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BEFORE THE DEBTS RECOVERY TRIBUNAL, ORISSA, CUTTACK.

Dairy No. of 2020
O. A. No. ______________ of 2020.
BETWEEN :
Union Bank of India, a statutory Body constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1980,
carrying on business all over India having its head office at 239,
Vidhan Bhawan Marg, Bombay-21 and one of its branches amongst
other places, At-Purushottampur Branch, Main Road, Po/Ps-
Purushottampur, Dist-Ganjam, Pin-761018 represented by its Branch
Manager and the Power of Attorney holder of the same address as that
of the Branch,
… Applicant.
Vrs.
1) M/s Baidhar Broiler Chicken Feeds and others, through its
Proprietor Biswa Ranjan Maharana,S/o-Dandapani Maharana
aged about 37 years, At/po- Bhatakumarada, Via-
Purushottampur, Dist-Ganjam, Pin- 761033,Mob- 9439258623.
2) Biswa Ranjan Maharana,S/o-Dandapani Maharana aged about 37
years, At/po- Bhatakumarada, Via- Purushottampur, Dist-
Ganjam, Pin- 761033, Mob- 9439258623
3) Gupteswar Patnaik, aged about 45 years, S/o Subodha Chandra
Pattnaik, permanent resident of Ramnagar 1 st Lane, Kamapalli,
Po-Berhampur, Ps-Baidyanathpur, Dist-Ganjam, Pin-760002,
Mob No.9439258623.

Defendant No.1 is the borrower.

Defendant No.2 is the borrower and mortgagor.
Defendant No.3 is the co-obligant and mortgagor.
… Defendants.

DETAILS OF THE APPLICATION

1) PARTICULARS OF THE APPLICANT :
i) Name of the Applicant: Union Bank of India, At- Purushottampur
Branch, Main Road, Po/Ps-Purushottampur,
Dist-Ganjam, Pin-761018.

ii) Address of the

Head Office: Union Bank of India, At-239, Vidhan Bhawan
Marg, Bombay-21
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iii)Address for service

of notices: Union Bank of India, Purushottampur Branch,
Main Road, Po/Ps-Purushottampur, Dist-
Ganjam, and its Advocate Sri Narasingha
Patra, Shelter Chowk, Cuttack-8, Tel.
No.9437310634, 9348544066.

2. PARTICULARS OF THE DEFENDANTS :

i) Name and address of the
Defendants : As per cause title.
ii) Address for service of
notice : As per cause title.

3. JURISDICTION OF THE TRIBUNAL :

The applicant declares that the subject matter of recovery of the debt
due falls within the jurisdiction of this Tribunal.
3.A Details of Debts and Assets ;

(i).Total amount of debt Amount of debt, in

claimed as on the date Rs.31,81,084/- as on
to be specified. 9.2.2020
(ii)Amount of debt, as Amount of secured debt, in Description
on specified date, Rs.31,81,084/- as on of
secured by security 9.2.2020 property or
interest over properties asset with its
or assets of the Schedule-A property as per location
defendant with original application. securing the
particulars of secured debt.
properties and assets.

(iii)Estimated value of Description of Schedule-A Value,

properties or assets property. Market Value
over which security Rs.43,91,000/-
interest is created. Distressed
value
Rs.37,32,000/-

4. LIMITATION :
The applicant further declares that the application is within the jurisdiction of
this Tribunal prescribed in Section 24 of the Recovery of Debts Due to Bank
and Financial Institutions Act, 1993.

5. FACTS OF THE CASE :

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i) That the applicant Bank is a body corporate carrying on business

having its head office at 239, Vidhan Bhawan Marg, Bombay-21 and branch
office of Union Bank of India, At-Purushottampur Branch, Main Road, Po/Ps-
Purushottampur, Dist-Ganjam, Pin-761018 within the jurisdiction of this
Hon’ble Tribunal.

That Sri. Prabir Kumar Swain is the Branch Manager of the applicant
bank and is authorized to sign, verify the application before any court or
Tribunal and to do all necessary acts that may be found necessary on behalf
of the bank. That the applicant bank carries on business of banking such as
accepting deposits, lending and or advancing loans to various persons and
further carries such other activities as are permissible under the banking
Laws.

ii) That the defendant No.1 Proprietorship Firm is the borrower, the
defendant No.2 is the borrower/mortgagor and defendant No.3 is the Co-
obligant and guarantor/mortgagor to the cash credit facility granted by the
applicant bank. That the defendant No.3 has mortgaged the schedule-A
property to the applicant bank. That all the defendants are jointly and
severally liable to pay the dues of the bank.

