In The Debts Recovery Tribunal-I, Mumbai Original Application No. OF 2021

 

IN THE DEBTS RECOVERY TR TRIBUNAL-I, IBUNAL-I, MUMBAI ORIG OR IGIN INAL AL AP APPL PLIC ICA ATI TION ON N NO. O.

CANARA BANK

OF 20 2021 21

..APPLICANT ..APPLIC ANT

VERSUS

M/S. SHEETAL INDIA & ORS. ...DEFENDANTS

SYNOPSIS

1.

Th Thaat the the Ap Appl plic icaant is a bo body dy corp corpo orat rate, co cons nsttitut ituted ed un unde derr the the Ban anki king ng

Companies (Acquisitions & Transfer of Undertakings) Act V of 1970, having its Registered Office at 112, J C Road, Banglore-560 002 and amongst others, a Branch Office at the address mentioned herein below. below. That the Defendan Defendantt no.1 is a Princi Principal pal Borro Borrower wer Comp Company any havi having ng its registered address at 453, 55 Grant Road, Opp. Novelty Cinema, Mumbai  – 400 007. The Defendant nos. 2 to 8 are the Guarantors held at Bank’s Grant Road Branch. That the Defendant No.2 to 8 were continue to seize and possess of  and or otherwise well and sufficiently entitled to various moveable assets asse ts incl includin uding g Rea Readymad dymade e Garme Garments, nts, Leat Leather her Good Goods, s, Arti Artificia ficiall Jewellery and Antique Goods which were hypothecated as per the hypothecation Agreeement.

 

That the Applicant submits that Defendant No.1 availed of the facilities granted by the Applicant and withdrawn diverse sums of money from the account.

That the Defendant started defaulting the repayment of the term Loan from 2020

That the Defendants committed breach of fundamental terms of loans and securi sec urity ty docu docume ment ntss reg regar ardi ding ng repay repayme ment nt of pr prin inci cipa pall am amou ount nt and and outstanding interest. Despite repeated requests and reminders, the Defendants deliberately and di dish shon ones estl tly y fail failed ed and and negl neglec ecte ted d to pa pay y the the Ap Appl plic ican ant’ t’ss dues dues and and regularize the account. In view view of pe pers rsis iste tent nt de defa faul ults ts co comm mmit itte ted d by th the e De Defe fend ndan ants ts in repayment of principal and interest outstanding the Applicant was cons co nstr trai aine ned d to clas classi sify fy the the ac acco coun untt of the the De Defe fend ndan ants ts as No NonnPerformimg Assests on 01.10.2020 as per the RBI Norms.

 Hence the Applicant is filing this Application.

 

ASHISH MEHTA

Anjani

Kumar

Mayank   Senior

Manager  Ethos Legal Alliance

Canara Bank  

(Advocate for the Applicant)

Applicant

 

 

IN THE DEBTS RECOVERY TR TRIBUNAL-I, IBUNAL-I, MUMBAI ORIG OR IGIN INAL AL AP APPL PLIC ICA ATI TION ON N NO. O.

CANARA BANK

OF 20 2021 21

….APPLI ….APPLICANT CANT

VERSUS

M/S. SHEETAL INDIA & ORS.

…DEFENDANTS

LIST OF DATES AND EVENTS Sr. No. 1.

2. 3.

4.

5.

Date 22.03.1993

Events The Applicant, as Banker for Deffend De nde ent nts s and at th the e requ que est of Defe De fend nden ents ts,, Th The e Ap Appl plic ican antt gr gran ante ted d Cash Credit Facility of Rs. 30 Lakhs to Said Defendant Company

the the the the the

14.05.1993

Open Cash Credit Agreement executed  between the Applicant and the Defendants 14.05.1993 Subordination Agreement executed by the Defendants for the Cash Credit Facility of Rs. 30,00,000/28.08.2002. Supplemental Agreement ssiigned aan nd eex xecuted  between the Applicant and the Defendants to enhance the Cash Credit Facility to Rs.3,00,00,000 15.04.2005 Supplemental Agreement ssiigned aan nd eex xecuted

6.

15.11.2006

7.

30.11.2006

8.

03.06.2019

9.

06.06.2019

10.

06.06.2019

 between the Applicant and the Defendants to enhance the Cash Credit Facility to Rs.5,00,00,000 Sanction Letter to ren renew the OCC fac facility with the Enhancement to Rs. 7,00,00,000/Guarantee Agreement Executed by the Defendants in favor of Applicant Applicant re renewed tth he C Caash Cr Credit F Faacility o of  f  Rs.. 4, Rs 4,00 00,,00 00,0 ,000 00//- as pe perr the the Defen efenda dant ntss request . Link Letter to the Guarantee Agreement Executed by the Defendants Letter o off R Reenewal eex xecuted b by y th the D Deefendants

 

11. 12.

in favor of Applicant 06.06.2019.. Letter Evidencing Execution of Documents was executed by the Defendants 14.06.2019 .Subordination Agreement executed by the Defe De fenda ndant ntss fo forr the the Un Unsec secur ured ed Loan Loan of Rs. Rs. 1.62 Crore

13.

