN = U01112DL1994PTC057414

Company & Directors' Information:- G A AGRO PRIVATE LIMITED [Active] CIN = U01229KL2002PTC015736

Company & Directors' Information:- M K B AGRO PRIVATE LIMITED [Active] CIN = U01100MH1996PTC101802

Company & Directors' Information:- T D K AGRO PRIVATE LIMITED [Active] CIN = U29190BR1991PTC004486

Company & Directors' Information:- S G AGRO PRIVATE LIMITED [Active] CIN = U01122KA1995PTC017091

Company & Directors' Information:- AGRO INDIA PRIVATE LIMITED [Active] CIN = U01407AR2013PTC008381

Company & Directors' Information:- U & V AGRO PRIVATE LIMITED [Active] CIN = U01403TZ2015PTC021823

Company & Directors' Information:- B A B AGRO LTD [Strike Off] CIN = U24231MH1993PLC073114

Company & Directors' Information:- B A B AGRO LTD [Active] CIN = U24233WB1987PLC043179

Company & Directors' Information:- K A AGRO FARM PRIVATE LIMITED [Active] CIN = U51109WB1999PTC088918

Company & Directors' Information:- B C M AGRO PRIVATE LIMITED [Active] CIN = U01119WB1999PTC090308

Company & Directors' Information:- K. K. AGRO PVT. LTD. [Strike Off] CIN = U51420WB1987PTC042090

Company & Directors' Information:- H & W AGRO PRIVATE LIMITED [Strike Off] CIN = U01400MH2012PTC238144

Company & Directors' Information:- K D AGRO PRIVATE LIMITED [Converted to LLP] CIN = U15312DL2005PTC131996

Company & Directors' Information:- H R AGRO PRIVATE LIMITED [Active] CIN = U01119PB1995PTC016403

Company & Directors' Information:- C K N AGRO PRIVATE LIMITED [Active] CIN = U01300KL2020PTC064742

Company & Directors' Information:- A Q AGRO PVT LTD [Under Process of Striking Off] CIN = U51209WB2006PTC109930

Company & Directors' Information:- S E AGRO PRIVATE LIMITED [Active] CIN = U52500AP2016PTC103446

Company & Directors' Information:- S U B AGRO PRIVATE LIMITED [Active] CIN = U24129PN2000PTC015404

Company & Directors' Information:- F & O RESEARCH CENTRE PRIVATE LIMITED [Active] CIN = U74140TN2004PTC054706

Company & Directors' Information:- A S G AGRO LIMITED [Strike Off] CIN = U01119HR2004PLC035459

Company & Directors' Information:- T & T AGRO PRIVATE LIMITED [Active] CIN = U01132WB1999PTC090368

Company & Directors' Information:- C L AGRO PRIVATE LIMITED [Strike Off] CIN = U74120UP2012PTC051898

Company & Directors' Information:- P M S AGRO PVT LTD [Strike Off] CIN = U29211PB1994PTC014448

Company & Directors' Information:- MRP INDIA PVT LTD [Strike Off] CIN = U70101WB1996PTC079908

Company & Directors' Information:- B R K AGRO PRIVATE LTD [Strike Off] CIN = U29211PB1994PTC014302

Company & Directors' Information:- R E I AGRO LTD. [Active] CIN = U01111WB1994PLC065082

Company & Directors' Information:- P & S AGRO INDIA LIMITED [Strike Off] CIN = U01403MH2011PLC214782

Company & Directors' Information:- D N D AGRO (INDIA) LIMITED [Active] CIN = U01403PN2011PLC139235

Company & Directors' Information:- L C A AGRO PRIVATE LIMITED [Strike Off] CIN = U01112UP2005PTC029657

Company & Directors' Information:- V M G AGRO INDIA LIMITED [Active] CIN = U01100MP2011PLC026434

Company & Directors' Information:- G D AGRO PRIVATE LIMITED [Strike Off] CIN = U24122UP1993PTC015164

Company & Directors' Information:- P B AGRO PRIVATE LIMITED [Amalgamated] CIN = U26960MH1990PTC057137

Company & Directors' Information:- R A P AGRO INDIA PVT LTD [Strike Off] CIN = U14200WB2006PTC107514

Company & Directors' Information:- S V S AGRO FARM PRIVATE LIMITED [Strike Off] CIN = U65920MH1998PTC117665

Company & Directors' Information:- J B RESEARCH PRIVATE LIMITED [Active] CIN = U74920MH2005PTC158461

Company & Directors' Information:- G T AGRO INDIA PRIVATE LIMITED [Strike Off] CIN = U74899DL2005PTC142577

Company & Directors' Information:- F AND K AGRO PVT LTD [Strike Off] CIN = U29248PN1980PTC022759

Company & Directors' Information:- E M AGRO (INDIA) PRIVATE LIMITED [Strike Off] CIN = U02001UP1997PTC022261

