Allowed

Indian Overseas Bank v. Mrs. Tulsabai Kisan Shende

DRT8 Sept 2022OA/4/2022

Case brief

AI extract

What is this about?

In an ex parte recovery application, the Tribunal adjudicated the claim by the Bank against borrowers and guarantor. The court reduced the claimed future interest rate to 9% per annum as reasonable, secured the judgment debt by registered mortgages on agricultural land, and directed issuance of a recovery certificate.

What did the court decide?

Defendants jointly or severally to pay Rs.45,20,381/- with future interest @9% p.a. from 26.10.2021; properties mortgaged secured; recovery certificate issued.

Indian Overseas Bank versus Mrs. Tulsabai Kisan Shende — Execution and Attachment | DRT (2022)

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Presented on: 26.10.2021 Registered on: 17.01.2022 Decided on: 08.09.2022 Duration: Y M D 0 10 13

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer)

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ORIGINAL APPLICATION No.4/2022

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Indian Overseas Bank A Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and having its Head Office at 762, Anna Salai, Chennai 600 002, Tamilnadu State and its Branch at Indian Overseas Bank, Mahatma Phule Rd, Indapur, Maharashtra 413 106.

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… Applicant

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Versus

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Mrs. Tulsabai Kisan Shende 1020, Janai Mala, At Post Nimgaon Ketaki, Taluka Indapur, District Pune-413 120. Also at: Shendemala, At Post Nimgaon Ketaki, Taluka Indapur, District Pune-413 120.

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Mr. Nanasaheb Kisan Shende 1020, Janai Mala, At Post Nimgaon Ketaki, Taluka Indapur, District Pune-413 120. Also at:

(OA No.4/2022)

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Shendemala, At Post Nimgaon Ketaki, Taluka Indapur, District Pune-413 120.

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Mr. Avinash R Gholap At Post Nimgaon Ketaki, Taluka Indapur, District Pune-413 120.

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…Defendants

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APPEARANCES

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For the Applicant Mrs. Sudha Koloti - Advocate For Defendants None (Ex parte)

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TOTAL CLAIM AMOUNT –Rs.45,20,381.18

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JUDGMENT

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(Delivered on 8^th September, 2022)

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The Applicant Bank has filed the present application for

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recovery of Rs.45,20,381.18Ps. i.e. Rs.39,94,527.91Ps. (Agri Term Loan) together with future interest @12.75% per annum with half yearly rests and Rs.5,25,853.27Ps. (KCC Account) together with future interest @11% per annum from 5^th September, 2021 till repayment/realization of the entire dues from the defendants.

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Brief facts of the application are as under:

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Defendant Nos.1 and 2 are the borrowers and mortgagors. Defendant No.3 is the guarantor.

(OA No.4/2022)

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On 22^nd May, 2014 defendant Nos.1 to 3 approached the applicant Bank seeking financial assistance by way of Agri Credit Facilities for sugarcane cultivation. As per the request of defendants applicant Bank on 6^th June, 2014 sanctioned and disbursed Rs.20,00,000/- consisting of two facilities i.e. Agriculture Term Loan of Rs.17,00,000/- and Kisan Credit Card for an amount of Rs.3,00,000/-. The Term Loan was agreed to be repaid in seven yearly instalments of Rs.2,43,000/- plus interest.

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Further, defendant Nos.1 and 2 executed necessary loan transaction and security documents in favour of the applicant Bank as set out in paragraph No.5.7 of the Original Application and also executed Letter of Hypothecation and hypothecated sugarcane crop in 1H 60R in Gat No.1396, 2258, 17 and 648 situated at Nimgaon Ketki, Taluka Indapur, District Pune.

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In order to secure the credit facilities defendant No.3 stood as guarantor for the said facilities and executed Guarantee Agreement in favour of the applicant Bank.

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In order to further secure the credit facilities, defendant Nos.1 and 2 executed Registered Mortgage in favour of the

(OA No.4/2022)

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applicant Bank and mortgaged the immovable properties more particularly described in paragraph No.5.10 of the Original Application. The said Mortgage Deed is duly registered at the Office of Sub Registrar at Indapur at Sr.No.3300/2014.

