Allowed

Kotak Mahindra Bank Limited v. Ratan Ramchandra Sharma

DRT22 May 2024OA/182/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Kotak Mahindra Bank Limited for recovery of outstanding dues aggregating Rs. 31,58,992.31 plus interest from two defendants who failed to repay commercial vehicle loans. The court held the liability to be joint and several.

What did the court decide?

Recovery of Rs. 31,58,992.31 plus interest and costs directed; property dealt with by Recovery Officer.

Kotak Mahindra Bank Limited versus Ratan Ramchandra Sharma — Company and Corporate | DRT (2024)

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O. A. No. 182 of 2023

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Registered on : 07.06.2023 Decided on : 22.05.2024

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IN THE DEBT RECOVERY TRIBUNAL-I AT MUMBAI ORIGINAL APPLICATION NO. 182 of 2023

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KOTAK MAHINDRA BANK LIMITED,

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A Banking company within the meaning of the Banking Regulation Act, 1949 and registered under the Companies Act, 1956 and having its registered office at 27, BKC, C-27, G Block Bandra Kurla Complex, Bandra (E), Mumbai – 400051 and one of its branch office at 8^th Floor, Adman Plaza, 166/16, CST Road, Kolivery Village, Kunchi Kurve Nagar, Kalina, Santacruz (E), Mumbai – 400098 and Mr. Surendra Mishra is authorized to sign the Application.

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VERSUS

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...APPLICANT

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1. RATAN RAMCHANDRA SHARMA

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Room No. 6 Mangalam Chawl Narangi Bypass Road Sainath Na Vasai – 401305 Maharashtra – India.

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Mobile – 9823844196

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2. AJAY RAMCHANDRA SHARMA Room No. 6 Mangalam Chawl Narangi Bypass Road Sainath Na Vasai – 401305 Maharashtra – India.

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...DEFENDANTS

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_____________________________________________

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Counsel for the Applicant : Advocate Shashikant Gaikwad.

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Counsel for the Defendants : Ex-Parte

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O. A. No. 182 of 2023

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J U D G M E N T

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The present OA has been filed by the Applicant against Defendant No.1 & 2 for recovery of following amount: -

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a. Rs. 22,76,587.96 (Rupees Twenty Two Lakh Seventy Six Thousand Five Hundred Eighty Seven and Paisa Ninety Six only) with further interest pendent lite interest and other charges thereon at the contractual rate plus future cost with monthly rest from 21.06.2022 till the date of realization of the aforesaid amount and

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b. Rs. 8,82,404.35 (Rupees Eight Lakh Eighty Two Thousand Four Hundred and Paisa Thirty Five only) with further interest pendent lite interest and other charges thereon at the contractual rate plus future cost with monthly rest from 21.06.2022 till the date of realization of the aforesaid amount and

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c. Aggregating to Rs. 31,58,992.31 (Rupees Thirty One Lakh Fifty Eight Thousand Nine Hundred Ninety Two & Paise Thirty One only) with further interest as stated above from 21.06.2022 with the interest herein above till the date of realization.

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Facts as succinctly set out in the OA are that Defendant No.1 is a Borrower and Defendant No.2 is Co-borrower in its personal and individual capacity and also liable for due repayment of the amounts due and payable by the Defendant No.1 to the Applicant under the Commercial Vehicle Loan and Commercial Vehicle Loan Facilities.

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It is stated that the Defendants vide their loan application requested/grant them Commercial Vehicle Loan for sum of

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O. A. No. 182 of 2023

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Rs.34,00,000/-. The Applicant acceded to the said request of Defendants and agreed to grant and granted the said Commercial Vehicle Loan for sum of Rs.56,00,000/- for purchase 1) 2264892 Construction Equipment Tipper Ashok Leyland Limited CB_AL U Tipper U3123 Fully Built Tipper & 2) 2264869 Construction Equipment Tipper Ashok Leyland Limited CB_AL U Tipper U3123 Fully Built Tipper.

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It is also stated that the said loan I, so disbursed to the Defendants was to be repaid with interest thereon @ 11.55% p.a. or at such other rate or rates as may from time to time be notified by the Applicant in 46 equal monthly installments of 1) 75,850/- & 2) 75,850/-.

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In order to secure the aforesaid Loan I, Defendants have signed, executed the security documents in favour of the Applicant:-

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a. Loan cum Guarantee Agreement dt.14.06.2019.

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b. Demand Promissory Note dt.14.06.2019.

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c. Power of Attorney dt.14.06.2019.