Company & Directors' Information:- J S AGRO PRIVATE LIMITED [Strike Off] CIN = U01300PB1993PTC013943

Company & Directors' Information:- M R AGRO FARM PRIVATE LIMITED [Strike Off] CIN = U01122PN2000PTC015595

Company & Directors' Information:- A N AGRO PRIVATE LIMITED [Strike Off] CIN = U01119DL1996PTC081855

Company & Directors' Information:- V R L AGRO PRIVATE LIMITED [Strike Off] CIN = U85110KA1999PTC024717

Company & Directors' Information:- K S M FARM PRIVATE LIMITED [Active] CIN = U01403TN2008PTC066811

Company & Directors' Information:- P. S. R. AGRO PRIVATE LIMITED [Active] CIN = U24248UP1974PTC004017

Company & Directors' Information:- O N AGRO PRIVATE LIMITED [Active] CIN = U74899DL1988PTC031986

Company & Directors' Information:- M J V AGRO FARM PRIVATE LIMITED [Strike Off] CIN = U01120TZ2008PTC014532

Company & Directors' Information:- K R S AGRO PRIVATE LIMITED [Strike Off] CIN = U01400PN2011PTC141711

Company & Directors' Information:- R. V. AGRO FARM PRIVATE LIMITED [Active] CIN = U01403PN2014PTC150527

Company & Directors' Information:- J K AGRO PRIVATE LIMITED [Strike Off] CIN = U74900PY2011PTC002548

Company & Directors' Information:- W B S AGRO PRIVATE LIMITED [Active] CIN = U01122PB2003PTC025879

Company & Directors' Information:- G T M AGRO PRIVATE LIMITED [Strike Off] CIN = U01100MH2005PTC150816

Company & Directors' Information:- M R T FARM PRIVATE LIMITED [Active] CIN = U01110MH1998PTC113288

Company & Directors' Information:- K V RESEARCH CENTRE PRIVATE LIMITED [Strike Off] CIN = U85191TN2013PTC092902

Company & Directors' Information:- Y K AGRO PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U74999DL2013PTC250398

Company & Directors' Information:- N P M AGRO PRIVATE LIMITED [Strike Off] CIN = U15494DL2011PTC214942

Company & Directors' Information:- B L B AGRO PRIVATE LIMITED [Strike Off] CIN = U51200DL2012PTC244511

Company & Directors' Information:- D A AGRO PRIVATE LIMITED [Active] CIN = U74900DL2015PTC288168

Company & Directors' Information:- D. B. AGRO PRIVATE LIMITED [Active] CIN = U01100MP2010PTC025035

Company & Directors' Information:- V V I AGRO PRIVATE LIMITED [Active] CIN = U01100DL2021PTC381324

Company & Directors' Information:- E D C C RESEARCH CENTRE PVT. LTD. [Strike Off] CIN = U73100WB1990PTC048428

Company & Directors' Information:- U 2 RESEARCH PRIVATE LIMITED [Strike Off] CIN = U73100MH2008PTC179902

Company & Directors' Information:- S. K. R. M. AGRO FARM PRIVATE LIMITED [Strike Off] CIN = U01403HR2008PTC038512

Company & Directors' Information:- UNION BANK OF INDIA LIMITED [Active] CIN = U99999MH1919PTC000615

    OA Case No. 358 of 2019

    Decided On, 02 January 2020

    At, Debts Recovery Tribunal Patna

    By, THE HONORABLE JUSTICE: R.M. KUSHAWAHA
    By, (PRESIDING OFFICER)

    For Petitioner: A.K. Sharan, Advocate



Judgment Text

1. The Applicant bank has made this application u/s. 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 20.3.2019, against the defendants to recover its debts from defendants of Rs. 44,78,346.46 as on 28.2.2019 along with pendente lite and future interest at the contractual rate from 1.3.2019 with costs till realization.

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 is a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) act 1970, having its Central Office at Union Bank Bhavan 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and carrying on business through different branches including one at Main Branch, Abhay Bhawan, Fraser Road, District-Patna, Bihar.
The defendant no. 1, a partnership firm, its partners defendant no. 2 & 3, who is engaged in production of Vermin Compost unit for agriculture production and acting on the representation and believing the same to be true the applicant bank.

The defendant no. 1 represented through the defendant no. 2 & 3, felt necessity of fund and so approached the applicant bank for financial assistance for smoothly running of their business. Considering the loan application dated 17.12.2015, the applicant bank was pleased to sanction and advice to them on 19.12.2015 and after due consideration sanction the overall limit of Rs. 50 lacs vide sanction letter dated 24.3.2016 with terms and conditions.

As security in order to avail the overall limit of Rs. 50 lacs under the Union Progress Scheme, the various documents were executed by the defendants in favour of the applicant bank i.e. DP note, hypothecation agreement of goods and debts, letter of undertaking, letter of continuity, term loan agreement, letters of guarantee, deed of guarantee and PDR.

