Allowed

Punjab National Bank v. Dnyaneshwar Sopan Shinde Prop M/S. Mahaganpati Steel Traders

DRT23 Sept 2022OA/2/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal considered an original application filed by Punjab National Bank for recovery of dues from a borrower and guarantor. The Tribunal allowed the application ex parte, granting recovery of the reduced principal amount with simple future interest at 9% per annum secured by mortgage and hypothecation.

What did the court decide?

Payment of Rs.24,35,390/- with future simple interest at 9% per annum, secured by sale of mortgaged properties.

Punjab National Bank versus Dnyaneshwar Sopan Shinde Prop… — Execution and Attachment | DRT (2022)

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Presented on: 29.09.2021 Registered on: 10.01.2022 Decided on: 23.09.2022 Duration: Y M D 0 11 25

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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.02/2022

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Punjab National Bank (Erstwhile-Oriental Bank of Commerce), A body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110 075 and the loan was sanctioned at Oriental Bank of Commerce, Mauli Complex, Ranjangaon Ganpati, Taluka Shirur, District – Pune – 412 209 now the account has been migrated to Punjab National Bank Circle, SASTRA Centre Pune, at Aurora Towers, Moledina Road, Pune-411 001.

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… Applicant

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Versus

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Mr. Dnyaneshwar Sopan Shinde, Prop. M/s. Mahaganpati Steel Traders, Milkat No.1256, Nagar Pune

(OA No.02/2022)

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Road, Rajnajgaon Ganpati, Taluka Shirur, Dist. Pune-412 209. Also At: Milkat No.1592, Gat No.1798, Nagar Pune Road, Ranjangaon Ganpati Taluka Shirur, District Pune – 412 209. Also At: Flat No.4, Ground Floor, Plot No.320 & 321, Sy. No.1150 & 1152, Baburao Nagar, Shirur, Taluka – Shirur, District – Pune-412 209. Also At: Flat No.23, 3^rd Floor, Plot No.320 & 321, Sy. No.1150 & 1152, Baburao Nagar, Shirur, Taluka – Shirur, District – Pune – 412 209. 2. Mr. Satish Jaysingh Kshirsagar (Guarantor), Rajanagaon Ganpati, Shindevasti, Maurya Lodging, Taluka Shirur, District – Pune – 412 209.

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… Defendants

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APPEARANCES

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For the Applicant Mrs. Sudha Koloti - Advocate For Defendants Ex parte

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TOTAL CLAIM AMOUNT –Rs.25,52,393/-

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JUDGMENT

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(Delivered on 23^rd September, 2022)

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The Applicant Bank has filed the present Application for

(OA No.02/2022)

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recovery of Rs.25,52,393/- together with future interest @9.35% per annum with monthly rests thereon from 29^th September, 2021 till full repayment/realization of entire dues from the defendants.

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Brief facts of the application are as under:

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Defendant No.1 is the sole proprietor of proprietorship firm named as M/s. Mahaganpati Steel Traders engaged in the business of Steel Trading. Defendant No.2 is a personal guarantor to the credit facility granted by the applicant Bank to defendant No.1.

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Defendant No.1 approached the applicant Bank (erstwhile Oriental Bank Commerce) for financial assistance and the applicant Bank on 12^th September, 2013 sanctioned and disbursed to defendant No.1 the Cash Credit Facility of Rs.20,00,000/- with interest @13.00% p.a. with monthly rests.

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In order to secure the said Agriculture Term Loan, defendants signed and executed the loan and security documents more particularly set out in paragraph No.5.8 of the Original Application.

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In order to further secure the said Cash Credit facility,

(OA No.02/2022)

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defendant No.1 executed Simple Mortgage dated 17^th September, 2013 in respect of the immovable properties described in paragraph No.5.9 of the Original Application.

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In order to further secure the Cash Credit facility, defendant No.1 signed and executed Agreement of Hypothecation dated 17^th September, 2013 thereby hypothecated entire current assets i.e. stock and receivables of the firm.

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The defendant No.2 executed Agreement of Guarantee personal dated 17^th September, 2013.

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It is contended by the applicant Bank that on 10^th December, 2014 the Cash Credit facility was renewed on request of defendant No.1 with the same terms and conditions.

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On 10^th December, 2014 defendant Nos.1 and 2 executed Balance and Security Confirmation and thereby admitted the liability.

