Allowed

Union Bank of India (Corporation Bank) v. Mahantesh Swami

DRT23 Nov 2023OA/64/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Pune allowed an application filed by Union Bank of India for recovery of dues totaling Rs. 57,09,889/- along with future interest @9% p.a. from the borrower and guarantor who failed to appear. The court also directed issue of a Recovery Certificate and sale of mortgaged property.

What did the court decide?

Recovery of Rs. 57,09,889/- with future interest @9% p.a. decree passed; direction to sell mortgaged property; Recovery Certificate issued.

Union Bank of India (Corporation Bank) versus… — Contract and Commercial Disputes | DRT (2023)

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Presented on : 08.06.2021 Registered on : 18.12.2021 Decided on : 23.11.2023 Duration : Y M D 02 05 15

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 64/2022.

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Union Bank of India, (Erstwhile known as Corporation Bank) A body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980, having its head office at Mangala Devi Temple Road, Mangalore 575001, Karnataka State and Branch Office at Solapur, H.No. 1777/3-4, Adishwar Building, Opp. Roopam Photo Studio, Jodbhavi Peth, Solapur 413002.

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.. Applicant

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Versus

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1 Mr. Mahantesh Shivyogi Swami, Age Adult, Occ. : Service/Business,

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2 Mr. Shivyogi Gurulingayya Swami, Age Adult, Occ. : Service/Business, Both R/o Alage, Post Ankalge, Taluka Akkalkot, District Solapur 413219.

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.. Defendants

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APPEARANCES

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For Applicant Mr. Srinivas Yelery - Advocate For Defendants Ex parte.

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TOTAL CLAIM AMOUNT –Rs.57,09,889/-

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JUDGMENT (Delivered on 23^rd November, 2023)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.57,09,889/- (Rs.50,81,085/- + Rs.6,28,804/-) together with future interest @11.25 and 10.65% respectively per annum with monthly rests from the date of Application till realization of the 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 the borrower and defendant No. 2 is the guarantor. As per the loan application of defendant No.1, the applicant Bank sanctioned and disbursed the Agricultural Term Loan of Rs.19,00,000/- for development of land and drip irrigation for sugarcane, vide sanction letter dated 11.05.2011.

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In order to secure the aforesaid Agricultural Term Loan, defendant Nos.1 and 2 executed necessary loan and security documents in favour of the applicant Bank along with deed of simple mortgage of Agricultural Land Gat No. 81/2 and 131/2B situated at village Alage, Taluka Akkalkot, District Solapur in favour of the applicant Bank. The defendants acknowledged outstanding amount in Agricultural Term Loan

(OA No.64/2022)

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on 01.05.2014, 01.12.2016 and 05.07.2019.

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Thereafter, defendant No.1 again approached the applicant Bank for Cash Credit facility of Rs.3,00,000/- for the purpose of cultivation sugarcane. Defendant No.2 agreed to stand guarantor for the said loan. Accordingly, the applicant Bank sanctioned and disbursed the Cash Credit facility of Rs.3,00,000/- to defendant No.1 vide sanction letter dated 01.08.2011.

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In order to secure the aforesaid Cash Credit facility, defendant Nos. 1 and 2 executed necessary loan and security documents in favour of the applicant Bank. The defendants acknowledged outstanding amount in Cash Credit facility on 01.05.2014, 01.12.2016 and 05.07.2019.

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Therefore, on 28.09.2020, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per Order dated

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12.01.2023 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of G. Veerendar Goud, Chief Manager and Power of Attorney Holder of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1 to AW-23 along with list (Exhibit 9), which corroborates 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 @11.25 and 10.65% per annum with monthly rests. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (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. 64/2022 is allowed with

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costs.

(B) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.57,09,889/(Rs.50,81,085/- + Rs.6,28,804/-) (Rupees Fifty Seven Lakhs Nine Thousand Eight Hundred Eighty Nine only) towards Agricultural Term Loan and Cash Credit facility along with future interest @9% per annum from the date of filing of Original Application i.e. 08.06.2021 till full payment/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 immovable properties i.e. Agricultural Land Gat Nos. 81/2 and 131/2B situated at village Alage, Taluka Akkalkot, District Solapur; more particularly described in para 5.4.5 of the Original Application.

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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

(OA No.64/2022)

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Judgment and Recovery Certificate to the applicant and defendants.

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Place : Pune Date : 23.11.2023

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

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(OA No.64/2022)

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Union Bank of India (Corporation Bank) v. Mahantesh Swami

Case brief

What is this about?

What did the court decide?

Union Bank of India (Corporation Bank) v. Mahantesh Swami

Case brief

What is this about?

What did the court decide?

What the court decided

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