Allowed

Bank of Maharashtra v. Shinde Building Material Suppliers, Prop. Shashikant Vishwanath Shinde

DRT21 Oct 2024OA/1083/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Bank of Maharashtra's recovery application against Shashikant Shinde for Rs. 84.51 lakhs with 9% simple future interest. The court ordered sale of mortgaged land and issuance of a Recovery Certificate.

What did the court decide?

Payment of Rs.84,51,469.34 plus future interest @ 9% p.a. (simple); charge on mortgaged land; authorization to sell property; issuance of Recovery Certificate.

Bank of Maharashtra versus Shinde Building Material Suppliers… — Banking and Recovery | DRT (2024)

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Presented on: 23.09.2022 Registered on: 09.12.2022 Decided on: 21.10.2024 Duration: Y M D 02 11 28

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1083/2022.

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Bank of Maharashtra ,

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A Body Corporate constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act 1970 having its Head Office at “Lokmangal” 1501, Shivajinagar, Pune-5 and Branch at 35/291, “City Pride”Complex, New Paccha Peth, Ashok Chowk, Solapur-413 005 and branch office a Asset Recovery Branch, 2^nd Floor, Agarkar High School Bldg., Somwar Peth, Pune-411 011.

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… Applicant

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Versus

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Mr. Shashikant Vishwanath Shinde Proprietor –M/s Shinde Building Material Suppliers , A/P Tale Hipparaga, Taluka North Solapur, District Solapur and having shop at 2/11, Murarji Peth, Solapur-413 001.

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…Defendant

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APPEARANCES

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For the Applicant Advocate Mr. Akshay Petkar For the Defendants Ex parte.

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TOTAL CLAIM AMOUNT – Rs.84,51,469.34Ps.

(OA No.1083/2022)

Page 1 of 5

[ANIL]

JUDGMENT (Delivered on 21^st October, 2024)

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The Applicant Bank has filed present application for recovery of sum of Rs.84,51,469.34Ps with future interest thereon @12.65% p.a. compounded with monthly rests from the date of filing of Original Application till payment or realization with monthly rests from the passing of the order.

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Brief facts of the application are as under:

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Defendant approached to the Applicant Bank on 16.04.2013 and requested for Cash Credit facility of Rs.40 Lakhs for expansion/purchase of business material. Applicant Bank has sanctioned Cash Credit Facility of Rs.40 Lakhs on 30.05.2013, to the Defendant on certain terms and conditions.

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In order to secure the aforesaid Loan facility, the Defendant has executed certain documents in favour of the Applicant Bank, as set out in Para Nos.5.5 & 5.6 of the Original Application. So also, defendant has executed Balance and Security Confirmation letters dated 06.06.2016 and 06.06.2019 and thereby admitted balance of Rs.40,86,442.48Ps. and Rs.39,42,053.48Ps., respectively.

(OA No.1083/2022)

Page 2 of 5

[ANIL]

So also, Defendant has executed and delivered composite deed of simple mortgage to secure the cash credit facility registered with the office of Sub Registrar at Solapur at Sr. No.6018 of 2013 on 06.06.2013 of the immovable property being N.A. Land of Gat No.28/1 admeasuring 0 H 15 R i.e. 1500 sq.mtrs. situated at Mouje Tale-Hipparage, Taluka North Solapur, District Solapur, more particularly described in Para No.5.4 and Schedule –A of the Original Application.

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Applicant Bank contended that the Defendant failed to perform the commitment to pay the dues of the Applicant and in spite of the repeated requests of the Applicant, the defendant has not bothered to respond to them. The Applicant Bank contended that it has issued Demand Notice dated 27.02.2018 u/s 13(2) of the SARFAESI Act to the defendant in respect of the Cash Credit Facility and defendant failed to perform the terms and conditions of the agreement and failed to repay the demanded amount. 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 20.09.2024 passed below Application (Exh.-1).

(OA No.1083/2022)

Page 3 of 5

[ANIL]

The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr.Nandan Kumar, Chief Manager and produced on record the Loan Transaction documents at Exhibits.AW-1 to AW-

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16, 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 the 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.

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The Applicant Bank has claimed interest @12.65% p.a. for Cash Credit facility availed by the Defendant. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple), it would be just and reasonable rate of interest.

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11 Hence, I pass the following order:-

ORDER

(OA No.1083/2022)

Page 4 of 5

[ANIL]

(B) Defendant shall pay sum of Rs.84,51,469.34Ps. (Rupees Eighty Four Lakhs Fifty One Thousand Four Hundred Sixty Nine and Thirty Four paise only) with future interest @9% p.a. (Simple) from the date of filing of the Original Application i.e. 23.09.2022 till payment /realization of the amount mentioned in this operative order, to the Applicant Bank.

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(C) The adjudicated amount is secured by mortgaging the immovable property i.e.N.A. Land of Gat No.28/1 admeasuring 0 H 15 R i.e. 1500 sq.mtrs. situated at Mouje Tale-Hipparage, Taluka North Solapur, District Solapur, more particularly described in Para No.5.4 and Schedule –A 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 the defendants.

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Sd/(Dilip G. Murumkar) Place : Pune Presiding Officer Date: 21.10.2024 Debts Recovery Tribunal, Pune

(OA No.1083/2022)

Page 5 of 5

[ANIL]

[ANIL] (OA No.1083/2022) Page 6 of 5

Bank of Maharashtra v. Shinde Building Material Suppliers, Prop. Shashikant Vishwanath Shinde

Case brief

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Bank of Maharashtra v. Shinde Building Material Suppliers, Prop. Shashikant Vishwanath Shinde

Case brief

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What did the court decide?

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