01.10.2020

14.

25.05.2021

15.

16.

In vthe iewDefendants of the persiin sterepayment nt defaultsof coPrincipal mmitted  by and interest outstanding, the Appli Applicant cant was constrained to classify the account as NonPerforming Asset as per the RBI Norms

Notice was issued by the Ap A pplicant to the Defendants recalling the entire Loan amount. 03.08.2021. Defendants accepted and A Accknowledged its Liab Li abil ilit ity y to the the ex exte tent nt of amou amount nt as more more  particularly mentioned therein by signing and executing Letter of Acknowledgement of Debt and Security. 05.10.2021. Defendants failed to make any payment towards the outstanding amount, as of result of  their non-payment, final Legal Demand Notice was issued recalling the entire Dues to be paid within 7 days from the receipt of the Notice.

17.

ASHISH MEHTA Ethos Legal Alliance (Advocate for the Applicant)

Loan Account Statement of the Defendant Company

 

[APPLICATION UNDER SECTION 19 OF THE RECOVERY OF DEBTS AND BANKRUPTCY ACT, 1993] IN THE DEBTS RECOVERY TRIBUNAL-I, MUMBAI ORIGINAL ORIGINA L APPLICA APPLICATION TION NO. Between: Canara Bank,

constituted

a

body

corporate, )

the

Banking )

under

OF 2021

Trans ransfer fer of  )

Compan Com panies ies (Ac (Acqui quisit sition ion

Undertakings) Act, 1970 having Central ) Office at 112, J C Road, Banglore-560 ) 002, 00 2, an and d am amon ongs gstt ot othe hers rs,, a Br Bran anch ch ) Office at Grant Road Branch, Mumbai- ) 400 00 400 007. 7.,, thro through ugh it itss Ma Mana nage gerr, Mr Mr.. )  _______. ) … Applicant AND 1. M/s. Sheeta Sheetall Indi India, a, having having addre address ss at, ) 453, 55, Grant Road, Opp. Novelty ) Cinema, Mumbai - 400007. Mr.

Damji

Shah,

an

adult

) ) Indian )

Inhabitant, having address at 11, Tinwala Tinwala ) Building,

Room

No.

6,

3rd  Floor, )

Tribhuvan Road, Mumbai – 400004.

)

) Mrs. Kantaben Kantaben D. Shah, an adult Indian ) inha inhabi bita tant nt,, ha havi ving ng ad addr dres esss at 11, ) Tinwala Building, Room No. 6, 3 rd ) Floor Flo or,, Tr Tribh ibhuva uvan n Roa Road, d, Mum Mumbai bai –  ) 400004.

)

Mr. Ji Jitten endr draa B. Sh Shah ah,, an ad adul ultt In Indi dian an )

 

inhabitant, having address at 26/13, ) Shan Sh anti ti Sa Sada dan, n, 4th  Fl Floo oorr, Dr Dr.. D. D.B. B. ) Marg,

Grant

Road,

Mumbai

–  ) )

400007.

Mr. Dhirendra B. Shah, an adult Indian ) inhabitant, having address at 26/13, ) Shan Sh anti ti Sa Sada dan, n, 4th  Fl Floo oorr, Dr Dr.. D. D.B. B. ) Marg,

Grant

Road,

Mumbai

–  )

400007.

)

Mrs. Chandrika D. Shah, an adult Indian ) inhabitant, having address at 26/13, ) Shan Sh anti ti Sa Sada dan, n, 4th  Fl Floo oorr, Dr Dr.. D. D.B. B. Marg,

Grant

Road,

Mumbai

–  ) )

400007.

) Mrs. Chhaya J. Shah, an adult Indian ) inhabitant, having address at 26/13, ) Shan Sh anti ti Sa Sada dan, n, 4th  Fl Floo oorr, Dr Dr.. D. D.B. B. ) Marg,

Grant

Road,

Mumbai

–  ) )

400007.

Ms. Maniben B. Shah, an adult Indian ) inhabitant, having address at 26/13, ) Shan Sh anti ti Sa Sada dan, n, 4th  Fl Floo oorr, Dr Dr.. D. D.B. B. ) Marg,

Grant

Road,

Mumbai

400007.

1.

–  ) )

…Defendants

Particulars of of Applicant:

As per particulars given, in the cause title, above.

