Allowed

Union Bank of India v. Late Parvati Annaso Patil (Deceased)

DRT1 Dec 2023OA/326/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant Bank's application for recovery of dues amounting to approximately Rs. 1.48 crore from the principal borrower and guarantors. The Court reduced the claimed future interest and granted a recovery certificate secured by the mortgaged and hypothecated properties.

What did the court decide?

Recovery of Rs. 1.38 crore (Term Loan) and Rs. 9.71 lakh (Cash Credit) with future interest at 9% p.a., secured by mortgaged/hypothecated properties, and issuance of Recovery Certificate.

Union Bank of India versus Late Parvati Annaso Patil (Deceased) — Banking and Recovery | DRT (2023)

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Presented on: 08.10.2021 Registered on: 19.04.2022 Decided on: 01.12.2023 Duration: Y M D 2 1 23

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.326/2022

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Union Bank of India,

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A Body Corporate constituted under Banking the Banking Companies (Acquisition and Transfer of Undertakings) Act No.V, of 1970 having its Head Office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400 021, Maharashtra and one of its branch offices amongst other places at Near Grampanchayat, Mhaisal, Tal: Miraj, Dist: Sangli-416 409 (Maharashtra) known as `Mhaisal Branch’.

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… Applicant

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Versus

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Late Parvati Annaso Patil

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(Since deceased through her Legal Heirs):

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1A. Mr. Uttam Annaso Patil, Age:51 Yrs. Occ: Agriculturist

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1B. Mr. Babaso Annaso Patil, Age:45 Yrs. Occ: Agriculturist

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1C. Mrs. Shobha Maruti Shinde, Age:51 Yrs. Occ: Housewife

(OA No.326/2022)

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Mr. Uttam Annaso Patil, Age:51 Yrs. Occ: Agriculturist

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Mrs. Meena Uttam Patil, Age:45 Yrs. Occ: Housewife

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Mrs. Shobha Maruti Shinde Age:51 Yrs. Occ: Housewife

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Mrs. Sharada Babaso Patil, Age:38 Yrs. Occ: Housewife All R/o. A/p. Laxminagar Road, Narwad-416 409, Tal: Miraj, Dist: Sangli. … Defendants

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APPEARANCES

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For the Applicant Mr. Balasaheb Jadhav - Advocate For Defendants Ex parte

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TOTAL CLAIM AMOUNT –Rs.1,47,94,580/-

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JUDGMENT

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(Delivered on 01^st December, 2023)

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The Applicant Bank has filed the present Application for recovery of aggregate sum of Rs.1,47,94,580/i.e. Rs.1,38,22,856/- in respect of Term Loan account together with future interest @11% p.a. thereon and Rs.9,71,724/- in respect of Cash Credit Limit together with future interest @11.65% p.a. thereon from 23^rd September, 2021 till full repayment/realization of entire dues from defendant Nos.1A to 1C and 2 to 5.

(OA No.326/2022)

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2. Brief facts of the application are as under:

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The defendant No.1 (since deceased is now represented through her Legal Heirs) is the principal borrower and defendant Nos.2 to 5 are guarantors for the Term Loan and Cash Credit Limit availed by defendant No.1. Defendant Nos.1 and 3 are also mortgagors.

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The applicant Bank contended that defendant No.1 approached it on 04^th December, 2013 with a request for Term Loan of Rs.75,00,000/- for repaying the loan availed from A.P. Patil Gramin Sahakari Pat Sanstha Ltd. Hasur and Cash Credit Limit of Rs.8,00,000/- to meet cultivation expenses.

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The applicant Bank considered the request on 8^th August, 2014 and sanctioned and disbursed the above said credit facilities repayable with interest @13% p.a. with half yearly rests. The Term Loan was to be repaid in 10 equal yearly installments of Rs.7,50,000/- and the Cash Credit Limit was agreed to be repaid on demand of applicant Bank with review or renewal yearly.

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On 08^th August, 2014, defendant Nos.1 to 5 executed loan transaction and security documents as set out in

(OA No.326/2022)

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paragraph No.5.6 of the Original Application, including Hypothecation Agreement in respect of present and future movable assets more particularly described in Schedule-A of the Original Application and Declarative Mortgage in respect of immovable properties more particularly mentioned in Schedule-B of the Original Application.

