Allowed

Bank of India v. M/s Medhekar Foods And Beverages Industry

DRT30 Jul 2024OA/131/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by Bank of India for recovery of loan dues against defaulting borrowers who appeared ex-parte. The court adjusted future interest rates deemed reasonable and directed the issuance of a recovery certificate.

What did the court decide?

Recovery of principal dues and future interest at 9% p.a. (or 8.85% p.a. for Term Loan III) along with directions to sell mortgaged property.

Bank of India versus M/s Medhekar Foods And Beverages Industry — Banking and Recovery | DRT (2024)

¶1

Presented on : 28.12.2021 Registered on : 24.02.2021 Decided on : 30.07.2024 Duration : Y M D 02 07 02

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 131/2022.

¶3

Bank of India,

¶4

A Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 and having its head office at Star House, C-5, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai – 400051 and branch at – Mhasala, Taluka Mhasala, District Raigad.

¶5

.. Applicant

¶6

Versus

¶7

1 M/s. Medhekar Food & Beverages Industry, A Partnership firm through its partners – a) Mr. Devendra Harishchandra Medhekar, b) Mrs. Devashree Devendra Medhekar, c) Mr. Anantkumar Onkar Gawai, Factory at : At Post Kelte, Taluka Mhasala, District Raigad.

¶8

Registered office at : H. N. 14/404, Press Enclave, Aahana, CHSL, Pratiksha Nagar, Sion, Mumbai 400 022.

(OA No. 131/2022)

Page 1 of 8

Sanap

2 Mr. Devendra Harishchandra Medhekar, At Post Kelte, Taluka Mhasala, District Raigad.

¶13

3 Mrs. Devashree Devendra Medhekar, At Post Kelte, Taluka Mhasala, District Raigad.

¶14

4 Mr. Anantkumar Onkar Gawai, R/at : Shriram Chawl, Vishnu Nagar, .. Defendants

¶15

Dighi, Sector 16, Thane 00708.

¶16

APPEARANCES

¶17

For Applicant Advocate Rajashree Thakar. For Defendants Ex parte.

¶18

TOTAL CLAIM AMOUNT –Rs.1,16,25,645/-

¶19

JUDGMENT (Delivered on 30^th July, 2024)

¶20

The Applicant Bank has filed the present application for recovery of the sum of Rs.1,16,25,645/- together with future interest @13.05% p. a. for Cash Credit and Term Loan I, @12.45% p. a. for Term Loan II, @8.85% p. a. for Term Loan III and @9.60% p. a. for Term Loan IV from the date of Application till realization of the entire dues from the defendants.

¶21

Brief facts of the application are as under :

¶22

Defendant Nos. 2 to 4 are the partners of defendant No.1. In the year 2015, defendant No.1 through defendant Nos.2 to 4

(OA No. 131/2022)

Page 2 of 8

Sanap

approached the applicant Bank for grant of Credit facility and loan. Accordingly, the applicant Bank considered the proposal of defendant No.1 and sanctioned and disbursed the following loan/credit facilities from time to time to defendant No.1.

¶27

Name of the facility	Amount Rs.	Date of sanction
Cash Credit	20,00,000/-	13.04.2015
Term Loan - I	84,80,000/-	13.04.2015
Term Loan - II	15,20,000/-	13.04.2015
Term Loan – III	2,76,000/-	29.03.2019
Term Loan – IV	9,64,000/-	29.03.2019

¶28

Term Loan I has been covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) set up by Government of India and SIDBI.

¶29

In order to secure the aforesaid loan facilities, the defendants executed necessary loan and security documents along with deed of hypothecation of debts and goods and deed of mortgage of land or grounds of the property admeasuring 0- 23-9 Hac area situated on Gat No. 230, Village Kelte, Taluka Mhasala, District Raigad, in favour of the applicant Bank.

(OA No. 131/2022)

Page 3 of 8

Sanap

Further, defendant No.1 has executed

¶34

Acknowledgement of Debts and Securities of Cash Credit Loan and Term Loan I on 10.04.2018 in favour of the applicant Bank.

¶35

The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 30.06.2019, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 21.03.2020, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank.