 

Particulars of Defendants:

As per particulars given, in the cause title, above.

3.

Jurisdiction o off th the T Trribunal:

The Applic Applican antt is a ba bank nkin ing g co comp mpan any y ca carry rryin ing g on ba bank nkin ing g bu busi sine ness ss,, having Branch Office at Grant Road, Mumbai falling within ward- D of  BMC. The Defendants are having address as mentioned hereinabove. The loan and security documents were executed at the above Branch of  the Applicant. The material and substantial part of cause of action has arisen ari sen at Mum Mumbai bai.. The Appl Applica icant nt declar declares es tha thatt the sub subjec ject-m t-matt atter er of  recovery recov ery of de debt bt du duee fall fallss wi with thin in the the pe pecun cunia iary ry juri jurisd sdic icti tion on of the the Tribunal.

3A. (i)

Details of debt and assets:

Total

amount

of

debt Rs.4,04,65,548.65/-(Four Crore,

claimed as on the date to Four  be specified

Lakhs,

Thou Th ousa sand nd Five Five Hund Hundre red d an and d Forty-Eight

(i (iii)

Sixty-Five

only)

as

on

Am Amou ount nt of de debt bt,, as on

30.11.2021 Rs.4,04,65,548.65/-(Four Crore,

specified date, secured by

Four

security interest over

Thou Th ousa sand nd Five Five Hund Hundre red d an and d

 properties or assets of the

Forty-Eight

Defendant with

30.11.2021

Lakhs,

Sixty-Five

only)

as

on

 particulars of secured  properties and assets (iii) Estimated

va v alue

o off PRIME

SECURITY:

 

Hypo poth thec ecat atio ion n  properties or assets over  Hy

of

(A (Art rtif ific icia iall

which security interest is Jewelry, Antique Goods, Stock  of Readymade Garments).

created.

COLLATER COLLA TERAL AL SEC SECURI URITY TY:: KDR 0135401003533 0135401003533 valued valued at Rs. 74 Lakhs (iv) If estimated value is not  Nil adequate to cover the tota totall de debt bt cl clai aime med d wi with th future interest particulars of any other properties or  assets known to the Applicant with estimated value

of

such

other 

 properties or assets. 4.

Limit Lim itat ation ion :

(i (i))

On 1 14. 4.05 05.1 .199 993 3 Open Open C Cash ash Cr Cred edit it facil facilit itie iess of R Rs. s. 3 30 0 Lakh Lakh w was as ssan anct ctio ione ned d

and by the App Applican licantt to the Defendant Defendants. s. In respect of the said facilities facilities various loan and security documents were executed on 14.05.1993.

The above facility was renewed time to time vide various Loan and Security Documents.

Thee De Th Defen fenda dant ntss av avai aile led d of an and d ut util iliz ized ed the the sa said id OC OCC C faci facili lity ty.. Ho Howe weve verr, Defen De fenda dant ntss co comm mmit itte ted d br brea each ch of lo loan an an and d se secu curi rity ty do docu cume ments nts rega regardi rding ng repayment of the Applicant’ Applicant’ss dues.  

 

By Acknowledgment of debt and security dated 03.08.2021 the Defendants had ac ackn know owle ledg dged ed th thee am amou ount nt outst outstan andi ding ng in the the ac acco coun untt of the the De Defe fend ndan ants ts maintained by the Applicant.

The Applicant Applicant is claiming possession over the assets hypothecated. Thee Ap Th Appl plic ican antt de decl clare aress th that at th thee ab abov ovee Or Orig igin inal al Ap Appl plic icat atio ion n is wi with thin in the the limitation prescribed in Section 24 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

4.

Facts Fac ts o off the Case :

The facts of the case are given below:

4.1 The Applicant is a body corporate, constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act V of 1970, having its registered Office at 112, J C Road, Banglore-560 002 and amongst others, a Branch Office at the address mentioned herein above.

4.2 The Defendant no. 1 is a Private Limited company having its comp co mpan any y ad addr dres esss at 453, 453, 55 55,, Gran Grantt Ro Road ad,, Opp. Opp. No Nove velt lty y Cinema, Mumbai – 400 007.

