Allowed

Bank of India v. M/S Shri Bhagwati Traders Prop Mr. Kishor Kantilal Parmar

DRT18 Nov 2024OA/188/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the application filed by Bank of India for recovery of dues of Rs. 34,58,066/- from the borrower and guarantor, granting future interest at 9% p.a. and directing the issuance of a Recovery Certificate and sale of mortgaged property.

What did the court decide?

Payment of Rs. 34,58,066/ with future interest @9% p.a. from 11.01.2022, enforcement of mortgage, and issue of Recovery Certificate.

Bank of India versus M/S Shri Bhagwati Traders Prop Mr… — Execution and Attachment | DRT (2024)

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Presented on: 11.01.2022 Registered on: 01.03.2022 Decided on: 18.11.2024 Duration: Y M D 02 10 07

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.188/2022.

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Bank of India ,

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A Body Corporate constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act V of 1970 having its Head Office at Star House, C-5, G Block, Bandra-Kurla Complex, Bandra (East) Mumbai – 400 051 and Branch Office at- Talere, Taluka Kankawali, District Sindhudurg-416 801.

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… Applicant

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Versus

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1. M/s Shri Bhagwati Traders Through its Proprietor – Mr. Kishor Kantilal Parmar At Post – Kasarde, Titha, Mumbai Goa Highway, At Post Talere, Taluka Kankawali, District – Sindhudurg-416 801.

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Mr. Narpat Hadamataram Mali

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At Post – Kasarde, Jambhulwadi, At Post Talere, Taluka Kankawali, District – Sindhudurg-416 801.

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... Defendants

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APPEARANCES

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For the Applicant For the Defendant

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Mr. Pavankumar Pathak Advocate Ex parte.

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(OA No.188/2022)

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[ANIL]

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TOTAL CLAIM AMOUNT – Rs.34,58,066/-. JUDGMENT (Delivered on 18^th November, 2024)

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Applicant Bank has filed present application for recovery of aggregate sum of Rs.34,58,055/- (i.e. Rs.28,34,201/- towards Cash Credit Facility; Rs.5,18,212/- towards Term Loan GECL Facility and Rs.1,05,653/- towards Credit Card Facility) as on 23.12.2021 together with interest thereon @10.15% p.a.; @7.5% respectively from 24.12.201 till actual payment and realization of the entire dues from the defendants.

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Brief facts of the application are as under:

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Defendant No.1 is Proprietorship concern of Shri. Kishor Kantilal Parmar who is engaged in trading of construction material. Defendant No.2 is the guarantor of Cash Credit Facility availed by Defendant No.1.

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Defendant No.1 through Proprietor approached the Applicant Bank and asked for following Loan facilities. The Applicant Bank accordingly considered the proposals of the defendant and sanctioned and disbursed the loan facilities, as under-

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Name of Facility and purpose	Loan Account No.	Amount
Cash Credit	147830110000026	Rs.25,00,000/-
T L- GECL	147873610000086	Rs.4,87,000/-
Credit Card	5420**********5491	Rs.1,00,000/-

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(OA No.188/2022)

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[ANIL]

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In order to secure the aforesaid loan facilities, the defendant has executed necessary loan and security documents as mentioned in Para Nos.5.5 & 5.9 of the Original Application.

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The Defendant has mortgaged the immovable property i.e. all that piece and parcel of Flat bearing No.104, 1^st floor, Village Audumbarnagar, Taluka Kankawadi, District Sindhudurg admeasuring 417 sq. ft., for availing Cash Credit Facility, in favour of the Applicant Bank, more specifically mentioned in Para No.3-A and Schedule-A of the Application.

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The Applicant Bank further contended that the defendant has executed and delivered Acknowledgement of Debts and Securities for Cash Credit Facility on 22.12.2017 and 24.09.2020 in favour of the Applicant Bank.

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The Applicant Bank contended that the defendant committed defaults in payment of installments and failed to regularize the accounts. Hence, on 04.06.2021, the Applicant Bank has classified the accounts of the defendant as Non-Performing Asset. Therefore, on 04.06.2021, the Applicant Bank issued Demand Notice to the defendant. Despite Service of notice, the defendant failed and neglected to pay the outstanding dues of the Applicant Bank.

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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 30.05.2024 passed below Application (Exhibit-1).

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(OA No.188/2022)

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[ANIL]

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4.^Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Nandkumar Chandrakant Prabhudesai and has produced on record the Original Loan Transaction documents at Sr. Nos.AW-1-1 to AW-1-15 alongwith list (Exhibit-9), 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 the reliefs claimed.

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The Applicant Bank has claimed future interest @10.15% p.a.; @7.5% p.a. respectively . 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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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.188/2022 is allowed with costs.

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(B) Defendant shall pay to the Applicant Bank an aggregate sum of Rs.34,58,066/- (i.e. Rs.28,34,201/towards Cash Credit Facility; Rs.5,18,212/- towards Term Loan GECL and Rs.1,05,653/- towards Credit Card Facility) with future interest @ 9% p.a. from the date of filing of the Original Application i.e.11.01.2022 till payment/ realization of the amount mentioned in this operative order.

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(OA No.188/2022)

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[ANIL]

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of the immovable property i.e. all that piece and parcel of Flat bearing No.104, 1^st floor, Village Audumbarnagar, Taluka Kankawadi, District Sindhudurg admeasuring 417 sq. ft., more specifically mentioned in Para No.3-A and Schedule-A of the Application.

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(D) The Applicant Bank is entitled to sell the mortgaged immovable property to recover its dues.

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(E) Issue Recovery Certificate.

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(G) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the Applicant Bank and the defendant.

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Sd/(Dilip G Murumkar) Place : Pune Presiding Officer, Date: 18.11.2024 Debts Recovery Tribunal, Pune

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(OA No.188/2022)

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[ANIL]

Bank of India v. M/S Shri Bhagwati Traders Prop Mr. Kishor Kantilal Parmar

Case brief

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Bank of India v. M/S Shri Bhagwati Traders Prop Mr. Kishor Kantilal Parmar

Case brief

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