ALLAHABAD BANK Vs. BAJARANG ENTERPRISES

JUDGEMENT

(1.) THE applicant Allahabad Bank, Doranda Branch, Ranchi had presented this Application under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as Act) in DRT, Patna on 8.12.1998 against the defendants for recovery of debts of Rs. 1,03,61,676.00 paisa as on 8.12.1998 and thereafter with pendente lite and future interest @ 21.75% per annum from 9.12.1998 with quarterly rests including cost. THE application was numbered as O.A. 193/1998 and during the pendency of the same with the establishment of Debts Recovery Tribunal, Ranchi for the State of Jharkhand, the application was received on transfer in this Tribunal and renumbered as O.A. No. 17/2002.

(2.) 1. The brief facts of the case of the Applicant as stated in the application are that the Applicant Bank is a Body Corporate constituted under the Banking Companies (Acquisition of Transfer of Undertakings) Act, 1973, having its Head Office at 2, Netaji Subhas Road, Calcutta-700 001 and one of its Branch Office at Doranda Branch, Ranchi, Jharkhand. Defendant No. 1 is a Partnership Firm carrying on business of Handling Agent/Distributing Agent of Kalyanpur Cement Ltd. Defendant Nos. 2 and 3 are its Partners and defendant No. 4 is the Guarantor. Defendant Nos. 1, 2 and 3 submitted application on 20.1.1994 for financial assistance and on considering the application, applicant Bank sanctioned Cash Credit limits of Rs. 18.50 lacs and Overdraft facility (Book Debts) of Rs. 4.50 lacs vide sanctioned letter dated 26.4.1994. Defendant Nos. 1, 2 and 3 accepted the terms and conditions and executed various documents like Demand Promissory Note, Deed of Hypothecation, etc. Defendant No. 4 along with defendant Nos. 2 and 3 have personally guaranteed the due repayment of the loan amount of Rs. 23 lacs. That apart, defendant No. 3 created equitable mortgage by depositing title deed of property as mentioned at Schedule "A" of the Original Application. Defendant No. 4 also created equitable mortgage over her property as mentioned in Schedule "B" of the application. On 20.2.1995 the borrower requested the applicant Bank for further enhancement of the loan. Accordingly, the following facilities were sanctioned:

(3.) THE Applicant Bank has filed evidence by way of affidavit of Sri Bidyut Banerjee, Senior Manager on 23.6.1999 and of Sri Devendra Kumar Singh, s/olateL.N. Singh, who at the material time was Manager, on 5.8.1999 before DRT, Patna. THE Applicant Bank has also filed and relied on the documents, the details of which are as follows: