Lohia Corp Ltd Vs ING Vysya Bank Ltd (DRAT Allahabad)
The appeal before the Debt Recovery Appellate Tribunal, Allahabad was filed under Section 20 of the RDDBFI Act against part of an order dated 11.09.2015, by which the original application of the bank was allowed. The appellants contended that they were neither borrowers nor guarantors for the credit facilities extended to the borrower company and its directors, and that their liability was wrongly fixed solely on the basis of Hundies. They argued that the Hundies were neither accepted by them nor presented with the original application and, in any case, belonged to another entity.
The bank submitted that the original bills and Hundies were on record, raised against the appellants along with delivery challan-cum-invoices, and remained unpaid. The Tribunal noted that the borrower had availed various credit facilities, including bill discounting, and that the appellants were acceptors of the bills. Except for one appellant, no appearance or rebuttal was made before the DRT, and even the appearing appellant did not dispute the bank’s claim. No documentary evidence was produced to counter the findings. The Tribunal found no error in holding the appellants jointly and severally liable and dismissed the appeal, finding no ground for interference.