The sanctioned amounts were duly disbursed by the applicant bank and utilized by the defendants after executing all the security documents in favour of the applicant bank. An account in the name of defendants was also opened. All the transactions have been entered in the ledger duly maintained by the applicant bank in usual course of its business.

As security in order to secure the repayment of loan the defendants have hypothecated all the stocks etc. of the firm to the applicant bank with an undertaking to furnish stock statement to the applicant bank from time to time.

The defendant n. 2 for the purpose of securing repayment of the debit balance lying outstanding from time to time in the loan accounts, on 14.3.2016 visited the Registry Office, Patna with Branch Official with intention of mortgage and executed registered simple mortgage deed no. 3364 dated 14.3.2016 standing in the name of defendant no. 2 along with rent receipt, LPC, NEC has been deposited in the applicant bank by the defendant no. 2 duly confirmed that the property belonging to her is under absolute ownership and the same will remain as mortgaged till realization of the dues of the bank, the mortgage in respect of the property details given below:-

Simple mortgage of the immovable property created by defendant no. 2, piece and parcel of land measuring an area of area 1 acre equivalent to 100 decimal together with all trees and buildings, situated at Mouza-Ajawan, Village-Ajawan, Thana -Noubatpur, Thana no. 143, Tauzi no. 2604, District-Patna being a apart of Survey Plot no. 2791, khata no. 614, together with building and structure thereon within the jurisdiction of sub registry office Bikrampur and sadar registration office and district Patna. Boundary of Plot no. 2791, North-Nij Rasta, South-Nij Plot, East-Nij, West-Road.

After some time, the defendants as the borrowers of aforesaid credit/loan enjoyed and utilized the said credit facilities of the applicant bank as aforesaid but thereafter did not adhere to the terms and conditions of the said facilities. And despite repeated requests did not clear dues/installments within the time specified in the terms and conditions connected with the aforesaid credit facility and thus the aforesaid account became irregular and the account has been declared as NPA as on 31.10.2016.

As per the statement of account and applying interest up to 28.2.2019 the dues comes to the tune of Rs. 44,78,346.46 which the defendants are liable to repay with interest at the contractual rate with monthly rest from 1.3.2019 untill payment in full.

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, 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 of the DRT [Procedure] Rules, 1993, copies of application & paper book were sent by this Tribunal to the defendants by registered/speed post on 4.6.2019 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.

On perusal of the case records, it is seen that on 4.6.2019, summons/notices were sent to the defendants, but the defendants have not appeared, hence, the Registry of this Tribunal has ordered to publish the notice in newspaper and subsequently, substituted service by publication of notice by way of advertisement in newspaper was also made against the defendants on 23.7.2019 in "Prabhat Khabar", newspaper.

Despite the registered summons/notices and publication of notice in newspaper, the defendants have not appeared before this Tribunal to contest the case. 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 ex parte against the defendants on 13.12.2019.

5. To prove its case, the applicant Bank has referred various documents before this Tribunal on 16.5.2019. The applicant bank has also given evidence on affidavit on 16.5.2019 by way of affidavit of Shri Amit Ranjan, Chief Manager of the applicant bank. The details of documents are as follows:-



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 ex parte 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 loan and utilized the same and also executed the various loan documents to secure the loan. Further, submitted that the claim of the bank has been proved by documentary evidence. Ld. Counsel for the applicant bank has further submitted that the defendants have not deposited any amount, after filing of the OA.

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 OA and requested to issue recovery certificate, as claimed for, in OA.

7. It has been established that defendants are living and carrying on their business in the state of Bihar. Cause of action also arose in the State of Bihar. The said claim on the date of filing of application exceeded Rs. 10 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 31.10.2016, whereas the present application has been filed on 20.3.2019. 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 Amit Ranjan, Chief 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 loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan 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 ex parte, all contentions raised and documents produced by plaintiff remained un-rebutted 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 facility, documents were executed by the defendants and facility was 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. 44,78,346.46 with cost and further interest at the contractual rate from 1.3.2019 till realization.

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 Jaggers 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 pennissible 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 from defendants, jointly and severally of Rs. 44,78,346.46 alongwith pendente lite and future interest @10% p.a. simple from 1.3.2019 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 ex parte and debt is determined with costs against the defendants and it is,

Please Login To View The Full Judgment!

hereby, ordered that the applicant bank is entitled to receive from defendants, jointly and severally, it's debts with interest, amounting to Rs. 44,78,346.46 alongwith pendente lite and future interest @10% p.a. simple from 1.3.2019 till realization of the entire sum due and recoverable with costs. It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted. Defendants are debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. 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, by sale of mortgaged/hypothecated assets as well as other personal movable/immovable assets of the defendants. Parties are directed to appear before the Recovery Officer, DRT, Patna on 8-2-2020. The order be communicated accordingly. Judgment signed, sealed, dated and pronounced in the open court on this 2nd Day of January, 2020. Dictated & Corrected by me.
O R