Allowed

Bank of India v. Haribhau Natha Labade

DRT15 Jun 2024OA/107/2024

Case brief

AI extract

What is this about?

This tribunal allowed an original application filed by the Bank of India for the recovery of outstanding dues of Rs. 31,25,441 from borrowers who failed to repay crop and term loans. The property of the defendants was charged as security, and a Recovery Certificate was issued.

What did the court decide?

Defendants directed to pay Rs.31,25,441 with future interest; properties charged; Recovery Certificate issued.

Bank of India versus Haribhau Natha Labade — Execution and Attachment | DRT (2024)

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Presented on: 02.04.2023 Registered on: 23.02.2024 Decided on: 15.06.2024 Duration: Y M D 01 02 13

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IN THE DEBTS RECOVERY TRIBUNAL, AT AURANGABAD ORIGINAL APPLICATION No.107/2024

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TOTAL CLAIM AMOUNT – Rs.31,25,441=48 /-

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BANK OF INDIA, A body Corporate Constitute Under Banking Companies (Aacquisition & Transfer of Undertaking) Act,1970, having it’s registered head office at star house, Plot no. c-5, G block, BandraKurla Complex, Bandra [East], Mumbai 400051 and Several Branches Throughout India and one amongst them at Shrirampur branch at Shrirampur, Tq. Shrirampur and Dist:. Ahmadnagar. Through its Power of Attorney Holder/ Authorised officer - Mr. Mangesh S/o. Vitthal Shengale , Age: 34 yrs, Occ: Service as a Senior Branch Manager at Bank of India at Shrirampur

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… Applicant

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Versus

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Mr. Haribhau Natha Labade, Age: 58 yrs. Occ: Agriculturist, Res/o. 87, at post: Dighi, Tq: Shrirampur, Dist.Ahmednagar, Maharashtra-413723 Voter ID: MT/40/233/126171 And

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R/o. Bhairavnath Nagar, Gondhwani, Post- Shrirampur, Tq: Shrirampur, Dist.Ahmednagar, Maharashtra-413709.

(OA No.107/2024)

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[APK]

And

R/o. Land Gat No. 171, situated & within limits of Dighi Shivar, Tq: Shrirampur, Dist: Ahmadnagar-413723. And R/o. Land Gat No. 172, situated & within limits of Dighi Shivar Tq: Shrirampur, Dist: Ahmadnagar-413723 Mrs. Manisha Babasaheb Labade. Age: 2. 43yrs. Occ: Agriculturist. R/o. 87, at post: Dighi, Tq: Shrirampur, Dist.Ahmednagar, Maharashtra-413723. PAN- AONPL7807H. ADHAAR No.690845793114. Voter ID: FBG0903880. And R/o Bhairavnath Nagar, Gondhwani, Post- Shrirampur, Tq: Shrirampur, Dist.Ahmednagar, Maharashtra-413709. And Gat No. 171, Situated & within limits of Dighi Shivar Tq: Shrirampur, Dist: … Defendants Ahmadnagar-413723. APPEARANCES

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For the Applicant Mr. D.Y.Nandedkar - Advocate

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For defendants None

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Shri Vimal Gupta Presiding Officer

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JUDGMENT PRONOUNCED ON : 15.06.2024

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JUDGMENT

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This is an application under sub-section (1) of section 19 of

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the Recovery of Debts Due to Banks and Financial

[APK]

(OA No.107/2024)

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Institutions Act, 1993 (‘The 1993 Act’ for short) for the recovery of the dues in the sum of Rs. 31,25,441=48 /- together with future interest thereon from the date of filing of Original Application till repayment/ realization.

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The facts of the case are as under:

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Defendant no.1 is the principal borrower who approached the applicant bank in the month of September, 2014 seeking financial assistance by way of Cash Credit Facility of Rs. 2.00 Lac for Crop Loan and Term loan-I of Rs. 8 Lac & Term Loan-II of Rs. 5 lacs for Pipe Line & Well renovation/extension vide loan application dated 17.09.2014.

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The applicant bank after considering the request and loan application submitted by the Defendant, the applicant bank sanctioned Crop Loan of Rs.2.00 Lacs and Term loan of Rs. 13.00 Lac (i.e. TL-I of Rs. 8.00 Lacs for Pipe Line and TLII of Rs.5 lacs for Well Renovation to the Defendant subject to the terms and conditions as stipulated in the sanction letter dated 18.09.2014.

(OA No.107/2024)

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[APK]

On 19.09.2014 the defendants have signed and executed the security documents, as set out in paragraph no.5.5 of the Original Application.

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In order to further secure the loan facilities availed by defendant no.1, on 19.09.2014 the defendants have executed registered mortgage deed with respect to the immovable property i.e.

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(1) All that piece and parcel of property bearing Land Gat No. 171, Admeasuring area 0-H, 21-R, situated & within limits of Dighi Shivar Tq: Shrirampur, Dist: Ahmadnagar belongs to Mr. Haribhau Natha Labade. Having boundaries as follows;

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East:- Land of Sonubai Dhivar. West:- Land of Rajendra Dange. South:- Dighi-Wakadi Road. North: - gat No.147 (P).

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(2) All that piece and parcel of property bearing Land Gat No. 172, Admeasuring land area 0-H, 79-R, situated & within limits of Dighi Shivar Tq: Shrirampur, Dist: Ahmadnagar belongs to Mr. Haribhau Natha Labade. Having boundaries as follows; East:- Land of Sonubai Dhivar. West:- Land of Rajendra Dange. South:- Dighi-Wakadi Road. North:- gat No.147 (P).