4.3 The Defendant nos. 2 to 8, are the Guarantors held at Bank’s Grant Road Branch. Thee Ap Appl plic ican antt ab abov ovee na name med d stat states es that that An Anja jani ni Ku Kuma mar  r  4.4 Th Mayank aged 37 is the Constituted Attorney of the Applicant Bank and has been duly authorized by the Applicant to file this Appl Ap plic icat atio ion n on it itss be beha half lf.. An Anja jani ni Kuma Kumarr Ma Maya yank nk is duly duly authorized vide Power of Attorney/Letter of Authority dated 17.09.2021 and thereby he is aware of the facts of the present

 

Application and there competent to depose the same. The Copy of the Letter of Authority dated 17.09.2021 is annexed in the Part C of the Application Application Applicant,, as Banke Bankerr for the Defendant Defendant no.1 and at 4.5 That the Applicant the request of the Defendants’ grant granted ed the Cash Credi Creditt Facil Facility ity in the form of Open Cash Credit of Rs. 30 Lakhs to the said Defendant Company on terms and conditions as set out in the Sanction Letter dated 22.03.1993 which was duly accepted and acknowledged by the Defendants. Hereto annexed and marked “Exhibit–A” is a copy of Sanction Letter dated 22.03.1993.

4.6 At all material time, Defendants were and continue to seize and possess of and or otherwise well and sufficiently entitled to variouss movea variou moveable ble assets inclu including ding Artificial Artificial Jewelry Jewelry,, Antique Goods,

Stock

of

Readym dymade

Garments

which

were

hypothecated as per the Open Cash Credit Agreement dated 14.05.1993. The above Artificial Jewelry Jewelry,, Antique Goods, Stock  of Re Read adym ymad adee Ga Garm rmen ents ts wh whic ich h we were re hy hypo poth thec ecat ated ed to the the Appl Ap plic ican antt is mo more re pa part rtic icul ularl arly y de desc scri ribe bed d in the the Op Open en Cash Cash Credit Agreement. Hereto annexed and marked as “Exhibit-B” is a copy of Open Cash Credit Agreement dated 14.05.1993.

4.7 In consideration of the Application having sanctioned and gr gran ante ted d to th thee De Defen fenda dant nt No No.1 .1 fo forr the the abov abovee Open Open Cred Credit it faci facili liti ties es of Rs Rs.. 30 30,0 ,00, 0,00 000/ 0/-, -, the the De Defe fend ndan ants ts exec execut uted ed an and d deli de live vere red d to th thee Ap Appl plic ican antt Su Subo bord rdin inat atee Ag Agre reem emen entt da date ted d 14.05.1993. Hereto annexed and marked as Exhibit-“C” is the Copy of Subordinate Agreement dated 14.05.1993.

4.8 The Applicant submits that Defendant No.1 availed of  the the faci facili liti ties es gr gran ante ted d by the the Ap Appl plic ican antt an and d wi with thdr draw awn n diverse sums of money from the account.

 

4.9  The Applicant submits that, on or about August,2002, on the request of the Defendant No. 1, Cash Credit Facility has been enhanced to Rs. 3,00,00,000/-(Rupees Three Crores only) and the Supplement Supplemental al Agreem Agreement ent has been execu executed ted betw between een the Applicant and the Defendant dated 28.08.2002. Hereto annexed and marked as Exhibit-“D”  is the the Co Copy py of Su Supp pple leme ment ntal al Agreement dated 28.08.2002.

4.10 The Applicant submits that, on or about April, 2005, on the request of the Defendant No. 1, Cash Credit Facility has been enhanced to Rs. 6,00,00,000/-(Rupees Six Crores only) and the Supp Su pple leme ment ntal al

Ag Agree reeme ment nt ha hass been been ex exec ecut uted ed betw betwee een n the the

Applicant and the Defendant dated 28.08.2005. Hereto annexed and marked as Exhibit-“E”  is the the Copy Copy of Su Suppl pplem emen enta tall Agreement dated 28.08.2005.

4.11 The Applicant submits that, on or about November, 2006, on the request of the Defendant No. 1, Cash Credit Facility has  been enhanced to Rs. 7,00,00,000/-(Rupees Seven Crores only) on terms and conditions as set out in the Sanction Letter dated 15.11.2006 which was duly accepted and acknowledged by the Defendants. Hereto annexed and marked “Exhibit–F” is a copy of Sanction Letter dated 15.11.2006.

4.12 In consideration of the Applicant having sanctioned and granted to the Defendant company the above Cash Credit Facility Faci lity of Rs.7, Rs.7,00,00 00,00,000/ ,000/-(Ru -(Rupees pees Seve Seven n Cror Crores es Only) Only),, Defendant Nos. 2 to 8 have executed and delivered to the Applicant, Guarantee Agreement dated 30.11.2006 thereby guaranteeing the repayment of all the dues payable by the Defe De fenda ndant nt No. No.1 1 to the Ap Appli plican cantt tog togeth ether er wit with h int intere erest, st, costs, charges, expenses, etc under the said Credit Facility.

 

The above Guarantee is continuing, valid, subsisting and binding upon the Defendants. Hereto annexed and marked as

Exhibit-“G”

is the copy of Guarantee Agreement dated

30.11.2006.