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It is further contended in the application that the loan account of the defendants was declared as a Fraud and the applicant Bank lodged complaint with CBI and all the original documents are in the custody of the CBI.

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After availing the credit facilities, defendants committed default in payment of Principal and Interest. Therefore, the account of defendants was classified as NonPerforming Asset on 31^st March, 2017.

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Since the defendants failed and neglected to regularize the accounts, the applicant Bank through its Advocate issued Legal Notice dated 16^th June, 2021 to the defendants and thereby demanded outstanding loan amount together with interest. Despite service of Notice, defendants failed and neglected to comply with the demand in the said Notice.

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Therefore, the applicant Bank by this application has

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claimed Rs.45,20,381.18Ps. i.e. Rs.39,94,527.91Ps. (Agri Term Loan) together with future interest @12.75% per annum with half yearly rests and Rs.5,25,853.27Ps. (KCC Account) together with future interest @11% per annum with yearly rests from 5^th September, 2021 till repayment/realization of the entire dues from the defendants.

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Defendants were duly served with the summons. Despite service of summons, defendants failed to appear. Hence, the application proceeded ex parte against defendants and order of ex parte hearing has been passed on 17^th June, 2022 below the Application (Exhibit-01).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Pawan Kishore which supports the case of the applicant elucidated in the application.

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The defendants have committed fraud and therefore, the original documents in this Original Application are demanded for investigation by the CBI. Thus, applicant Bank has led secondary evidence by filing Notarized copies of documents at Sr.No.AW-1/1 to AW-1/10. The documents from AW-1/11 to AW-1/19 are filed in original. The CBI, Pune has acknowledged the receipt of the

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said loan documents vide its letter dated 21^st February, 2017 the copy of which is filed at Exhibit-AW-9 along with list of documents. Therefore, I take into consideration the secondary evidence in respect of loan documents led by the applicant Bank.

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I have heard arguments of the learned Advocate for the applicant Bank.

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Since the defendants failed to appear and contest the application, I find no reason to disbelieve evidence of the applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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The applicant has claimed future interest @12.75% per annum with half yearly rests for Agri Term Loan and @11% per annum with yearly rests for KCC. However, considering the present situation of pandemic, I am of the opinion that if future interest is granted @9% per annum, it would be just and reasonable.

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.4/2022 is allowed with costs.

(OA No.4/2022)

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(B) Defendant Nos.1 to 3 either jointly or severally shall pay to the applicant Bank the sum of Rs.45,20,381/(Rupees Forty-Five Lakhs Twenty Thousand Three Hundred Eighty-One only) with future interest @9% per annum from the date of filing of the Original Application i.e. 26^th October, 2021 till payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by valid and subsisting mortgage of the immovable properties i.e. (i) all that piece and parcel of Agricultural land in Gat No.1396 admeasuring 01H 59R plus P.K 0H 01R totally admeasuring about 01H 60R, (ii) all that piece and parcel of Agricultural land in Gat No.648 totally admeasuring about 03H 55R plus PK 0H 06R totally admeasuring 03H 61R, (iii) all that piece and parcel of Agricultural land in Gat No.17 totally admeasuring about

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05H 18R plus PK 0H 20R totally admeasuring 05H 38R and (iv) all that piece and parcel of Agricultural land in Gat No.2258 totally admeasuring about 08H 45R plus PK 0H 04R totally admeasuring 08H 49R situated at Village Nimgaon Ketki, Taluka Indapur, District Pune within the jurisdiction of Division Pune, Sub Division and Taluka Indapur and within the sub limits of Sub-Registrar Indapur, District Pune more particularly described in Paragraph No.5.10 of the Original Application.

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(D) The applicant is entitled to sell the mortgaged properties to recover its dues.

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(E) Issue Recovery Certificate.

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(F) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

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Place : Pune Date: 08.09.2022

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Sd/(Dilip G Murumkar) Presiding Officer Debts Recovery Tribunal, Pune

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(OA No.4/2022)