Allowed

Bank of Maharashtra v. M/S Shivratna Motors Propp Mr. Pramod Suresh Devkar

DRT19 Aug 2023OA/197/2022

Case brief

AI extract

What is this about?

The Drt allowed the Bank of Maharashtra's original application for recovery of loans against M/s. Shivratna Motors and legal heirs. The tribunal directed joint or several payment of principal amounts for Cash Credit, Term Loans I-III with adjusted and standard future interest rates, and authorized sale of hypothecated assets.

What did the court decide?

Joint or several payment of outstanding principal sums for Cash Credit and Term Loans I to III with future interest, authorization to sell hypothecated assets, and issuance of Recovery Certificate.

Bank of Maharashtra versus M/S Shivratna Motors Propp Mr… — Execution and Attachment | DRT (2023)

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Presented on: 01.02.2022 Registered on: 05.03.2022 Decided on: 19.08.2023 Duration: Y M D 1 6 18

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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.197/2022

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Bank of Maharashtra

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A Bank constituted under The Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 having its Head Office at Lokmangal, 1501, Shivajinagar, Pune – 411 005 & a branch office amongst other places known as Pusegaon Branch, Taralkar Building, Opp. Bus Stand Pusegaon, Taluka – Khatav, District – Satara - 415 502

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… Applicant

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Versus

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M/s. Shivratna Motors, Through Proprietor Mr. Pramod Suresh Devkar (Deceased) Through Legal Representative/Heirs

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1A. Mrs. Poonam Pramod Devkar Age: Adult, Occ: Business, R/at: Bhavani Nagar, Near Civil Hospital, Post Pusegaon, Tal. Khatav

(OA No.197/2022)

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District – Satara – 415 502

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1B. Mast. Anshul Pramod Devkar Since minor through his Natural Guardian, Smt. Poonam Pramod Devkar, Age: Adult, Occ: Housewife, R/at: Bhavani Nagar, Near Civil Hospital, Post Pusegaon, Tal. Khatav District – Satara – 415 502

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1C. Miss Mahira Pramod Devkar Since minor through his Natural Guardian, Smt. Poonam Pramod Devkar, Age: Adult, Occ: Housewife, R/at: Bhavani Nagar, Near Civil Hospital, Post Pusegaon, Tal. Khatav District – Satara – 415 502

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1D. Mrs. Yashoda Suresh Devkar Age: Adult, Occ: Housewife, R/at: Bhavani Nagar, Near Civil Hospital, Post Pusegaon, Tal. Khatav District – Satara – 415 502

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1. Mr. Kamlesh Suresh Devkar Age: Adult, Occ: Business, R/at: Post Pusegaon. Tal. Khatav, District – Satara – 415 502

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Mrs. Bhagyashri Ramakant Bodake, Alia Mrs. Bhagyashri Kamlesh Devkar, Age: Adult, Occ: Service, R/at: Post Pusegaon. Tal. Khatav, District – Satara – 415 502

…Defendants

(OA No.197/2022)

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APPEARANCES

For the Applicant Mr. Satyen Jagtap - Advocate For Defendant None (Ex parte)

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TOTAL CLAIM AMOUNT – Rs.54,79,052.60Ps.

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JUDGMENT

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(Delivered on 19^th August, 2023)

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The Applicant Bank has filed the present application for recovery of aggregate sum of Rs.54,79,052.60Ps. i.e. Rs.10,36,961.60Ps. (Cash Credit Account) together with future interest thereon @9.80% per annum with monthly rests; Rs.35,46,070/- (Term Loan-I) together with future interest thereon @8.40% per annum with monthly rests; Rs.2,12,353/(Term Loan-II) and Rs.6,83,668/- (Term Loan-III) together with future interest thereon @7.50% per annum with monthly rests from 26^th 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 is deceased and defendant Nos. 1A, 1B, 1C and 1D are his legal heirs.

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Defendant No.1 approached the applicant Bank seeking financial assistance as working capital for his business activity. Accordingly on 14^th February, 2019 the applicant Bank

(OA No.197/2022)

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sanctioned and disbursed Cash Credit of Rs.9.50 Lakhs to defendant No. 1. Defendant No. 2 and 3 stood as Guarantors to the said cash credit facility availed by defendant No. 1.

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Further, defendant No. 1 approached the applicant Bank requesting Term Loan –I for purchase of 2 Tata Diesel tankers and other tanker equipments. Accordingly, the applicant Bank sanctioned and disbursed Term Loan-I facility of Rs.32.60 Lakhs under CGTMSE Scheme on 16^th November, 2019.