4.13 The Applicant submits that, on or about June 2019, on the request of the Defendant No. 1, Cash Credit Facility has been rene renewe wed d to Rs Rs.. 4, 4,00 00,0 ,00, 0,00 000/ 0/-(R -(Rup upees ees Four Four Cror Crores es only only)) on terms and conditions as set out in the Sanction Letter dated 03.06.2019 03.06 .2019 which was duly accepted and acknowledg acknowledged ed by the Defendants. Hereto annexed and marked “Exhibit–H” is a copy of Sanction Letter dated 15.11.2006.

4.14 In consideration of the above sanction of the renewal of the Cash Credit Facility, Defendant nos. 2 to 8 has signed and executed execut ed the Link Lette Letterr to the Guarantee Agreement Agreement execute executed d in November 2006 stating that the Guarantee executed in favor  of the Applicant remains unaffected, inforce and continue to be available being limited to Rs.7,00,00,000/-. Hereto annexed and marked “Exhibit–“I” to “I6” are the copies of the Link Letter  dated 06.06.2019.

4.15 In consideration of the above sanction of the renewal of the Cash Credit Facility, Defendant nos. 2 to 8 has signed and executed various Loan documents in favor of the Applicant including the Following: a) Le Lett tter er of Re Rene newa wall ex exec ecut uted ed by the De Defen fenda dant ntss in favo favorr of  Applicant dated 06.06.2019. Hereto marked and Annexed as “Exh “E xhib ibit it-J” -J” is the copy of the Letter of Renewal dated

06.06.2019.  b) Letter

Evidencing

Execution

of

Documents

dated

06.06.2019. 06.06. 2019. Hereto marked and Annexed as “Exhibit-K” is

 

the copy of the Letter Evidencing Execution of Documents dated 06.06.2019. c) Su Subo bordi rdina nati tion on Agre Agreem emen entt ex exec ecut uted ed by the the De Defe fend ndan ants ts fo for  r  the Unsecured Loan of Rs. 1.62 Crore dated 14.06.2019. Hereto marked and Annexed as “Exhibit-L” is the copy of  the Subordinate Agreement dated 14.06.2019.

4.16 The Applicant further submits that, the Defendant started defaulting the repayment of the Cash Credit Facility somewhere in th thee ye year ar 20 2020 20,, desp despit itee repea repeate ted d req reque uest stss an and d remin reminde ders rs Defendant deliberately and dishonestly failed and neglected to regu regula lari rize ze th thee ac acco coun unts ts.. In view of pers persis iste tent nt de defa faul ults ts comm co mmit itte ted d by th thee De Defe fend ndan antt in repay repayme ment nt of pr prin inci cipa pall and and interest outstanding the Applicant was constrained to classify th thee ac acco coun untt of th thee De Defe fend ndan antt as Non-P Non-Per erfo form rmin ing g As Asse sett on 01.10.2020 as per the RBI Norms. To that effect, Applicant also issued the Loan Recall Notice demanding to repay the entire Loan Amount. Amount. Hereto marked and Annexed as “Exhibit-M”  is the copy of the Loan Recall Notice dated 25.05.2021.

4.17 The Applicant further submits that, on the issuance of the Loan Recall Notice, Defendants deposited some amount in the acco ac coun untt so some mewh wher eree in th thee mont month h of Ju June ne,, 2021 2021.. Thus Thus by Acknow Ack nowled ledgme gment nt of deb debtt and securi security ty dat dated ed 03. 03.08. 08.202 2021 1 the Defendants have acknowledged the amount outstanding in the Defen De fenda dant ntss Ac Acco coun untt ma main inta tain ined ed by the the Ap Appl plic ican ant. t. He Here reto to annexed and marked as Exhibit-“N”  is the copy of the Acknowledgement of Debt and Security dated 03.08.2021.

4.18 The

Applicant further submits that, even after  Acknowledging the Debt and Security, The defendants failed to

 

regu regula lari rize ze th thee ac acco coun unt. t. Th Thus us the the Fina Finall Le Lega gall No Noti tice ce da date ted d 05.10.2021 was issued by R.P.A.D/ Speed Post informing the Defend Def endant antss abo about ut the outsta outstandi nding ng amount amount and failin failing g which which approp app ropria riate te leg legal al pro procee ceedin dings gs will will be tak taken en aga agains instt the them m to recover the same, which would be at their entire risk as to costs and consequences. Hereto annexed and marked Exhibit–“O and O1” is the copy of the Legal Notice and and the Speed post Receipt of the said Legal Notice dated 05.10.2021

4.19 The Applicant is entitled to recover the entire outstanding under the said credit facility from the Defendants together with interest, costs, charges, expenses. The Defendants are jointly and severally liable to pay the Applicant’ Applicant’ss dues herein. Pr ivate Limited 4.20 The Applicant has maintained the Defendant Private Company’ Compa ny’ss account in its usual usual,, regular regular and ordinary course of   banking business wherein all transactions are truly and correctly refl reflec ecte ted. d.

