Bank of India versus Aditi Chavan

Presented on: 24.03.2021 Registered on: 13.01.2022 Decided on: 23.11.2023 Duration: Y M D 2 8 0

IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.69/2022

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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 Bank of India, Star House, C-5, ‘G’ Block, Bandra Kurla Complex, Bandra (East), Mumbai-400 051 and its business place at Neware, Tal. Ratnagiri, District Ratnagiri.

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… Applicant

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Versus

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Mrs. Aditi Dattaram Chavan, Age-36 years, Occupation: Agriculturist, Add: 370, Varshewadi, Dhamanse, Taluka/District – Ratnagiri-415 620.

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Mr. Dattaram Tukaram Chavan, Age-57 years, OccupationAgriculturist, Add: 370, Varshewadi, Dhamanse, Taluka/District – Ratnagiri-415 620.

(OA No.69/2022)

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Mr. Swapnil Dattaram Chavan, Age: 32 years, OccupationAgriculturist, Add: 370, Varshewadi, Dhamanse, Taluka/District – Ratnagiri-415 620.

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… Defendants

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APPEARANCES

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For the Applicant For Defendants

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Mrs. Ashlesha Malpe - Advocate Ms. Sharvari R. Sabnis – Advocate

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TOTAL CLAIM AMOUNT –Rs.22,69,351/-

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JUDGMENT

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(Delivered on 23^rd November, 2023)

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The Applicant Bank has filed the present Application for recovery of aggregate sum of Rs.22,69,351/i.e. Rs.2,01,568/- in respect of Term Loan account together with future interest @10.80% p.a.; Rs.1,40,961/- in respect of Cash Credit Loan account together with future interest @8.80% p.a. and Rs.19,26,822/in respect of Term Loan (Restructured) account together with future interest @12.55% p.a. thereon plus penal interest @2% from 24^th March, 2021 till full repayment/realization of entire dues from the defendant Nos.1 to 3.

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Brief facts of the application are as under:

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Defendant No.1 is an agriculturist and principal borrower.

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Defendant Nos.2 and 3 are the guarantors for the credit facilities availed by defendant No.1.

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On 08^th October, 2011 defendant No.1 approached the applicant Bank for financial assistance by way of Kisan Cash Credit Loan of Rs.1,00,000/- which was sanctioned and disbursed by the applicant Bank, with interest @11% p.a. Defendant No.2 and 3 accepted joint and several liabilities for repayment of loan along with the principal borrower i.e. defendant No.1.

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Defendants signed and executed loan transaction and security documents as mentioned in paragraph Nos.5.3 of the Original Application.

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The applicant Bank contended that on 24.03.2012 defendant No.1 again approached it for Term Loan of Rs.4,80,000/- which was sanctioned and disbursed by the applicant Bank. The Term Loan was to be repaid by 8 yearly installments of Rs.68,572/- with interest @12.75% p.a.

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Defendants signed and executed loan transaction and security documents as mentioned in paragraph Nos.5.6 of the Original Application.

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The applicant Bank further contended that on 27.11.2012 defendant No.1 again applied for enhancement of the said Cash Credit Limit. The applicant Bank enhanced the previous KCC limit of Rs.1,00,000/- to Rs.10,00,000/- on 07^th May, 2013, with interest @13.25% p.a. with half yearly rests. Defendant Nos.2 and 3 stood as guarantors for the said facility. Defendant Nos.1 and 2 created Equitable Mortgage of immovable property as set out in paragraph No.5.9 of the Original Application.

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On 21.07.2015 defendant No.1 requested for restructuring of existing KCC to Term Loan and on 14.08.2015 the applicant Bank restructured the KCC to Term Loan, with interest @10.20% p.a. to be served separately as and when applied.

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On 15.02.2016 the applicant Bank sanctioned and disbursed the Kissan Cash Credit Loan of Rs.2,50,000/- as per loan application dated 20.01.2016, with interest @12.70% p.a. which was to be renewed annually.

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The applicant Bank further contended that after availing the loan facilities, defendant No.1 was irregular in repayment. In spite of repeated requests made by the

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applicant Bank, defendant No.1 failed and neglected to repay the amounts outstanding at the foot of the aforesaid accounts and committed breach of terms and condition of sanction. Resultantly, the loan account of defendant No.1 was classified as Non-Performing Asset on 31.12.2017.

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Therefore, the applicant Bank through its Advocate issued Recall Notice on 27.07.2020. Despite issuance of Recall Notice, defendants failed and neglected to comply with the demands in the said Notice.

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Hence, this application is filed.

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The defendant Nos.1 to 3 did not file Written Statement despite service of summons. Hence, `No WS’ Order was passed and the matter proceeded without Written Statement against them vide Order dated 02^nd March, 2023 below the Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Dhiraj Kumar, Chief Manager which supports the case of the applicant Bank elucidated in the Application.

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The applicant Bank has produced documents in evidence (AW-1-1 to AW-1-37) which corroborates the case of the

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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 @10.80% p.a. for Term Loan account; @8.80% p.a. for Cash Credit loan account and @12.55% p.a. for Term Loan (Restructured) account. However, considering the facts of the present case, I am of the opinion that if future interest is granted @9% per annum (simple) for both the Term loan accounts and @8.80% p.a. for Cash Credit loan account, 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.69/2022 is allowed with costs.

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(B) Defendant Nos.1 to 3 shall either jointly and severally pay to the applicant Bank towards Term

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Loan account the sum of Rs.2,01,568/- (Rupees Two Lakhs One Thousand Five Hundred and Sixty-Eight only) with future interest @9% per annum from the date of filing of the Original Application i.e. 24^th March, 2021 till full payment/realization of the amount mentioned in this operative order.

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(C) Defendant Nos.1 to 3 shall either jointly and severally pay to the applicant Bank towards Cash Credit account the sum of Rs.1,40,961/- (Rupees One Lakh Forty Thousand Nine Hundred and Sixty-One only) with future interest @8.80% per annum from the date of filing of the Original Application i.e. 24^th March, 2021 till full payment/realization of the amount mentioned in this operative order.

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(D) Defendant Nos.1 to 3 shall either jointly and severally pay to the applicant Bank towards Term Loan (Restructured) account the sum of Rs.19,26,822/- (Rupees Nineteen Lakhs TwentySix Thousand Eight Hundred and Twenty-Two

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only) with future interest @9% per annum from the date of filing of the Original Application i.e. 24^th March, 2021 till full payment/realization of the amount mentioned in this operative order.

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(E) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of the immovable property i.e. Agricultural Land situated at Village Dhamanse (Phata), Taluka, District Ratnagiri bearing B.No.167 S D No.4/2 admeasuring 0-88-5 ha, more particularly mentioned in paragraph Nos.5.10 & 5.15 of the Original Application.

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(F) The applicant 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 and defendants.

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Sd/-

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Place : Pune Date : 23.11.2023

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

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(OA No.69/2022)

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Bank of India v. Aditi Chavan

Case brief

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Bank of India v. Aditi Chavan

Case brief

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