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Defendant No. 1 was in financial crunch due to Covid 19 pandemic and hence was not able to maintain cash credit and Term Loan account respectively as per terms of sanction. Hence, deceased defendant No. 1 requested the applicant Bank for financial assistance. The applicant Bank considered the request of the deceased defendant No. 1 and sanctioned Term Loan-II of Rs.1.90 Lakhs under Emergency Credit Line Guarantee Scheme (ECLGS) on 22^nd June, 2020 to provide additional liquidity to meet operational liabilities and restart the business after unprecedented situation emerging out of COVID-19.

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Further, defendant No. 1 approached the applicant Bank seeking financial assistance as working capital for providing additional liquidity to meet operational liabilities and restart the business after emerging out of Covid-19. The applicant Bank sanctioned and disbursed Term Loan-III of Rs.6.40 Lakhs to

(OA No.197/2022)

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defendant No. 1 on 19^th September, 2020.

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The defendant executed loan transactions, security documents and Hypothecation in favour of the applicant Bank as described in Paragraph Nos. 5.6, 5.11, 5.12, 5.15 and 5.19 of the Original Application.

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The applicant bank contended that defendant was not regular in repaying installments in the loan accounts. Therefore, applicant Bank issued Legal Notice on 1^st December, 2021 to the defendants calling upon to pay the outstanding amount together with costs, charges and interest.

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However, defendants failed to comply with the demands contained in the said Legal Notice. Therefore, the applicant Bank filed this application against defendants for recovery of its dues under the loan accounts.

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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 order dated 2^nd February, 2023 passed below the Application (Exhibit01).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mrs. Subas Roy, Manager and relied upon the original documents (Exhibit-7) produced along with list at Sr. Nos. AW-1/1 to AW-1/36 which corroborate the case of the

(OA No.197/2022)

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applicant Bank.

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 @9.80% per annum with monthly rests for Cash Credit account. However, considering the facts of the present case, I am of the opinion that if future interest is granted @9% per annum (simple), 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. 197/2022 is allowed with costs.

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(B) Defendant Nos. 1A, 1B, 1C, 1D, 2 and 3 either jointly or severally shall pay to the applicant Bank towards Cash Credit loan account the sum of Rs.10,36,962/(Rupees Ten Lakhs Thirty-Six Thousand Nine Hundred Sixty-Two Only) with future interest @9% per annum from the date of filing of the Original Application i.e. 1^st February, 2022 till payment/

(OA No.197/2022)

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realization of the amount mentioned in this operative order.

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(C) Defendant Nos. 1A, 1B, 1C and 1D either jointly or severally Shall pay to the applicant Bank towards Term Loan –I account sum of Rs.35,46,070/-(Rupees Thirty-Five Lakhs Forty-Six Thousand Seventy only) with future interest @8.40% per annum from the date of filing of the Original Application i.e. 1^st February, 2022 till payment/realization of the amount mentioned in this operative order.

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(D) Defendant Nos. 1A, 1B, 1C, 1D, 2 and 3 either jointly or severally towards Term Loan -II loan account sum of Rs.2,12,353/-(Rupees Two Lakhs Twelve Thousand Three Hundred Fifty-Three only) with future interest @7.50% per annum from the date of filing of the Original Application i.e. 1^st February, 2022 till payment/realization of the amount mentioned in this operative order.

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(E) Defendant Nos. 1A, 1B, 1C and 1D either jointly or severally Shall pay to the applicant Bank towards Term Loan –III account sum of Rs.6,83,668/-(Rupees Six Lakhs Eighty-Three Thousand Six Hundred SixtyEight only) with future interest @7.50% per annum

(OA No.197/2022)

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from the date of filing of the Original Application i.e. 1^st February, 2022 till payment/realization of the amount mentioned in this operative order.

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(F) The aforesaid adjudicated amount is secured by valid and subsisting hypothecation i.e. 2 Tata diesel tankers bearing Registration Numbers MH 11 CH 6426 & MH 11 CH 6427 and stock and spare parts, more particularly described in paragraph No. 5.12 and 5.20 of the Original Application.

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(G) The applicant Bank is entitled to sell the hypothecated assets to recover its dues.

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(H) Issue Recovery Certificate. (I) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant Bank and defendants.

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Sd/(Dilip G. Murumkar) Place: Pune Presiding Officer Date: 19.08.2023 Debts Recovery Tribunal, Pune

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(OA No.197/2022)

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[SRD]

Bank of Maharashtra v. M/S Shivratna Motors Propp Mr. Pramod Suresh Devkar

Case brief

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Bank of Maharashtra v. M/S Shivratna Motors Propp Mr. Pramod Suresh Devkar

Case brief

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What did the court decide?

What the court decided

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