The The stat statem emen entt of ac acco coun untt was was regu regula larl rly y an and d

 periodically collected by the Defendants. At no point of time Defendants have raised any objections in respect of any entry in the Statement of Account which is conclusively proved and  binding on the Defendants. Hereto annexed and marked as “Ex Exhi hibi bitt-P” P” is the co copy py of the Acc ccou ount nt stat statem emen entt of the the Defendants Company Company.. thee pr prem emis ises es th thee De Defen fenda dant ntss are liab liable le to pa pay y to the the 4.21 In th Applicant Appli cant Rs.4, Rs.4,04,65, 04,65,548.6 548.65/-(Fou 5/-(Fourr Crore, Four Lakhs, SixtySixtyFi Five ve Th Thous ousan and d Fi Five ve Hu Hund ndred red and and Fo Fort rtyy-Ei Eight ght only only)) as per  per  cons co nsol olid idat ated ed pa part rtic icul ular arss of clai claim m be bein ing g me ment ntio ione ned d abov abovee to toge geth ther er with with in inte tere rest st as set set ou outt fro from m the the da date te of fili filing ng of  Original Application Application till payment and or realization.

 

Thee ab abov ovee clai claim m is secu secure red d by the the Defen efenda dant ntss vide vide 4.22 Th Hypo Hy poth thec ecat atio ion n

of

mo mova vabl blee

pr prop oper erti ties es

more more

pa part rtic icul ular arly ly

described in the Agreement. The Applicant is entitled to sell the abov ab ovee secu securi riti ties es an and d real realiz izat atio ion n ther thereo eoff be pa paid id over over to the the Applicant. 4.23 The Applicant undertakes to provide inspection of original documents as well as statement of account as and when called upon by the Tribunal.

5.

The rreeliefs sso ought:

a)

TH THA AT, the D Def efen enda dant ntss be join jointl tly y and ssev ever eral ally ly o ord rder ered ed an and d dec decre reed ed to

 pay to the Applicant Rs.4,04,65,548.65/-(Four Crore, Four Lakhs, Sixty-Five Thousa Tho usand nd Fiv Fivee Hun Hundre dred d and For Fortyty-Eig Eight ht onl only) y) out outsta standi nding ng amo amount unt as on 14.12. 14. 12.202 2021, 1, unde underr OCC Fac Facili ility ty of Rs. 400 Lakhs Lakhs and as per parti particul culars ars of  claim being mentioned, together with further interest at the compound rate of  14.8 14 .85 5 % pe perr an annu num m  wi with th mon onth thlly rest rest fr from om the the da datte of fil filing ing of the

Application till payment and/or realization;

THAT, it be dec THA declar lared ed tha thatt the sai said d mov moveab eable le hypoth hypotheca ecated ted sec securi uritie ties, s, mor moree  particularly described in “Exhibit-B” hereto be sold and reali realized zed by and under  the orders and directions of the Hon'ble Tribunal and the net sale proceeds thereof be paid over to the Applicant towards satisfaction of its claim in the above Application;

For the purpose aforesaid, necessary orders be passed, enquiries be made and directions be given and the Defendants be ordered and decreed to do all such acts, deeds and things as may be necessary;

 

For issuance of Recovery Certificate under Sub-section 22 of Section 19 of  Recovery of Debts and Bankruptcy Act 1993 against the defendants;

THAT, the THA the De Defen fende dent ntss be ord order ered ed an and d dire direct cted ed to disc disclo lose se on Oa Oath th thei their  r   personal Assests as on date of the Application Application or such other date as this Hon’ble Tribunal may deem, fit and proper 

THAT, the Applicant may be allowed to amend or modify the present Original Application during the course of proceedings, if need arises.

THAT, any other and further reliefs as this Hon’ble Tribunal may deem fit be granted in favor of the Applicant.

FOR the cost of the Application.

4.

