Allowed

Bank of Maharashtra v. Ms Swasti Aluminium Industry

DRT18 Aug 2023OA/211/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of dues of Rs.1,27,33,601/- against the defendant. After the defendant failed to appear, the Tribunal directed payment of principal with reduced future interest and enforcement against mortgaged property.

What did the court decide?

Directed payment of Rs.1,16,80,804 with 9% future interest and Rs.8,51,241 with 8.40% future interest; directed sale of mortgaged property and issuance of Recovery Certificate.

Bank of Maharashtra versus Ms Swasti Aluminium Industry — Execution and Attachment | DRT (2023)

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Presented on: 20.12.2021 Registered on: 21.03.2022 Decided on: 18.08.2023 Duration: Y M D 1 7 29

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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.211/2022

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Bank of Maharashtra

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Banking Company Incorporated under The Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970 having it’s head office at “Lokmangal”, 1501, Shivajinagar, Pune – 5 and branch amongst other places at Vishrambaug Branch, Sangli

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… Applicant

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Versus

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M/s. Swasti Alluminium Industry, Prop. Santosh Vasant Bhosale

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Age: Adult, Occupation: Business, R/at:

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a. PAP Plot No. 21, Behind Hotel Rachana, MIDC, Kupwadi, Tal. Miraj, District – Sangli – 416 407

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b. Mrutyunjay Circle, Dhupdal, Ghatprabha Road, Tal.

(OA No.211/2022)

Page 1 of 7

[SRD]

Mokak,

Dist. Belgaum – 591 306

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…Defendant

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APPEARANCES

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For the Applicant	Mr. V S Tokekar - Advocate
For Defendant	None(Exparte)

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TOTAL CLAIM AMOUNT – Rs.1,27,33,601/-

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JUDGMENT

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(Delivered on 18^th August, 2023)

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The Applicant Bank has filed the present application for recovery of aggregate sum of Rs.1,27,33,601/- i.e. Rs.81,95,096/(Term Loan Account) together with future interest thereon @12.25% per annum with monthly rests; Rs.34,85,708/- (Cash Credit Loan Account) together with future interest thereon @12.25% per annum with monthly rests; Rs.6,05,999/-(FITL-I) together with future interest thereon @8.40% per annum with monthly rests; Rs.2,45,242/- (FITL-II) together with future interest thereon @8.40% per annum with monthly rests and Rs.2,01,556/-(FTIL-III) together with future interest thereon @12.70% per annum with monthly rests from 20^th December, 2021 till repayment/realization of entire dues from the defendant.

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Brief facts of the application are as under:

(OA No.211/2022)

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[SRD]

Defendant approached the applicant Bank seeking financial assistance for purchase of machineries and manufacturing of aluminum utensils. Accordingly on 27^th November, 2018 the applicant Bank sanctioned and disbursed Term Loan of Rs.63 Lakhs and Cash Credit of Rs.30 Lakhs to the defendant.

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Defendant was unable to repay the installments under Term Loan facility of Rs.63 Lakhs. Hence, defendant requested applicant Bank for reconstruction of the said loan facility. The applicant Bank considered the request and sanctioned and disbursed Funded Interest Term Loan (FITL-I) of Rs.5.43 Lakhs to the defendant on 30^th November, 2019.

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The defendant was unable to serve interest under Cash Credit facility of Rs.30 Lakhs. The defendant approached the applicant Bank for reconstructing the said Cash Credit facility and accordingly sanctioned and disbursed (FITL-II) of Rs.2.25 Lakhs on 29^th January, 2020 to the defendant.

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Further, due to Covid-19 pandemic situation the defendant approached the applicant Bank for additional financial assistance. The applicant Bank accordingly sanctioned and disbursed (FITL-III) of Rs.1,96,263/- under GECL on to the defendant.

(OA No.211/2022)

Page 3 of 7

[SRD]

The defendant executed loan transactions, security documents, Hypothecation and Equitable Mortgage in favour of the applicant Bank as described in Schedule of the Mortgage Property 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 Recall Notice on 12^th August, 2021 to the defendant calling upon to pay the outstanding amount together with costs, charges and interest.

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

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Hence, this application is filed.

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Defendant failed to appear despite service of summons. Hence, the application proceeded ex parte against him vide order dated 7^th February, 2023 passed below the Application (Exhibit-01).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mrs. Sheetal Barge, Chief Manager and relied upon the original documents (Exhibit-7) produced along with list at Sr. Nos. AW-1/1 to AW-1/27 which corroborate the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the

(OA No.211/2022)

Page 4 of 7

[SRD]

applicant Bank.

Since the defendant 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 @12.25% per annum with monthly rests for Term Loan, Cash Credit and @12.70% per annum for FITL-III loan account respectively. 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 facilities, 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. 211/2022 is allowed with costs.

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(B) Defendant shall pay to the applicant Bank towards Term Loan account and Cash Credit loan account respectively, the aggregate sum of Rs.1,16,80,804/(Rupees One Crore Sixteen Lakhs Eighty Thousand Eight Hundred Four Only) with future interest @9% per annum from the date of filing of the Original Application i.e. 20^th December, 2021 till payment/ realization of the amount mentioned in this operative

(OA No.211/2022)

Page 5 of 7

[SRD]

order.

(C) Defendant Shall pay to the applicant Bank towards FITL-I and FITL-II loan accounts respectively, aggregate sum of Rs.8,51,241/-(Rupees Eight Lakhs Fifty-One Thousand Two Hundred Forty-One only) with future interest @8.40% per annum from the date of filing of the Original Application i.e. 20^th December, 2021 till payment/realization of the amount mentioned in this operative order.

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(D) Defendant Shall pay to the applicant Bank towards FITL-III loan account sum of Rs.2,01,556/-(Rupees Two Lakhs One Thousand Five Hundred Fifty-Six only) with future interest @8.40% per annum from the date of filing of the Original Application i.e. 20^th December, 2021 till payment/realization of the amount mentioned in this operative order.

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(E) The aforesaid adjudicated amount is secured by valid and subsisting mortgage i.e. all that piece and parcel of lease hold and land bearing Plot No. PAP-21, admeasuring 100 Sq. Mts. situated and being and lying at Village Sangli-Miraj (Kupwad Block) Industrial Area, behind Hotel Rachana, Kupwad, in the registration District Sangli.

(OA No.211/2022)

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[SRD]

Together with the factory shed and building constructed to/be constructed thereon admeasuring 29.80 Sq. Mts. built up and all the fixtures as per the list, more particularly described in Schedule of the Mortgage Property of the Original Application.

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(F) The applicant Bank is entitled to sell the mortgaged property to recover its dues.

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(G) Issue Recovery Certificate.

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

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Sd/(Dilip G. Murumkar) Place: Pune Presiding Officer Date: 18.08.2023 Debts Recovery Tribunal, Pune

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(OA No.211/2022)

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Page 7 of 7

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[SRD]

Bank of Maharashtra v. Ms Swasti Aluminium Industry

Case brief

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Bank of Maharashtra v. Ms Swasti Aluminium Industry

Case brief

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