Allowed

Bank of India v. Avinash Raghunath Rathod

DRT15 Jun 2024OA/173/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by Bank of India for recovery of a term loan of Rs. 20 Lacs granted to the principal borrower and guarantor. The court directed payment of the outstanding sum with interest and enforcement against mortgaged properties.

What did the court decide?

Direction to pay Rs. 36,11,663/37 with future interest at 8% p.a.; enforcement against mortgaged and hypothecated properties; issuance of Recovery Certificate.

Bank of India versus Avinash Raghunath Rathod — Banking and Recovery | DRT (2024)

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Presented on: 10.03.2022 Registered on: 24.06.2022 Decided on: 15.06.2024 Duration: Y M D 02 03 05

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IN THE DEBTS RECOVERY TRIBUNAL, AT AURANGABAD ORIGINAL APPLICATION No.173/2022

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TOTAL CLAIM AMOUNT – Rs.36,11,663=37 /-

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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, Bandra-Kurla Complex, Bandra [East], Mumbai 400051 and Several Branches Throughout India and one amongst them at Nanded Main Branch at Santkripa Market, G. G. Road, Nanded, Tq: Nanded and Dist:. Nanded. Through its Power of Attorney Holder/ Authorised officer- Mr. Prashant Sharadchandra Nashikkar , Age: 57 yrs, Occ: Service as a Chief Manager at Bank of India at Lead District Manager at Solapur

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… Applicant

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Versus

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Mr. Avinash S/o. Raghunath Rathod , Age: 40 yrs, Occ: Agriculturist. Res/o. Village: Chabhra, Tq: Hadgaon, Dist.Nanded, Maharashtra431712. PAN: AJXPR2455C

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Mr. Minanaath S/o. Yeshwanta Nagthane,

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1. Age: 53 yrs, Occ: Agriculturist. Res/o. Village: Chabhra Tanda, Tq: Hadgaon, Dist.-Nanded, Maharashtra- 431712

… Defendants

(OA No.173/2022)

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[APK]

APPEARANCES

For the Applicant Mr. D.Y.Nandedkar - Advocate 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 the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (‘The 1993 Act’ for short) for the recovery of the dues in the sum of Rs. 36,11,663=37 /- 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 March, 2012 seeking financial assistance by way of term loan of Rs. 20.00 Lacs for establishing a Poly house /Agri Loan vide loan application dated 09.03.2012.

(OA No.173/2022)

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[APK]

The applicant bank after considering the request and loan application submitted by the Defendant, the applicant bank sanctioned various credit facilities of Rs.20,00,000/- to the Defendant subject to the terms and conditions as stipulated in the sanction letter dated 11.05.2012.

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On 11.05.2012 the defendants have signed and executed the security documents, as set out in paragraph no.5.4 of the Original Application.

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In order to further secure the loan facilities availed by defendant no.1, on 15.05.2012 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. 7/2 admeasuring area 66-R together with building/ sheds, standing thereon, all lands situated at Village Chabhara Tanda Tq: Hadgaon & Dist: Nanded belongs to Mr. Avinash S/o. Raghunath Rathod. Having boundaries as follows;

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East:- Land of Datta Ramji Karhale West:- Nala. South:- Land of Prakash Rathod. North: - Nala

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(2) All that piece and parcel of property bearing Land Gat No. 7/5 Admeasuring area 1-H, 04-R together with

(OA No.173/2022)

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[APK]

building/ sheds, standing thereon, all lands situated at Village Chabhara Tanda Tq: Hadgaon & Dist: Nanded belongs to Mr. Avinash S/o. Raghunath Rathod Having boundaries as follows;

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East:- Land of Datta Karhale

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West:- Nala. South:- Land of Prakash Rathod. North: - Canol

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along with furniture, fixture and all the things attached and fixed thereon, and more particularly described in paragraph 5.5 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 Ploy House, Shed, crops etc. more particularly described in paragraph 5.5 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

(OA No.173/2022)

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[APK]

classified as NPA on 14.07.2016. As such the bank has issued legal notice on 15.01.2022 to the defendants.

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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.36,11,663=37 /- as on 10.02.2022 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.36,11,663=37 /- as on 10.02.2022. 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

(OA No.173/2022)

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[APK]

10^th March, 2022.

The Defendant nos. 1 and 2 were duly served with the summons through RPAD on 18.08.2022. The defendant nos. 1 & 2 appeared and filed their written statement at Exhibit11 and denied the contentions of the applicant bank.

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The applicant bank has filed claim affidavit (Exhibit-04) of Shri Prashant Sharadchandra Nashikkar 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-14 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 11.05.2012 and mortgage deed on 15.05.2012. Thereafter the account became NPA on 14.07.2016 and the applicant bank has issued legal notice on 15.01.2022. The defendant No.1 visited the applicant bank on 04.03.2015, 09.02.2018 and 07.01.2021 and acknowledged their liability as such the present application filed on 11^th March, 2022 is in limitation.

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I have scrutinized and examined the averments made in the

(OA No.173/2022)

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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.173/2022 is allowed with cost.

(OA No.173/2022)

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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.36,11,663=37/- Rupees Thirty-Six Lacs Eleven Thousand Six Hundred Sixty-Four and Thirty-Seven Paisa] with pendent lite and future interest @ 8% per annum simple from the date of the filing of the Original Application i.e. 10^th March, 2022 till actual payment /realisation.

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(1) All that piece and parcel of property bearing Land Gat No. 7/2 admeasuring area 66-R together with building/ sheds, standing thereon, all lands situated at Village Chabhara Tanda Tq: Hadgaon & Dist: Nanded belongs to Mr. Avinash S/o. Raghunath Rathod. Having boundaries as follows;

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East:- Land of Datta Ramji Karhale West:- Nala. South:- Land of Prakash Rathod. North: - Nala

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(2) All that piece and parcel of property bearing Land Gat No. 7/5 Admeasuring area 1-H, 04-R together with building/ sheds, standing thereon, all lands situated at Village Chabhara Tanda Tq: Hadgaon & Dist: Nanded belongs to Mr. Avinash S/o. Raghunath Rathod Having boundaries as follows;.

(OA No.173/2022)

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[APK]

East:- Land of Datta Karhale West:- Nala. South:- Land of Prakash Rathod. North: - Canol

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along with furniture, fixture and all the things attached and fixed thereon, and more particularly described in paragraph 3A of the Original Application.

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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.173/2022)

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Page 9 of 9

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[APK]

Bank of India v. Avinash Raghunath Rathod

Case brief

What is this about?

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Bank of India v. Avinash Raghunath Rathod

Case brief

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