Interim R Reeliefs:

(a)

THAT pending the hearing and final disposal of the above Application, a fit and proper person be appointed as Rece Re ceiv iver er/C /Com ommi miss ssio ioner ner in resp respect ect of immo immova vabl blee pr prop oper erti ties es hypothecate hypoth ecated d securi securities ties describe described d in “Exhibit-B”  hereto with all  powers under Order XL, Rule 1 of the Code of Civil Procedure, 1908 and section 19(18) of the Recovery of Debts and Bankruptcy Act, 1993 including power to take possession thereof and to sell the same by public auction or by private treaty and the net sale

 

 proceeds thereof be paid over to the Applicant towards their claim in the above Application;

(a)

THAT pending the hearing and final disposal of the above Application, the Defendants, their servants, agents or any person cl clai aimi ming ng th thro roug ugh h th them em be rest restra rain ined ed by an inte interi rim m or orde derr of  injunction from in any manner, alienating, encumbering, disposing of, parting with possession, transferring, creating third party rights, title and interest of any nature whatsoever in the said securities, moree par mor partic ticula ularly rly described described in “Exhibit-B”, hereto or any part thereof;

(b)

THAT pending the hearing and final disposal of the above Application, the Defendants be ordered and directed to disclose on oath their personal assets as on date of the Application or such other date as this Hon'ble Tribunal may deem fit and proper 

(c) (c)

Pending the heari rin ng and fi fin nal dispos osaal of the above Orig riginal Appl Ap plic icat atio ion, n, De Defe fend ndan ants ts be rest restra rain ined ed by an inte interi rim m ord order er of  inju injunc ncti tion on fr from om leav leavin ing g th thee co coun untr try y an and d or trav travel elli ling ng abroa abroad d without prior permission of the Hon'ble Tribunal and Defendants  be directed to submit their respective passports with the Registrar  of this Hon'ble Tribunal within seven days or within such period as the Hon'ble Tribunal deem, fit and proper;

(d)

THAT pending the hearing and final disposal of the above Application, the Defendants be ordered to repay outstanding dues in the sum of Rs. Rs. Rs.4,0 4,04,6 4,65,5 5,548. 48.65/ 65/-(F -(Four our Crore, Crore, Four Four Lakhs, Lakhs, Sixty-Five Thousand Five Hundred and Forty-Eight only) till date

 

 being the aggregate amount prayed for in the above Application with wi th in inte tere rest st wi with thin in seve seven n da days ys or with within in su such ch peri period od as the the Hon'ble Tribunal may deem fit and proper;

(e)

FO FOR R ad ad-in -inte teri rim m re reli lief efss in term termss of pra praye yerr cl clau ause se ((a) a) to to (g) (g) abov abovee

(f (f))

FO FOR R tthe he co cost st of th thee Ap Appl plic icat atio ion; n; an and d

(g) (g)

FO FOR R su such ch ffur urth ther er an and d ot othe herr rel relie iefs fs as tthe he na natu ture re aand nd circu circums msta tanc nces es of the case may require;

5.

Reasons fo for IIn nterim O Orrder:

7.1:: 7.1

The App Applic licant ant subm submits its tthat hat tthe he rep repaym ayment ent of tthe he afo afores resaid aid am amoun ountt under the said facilities is duly secured by valid and hypothecation of securities as set out in “Exhibit-B”  hereto. hereto. The said said ffacili acilities ties weree san wer sancti ctione oned d aga agains instt the sec securi urity ty of the afor aforesa esaid id mov movabl ablee  properties. The said securities be sold sold and realized by and under the order ord erss an and d di dire rect ctio ion n of th thee Ho Hon' n'bl blee Tribu ribuna nall an and d the the ne nett sa sale le  proceeds thereof be paid over to the Applicant towards their dues in the above Application. Defendants have failed and neglected to maintain financial discipline and they have siphoned huge funds from the accounts.

7.2:: 7.2

The App Applic licant ant subm submits its tthat hat tthe he rep repaym ayment ent of tthe he afo afores resaid aid am amoun ountt under the said facilities is duly secured by valid and subsisting Collateral Colla teral securiti securities es as set out. The said faciliti facilities es were sanctioned against the security of the aforesaid movable properties. The said

 

secu securi riti ties es be so sold ld an and d real realiz ized ed by and and unde underr the the or orde ders rs an and d direction of the Hon'ble Tribunal and the net sale proceeds thereof  are paid over to the Applicant towards their dues in the above Application. The Defendants have failed and neglected to maintain financial discipline. 7.3: 7.3:

Th Thee Defend Defendan ants ts hav havee no in inte tent ntio ion n to repa repay y dues of the A Appl pplic icant ant despite having sufficient means. In the circumstances, it is just,  proper and necessary and in the interest of justice that the Defendants be ordered and directed as the Hon’ble Tribunal may deem fit be granted in favor of the Applicant.

