BANK OF MAHARASHTRA Vs. MOHIT ENTERPRISES
DEBTS RECOVERY APPELLATE TRIBUNAL
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Meena V.Gomber, -
(1.) THE applicant Bank initially filed this claim against defendants named hereinabove on 19th October, 1994 before Hon'ble Delhi High Court for recovery of Rs. 27,29,392/- along with costs, pendente lite and future interest @ 21.75% per annum with quarterly rests which was registered as Delhi High Court suit No. 2458/94 and had eventually, on promulgation of RDDBFI Act, 1993, been transferred to the then Tribunal and has now been received in this Tribunal by way of transfer.
(2.) Briefly stated facts of the case as mentioned in the plaint are that defendant No. 1, a partnership firm was carrying on its business through defendant Nos. 2 and 3 and had opened the current/cash credit account with the applicant Bank's branch. Defendant No. 5 who was posted as branch manager in the branch in question from May 1986 to September 1991 had in connivance with defendant Nos. 1 to 4 released various amounts by issuing credits, pay orders and by allowing the payments through cheques received in clearing despite there being no credit balance in the said account, same was allowed by defendant No. 5 without getting approval from higher authorities. In September 1991, said fraud was detected and found that substantial amount of the Bank was utilized by defendant No. 1 through its partners illegally in criminal conspiracy with the branch manager and defendant No. 4. Defendant also made payment towards the dues outstanding but did not liquidate the entire dues. After the fraud was detected, the Bank issued notice on 21st January, 1992 to defendants to pay the dues, but, despite service of said notice, defendants failed to repay the remaining dues which they were liable to pay and thus have caused substantial revenue loss of Rs. 27,29,392/- to the Bank. Defendant No. 4, Shri Dalip Gupta, admitted that he and his family members including defendant Nos. 1 to 3 have availed substantial amounts in connivance with Bank Manager (defendant No. 5) and also admitted to pay the sum outstanding vide his letter dated 25th February, 1994. In the same manner, defendant Nos. 2 to 4 and 6 acknowledged their liability and had got issued letter of credits in favour of various firms in connivance with defendant No. 5 who issued letter of credits without any authority, sanction from higher authorities.
As per the Bank a sum of Rs. 27,29,392/- was outstanding at the time of filing of claim. It has prayed for issuance of recovery certificate for the said sum along with costs, pendente lite and future interest @ 21.75% per annum with quarterly rests on the ground that the amount claimed as due from the defendants is a liability (inclusive of interest) incurred during the ordinary course of Banking business activity and is thus covered under the definition of "debt" under Section 2(g) of the RDDBFI Act, 1993.
(3.) COMPOSITE written statement filed on behalf of defendant Nos. 1 to 4 and 6 and a separate written statement on behalf of defendant No. 3(A) is on record although they became ex parte thereafter.;
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