Allowed

Yes Bank v. Gopichand D. Kate

DRT21 Mar 2024OA/265/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's original application for recovery of a construction equipment loan due to defaults by the borrowers and guarantor. The court reduced the claimed amount by penalties and granted relief for principal sum with future interest at 9% per annum, secured by hypothecated property.

What did the court decide?

Recovery of Rs.21,81,690/- plus future interest @9% per annum from 28.02.2022 secured by hypothecated property and issuance of Recovery Certificate.

Yes Bank versus Gopichand D. Kate — Execution and Attachment | DRT (2024)

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Presented on : 28.02.2022 Registered on : 01.04.2022 Decided on : 21.03.2024 Duration : Y M D 02 00 21

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 265/2022.

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Yes Bank Limited,

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A Banking Company within the meaning of Section 5 C of the Banking Regulation Act, 1949 and constituted under the Companies Act, 1956, having its Registered Office at 9^th Floor, Discovery of India, Nehru Centre, Dr. Annie Besant Road, Worli, Mumbai 400018 and Branch Office at – Erandawana, Pune 410004.

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.. Applicant

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Versus

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1 Gopichand D Kate, R/o : House No. 21/6, Kate Wasti, Punawale, Pune 411033.

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2 Sheetal Gopichand Kate, R/o : House No. 21/6, Kate Wasti, Punawale, Pune 411033.

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.. Defendants

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APPEARANCES

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For Applicant Advocate Pradeep Yadav. For Defendants Ex parte.

(OA No.265/2022)

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Sanap

TOTAL CLAIM AMOUNT –Rs.23,59,813/-

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JUDGMENT (Delivered on 21^st March, 2024)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.23,59,813/- together with future interest @10.50% per annum from the date of Application till realization of the entire dues from the defendants.

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Brief facts of the application are as under:

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As per the loan application of defendant No.1, the applicant Bank sanctioned and disbursed the Construction Equipment Loan of Rs.41,65,000/- to defendant No.1. Defendant No.2 stood guarantor for the repayment of loan sanctioned and disbursed to defendant No.1.

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In order to secure the aforesaid loan facility, the defendants executed necessary loan and security documents on 27.05.2019 in favour of the applicant Bank along with deed of hypothecation of JCB JS 205 LC Tracked Excavator in favour of the applicant Bank. The defendants also agreed to repay the loan amount with interest @ 10.50% per annum.

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the

(OA No.265/2022)

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Sanap

accounts. Therefore, on 17.07.2021, the applicant Bank issued legal Notice to the defendant. Despite service of Notice, the defendants 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 defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per Order dated 03.02.2023 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Aadesh Shintre, Authorized Representative of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-7 along with 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 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.

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The applicant Bank has claimed Cheque Bounce Charges of

(OA No.265/2022)

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Rs.6,254/and other charges of Rs.1,71,869/-, (total Rs.1,78,123/-), which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.23,59,813/- is reduced to Rs.21,81,690/-.

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The applicant Bank has claimed future interest @10.50% per annum. 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.265/2022 is allowed with costs.

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(B) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.21,81,690/(Rupees Twenty One Lakhs Eighty One Thousand Six Hundred Ninety only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 28.02.2022 till full payment/realization of the amount mentioned in this operative order.

(OA No.265/2022)

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecation of the movable property i.e. Construction Equipment JCB JS 205 LC Tracked Excavator, more particularly described in the Para No.6 (c) of the Original Application.

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(D) The applicant Bank is entitled to sell the hypothecated 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 and defendants.

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Place : Pune Date : 21.03.2024

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Sd/(Dilip G Murumkar) Presiding Officer Debts Recovery Tribunal, Pune.

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(OA No.265/2022)

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Page 5 of 5

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Sanap

Yes Bank v. Gopichand D. Kate

Case brief

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Yes Bank v. Gopichand D. Kate

Case brief

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