Allowed

The South Indian Bank Ltd. v. Mrs. Rajkumari Ashok Jhosi, Prop. M/S. Raj Enterprises

DRT20 Sept 2024OA/1032/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of dues totaling Rs. 39,57,316. The court modified the claimed interest rate to 9% simple p.a. and ordered recovery secured by the mortgaged property.

What did the court decide?

Defendants to pay Rs. 39,57,316 with simple interest at 9% p.a. secured by sale of mortgaged flat and issuance of Recovery Certificate.

The South Indian Bank Ltd. versus Mrs. Rajkumari Ashok Jhosi… — Banking and Recovery | DRT (2024)

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Presented on: 17.09.2021 Registered on: 20.08.2022 Decided on: 20.09.2024 Duration: Y M D 03 -- 03

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1032/2022.

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The South Indian Bank Ltd.,

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A Banking Company within the meaning of The Companies Act, 1913, and having its registered office at “SIB House”, T.B. Road Mission Quarters, Thrissur, Kerala State-680 001 and branch office at Sangli, Ground Floor, Urmila Empire Apartment, Opposite Shivaji Stadium, Amrai Road, Sangli-416 416.

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… Applicant

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Versus

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Mrs. Rajkumari Ashok Joshi Proprietor of Raj Enterprises, Age- 58 years, Occ-Business,

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Mr. Ashok Ganpatlal Joshi Age 52 years, Occ.- Service, Both R/at – 370, Somwar Peth, Near Vora Transport Company, Madhav Nagar, Sangli-416 416.

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AND Flat No.1, 1^st Floor, Yug Residency, Budhwar Peth, Madhavnagar, Tal.Miraj, District Sangli-416 406. AND Patwo ka Baas, Near Sabji Mandai, Sojatcity, District Pali-Rajasthan-306 104.

Defendants

(OA No.1032/2022)

Page 1 of 6

[ANIL]

APPEARANCES

For the Applicant Advocate Mr. Yogesh R. Hirve. For the Defendants Ex-parte.

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TOTAL CLAIM AMOUNT –Rs. 39,57,316.25Ps.

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JUDGMENT

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(Delivered on 20^th September, 2024)

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Applicant Bank has filed present application for recovery of an aggregate sum of Rs.39,57,316.25Ps. i.e. Rs.28,51,871.05Ps towards Housing Loan Facility with future interest @10.05% p.a. and Rs.11,05,445.20Ps.with future interest @11.20%p.a. compounded with monthly rests together with penal interest @2%p.a. from the date of filing this application till repayment/realization of the entire dues from the defendants. 2. Brief facts of the application are as under:

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The Applicant Bank states that Defendant Nos.1 and 2 requested Applicant Bank for financial assistance by way of Housing Loan of Rs.20,80,000/-. Applicant Bank has sanctioned and granted Housing Loan of Rs.20,80,000/- on 17.01.2015 upon certain terms and conditions which were duly accepted and acknowledged by Defendant Nos.1 & 2.

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Defendant Nos.1&2 have created security interest in favour of the Applicant Bank by way of Equitable Mortgage of the immovable property i.e. all that piece and parcel of Flat No.01, 1^st floor, admeasuring 100.46 sq. mtrs. (as per

(OA No.1032/2022)

Page 2 of 6

[ANIL]

Declaration Deed area is of 100.05 sq. mtrs.) in the building known as “Yug Residency” situated on the land bearing City Survey No.1162 at village Budhwar Peth, at Madhavnagar, Taluka Miraj, District Sangli.

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Defendant No.1 again approached Applicant Bank for financial assistance for pre-sale and post-sale working capital requirements by way of Cash Credit Open Loan Facility of Rs.12,00,000/-. Defendant No.1 is borrower and Defendant No.2 is guarantor for the said loan facility.

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Accordingly, Applicant Bank has sanctioned and granted Cash Credit Open Loan Facility of Rs.12,00,000/- on 08.06.2015 to Defendants upon certain terms and conditions, which were duly accepted and acknowledged by them.