iii) That the defendants No.1 to 3 approached the applicant bank At-
Purushottampur Branch, Main Road, Purushottampur, Dist-Ganjam, Pin-
761018 and filed an application dt.09.05.16 for sanction of Open Cash Credit
facility of Rs.19 Lakhs for the business of chicken feed trading unit against
the hypothecation of stock of the business and co-lateral security of
residential property situated at KHATA SL NO 326, PLOT NO 546,extent Ac
0.230 Dec(out of total 0.590 from Easter Side) Nimakhandi Revenue Mouza,
Ps.Berhampur-Sadar, Tahasil- Kukudakhandi, Dis-Ganjam. That the
applicant bank considering the aforesaid application of the defendants No.1
to 3 vide letter dt.17.04.17 sanctioned OCC limit of Rs.29,00,000/- in their
favour with interest 10.9% against hypothecation of stocks and Book debts
and collateral security i.e equitable mortgage of residential property situated
at KHATA SL NO 326, PLOT NO 546,extent Ac 0.230 Dec(out of total 0.590
from Easter Side) Nimakhandi Revenue Mouza, Ps.Berhampur-Sadar,
Tahasil- Kukudakhandi, Dis-Ganjam belong to the defendant No.3 with other
terms and conditions enumerated in the said sanction letter for their
business. That the letter of Sanction dt. 17.04.17 was acknowledged by all
the defendants No.1 to 3 as token of the fact that the terms and conditions
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of the Open Cash Credit limit was accepted to them. That the defendants
accepted the terms and conditions of the sanction letter dt. 17.04.17 and
availed the Open Cash Credit facility and executed necessary documents of
the bank in its standard format as required by the bank. That the Central
Govt. after consultation with the Reserve Bank of India issued a Notification
dt.4.3.2020 in exercise of power conferred U/s 9 Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1980 by preparing a Scheme
which is called the Amalgamation of Andhra Bank and Corporation Bank into
Union Bank of India Scheme, 2020 giving effect from 1.4.2020.The copy of
the application of the defendants and the sanction letter dt. 17.04.17 are
annexed as Annexures-1 and 2.

That the defendants executed demand promissory note vide RF 211

dt.17.04.17 for OCC limit of Rs.29,00,000/- together with interest @10.9%
per annum and the composite agreement dt.17.04.17 was executed between
the applicant bank and the defendant no 1 and 3 and loan was sanctioned
accordingly. That in the said agreement the borrowers authorized the
applicant bank to charge and debit the OCC account with interest of 10.9%
p.a. ( MCLR+Spread). The copy of said DPN RF 211 dt.17 .04.17 and
composite agreement are annexed as Annextures-3 and 4.

iv) That the defendant No.2 as co-obligant/mortgagor guaranteed the

repayment of the cash credit facility of Rs.29 Lakhs availed by the
defendants along with interest and other charges by depositing the title deed
as per the schedule-A property on 12.7.18 for creation of equitable
mortgage in favour of the bank vide RF 255 dt.12.7.18, Registered Sale
Deed No.10611501945, dt.10.04.15, RF 256 dt.17.4.17. That on execution
of necessary documents the defendants availed the Cash Credit loan facility.
The copy of the said documents RF 255 dt.12.7.18, Registered Sale Deed
No.10611501945, dt.10.04.15, RF 256 dt.17.4.17 are annexed as
Annexure-5 Series.

v) That the defendants availed the cash credit facility sanctioned by the
applicant bank and utilized the same but did not repay the dues of the bank
in-spite of repeated approaches and violated the terms and conditions of the
sanction letter. That the defendants did not pay the dues of the bank and
the account was classified as NPA on 29.08.19. That the Authorized Officer
of the bank issued the demand notice dt.10.09.19 u/s 13(2) of SARFAESI
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Act, 2002 to the defendants calling upon them to pay an outstanding

amount of Rs.30, 06,965/- as on 10.09.19 with subsequent interest as per
the agreement within 60 days from the date of the notice failing which the
bank will be constrained to take measures against the properties mortgaged
to the bank described in Schedule-A as provided under the SARFAESI Act.
The copy of the said demand notice dt.10.09.19 is annexed as Annexure-6.

vi) That the borrower failed to repay the outstanding amount within the 60
days limit provided in the said demand notice dt. 10.09.19. That from the
aforesaid facts it is clear that the defendants have violated the terms and
conditions of the sanction letter of the Bank.

vii) That the borrowers having failed to repay the outstanding amount, the
applicant bank issued a possession notice under Rule 8(1) of security
Interest (Enforcement) Rules 2002, Schedule A property of defendant No.2
to the borrower, co-obligant and the public in general. That in the said notice
the borrower`s attention is invited to provisions of section 13(8) of the Act,
in respect of time available, to redeem the secured asset. That in the said
notice the borrower, the co-obligant and the public in general are cautioned
not to deal with the schedule-A property. The said posession notice is
annexed as Annexture-7.

