STATE BANK OF INDIA TUPUDANA BRANCH Vs. KRISHNA ENTERPRISES AND SRI KRISHNA KUMAR SINGH S/O LATE SUBEDAR SINGH
DEBTS RECOVERY APPELLATE TRIBUNAL
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S.K. Mohpatra, Presiding Officer -
(1.) THE Applicant State Bank of India, Tupudana Branch, Hatia, Ranchi had presented this Application under Section 19 of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 (hereinafter referred to as Act) before the Debts Recovery Tribunal, Ranchi on 03.07.2003 against the Defendants for Recovery of debts of Rs. 10,40,301.93 paisa as on 30.06.2003 along with pendentalite and future interest at the contractual rate till realisation with cost. THE Application was numbered as O.A. No. 33 of 2003.
(2.) The brief facts of the case of the Applicant as stated in their application is that the State Bank of India is a body corporate constituted under State Bank of India Act, 1955 having its Head Office at Madam Cama Road, Nariman Point, Mumbai and one of its branches at Tupudana, Hatia, Ranchi. Defendant No. 1, M/s Krishna Enterprises is a proprietary concern engaged in the business of Steel Fabrication. The defendant No. 2 is the proprietor of Defendant No. 1 who had approached the Applicant Bank for grant of Term Loan facility to purchase the machineries and Cash Credit loan facility to run the business. Consequent to the request Applicant granted Rs. 3.50 Lacs as Term Loan and Rs. 2.00 Lacs as Cash Credit vide sanction letter dated 18.03.1998. To secure the loan Defendants executed various agreements on 18.03.1998 & 22.12.1998 like General Agreement for the grant of Medium Term Loan Ancillary Agreement for Medium Term Loan, Guarantee Agreement for Term, Agreement of Loan for the grant of small industrial advances, Agreement for Hypothecation of Goods and Assets etc. Defendant No. 2 stood as surety and executed guarantee agreement for the facilities. It is also bank's case that Defendant No. 2 mortgaged his landed property situated in Mouza Hundru, P.S. - Doranda, District - Ranchi more fully described in schedule 'B' of Original Application by depositing the title documents with the applicant bank on 18.03.1998, with intention to secure the above stated loans. Defendants availed the loan however subsequently failed to regularize the accounts and committed defaults. Consequently Applicant Bank served legal notice through its lawyer on 28.02.2003 calling upon the Defendants to pay the entire dues but without any avail. Hence this application.
Under Section 19(4) and Rule 11 of Recovery of Debts Due to Banks and Financial Institution Act, 1993 a copy of Application was sent by this Tribunal to all the Defendants by registered post with acknowledgement. Consequently, defendants filed vakalatnama on 21.08.2003 before this Tribunal and thereafter filed their written statement and evidence on affidavit on 16.12.2003 and 16.7.2004 respectively.
(3.) THE Applicant Bank has filed evidence on affidavit on 25.05.2004 by way of affidavit of Sri Pravin Kumar Sinha, working as Chief Manager, State Bank of India, Tupudana Branch, Ranchi. THE Applicant Bank has also filed original documents before this Tribunal on 05.01.2004, the details of which are as follow.
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