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Defendant Nos.1&2 created additional security interest by way of Hypothecation of Stock, Machinery and Goods etc. as well as by way of constructive redeposit of title deeds of the flat which was already mortgaged for the aforesaid Housing Loan Facility.

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Defendant Nos.1&2 have executed an acknowledgment of Debt and security thereby confirming the balance as well as execution of documents for Housing Loan Facility of Rs.20,80,000/- dated 21.08.2017 and 12.04.2019. So also, Defendant Nos.1 and 2 have executed an acknowledgment of Debt and security thereby confirming the balance as well as

(OA No.1032/2022)

Page 3 of 6

[ANIL]

execution of documents for Cash Credit Open Loan Facility of Rs.12,00,000/- dated 29.06.2016, 04.07.2017, 21.08.2017 and 12.04.2019.

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Applicant Bank contended that Defendant Nos.1&2 after availing the aforesaid loan facilities failed to repay the instalments in both the loan accounts in spite of reminders from the Applicant Bank.

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Applicant Bank contended that even after continuous demands, the defendants have failed to pay the interest in both the Accounts and also failed to regularize the account with the Applicant Bank. Hence, accounts of the Defendants with the Applicant Bank become Non-Performing Assets on 29.06.2018 as per the guidelines of the RBI. Despite repeated reminders and follow-ups, the defendants failed to make repayment within the stipulated period.

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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 as per order dated 18.06.2024 passed below Application (Exhibit-1).

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Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mrs. Shefali Kuldeep Goel, Branch Manager and produced on record the Original Loan Transaction documents at Exhibits AW-1 to AW-31 which corroborates the case of the Applicant Bank.

(OA No.1032/2022)

Page 4 of 6

[ANIL]

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 the evidence of the Applicant Bank. Therefore, the Applicant Bank is entitled for the reliefs claimed.

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Applicant Bank has claimed relief in respect of hypothecated assets. However, there is no detailed description with respect to hypothecated assets. Therefore, the relief in terms of hypothecated assets cannot be granted.

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Applicant Bank has claimed future interest @10.05%p.a. towards Housing Loan Account and future interest @11.20% p.a. towards Cash Credit Open Loan Facility plus penal interest @2%p.a. on both the accounts. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% p.a. (simple) for both the loan facilities, 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.1032/2022 is allowed with costs.

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(B) Defendant Nos.1 &2 jointly or severally shall pay aggregate sum of Rs.39,57,316/- (Rupees Thirty Nine Lakhs Fifty Seven Thousand Three Hundred Sixteen Only) i.e. Rs.28,51,871/-

(OA No.1032/2022)

Page 5 of 6

[ANIL]

towards the Housing Loan Facility (Account No.0830655000000005) & Rs.11,05,445/- towards Cash Credit Open Loan Facility (Account No.0830083000000003) with future interest @ 9% p.a. (simple) from the date of filing of the Original Application i.e.17.09.2021 till payment /realization of the amount mentioned in this operative order, to the Applicant Bank.

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(C) The aforesaid adjudicated amount is secured by creation of Equitable Mortgage regarding immovable property i.e. all that piece and parcel of Flat No.01, 1^st floor, admeasuring 100.46 sq. mtrs. (as per declaration deed area is of 100.05 sq. in the known as mtrs.) building “Yug Residency”situated on the land bearing City Survey No.1162 at village Budhwar Peth, at Madhavnagar, Taluka Miraj, District Sangli, as set out in Schedule-I of Original Application.

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(D) The Applicant Bank is entitled to sell the mortgaged property to recover the 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 the defendants.

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Sd/(Dilip G. Murumkar) Place : Pune Presiding Officer, Date: 20.09.2024 Debts Recovery Tribunal, Pune.

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(OA No.1032/2022)

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Page 6 of 6

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[ANIL]

The South Indian Bank Ltd. v. Mrs. Rajkumari Ashok Jhosi, Prop. M/S. Raj Enterprises

Case brief

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The South Indian Bank Ltd. v. Mrs. Rajkumari Ashok Jhosi, Prop. M/S. Raj Enterprises

Case brief

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