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along with furniture, fixture and all the things attached and

(OA No.107/2024)

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[APK]

fixed thereon, and more particularly described in paragraph 3A of the Original Application.

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In order to secure the loan facilities availed by defendant no.1, the Defendants have executed Deed of Hypothecation thereby hypothecated all the standing Crops, pipeline, drip irrigation, shed, building thereon etc more particularly described in paragraph 5.4 of the Original Application.

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After availing the credit facility, defendants did not maintain the financial discipline and failed to pay the installments despite the assurances and promises of the defendants to regularize the loan account, the defendants did not pay the dues of the applicant bank, whereby the dues in the loan accounts kept increasing gradually and interest kept mounting. The default committed by defendants were long and persistent. Therefore, the accounts of defendants were classified as NPA on 31.12.2017. As such the bank has issued legal notice on 07.01.2023 & 01.03.2023 to the defendant nos. 1 & 2.

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The applicant bank submits that the Defendant no.1 being the borrower and defendant no.2 being the guarantor is liable to pay the outstanding dues of Rs.31,25,441=48 /- as

(OA No.107/2024)

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[APK]

on 28^th February, 2023 together with future interest from the date of filing of the present application and till the realization of the amount in respect of the said facilities.

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Since Defendants failed and neglected to make the payment, the applicant bank was left with no other alternative but to issue the notice under Section 13(2) of the SARFAESI Act calling upon Defendants to liquidate the entire outstanding. Defendants neither replied the notice nor made the payment.

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At the foot of the account, there was owing, due and payable by Defendants to the applicant bank the aggregate sum of Rs.31,25,441=48 /- as on 28.02.2023. The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of banking business which is supported by the certificate as required under law. Since Defendants failed and neglected to make the payment, the applicant was left with no other alternate but to file the original application which was presented on 02^nd April, 2023.

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The Defendant nos. 1 and 2 were duly served with the summons through RPAD and by hand. Despite service

(OA No.107/2024)

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[APK]

defendants did not choose to enter appearance either personally or through their Advocate. Hence, defendant nos.1 & 2 have failed to show cause as to why reliefs prayed for should not be granted and as such Bank is entitled for decree as prayed.

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The applicant bank has filed claim affidavit (Exhibit-04) of Shri Mangesh Vitthal Shengale along with original documents (Exhibit-05) to corroborate and prove its claim as given in the Original Application thereby adducing in evidence the original documents at Sr.No.AW-1 to AW-22 which are admitted in evidence, read, recorded and exhibited.

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Heard the learned counsel for the applicant. The learned counsel for the applicant bank submits that the loan documents were executed on 18.09.2014 and mortgage deed on 19.09.2014. Thereafter the account became NPA on 31.12.2017 and the applicant bank has issued legal notice on 01.03.2023. The defendant No.1 visited the applicant bank on 16.09.2017 & 15.09.2020 and acknowledged their liability as such the present application filed on 02^nd April, 2023 is in limitation.

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I have scrutinized and examined the averments made in the

(OA No.107/2024)

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[APK]

Original Application and analyzed the evidence adduced by the applicant in support of it’s claim. The claim of the applicant goes uncontroverted and unrebutted stands admitted as no written statement /reply to show cause is filed.

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Based on the pleadings, claim affidavit, original documents, oral submission and written notes of arguments by the counsel of the applicant bank, the applicant bank has corroborated and proved its claim as mentioned in the Original Application.

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Upon careful scrutiny and examination of the Original Application, analyzing the evidence and giving due weightage to the documentary evidence adduced by the applicant, I am of the view that there is no reason to disbelieve the claim made by the applicant bank.

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In view of the observations made hereinabove, the Original Application filed by the applicant deserves to be granted, I have to grant reasonable interest from the date of filing of OA till realization. Hence, I pass the following orders:-

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ORDER

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(A) Original Application No.107/2024 is allowed with cost.

(OA No.107/2024)

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[APK]

(B) Defendant nos.1 & 2 are ordered and directed to pay to the applicant either jointly or severally the aggregate sum of Rs.31,25,441=48 /- [Rupees Thirty One Lac Twenty Five Thousand Four Hundred forty one and forty eight paisa only] with pendent lite and future interest @ 8% per annum simple from the date of the filing of the Original Application i.e. 02^nd April, 2023 till actual payment /realisation.

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East:- Land of Sonubai Dhivar. West:- Land of Rajendra Dange. South:- Dighi-Wakadi Road. North: - gat No.147 (P).

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East:- Land of Sonubai Dhivar.

(OA No.107/2024)

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[APK]

West:- Land of Rajendra Dange. South:- Dighi-Wakadi Road. North: - gat No.147 (P).

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(D) The Recovery Officer to proceed with the personal properties of the defendants by attaching the same.

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(E) Any amount recovered during pendency of Original Application shall be reduced and demand notice shall be issued accordingly.

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(F) Issue Recovery Certificate accordingly against defendants.

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(G) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and Defendants.

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(H) Consign the file to the Record Room and orders be uploaded on official web-site.

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(Vimal Gupta) Place: Aurangabad. Presiding Officer Date: 15.06.2024 Debts Recovery Tribunal, Aurangabad

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(OA No.107/2024)

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[APK]

Bank of India v. Haribhau Natha Labade

Case brief

What is this about?

What did the court decide?

Bank of India v. Haribhau Natha Labade

Case brief

What is this about?

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