viii) That the defendants availed OCC limit of Rs.29,00,000/- for their
business and embarked upon the business, but in breach of the agreed
terms and conditions defaulted in repayment dues to the applicant bank
along with monthly interest. That the defendants failed to discharge the
liabilities and violated the terms and conditions of the documents executed
by them which has been reflected in the statement of Account. The copy of
the statement account in respect of OCC account along with normal and
overdue interest is annexed as Annexure-8.

ix) That on consideration of the execution of documents by the

defendants, the defendants availed the loans and the applicant bank
disbursed the OCC limit in their favour. That the defendants utilized the loan
in their business and violated the agreed terms and conditions and failed to
repay the loan dues with interest to the bank. Thus as on 09.02.20 the
liability of the defendants including normal and overdue interest is
Rs.31,81,084.60/- with regard to OCC Loan. Therefore the total liability of
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the defendants is Rs.31,81,084.60/- which the defendants No.1 to 3 are

liable to pay the same.

x) That in the meantime the loan documents in respect of the

transaction with the borrower was about to get barred by limitation and the
applicant bank is forced to file this original application to save limitation by
invoking its right against secured assets, unsecured assets and personal
remedies by filing this original application under the RDDBFI Act. That since
the defendants No.1 to 3 have executed the documents as per the bank’s
standard format the original application is filed to avoid the bar of limitation
and thereby protecting the interest of the applicant bank under common law.

xi) That on failure of the defendants to regularize the account in breach

of commitment as per the statement of account, the bank was left with no
other option than to approach and present this original application for issue
of recovery certificate for an amount of Rs.31,81,084.60/- as on 09.02.20
which the defendants No.1 to 3 are liable to pay with P.I and F.I along with
other costs and charges and cost of this application from the defendants who
are jointly and severally liable to pay the same. That details of total liability
of the defendants No.1 to 3 for Rs.31,81,084.60/- as on 09.02.20.

xii) That the cause of action for this original application arose when the
defendants No. 1 to 2 approached for loan, the loan was sanctioned,
operation of the loan accounts started, mortgaged the Schedule-A property
on 12.07.18 when the defendants failed to repay the loan outstanding of the
applicant bank as per the notice dt.10.09.2019 u/s 13 (2) of the SARFAESI
Act.

xiii) That the interest charged on the said loan is as per the stipulation
made by the RBI from time to time subject to amendment.

6. RELIEF(s) SOUGHT :
That in view of the facts mentioned in Paragraph-5 the applicant Bank
prays for the following reliefs:

a) That a Recovery Certificate for an amount of Rs.31,81,084.60/- as on

09.02.20 be passed against the defendants jointly and severally in
favour of the applicant bank.
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b) That an order for pendent lite and future interest at the agreed rate
applicable to the OCC availed by the defendants and as per the charge
from time to time may be passed with monthly rest till realization of
the claim amount against the defendants jointly and severally.

c) That an order be passed fixing a date and direction to all the

defendants to pay the certificate dues with interest, other costs and
charges and cost of this application.

d) That on failure to pay the certificate dues the property mortgaged as

described in the Schedule- A may be ordered to be attached and sold
and the sale proceeds be applied for partial or full satisfaction of the
certificate.

e) That in the event sale proceeds of the mortgage property belonging to

the defendants are not sufficient to cover the dues of the applicant
Bank the defendants may be held personally liable and the certificate
may be passed accordingly.

f) Any other relief the Hon’ble Tribunal may deem fit and proper in the
interest of Justice.

7. INTERIM ORDER IF PRAYED FOR:

Pending decision of this application the applicant Bank seeks issue of
the following interim orders:

a) An order of attachment be passed with a liberty to the applicant

Bank to sale the securities such as hypothecated goods and immovable
properties of the defendants.

b) And or any other order as deem fit and proper in the circumstances
of the case.

8. MATTER NOT PENDING IN ANY OTHER COURT.

The applicant further declares that the matter regarding which this
application has been made is not pending before any court of law or
any other authority or any other Bench of the Tribunal.
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9. PARTICULARS OF THE BANK DRAFTS :

i) Name of Bank on which drawn: Union Bank of India,
Purushottampur Branch,
Purushottampur.
ii) Demand Draft No.
iii)Date of Demand Draft : Dt.
iv) Amount : Rs.34,000/-

10. DETAILS OF INDEX :

And index in duplicate containing the details of the documents to be
relied upon is enclosed.

11. LIST OF ENCLOSURES :

As per Index, the applicant bank further reserves the right to produce
such other documents as required and necessary during the course of
the proceedings.

SCHEDULE – A PROPERTY
Description of property mortgaged by the Defendant No.2 Gupteswar
Pattnaik, Mouza-Nimakhandi, Dist-Ganjam, Thana-Berhampur Sadar,
Tahasil-Kukudakhandi (Previously at Brahmapur), S.R.O-Brahmapur-I, Khata
Sl No-326, Plot No-546, area Ac 0.230dec (out of total Ac 0.805 dec from
Eastern Side).
Boundary:
North-Land covered under Plot No 543, South- Land covered under Plot No
547, East- Land covered under Plot No 545, West- Rest of Land covered
under Plot No 546.

