Allowed

Punjab National Bank v. Shantilal Zagade

DRT13 Dec 2023OA/752/2022

Case brief

AI extract

What is this about?

The Appellate Court (TRT Pune) allowed the debtor recovery application filed by Punjab National Bank against two defendants for an agricultural term loan default warranting recovery of principal and modified future interest.

What did the court decide?

Order: (A) Application allowed with costs. (B) Defendants to jointly/severally pay Rs.25,77,251/- plus future interest @9% p.a. from claim date. (C) Amount secured by valid mortgage. (D) Bank entitled

Punjab National Bank versus Shantilal Zagade — Contract and Commercial Disputes | DRT (2023)

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Presented on: 16.11.2019 Registered on: 17.09.2022 Decided on: 13.12.2023 Duration: Y M D 3 0 27

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.752/2022

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Punjab National Bank

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A Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 having its Corporate Office at Plot No.4, Sector-10, Dwarka, New Delhi-110 075 and one of the branch at Baramati, having its address atOpposite Sunshine Plaza, Bhigwan Road, Baramati, District Pune-413 102.

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… Applicant

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Versus

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Mr. Shantilal Sopan Zagade, Age-40 years, OccupationAgriculture, R/at- At Shindewadi, Post Kazad, Taluka-Indapur, District Pune-413 104.

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Mr. Aaba Kondiba Mehtre, Age-51 years, OccupationAgriculture, R/at-221, Gaothan, At Post-Kazad, Taluka-Indapur, District-Pune-413 104.

… Defendants

(OA No.752/2022)

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APPEARANCES

For the Applicant	Mr. Yogesh Hirve - Advocate
For Defendants	Exparte

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TOTAL CLAIM AMOUNT –Rs.25,77,251/-/-

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JUDGMENT

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(Delivered on 13^th December, 2023)

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The Applicant Bank has filed the present Application for recovery of Rs.25,77,251/- in respect of Term Loan (Agri.) together with future interest @12.75% p.a. thereon from 16^th November, 2019 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 No1 approached the applicant Bank on 12^th December, 2015 for Term Loan (Agri.) of Rs.16,74,000/for purpose of land development, pomegranate plantation with labour quarter and pipeline. The applicant Bank sanctioned and disbursed the said Term Loan on 14^th December, 2015 to be repaid in 9 yearly installments of Rs.1,86,000/- with interest @12.50% p.a.

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On 14h January, 2016 defendant No.1 signed and executed loan transaction and security documents including Hypothecation and Mortgage Deed in favour of

(OA No.752/2022)

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the applicant Bank more particularly mentioned therein.

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Defendant No.2 stood as guarantor for the said Term Loan (Agriculture).

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The applicant Bank contended that after availing the Term Loan (Agri.), the defendant No.1 was irregular in payment of the EMIs and made persistent default in repayment. Therefore, loan account of defendant No.1 became NonPerforming Asset on 31^st March, 2018.

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The applicant Bank further contended that defendant No.1 also executed Balance and Security Confirmation Letter dated 04^th April, 2017 acknowledging balance outstanding in the Agricultural Term Loan account.

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Thereafter, the applicant Bank through its Advocate issued Recall Notice dated 12^th October, 2019 calling upon defendants to pay the outstanding amount along with interest. In spite of issuance of Recall Notice, defendants failed and neglected to comply with the said Notice.

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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.752/2022)

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vide Order dated 08^th December, 2023 passed below the application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Jayant Bhagwat Mahajan, Senior 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-1/13) 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 relief in respect of hypothecated assets. However, there is no detailed description with respect to the hypothecated assets. Therefore, the relief in terms of hypothecated assets cannot

(OA No.752/2022)

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be granted.

The applicant Bank has claimed future interest @12.75% p.a. for Term Loan (Agri.) account. However, having regard to the facts of the case, I am of the opinion that if future interest is granted @9% p.a., 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.752/2018 is allowed with costs.

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(B) Defendant Nos.1 & 2 shall either jointly or severally pay to the applicant Bank towards Term Loan (Agri.) the sum of Rs.25,77,251/- (Rupees TwentyFive Lakhs Seventy-Seven Thousand Two Hundred and Fifty-One only) with future interest @9% p.a. from the date of filing of the Original Application i.e. 16^th November, 2019 till full realization of the amount mentioned in this operative order.

(OA No.752/2022)

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property i.e. All that piece and parcel of agricultural land admeasuring 00H-80R, out of Gat No.385, situated at Village Shindewadi, Taluka Indapur, District Pune and within the jurisdiction of Sub Registrar Baramati, more particularly mentioned in Schedule-I 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 Judgment and Recovery Certificate to the applicant Bank and defendants

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Place : Pune Date : 13.12.2023

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

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(OA No.752/2022)

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Punjab National Bank v. Shantilal Zagade

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Shantilal Zagade

Case brief

What is this about?

What did the court decide?

What the court decided

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