Allowed

State Bank of India v. M/S. Krishna Textiles Prop. Mr. Milind Kumar Mali

DRT2 Feb 2024OA/1039/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of dues amounting to Rs. 46 lakhs. The defendant appeared ex-parte. The Tribunal directed recovery of principal amounts with future interest capped at 9% for some facilities and 7.40% for GECL.

What did the court decide?

Recovery of Rs. 38,35,299/- with 9% interest and Rs. 7,85,703/- with 7.40% interest; direction to sell hypothecated property; issuance of Recovery Certificate.

State Bank of India versus M/S. Krishna Textiles Prop. Mr… — Execution and Attachment | DRT (2024)

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Presented on : 01.12.2021 Registered on : 11.11.2022 Decided on : 02.02.2024 Duration : Y M D 02 02 01

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1039/2022.

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State Bank of India,

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A Banking Company incorporated under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 and having its Head Office at 8^th Floor, State Bank Bhavan, Nariman Point, Madam Cama Road, Mumbai 400021 and its branch at – Palus, District Sangli 416310.

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.. Applicant

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Versus

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M/s. Krishna Textiles, Through it’s Proprietor – Mr. Milind Kumar Mali, R/o : Amnapur, Taluka Palus, District Sangli 416310.

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Also at –

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Plot No. E 92/G, Weavers Park, Phase II, Shivaji Nagar Industrial Area, MIDC Kadegaon, Taluka Kadegaon, District Sangli 415304.

.. Defendant

(OA No. 1039/2022)

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APPEARANCES

For Applicant	Advocate M.V. Kini and Co.
For Defendant	Exparte.

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TOTAL CLAIM AMOUNT –Rs.46,21,002/-

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JUDGMENT

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(Delivered on 02^nd February, 2024)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.46,21,002/- together with future interest @12.65, 13.30, 14,75 and 7.40% per annum from the date of Application till realization of the entire dues from the defendant.

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Brief facts of the application are as under:

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As per the loan application of the defendant, the applicant Bank sanctioned and disbursed the DCC Limit of Rs.1,50,000/and MTL of Rs.96,00,000/- to the defendant vide Sanction Letter dated 15.06.2013. Thereafter, again on the request of the defendant, the applicant Bank enhanced DCC limit from Rs.1.5 Lakhs to Rs.10 Lakh under SMECFL Collateral Free Loan vide Sanction Letter dated 29.12.2015. Thereafter, again in the year 2020 on the request of the defendant, the applicant Bank sanctioned restructuring of existing Credit facilities and also

(OA No. 1039/2022)

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granted additional credit facilities vide Sanction Letters dated 27.09.2020 and 30.09.2020 as under :-

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*Nature of Limit*	*Sanction Limit*	*Rate of Interest*
Review of original TL	Rs.12,50,000/-	12.65%
DCC	Rs.10,00,000/-	13.30%
WCTL	Rs.25,50,000/-	14.75%
GECL	Rs.7,80,000/-	7.40%

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In order to secure the aforesaid loan facilities, the defendant executed necessary loan and security documents along with deed of hypothecation of goods in favour of the applicant Bank.

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The applicant Bank contended that the defendant committed defaults in payment of installments and failed to regularize the accounts. Therefore, on 10.11.2021, the applicant Bank issued legal Notice to the defendant. Despite service of Notice, the defendant failed and neglected to pay the outstanding dues of the applicant Bank.

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Hence, this application is filed.

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

(OA No. 1039/2022)

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10.01.2024 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mahesh Laxman Dalvi, Chief Manager and Authorized Signatory of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-16 along with list (Exhibit 7), 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 defendant 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 @ 12.65% for Review of original TL, @13.30% for DCC Loan, @14.75% for WCTL facility and @7.40% for GECL facility per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple) for Review of original TL, DCC Loan and WCTL facility and @7.40% for GECL facility per annum, it would be just and reasonable rate of interest.

(OA No. 1039/2022)

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Hence, I pass the following order :-

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ORDER

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(A) Original Application No.1039/2022 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank the sum of Rs.38,35,299/- (Rupees Thirty Eight Lakhs Thirty Five Thousand Two Hundred Ninety Nine only) towards Review of original TL (Rs.2,06,331/-), DCC Loan (Rs.10,10,004/-) and WCTL facility (Rs.26,18,964/-) along with future interest @9% per annum from the date of filing of the Original Application i.e. 01.12.2021 till full payment/realization of the amount mentioned in this operative order.

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(C) The defendant shall pay to the applicant Bank the sum of Rs.7,85,703/- (Rupees Seven Lakhs Eighty Five Thousand Seven Hundred Three only) towards GECL Loan facility along with future interest @7.40% per annum from the date of filing of the Original Application i.e. 01.12.2021 till full payment/realization of the amount mentioned in this

(OA No. 1039/2022)

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operative order.

(D) The aforesaid adjudicated amount is secured by the hypothecation of Plant and Machinery at Plot No. E- 92/G, Phase II, Shivaji Nagar MIDC, Kodegaon, Taluka Kodegaon, District Sangli, more particularly described in the Schedule-A of the Original Application.

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