Allowed

Punjab National Bank (Oriental Bank of Commerce) v. Santosh Devendra Jamadar

DRT3 Jun 2023OA/173/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed a recovery application filed by Punjab National Bank against two defendants for loan dues of Rs. 34.82 lakh. The court awarded a reduced future interest rate of 9% per annum and directed the creation of a recovery certificate.

What did the court decide?

Recovery of Rs. 34,82,632/- with future interest at 9% per annum from 3rd January 2022; issuance of recovery certificate.

Punjab National Bank (Oriental Bank of Commerce) versus… — Banking and Recovery | DRT (2023)

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Presented on: 03.01.2022 Registered on: 10.03.2022 Decided on: 03.06.2023 Duration: Y M D 1 5 -

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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.173/2022

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Punjab National Bank, (Erstwhile Oriental Bank of Commerce)

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A body corporate constituted under the Banking companies (Acquisition and Transfer of Undertaking) Act of 1970, having its Registered Office at 7, Chikhaji Cama Place, New Delhi – 110 066 and one of its branches at e- OBC, Manorama Sadan, Patwardhan Chowk, Railway Lines, Solapur – 413 001

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… Applicant

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Versus

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Mr. Santosh Devendra Jamadar At Post Rampur, Tal. South Solapur, District Solapur – 413 006

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Mr. Vijaykumar Revansiddha Koli At Post Rampur, Tal. South Solapur, District Solapur – 413 006

… Defendants

(OA No.173/2022)

Page 1 of 6

[SRD]

APPEARANCES

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

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TOTAL CLAIM AMOUNT –Rs.34,82,632/-

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JUDGMENT (Delivered on 3^rd June, 2023)

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The Applicant Bank has filed the present application for recovery of aggregate sum of Rs.34,82,632/- i.e. Rs.73,08,073/(Term Loan-I) together with future interest thereon @14% per annum with yearly rests; Rs.7,29,063/- (Term Loan-II) together with future interest thereon @13.50% per annum with yearly rests and Rs.20,15,496/-(OGC Loan) together with future interest thereon @10.50% per annum with monthly rests from 1^st January, 2022 till 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 approached the applicant Bank for financial assistance for credit facility. Accordingly, on 11^th July, 2012 the applicant Bank sanctioned and disbursed the credit facility for total amount of Rs.16,90,000/- consisting of three facilities i.e. Rs.9,65,000/- (Term Loan-I), Rs.4,25,000/-

(OA No.173/2022)

Page 2 of 6

[SRD]

(Term Loan-II) and Rs.3,00,000/- (OGC Loan). Defendant No. 2 stood as Guarantor for the above credit facilities availed by defendant No. 1.

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Further, the defendants executed necessary loan transaction and security documents including Simple Mortgage in favor of applicant Bank in respect of immovable property as set out in paragraph Nos. 5.7 and 5.8 of the Original Application.

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The applicant Bank contended that defendant No. 1 have been making payments from time to time however the defendant became irregular. Therefore, the accounts were classified as Non-Performing Asset on 1^st October, 2017.

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The applicant Bank further contended that applicant Bank called upon the defendants to repay the credit facilities but defendants failed to comply with the same. Therefore, on applicant Bank issued Legal Notice 10^th August, 2021 to the defendants and thereby demanded outstanding loan amount together with interest. Despite service of Notice, defendants failed to repay the said amount.

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Hence, this application is filed.

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Defendants failed to appear despite service of summons. Hence, the application proceeded ex parte against them vide

(OA No.173/2022)

Page 3 of 6

[SRD]

order dated 12^th January, 2023 below Application (Exhibit-1).

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The applicant has filed Claim Affidavit of evidence (Exhibit-6) of E Rajesh Radhakrishnan, Senior Manager which supports the case of the applicant elucidated in the application.

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The applicant Bank has also produced list of documents (Exhibit-7) thereby adducing in evidence the original/True copy loan transaction and security documents at Sr. Nos. AW1/1 to AW-1/23 which corroborate the case of the applicant.

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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 Bank has claimed future interest @14% per annum with yearly rests for Term Loan-I, @13.50% per annum with yearly rests for Term Loan-II and @10.50% per annum with monthly rests for OGC account. However, considering the facts of the present case, I am of the opinion that if future interest is granted @9% per annum (simple) for all the loan accounts, it would be just and reasonable rate of interest.

(OA No.173/2022)

Page 4 of 6

[SRD]

9. Hence, I pass the following order: -

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ORDER

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(A) Original Application No.173/2022 is allowed with costs.

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(B) Defendant Nos.1 & 2 either jointly or severally shall pay to the applicant Bank towards Term Loan-I, Term Loan-II and OGC Laon accounts respectively, the aggregate sum of Rs.34,82,632/- (Rupees ThrityFour Lakhs Eighty-Two Thousand Six Hundred Thirty-Two only) with future interest @9% per annum from the date of filing of the Original Application i.e. 3^rd January, 2022 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 immovable property i.e. all that piece and parcel of land situated with the District Solapur, Sub-District Solapur, Tal. South Solapur situated at Village Rampur an agricultural property bearing Gat No. 76/1/2 admeasuring 4 H 00 R, more particularly described in the Paragraph No.5.8 of the Original

(OA No.173/2022)

Page 5 of 6

[SRD]

Application.

(D) The applicant Bank is entitled to sell the mortgaged property 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 Bank and defendants.

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Place: Pune Date: 03.06.2023

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

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(OA No.173/2022)

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Page 6 of 6

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[SRD]

Punjab National Bank (Oriental Bank of Commerce) v. Santosh Devendra Jamadar

Case brief

What is this about?

What did the court decide?

Punjab National Bank (Oriental Bank of Commerce) v. Santosh Devendra Jamadar

Case brief

What is this about?

What did the court decide?

What the court decided

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