Allowed

Bank of Maharashtra v. Shashidhar Chavan

DRT2 Apr 2024OA/1047/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of dues aggregating to Rs.20,99,967 adjusted for penal interest, along with future interest at 9% p.a., from principal borrowers and guarantors who were presumed to have admitted the claim.

What did the court decide?

Respondents directed to pay Rs.20,99,967 plus future interest at 9% p.a.; bank entitled to sell mortgaged property; Recovery Certificate issued.

Bank of Maharashtra versus Shashidhar Chavan — Contract and Commercial Disputes | DRT (2024)

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Presented on: 03.05.2022 Registered on: 11.11.2022 Decided on: 02.04.2024 Duration: Y M D 1 11 0

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1047/2022

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Bank of Maharashtra, A body corporate established under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970 having its Registered Office at “Lokmangal”, 1501, Shivajinagar, Pune and of its branch office at- Phadake Building, Bazar Peth, Rajapur, TalukaRajapur, District Ratnagiri amongst other places of India.

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… Applicant

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Versus

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Shri Shashidhar Ramchandra Chavan, Adult, Occ: Agriculture, Residing at-Sakhar Sade Chavanwadi, Taluka-Rajapur, District-Ratnagiri-416 702.

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Smt. Pranjali Purushottam Manchekar, Adult, Occ: Agriculture, Residing at- Sagave Hamdarewadi, Taluka-Rajapur, District-Ratnagiri-416 702.

(OA No.1047/2022)

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Smt. Jyoti Nandkumar Kaneri, Adult, Occ: Agriculture, Residing at-Anasure, Bharodwadi, Taluka-Rajapur, District-Ratnagiri-416 702.

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Smt. Sitabai Ramchandra Chavan, Adult, Occ: Agriculture, Residing at-Sakhar Sade Chavanwadi, Taluka-Rajapur, District-Ratnagiri-416 702.

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Shri Chandrakant Vishram Nanarkar, Adult, Occ: Agriculture, Residing at-Kubale (Agrewadi), Taluka-Rajapur, District-Ratnagiri-416 702.

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Shri Shivram Balu Kaneri, Adult, Occ: Agriculture, Residing at-Sakhar Sade Chavanwadi, Taluka-Rajapur, District-Ratnagiri-416 702. … Defendants

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APPEARANCES For the Applicant Mr. Ramesh B. Ganbote - Advocate For Defendant No.1 Shri Shashidhar Ramchandra Chavan (in person) Defendant Nos.2 to 6 Ex parte

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TOTAL CLAIM AMOUNT –Rs.21,41,380/-

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JUDGMENT

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(Delivered on 02^nd April, 2024)

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The Applicant Bank has filed the present Application for

(OA No.1047/2022)

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recovery of sum of Rs.21,41,380/- in respect of Agriculture Term Loan account together with future interest @14% p.a. with monthly rests thereon from 03^rd May, 2022 till full repayment/realization of entire dues from defendant Nos.1 to 6.

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Brief facts of the application are as under:

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The defendant Nos.1 to 4 are the principal borrowers and defendant Nos.5 and 6 are the guarantors.

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The defendant Nos.1 to 6 being agriculturists approached the applicant Bank on 01^st March, 2011 for Agricultural Term Loan of Rs.6,00,000/- to defendant Nos.1 to 4 for land development and plantation of mango trees. Defendant Nos.5 and 6 offered themselves as guarantors for securing the Agriculture Term Loan to be availed by defendant Nos.1 to 4 from the applicant Bank.

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On 01^st March, 2011 the applicant Bank sanctioned and disbursed the Agriculture Term Loan facility of Rs.6,00,000/- to defendant Nos.1 to 4, with moratorium period of 7 years, with interest payable separately @12% p.a. with half yearly rests.

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On 01^st March, 2011 itself the defendants Nos.1 to 6

(OA No.1047/2022)

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signed and executed loan transaction and security documents as set out in paragraph Nos.5.5 to 5.7 of the Original Application which includes Hypothecation Agreement executed by defendant Nos.1 to 4 and Simple Mortgage created by defendant Nos.1 to 4 in respect of agricultural land bearing Survey No.44 more particularly mentioned in paragraph No.5.7 of the Original Application.

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The applicant Bank contended that defendant Nos.1 to 6 executed Balance and Security Confirmation Letter dated 20^th February, 2014.

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The applicant Bank further contended that the defendant Nos.1 to 4 have again executed Balance and Security Confirmation Letter on 23^rd February, 2017. The defendant Nos.5 and 6 have also executed the Balance and Security Confirmation Letter dated 23^rd February, 2017 and thereby confirmed having executed the Guarantee Bond in Agriculture Term Loan account of defendant Nos.1 to 4, with the applicant Bank.

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The applicant Bank further contended that again on 18^th February, 2020 defendant Nos.1 to 6 executed Balance and Security Confirmation Letter.

(OA No.1047/2022)

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The applicant Bank further contended that after availing the Agriculture Term Loan facility, defendant Nos.1 to 4 have failed to pay the installments and interest in the said loan account and committed breach of the sanction terms. Therefore, the loan account of defendant Nos.1 to 4 has become Non-Performing Asset as per the Reserve Bank of India norms.

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Thereafter, the applicant Bank issued Recall Notice dated 21^st October, 2021 calling upon all the defendants to pay the outstanding in the Agriculture Loan account of defendant Nos.1 to 4. However, defendants failed to pay the installments with interest or regularize the aforesaid loan account.

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Hence, this application is filed.

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Defendant No.1 appeared in person however, failed to file Written Statement. Hence, the matter proceeded without Written Statement against him as per `No WS Order’ passed on 08^th January, 2024.

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The defendant Nos.2 to 6 failed to appear despite service of summons. Hence, the application proceeded ex parte against them vide Order dated 08^th January, 2024

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passed below the Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Gaurav Yashwant Deshpande, Senior Manager and Principal Officer, 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-1/15) 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 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 be granted.

(OA No.1047/2022)

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The applicant Bank has claimed Penal Interest of Rs.41,513/- which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.21,41,380/- is reduced to Rs. 20,99,967/- .

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The applicant Bank has claimed future interest @14% p.a. with monthly rests for Agriculture Term Loan account. However, considering facts of the case, I am of the opinion that if future interest is granted @9% (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.1047/2022 is allowed with costs.

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(B) Defendant Nos.1 to 6 shall either jointly or severally pay to the applicant Bank towards Agriculture Term Loan account the sum of Rs.20,99,967/- (Rupees Twenty Lakhs Ninety-Nine Thousand Nine Hundred and Sixty-Seven only)

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with future interest @9% p.a. from the date of filing of the Original Application i.e. 03^rd May, 2022 till full 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 property i.e. All that piece and parcel of agriculture land bearing Survey No.44 Hissa No.33 admeasuring 00 Hector 29 Aar plus PK 00 Hector 63 Aar and Survey No.44 Hissa No.11 admeasuring 00 Hector 69 Aar plus PK 01 Hector 43 Aar at Village Sakhar, Taluka Rajapur, within the limits of Registration District Ratnagiri, Sub Registration District more Rajapur, District-Ratnagiri, particularly mentioned in paragraph No.5.7 of the Original Application.

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(D) The applicant 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

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Judgment and Recovery Certificate to the applicant Bank and defendants.

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Place : Pune Date : 02.04.2024

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

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(OA No.1047/2022)

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Bank of Maharashtra v. Shashidhar Chavan

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. Shashidhar Chavan

Case brief

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