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The applicant Bank further contended that defendant No.1 signed and executed composite debit balance confirmation dated 22^nd August, 2019 and 15^th March, 2021 in respect of Cash Credit Limit and on 25^th July, 2020 and 15^th March, 2021 in respect of Term Loan account.

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The applicant Bank further contended that after availing the loan facilities, defendant Nos.1 to 5 started committing default in repayment. Resultantly, the applicant Bank classified their loan accounts as Non-Performing Asset on 31^st March, 2021 as per directives/guidelines of Reserve Bank of India.

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Thereafter, the applicant Bank through its Advocate issued Recall Notice dated 31^st August, 2021 calling upon defendants to pay the outstanding amount. Despite issuance of Recall Notice, defendants failed to pay the dues

(OA No.326/2022)

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in 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 20^th February, 2023 below the Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Suryaji Balvant Sankpal, Manager and Constituted Power of Attorney Holder which supports the case of the applicant Bank elucidated in the application.

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The applicant Bank has produced on record the original loan transaction documents (Sr.Nos.AW-1/1 to AW-1/26) which corroborate the case of 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.

(OA No.326/2022)

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The applicant Bank has claimed future interest @11% p.a. with half yearly rests for Term Loan account and @11.65% p.a. with half yearly rests for Cash Credit Limit. However, considering facts of the case, I am of the opinion that if future interest is granted @9% p.a. (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.326/2022 is allowed with costs.

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(B) Defendant Nos.1A to 1C and 2 to 5 shall either jointly or severally pay to the applicant Bank towards Term Loan account the sum of Rs.1,38,22,856/- (Rupees One Crore Thirty-Eight Lakhs Twenty-Two Thousand Eight Hundred Fifty-Six only) with future interest @9% p.a. from the date of filing of the Original Application i.e. 08^th October, 2020 till full realization of the amount mentioned in this operative order.

(OA No.326/2022)

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jointly or severally pay to the applicant Bank towards Cash Credit account the sum of Rs.9,71,724/- (Rupees Nine Lakhs Seventy-One Thousand Seven Hundred Twenty-Four only) with future interest @9% p.a. from the date of filing of the Original Application i.e. 08^th October, 2020 till full realization of the amount mentioned in this operative order.

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(D) The aforesaid adjudicated amount is secured by the hypothecation of movable assets i.e. grape orchard, structure etc. in the land of Gat Nos.246, 248, 251, 288/4, 288/5 & 288/6 situated at Narwad, Tal: Miraj, Dist.: Sangli, more particularly mentioned in Schedule-A of the Original Application.

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(E) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of immovable properties i.e.

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A) All those piece and parcels of agricultural land bearing Gat No.246 area admeasuring H 01-39 R situated at Narwad, Tal: Miraj, Dist.: Sangli,

(OA No.326/2022)

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owned by defendant No.1;

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B) All those piece and parcel of agricultural land bearing Gat No.248 area admeasuring H 00-93 R situated at Narwad, Tal: Miraj, Dist.: Sangli, owned by defendant No.1;

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C) All those piece and parcel of agricultural land admeasuring area H 0 40 R out of Gat No.251 area admeasuring H 03-79 R+ Pit Kharaba H 0005 R situated at Narwad, Tal: Miraj, Dist.: Sangli, owned by defendant No.3.

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D) All those piece and parcel of agricultural land bearing Gat No.288/4 area admeasuring H 0049 R situated at Narwad, Tal: Miraj, Dist.: Sangli, owned by defendant No.3,

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more particularly mentioned in Schedule-B of the Original Application.

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(F) The applicant is entitled to sell the hypothecated/mortgaged properties to recover its dues.

(OA No.326/2022)

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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 defendants.

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Sd/- (Dilip G Murumkar) Place : Pune Presiding Officer Date : 01.12.2023 Debts Recovery Tribunal, Pune

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(OA No.326/2022)

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Union Bank of India v. Late Parvati Annaso Patil (Deceased)

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Late Parvati Annaso Patil (Deceased)

Case brief

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