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Again, on 20^th November, 2015 defendant No.1 approached the applicant Bank and requested for renewal of existing Cash Credit facility which was sanctioned on 21^st November, 2015 with interest @12.45% p.a. with monthly

(OA No.02/2022)

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rests.

The applicant Bank further contended that defendant Nos.1 and 2 also executed Balance and Security Confirmation dated 16^th December, 2015 and 23^rd January, 2017.

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The applicant Bank further contended that on 01^st June, 2018 the existing Cash Credit facility of Rs. 20 Lakhs was renewed under Uttam Vyapari Scheme, on application of defendant No.1.

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Defendant Nos.1 and 2 executed Balance and Security Confirmation Letters on 30^th June, 2018.

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The applicant Bank further contended that after last payment of Rs.63,000/- made by defendant No.1, the account of defendant No.1 became irregular due to nonpayment of the Principal and Interest as per terms of sanction. In spite of reminders by the applicant Bank, defendants did not pay any amount due and payable to regularize the loan account and therefore, the account of defendant No.1 was classified as Non-Performing Asset on 30^th September, 2019.

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Therefore, the applicant Bank through its Advocate

(OA No.02/2022)

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issued Legal Notice dated 03^rd September, 2021 calling upon defendants to repay the entire outstanding within 10 days. Despite receipt of Notice, defendants failed to comply with requisitions of Notice.

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The applicant Bank was therefore, compelled to file this Original Application for recovery of its dues to the tune of Rs.25,52,393/- along with future interest @9.35% p.a. with monthly rests.

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Defendant Nos.1 and 2 were duly served with the summons. Despite service of summons, defendant Nos.1 and 2 failed to appear. Hence, the application proceeded ex parte against defendants and order of ex parte hearing has been passed on 15^th July, 2022 below the Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Pravin C. Potdar, Chief Manager (Oriental Bank of Commerce) which supports the case of the applicant Bank elucidated in the application. The applicant Bank has produced documents in evidence (AW-1-1 to AW1-31) which corroborates the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the

(OA No.02/2022)

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applicant Bank.

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 Simple Penal Interest from 01.10.2019 to 29.09.2021 of Rs.88,150/- and Legal and other Charges of Rs.28,853/- which cannot be granted and these amounts will be deducted from the total claim amount. Thus, the total claim amount is reduced from Rs.25,52,393/to Rs.24,35,390/- .

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The applicant has claimed future interest @9.35% p.a. with monthly rests. However, having regard to the facts of the case and pandemic situation, I am of the opinion that if future is granted @9% (simple), it would be just and reasonable rate of interest.

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.02/2021 is allowed with costs.

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(B) Defendant Nos.1 and 2 shall either jointly or

(OA No.02/2022)

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severally pay to the applicant Bank the sum of Rs.24,35,390/(Rupees Twenty-Four Lakhs Thirty-Five Thousand Three Hundred and Ninety only) with future interest @9% per annum from the date of filing of the Original Application i.e. 29^th September, 2021 till full payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the hypothecation of entire current assets i.e. stock and receivables of the firm.

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(D) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of the immovable properties i.e. (1) Flat No.4 situated at Ground Floor admeasuring 548 sq. ft. i.e. 50.92 sq. mtrs. building constructed on NA property bearing Plot No.320 & 321 of Survey No.1150+1152 situated at Village Shirur (Baburao Nagar) within the Grampanchayat Limit of Shirur, Talukar Shirur and Sub Registrar, Shirur, District Pune and (2) Flat No.23 situated at Third Floor admeasuring 548 sq. ft. i.e. 50.92 sq. mtrs.

(OA No.02/2022)

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building constructed on NA property bearing Plot No.320 & 321 of Survey No.1150+1152 situated at Village Shirur (Baburao Nagar) within the Grampanchayat Limit of Shirur, Talukar Shirur and Sub Registrar, Shirur, District Pune.

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

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(F) Issue Recovery Certificate.

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(G) 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 : 23.09.2022

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

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(OA No.02/2022)

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Punjab National Bank v. Dnyaneshwar Sopan Shinde Prop M/S. Mahaganpati Steel Traders

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Dnyaneshwar Sopan Shinde Prop M/S. Mahaganpati Steel Traders

Case brief

What is this about?

What did the court decide?

What the court decided

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