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Further in order to secure the aforesaid loan I the Defendants agreed to hypothecate the following vehicles as more particularly described in Schedule being Exhibit “F”.

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It is stated that the Defendant No.1 requested for working capital term loan (hereinafter referred as Loan II) of Rs.9,76,200/- and the same was sanctioned by the Applicant vide sanction letter dt. 11.09.2020 under ECLGS Scheme.

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In order to secure Loan II, Defendant No.1 has executed the following security documents in favour of the Applicant:-

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O. A. No. 182 of 2023

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a. Term Loan Agreement dt.02.09.2020.

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b. Deed of Hypothecation dt.29.09.2020.

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It is also stated that the Applicant Bank submits that the Financial Facilities granted to the Defendant No.1 under loan II was lent and advanced under the special scheme of ECLGS as announced by the Ministry of Finance, Government of India with the 100% guarantee backed from the National Credit Guarantee Trustee Company (NCGTC) to the Applicant Bank. However, even if the Financial Facilities is 100% guarantee backed from the NCGTC, it is still due and recoverable from Defendant No. 1 and is to be compensated to the NCGTC from the amounts to be recovered from the Defendant No. 1. The Applicant Bank, after adjusting such recoveries towards default amount relating to the Loan (I) and the legal costs incurred for recovery of the due amounts, shall thereafter remit to NCGTC the balance recoveries.

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However, after availing the aforesaid Credit Facility, the Defendants failed to adhere to the terms and conditions of the Sanction of aforesaid Credit Facility and neglected to make the payment to the Applicant bank. Therefore, the account was declared as NPA on 08.05.2022 and further the Applicant issuing Legal Notice on 24.06.2022 and called upon the Defendants to make the payment of the outstanding dues but the Defendants failed to pay the dues. Hence, the present OA has been filed.

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Notices were issued to the Defendants. Despite service, none appeared for the Defendants nor filed the WS thus, they were proceeded ex-parte on 04.04.2024.

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O. A. No. 182 of 2023

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The Applicant Bank has produced all the Original Loan documents and other relevant documents along with their Claim Affidavit filed on 18.03.2024 through its Manager Surendra Mishra.

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I have heard the Ld. Counsel for the Applicant Bank and perused the record.

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The witness of the Applicant Bank has fully corroborated the averments made in the OA, even otherwise the whole case of the Applicant Bank is based on documents and the witness has duly proved all these documents as against the Defendants. In my view there is no question of disbelieving the evidence led by the Applicant Bank and the Applicant Bank has proved its case beyond reasonable doubt. The liability of Defendant No.1 & 2 are joint and several.

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In the light of above discussions, the Original Application deserves to be allowed against the Defendant No. 1 & 2.

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O R D E R

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(i) I allow the present OA and direct the Defendant No. 1 & 2 to pay to the Applicant Bank, jointly and severally, within a period of 60 days, for following amount: -

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a. Rs. 22,76,587.96 (Rupees Twenty Two Lakh Seventy Six Thousand Five Hundred Eighty Seven and Paisa Ninety Six only) with further interest pendent lite interest and other charges thereon at the contractual rate plus future cost with monthly rest from 21.06.2022 till the date of realization of the aforesaid amount and

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O. A. No. 182 of 2023

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b. Rs. 8,82,404.35 (Rupees Eight Lakh Eighty Two Thousand Four Hundred and Paisa Thirty Five only) with further interest pendent lite interest and other charges thereon at the contractual rate plus future cost with monthly rest from 21.06.2022 till the date of realization of the aforesaid amount and

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c. Aggregating to Rs. 31,58,992.31 (Rupees Thirty One Lakh Fifty Eight Thousand Nine Hundred Ninety Two & Paise Thirty One only) with further interest as stated above from 21.06.2022 with the interest herein above till the date of realization.

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(ii) Failing which the aforesaid amount shall be recovered from the sale of mortgage property and other personal moveable and immoveable assets of the Defendants.

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(iii) Defendants is hereby directed not to deal with his properties till further direction of Ld. Recovery Officer.

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(iv) Defendants shall also pay the cost and expenses of the OA.

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(v) Recovery Certificate be issued forthwith and be sent to the Recovery Officer of this Tribunal.

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Copy of this order be sent to the parties as per rules.

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File be consigned to record.

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Place: Mumbai. (Dr. Rekha G. Dhakar) Date : 22.05.2024 Presiding Officer, DRT-1, Mumbai

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SP/-

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Kotak Mahindra Bank Limited v. Ratan Ramchandra Sharma

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Ratan Ramchandra Sharma

Case brief

What is this about?

What did the court decide?

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