¶36

Hence, this application is filed.

¶37

The defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte as per Order dated 30.04.2024 passed below Application (Exhibit-1).

¶38

The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Ashwinikumar Meshram, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1-1 to AW-1-46 along with list (Exhibit 7), which corroborates the case of the

(OA No. 131/2022)

Page 4 of 8

Sanap

applicant Bank.

I have heard arguments of the learned Advocate for the applicant Bank.

¶44

Since the defendants 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.

¶45

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.

¶46

The applicant Bank has claimed future interest @13.05% p. a. for Cash Credit and Term Loan I, @12.45% p. a. for Term Loan II, @8.85% p. a. for Term Loan III and @9.60% p. a. for Term Loan IV. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple) for Cash Credit, Term Loan I, Term Loan II and Term Loan IV and @8.85% per annum (simple) for Term Loan III, it would be just and reasonable rate of interest.

¶47

Hence, I pass the following order :-

(OA No. 131/2022)

Page 5 of 8

Sanap

ORDER

(A) Original Application No. 131/2022 is allowed with costs.

¶53

(B) Defendant Nos. 1 to 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.18,10,685/(Rupees Eighteen Lakhs Ten Thousand Six Hundred Eighty Five only) towards Cash Credit Loan along with future interest @9% per annum from the date of filing of the Original Application i.e. 28.12.2021 till full payment/realization of the amount mentioned in this operative order.

¶54

(C) Defendant Nos. 1 to 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.65,56,590/(Rupees Sixty Five Lakhs Fifty Six Thousand Five Hundred Ninety only) towards Term Loan I along with future interest @9% per annum from the date of filing of the Original Application i.e. 28.12.2021 till full payment/realization of the amount mentioned in this operative order.

¶55

(D) Defendant Nos. 1 to 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.16,27,132/-

(OA No. 131/2022)

Page 6 of 8

Sanap

(Rupees Sixteen Lakhs Twenty Seven Thousand One Hundred Thirty Two only) towards Term Loan II along with future interest @9% per annum from the date of filing of the Original Application i.e. 28.12.2021 till full payment/realization of the amount mentioned in this operative order.

¶60

(E) Defendant Nos. 1 to 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.3,46,548/(Rupees Three Lakhs Forty Six Thousand Five Hundred Forty Eight only) towards Term Loan III along with future interest @8.85% per annum from the date of filing of the Original Application i.e. 28.12.2021 till full payment/realization of the amount mentioned in this operative order.

¶61

(F) Defendant Nos. 1 to 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.12,84,690/(Rupees Twelve Lakhs Eight Four Thousand Six Hundred Ninety only) towards Term Loan IV along with future interest @9% per annum from the date of filing of the Original Application i.e. 28.12.2021 till full payment/realization of the amount mentioned in

(OA No. 131/2022)

Page 7 of 8

Sanap

this operative order.

¶66

(G) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of immovable property i.e. land or grounds of the property admeasuring 0-23-9 Hac area situated on Gat No. 230, Village Kelte, Taluka Mhasala, District Raigad, more particularly described in the Schedule of Mortgaged Property of the Original Application.

¶67

(H) The applicant Bank is entitled to sell the mortgaged property to recover its dues.

¶68

(I) Issue Recovery Certificate.

¶69

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

¶70

Sd/(Dilip G Murumkar) Place : Pune Presiding Officer Date : 30.07.2024 Debts Recovery Tribunal, Pune.

¶71

(OA No. 131/2022)

¶72

Page 8 of 8

¶73

Sanap

Bank of India v. M/s Medhekar Foods And Beverages Industry

Case brief

What is this about?

What did the court decide?

Bank of India v. M/s Medhekar Foods And Beverages Industry

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Idbi Bank versus Surekha

Bank of Maharashtra versus Vishant

Bank of Maharashtra versus Rahibai Malave

Bank of India versus Mrs Sushila Khaire

Kotak Mahindra Bank Limited versus M/S. Mahesh Patil and Company

Union Bank of India versus W. R. Metal Engg and Research Center and W. R. Infotech Prop Shri. Rohan Balasaheb Waghmare