Allowed

Canara Bank v. Gayatri Engineering Solutions Prop Shri. Milind N. Joshi

DRT14 Feb 2024OA/27/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for a debt of Rs.33,53,434/- against a non-appearing defendant who had previously taken an OCC and term loan that turned NP A. The court granted future interest at a reduced rate of 9% simple interest from the application date and directed the issuance of a Recovery Certificate, excluding claims regarding hypothecated as

What did the court decide?

The defendant is directed to pay Rs.33,53,434/- and future interest at 9% p.a. from 23.12.2021 till realisation; Receiver Certificate issued.

Canara Bank versus Gayatri Engineering Solutions… — Contract and Commercial Disputes | DRT (2024)

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Presented on	: 23.12.2021
Registered on	: 23.12.2021
Decided on	: 14.02.2024
Duration	: Y M D
	02 01 21

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer)

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ORIGINAL APPLICATION No. 27/2022.

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Canara Bank,

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A Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 having its head office at 112 JC Road, Bangalore and branch office at – 2136, Vijaynagar Colony, Off. Tilak Road, Near Kalpana Vishwa Hotel, Sadashiv Peth, Pune 411030.

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.. Applicant

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Versus

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Shri Milind N. Joshi,

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Adult, Occ. : Business, Proprietor of Gayatri Engineering Solutions, R/o : B7/9, Gururaj Housing Society, Pune Satara Road, Pune 411009.

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.. Defendant

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APPEARANCES

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For Applicant	Advocate R.B. Ganbote.
For Defendant	Ex-parte.

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TOTAL CLAIM AMOUNT –Rs.33,53,434/-

(OA No. 27/2022)

Page 1 of 5

Sanap

JUDGMENT

(Delivered on 14^th February, 2024)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.33,53,434/- together with future interest @11.90% per annum with monthly rests from the date of Application till realization of the entire dues from the defendant.

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Brief facts of the application are as under :

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The defendant is the proprietor of Gayatri Engineering Solutions. The defendant approached the applicant Bank on 17.08.2013 requesting OCC of Rs.15,00,000/- as Working Capital and Rs.80,00,000/- as Term Loan for purchase of plant and machinery under CGMSE Scheme. Accordingly, on 21.11.2013 the applicant Bank sanctioned and disbursed the OCC of Rs.15,00,000/- and Term Loan of Rs.80,00,000/-.

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In order to secure the aforesaid OCC and Term Loan facilities, the defendant executed necessary loan and security documents in favour of the applicant Bank along with deed of hypothecation of goods in favour of the applicant Bank. The defendant agreed to pay interest @10.95% per annum with monthly rests.

(OA No. 27/2022)

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Sanap

Thereafter, on 02.12.2017 and 20.012019, the defendant has executed two separate Acknowledgement of Debt and Security and confirmed the balance in the Term Loan of the defendant with the applicant Bank. The defendant has closed OCC account, however, Term Loan account turned as NPA.

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The applicant Bank contended that the defendant committed defaults in payment of installments and failed to regularize the accounts. Despite demand of payment from the defendant by personal visits and telephonically, the defendant failed and neglected to pay the outstanding dues of the applicant Bank. 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 16.01.2024 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Anandrao Dhondiba Palave, Senior Manager and Principal Officer of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1 to AW-11 along with list (Exhibit 7), which corroborates the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the

(OA No. 27/2022)

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Sanap

applicant Bank.

Since the defendant 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 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.

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The applicant Bank has claimed future interest @11.90% per annum with monthly rests. 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.27/2022 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank the sum of Rs.33,53,434/- (Rupees Thirty Three Lakhs Fifty Three Thousand Four Hundred Thirty Four

(OA No. 27/2022)

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Sanap

only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 23.12.2021 till full payment/realization of the amount mentioned in this operative order.

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

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Sd/(Dilip G. Murumkar) Place : Pune Presiding Officer Date : 14.02.2024 Debts Recovery Tribunal, Pune.

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(OA No. 27/2022)

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Page 5 of 5

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Sanap

Canara Bank v. Gayatri Engineering Solutions Prop Shri. Milind N. Joshi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Gayatri Engineering Solutions Prop Shri. Milind N. Joshi

Case brief

What is this about?

What did the court decide?

What the court decided

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