VERIFICATION
I, Sri. Prabir Kumar Swain, aged about 34 years, S/o Bhubaneswar
Swain, Branch Manager, Andhra Bank, Purushottampur Branch, Main road,
Prusotampur, Ps- Purusotamour, Po-Purusotamour, Dist-Ganjam having the
valid power of attorney of the bank do hereby verify that the contents in
Paragraphs-1 to 11 are true to the best of my knowledge and based on
official records maintained in the Branch and I have not suppressed any
material facts. I sign this verification on day of November, 2020.
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Cuttack.
Date: .11.2020 Verificant.

To,
The Registrar, DRT, Cuttack
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IN THE DEBTS RECOVERY TRIBUNAL, ORISSA : CUTTACK.

O. A. No. ______________ of 2020.

Union Bank of India, Purushottampur Branch, Purushottampur … Applicant.

Vrs.
M/s Baidhar Broiler Chicken Feeds and others … Defendants.
CONCISE STSATEMENT
That the Defendants availed OCC limit of Rs.29 Lakhs with interest @ of 10.90%
from the applicant bank vide sanction letter dt.17.04.17 for their business against
hypothecation of stocks and Book Debts and co-lateral security of Schedule-A
property for creation of equitable mortgage by executing necessary documents in
favour of the bank for repayment of loan, but the defendants did not pay the dues
of the bank and the said loan was classified as NPA on 29.08.19. That on default
and due irregularity by the defendants with regard to the said loan, the applicant
bank issued demand notice dt.10.09.19 u/s 13 (2) SRFAESI Act to an outstanding
amount of Rs.30,06,965/- as on 10.09.19 with subsequent interest as per the
agreement within 60 days from the date of the notice failing which the bank will be
constrained to take measures against the properties mortgaged to the bank
described in Schedule-A as provided under the SRFAESI Act, but in-spite of the said
notice the defendants did not pay the dues of the Bank. That the applicant bank has
filed this original application for recovery of loan from the defendants. This
application has been filed after due calculation of the interest as admissible from
the defendants as on 09.02.20 which comes to Rs.31,81,084.60/- followed with P.I
and F.I and cost which the defendants are liable to pay jointly and severally.
By the Applicant through

Cuttack.
Date: .11.2020 Advocate.
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IN THE DEBTS RECOVERY TRIBUNAL, ORISSA : CUTTACK.

Dairy No. of 2020

O. A. No. ______________ of 2020.

Union Bank of India, Purushottampur Branch, Purushottampur… Applicant.

Vrs.
M/s Baidhar Broiler Chicken Feeds … Defendants.
GENERAL INDEX
Sl.No. Description of documents. Pages.
1. Concise statement.
2. Original Application 1-9
3. Index of documents.
ANNEXURES
1. Application of the defendant dt.09.05.16 10 - 13

2. Sanction letter dt.17.4.17. 14 – 15

3. DPN RF 211 dt.17.04.17 16

4. Composite Agreement dt. 17.4.17. 17 - 32

5 Series. RF 255 dt.12.7.18, Sale Deed No.10611501945

dt.10.04.15, RF 256 dt.17.04.17. 33 - 45

6. Notice u/s 13 (2) of SRFAESI Act dt.10.09.19. 46-47

7. possession notice dt.18.01.20 48

8. Statement of account. 49-54

(Certificate in term of Section 2A)

10. Vakalatnama.

Cuttack.
Date: .11.2020 Signature of the Applicant.

IN THE DEBTS RECOVERY TRIBUNAL, ORISSA : CUTTACK.

O. A. No. ______________ of 2020.

Union Bank of India, Purushottampur Branch, Purushottampur … Applicant.

Vrs.
M/s Baidhar Broiler Chicken Feeds … Defendants.
LIST OF ORIGINAL DOCUMENTS FILED ON BEHALF OF THE APPLICANT
BANK

Annexures Description of documents. Sheets.

1. Application of the defendant dt.09.05.16 4

2. Sanction letter dt.17.4.17. 2

3. DPN RF 211 dt.17.04.17 1

4. Composite Agreement dt. 17.4.17. 8

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5 Series. RF 255 dt.12.7.18, Sale Deed No.10611501945

dt.10.04.15, RF 256 dt.17.04.17. 10

6. Notice u/s 13 (2) of SRFAESI Act dt.10.09.19. 1

7. possession notice dt.18.01.20 1

8. Statement of account. 3

__________________________________________________________
Total Sheets 30

Cuttack.
Date: .11.2020 Signature of the Applicant.