7.4: 7.4:

Th Thee Appl Applic ican antt subm submit itss that it is jus just, t, prope properr and nece necess ssary ary and and in the interest of justice that pending the hearing and final disposal of  the above Application, the Hon'ble Tribunal be pleased to appoint the the Re Rece ceiv iver/ er/Co Comm mmis issi sion oner er in resp respec ectt of all all pr prop opert ertie iess of the the Defendants including those described herein under Order XL, Rule 1 of the Code of Civil Procedure, 1908 and section 19(18) of  Recovery of Debts and Bankruptcy Act, 1993 including power to take possession thereof and if required to take forcible physical  possession of the said properties, from the Defendants or any other   person found in possession and/or occupation thereof by breaking open the lock and if necessary with the help of police and sell and dispose of the same by public auction or private treaty and net sale  proceeds thereof be paid over to the Applicant towards satisfaction of their claim claim in the above Applicatio Application. n. It is submitted submitted that if the interim reliefs as prayed for are not granted, grave and irreparable harm, loss and injury would be caused to the Applicant.

 

7.5:: 7.5

The There re is n no o dis disput putee reg regardi arding ng th thee ind indebt ebtedn edness ess of D Defe efenda ndants nts o orr the liability liabi lity of Defe Defendants ndants to pay to the Appli Applicant. cant. Defend Defendants ants have expressly admitted the dues of the Applicant. The Applicant has absolutely good case of succeeding in the Application. The claim of the Applicant is an unimpeachable one. The Applicant is a Bank  and huge amount as set out hereinabove are due and payable by Defendants Defend ants to the Appli Applicant. cant. The publ public ic money and fun funds ds are at ri risk sk and, and, in th thee in inst stan antt ca case se;; pu publ blic ic inte interes restt is requ requir ired ed to be  protected. The Defendants have defrauded the public fund and they are not reliable. The Applicant has made out a strong prima facie case for appointment of Court Receiver/ Commissioner in respect of the said hypothecated securities.

Reasons for Interim Reliefs in respect of Guarantor:

7.6:

The Applicant submits that on the following amongst other  grounds, they are entitled to interim reliefs against Defendant no. 2 to 8, who is liable as Guarantor to the dues of Defendant No.1 Company. The said Guarantee is valid and subsisting, and the said Defendant is bound and liable to pay the dues of the Applicant. The Applic App licant ant is ent entitl itled ed to enf enforc orcee the dec decree ree aga agains instt Def Defend endant antss irrespective of the securities created by Defendant No.2 to 8 in favor of the Appli Applicant. cant. Defend Defendants ants are likel likely y to dispose of their  assets and deal with them with a view to defeat the decree that may  be passed in favor of the Applicant.

7.7:

The cla claim im of tthe he Appli Applicant cant is is to th thee exten extentt of Rs Rs.4,04,65, .4,04,65,548.6 548.65/5/(Four Crore, Four Lakhs, Sixty-Five Thousand Five Hundred and

 

Forty-Eight FortyEight only). The Defenda Defendants nts are bound and liable to pay the dues du es of th thee Ap Appl plic ican ant. t. Th Thee su suit it se secu curi riti ties es in the the ha hands nds of the the Defendants are unprotected and likely to be wasted and damaged. In the circumstances, the Applicant submit that it is just, necessary and convenient that pending the hearing and final disposal of the above Application, Defendants be ordered and directed to furnish security in the sum of Rs.4,04,65,548.65/-(Four Crore, Four Lakhs, Sixty-Five Thousand Five Hundred and Forty-Eight only) at the disposal dispos al of the Hon'ble Tri Tribunal. bunal. The A Applic pplicant ant submit submitss that till such security is furnished by Defendants, it is necessary that a War arra rant nt of At Atta tach chme ment nt of th thee pr prop oper erti ties es be issu issued ed and and the the  properties be attached by the order and direction of this Hon'ble Tribu Tr ibunal nal.. It is just, pro proper per and nece necessa ssary ry and in the int interes erestt of   justice that the interim and ad-interim reliefs as prayed for be granted. grante d. In the facts and circumst circumstances, ances, it is im imperat perative ive that th thee interim reliefs as prayed for may kindly be granted.

8.

Matte atterr Not Pending with Any Court:

The Ap Appl plic ican antt fur furth ther er de decl clare aress th that at the the ma matt tter er rega regardi rding ng whic which h the the Application has been made is not pending before any Court of law or any other authority or any other Bench of the Tribunal.

9.

Part Partic icul ular arss ffee eess in in R Res espe pect ct of th thee Appl Applic icat atio ion nF Fee ees: s:

Bharat Kosh Reference No: _________  Amount in Rs._________  Date ___________ 

 

10.

Details of Index:

An Index in duplicate containing the details of the documents to be relied upon is enclosed.

11.

List of Enclosures:

i)

Application

Vakalatnama List of Documents along with photocopies of the documents;

Dated this

day of December December,, 2021

THROUGH:

Ashish Mehta Advocate for Applicant

______________________  (For CANARA BANK)