Allowed

Bank of India v. Fnv Agro Producer Company Limited

DRT18 May 2023OA/440/2022

Case brief

AI extract

What is this about?

In an ex-parte recovery application, the Debts Recovery Tribunal allowed the Bank of India's claim for outstanding dues of Rs.1.20 crore against a borrower company and its guarantors. The tribunal reduced the future interest rate to 9% and directed the issuance of a recovery certificate and sale of mortgaged property.

What did the court decide?

Recovery of Rs.1,20,53,019/- with future interest @9% p.a.; direction to sell mortgaged property; issue of Recovery Certificate.

Bank of India versus Fnv Agro Producer Company Limited — Execution and Attachment | DRT (2023)

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Presented on: 04.01.2022 Registered on: 20.11.2021 Decided on: 18.05.2023 Duration: Y M D 1 4 14

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.440/2022

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Bank of India,

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A body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970 having its Head Office at Star House, C- 5, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai-400 051 and among other places inter-alia at Shivajinagar, Pune Taluka Haveli, District Pune.

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… Applicant

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Versus

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FNV Agro Producer Company Limited (Private Limited Company), Address: CTS-1320, Shukrawar Peth, Kusumarti Apartment, Pune-411 002.

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Mr. Prasad Prakash Khaire, Address: A-4, Saket Apartment, KatrajKondhawa Road, Kondhawa, Pune-411 048.

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Mrs. Vishakha Prasad Khaire, Address: A-4, Saket Apartment, KatrajKondhawa Road, Kondhawa, Pune-411 048.

(OA No.440/2022)

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Mr. Tushar Prakash Khaire, Address: A-4, Saket Apartment, KatrajKondhawa Road, Kondhawa, Pune-411 048.

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Mr. Prakash Atmaram Khaire, Address: At Kodit Khurd, Taluka Purandar, District Pune-412 301.

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Mrs. Sushila Prakash Khaire, Address: At Kodit Khurd, Taluka Purandar, District Pune-412 301. … Defendants

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APPEARANCES

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For the Applicant Mrs. Rajashree A. Thakar - Advocate For Defendants None (Ex parte) TOTAL CLAIM AMOUNT –Rs.1,20,53,019.05Ps.

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JUDGMENT

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(Delivered on 18^th May, 2023)

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The Applicant Bank has filed the present Application for recovery of aggregate sum of Rs.1,20,53,019.05Ps. in respect of Cash Credit loan account together with future interest @10.15% p.a. with monthly rests thereon from 04^th January, 2022 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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The defendant No.1 is Private Limited Company and a principal borrower carrying on business of marketing and

(OA No.440/2022)

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trading of Agro based products, of which defendant Nos.2 to 6 are Directors and also guarantors in personal capacity for repayment of the outstanding dues of defendant No.1. Defendant No.2 is also a mortgagor for the credit facility advanced to defendant No.1 company.

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In the year 2017, defendant No.1 through its Director i.e. defendant No.2 approached the applicant Bank for financial assistance in the forms of various credit facilities for running their business.

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The applicant Bank sanctioned and disbursed the Cash Credit facility of Rs.90,00,000/- on 06^th May, 2017 with interest @11.30% p.a. with monthly rests.

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On 06^th May, 2017, defendant No.1 signed and executed the loan transaction and security documents as mentioned in paragraph No.5(v) of the Original Application. Defendant Nos.2 to 6 executed Deed of Guarantee.

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In order to secure the Cash Credit facility, defendant No.2 executed Equitable Mortgage dated 06^th May, 2017 in respect of immovable property more particularly mentioned in paragraph No.5(vii) of the Original Application.

(OA No.440/2022)

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Defendant No.1 executed Acknowledgement of Debts and Securities dated 12^th April, 2020 and 04^th July, 2020.

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The applicant Bank contended that after availing Cash Credit facility, defendant No.1 failed and neglected to regularize the account. Therefore, the applicant Bank declared the account as `Non-Performing Asset’ on 09^th September, 2020.

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Thereafter, the applicant Bank followed up with defendant No.1 through letters, reminders, personal visits and telephonic talk requesting it to regularize the account. In spite of repeated requests and reminder, defendants failed and neglected to clear the dues of the applicant Bank.

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Thereafter, the applicant Bank through its Advocate issued Notice on 08^th December, 2021 and called upon the defendants to repay the outstanding dues with interest to the applicant Bank. Despite Notice, defendants failed to clear the outstanding dues.

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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

(OA No.440/2022)

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vide Order dated 09^th February, 2023 passed below the application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mrs. Maithilee Nagle, Chief/Branch Manager, 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-1/20) 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.

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The applicant Bank has claimed future interest @10.15% p.a. with monthly rests. However, considering facts of the case, I am of opinion that if future interest is granted @9% p.a. (simple), it would be just and reasonable.

(OA No.440/2022)

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10. Hence, I pass the following order:-

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ORDER

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(A) Original Application No.440/2022 is allowed with costs.

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(B) Defendant Nos.1 to 6 shall jointly and severally pay to the applicant Bank the sum of Rs.1,20,53,019/(Rupees One Crore Twenty Lakhs Fifty-Three Thousand and Nineteen only) with future interest @9% p.a. from the date of filing of the Original Application i.e. 04^th January, 2022 till full realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of all that piece and parcel of land bearing CTS No.154 admeasuring 35.90 Sq. Mtrs., and CTS No.156 admeasuring 65.02 Sq. Mtrs. i.e. totally admeasuring 1086 Sq. ft. together with construction thereon of Ravivar Peth, Pune-411 002.

(OA No.440/2022)

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(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 : 18.05.2023

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

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(OA No.440/2022)

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Bank of India v. Fnv Agro Producer Company Limited

Case brief

What is this about?

What did the court decide?

Bank of India v. Fnv Agro Producer Company Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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