Allowed

Union Bank of India v. Raju Dattu Patil

DRT15 Jun 2024OA/282/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's recovery application against four respondents for an aggregate sum of Rs. 31.49 Lakhs along with interest and costs, granting a decree after the respondents failed to contest the claim.

What did the court decide?

Respondents directed to pay Rs.31,49,221.88 with 8% annual interest from May 5, 2022; recovery certificate issued;

Union Bank of India versus Raju Dattu Patil — Execution and Attachment | DRT (2024)

¶1

Presented on: 05.05.2022 Registered on: 02.08.2022 Decided on: 15.06.2024 Duration: Y M D 02 01 10

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IN THE DEBTS RECOVERY TRIBUNAL, AT AURANGABAD ORIGINAL APPLICATION No.282/2022

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TOTAL CLAIM AMOUNT – Rs.31,49,221.88 /-

¶4

UNION BANK OF INDIA , A Body Corporate Constituted under the Banking Companies [Acquisition & Transfer of Undertaking] Act No. V of 1970 having its Head office at 239 Backbay Reclamation Bombay 400021 in the State of Maharashtra and its Branch office inter alia at Branch Ringangaon, Tq. Erandol, Dist. Jalgaon, Maharashtra-425103. Through its Power of Attorney Holder/ Authorised officer- Mr. Rahul s/o. Sheshrao Biradar (PF-549755) , Age:48 yrs, Occ: Service as a Branch Manager, Off/o. Same as that of Branch

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… Applicant

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Versus

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1. Mr. Raju Dattu Patil, Age: Major, Occu: Agriculturist, R/o.At post. Pimpalkotha, Pra Cha Tq.-Erandol, Dist.Ringangaon425113. PAN:AZUPP2724R, MOB: 9970956372, 8329991531, 7387827932. Email: [email protected]

¶8

2. Mr. Premraj Dattu Patil, Age: major, Occu: Agriculturist, R/o. At post Pimpalkotha Pra Cha, Tq.- Ringangaon, Dist.- Ringangaon- 425113.

(OA No.282/2022)

Page 1 of 10

[APK]

PAN: CVKPP5926M, ADHAAR /ELECTION: XWU2901868 MOB: 9970956372, 8329991531, 7387827932 3. Mr. Sharad Dattu Patil, Age: major, Occu: Agriculturist, R/o. At post Pimpalkotha Pra Cha, Tq.- Ringangaon, Dist.- Ringangaon425113 PAN: AOJPP3547E, ADHAAR/ELECTION:759795810879/ CSQ169440 MOB: 9970956372, 8329991531, 9405044520 4. Mr. Bhaskar Chhanu Patil, Age: major, Occu: Agriculturist, R/o. At post Pimpalkotha Pra Cha, Tq.-Ringangaon,Dist.Ringangaon-425113. PAN: BGWPC057J, ADHAAR: 943085350758. MOB: 9970956372, 8005192105, 7387827932 … Defendants 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

(OA No.282/2022)

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[APK]

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. 31,49,221.88 /- 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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Defendants nos.1 to 3 are the borrowers and Defendants no.4 being the guarantor who approached the applicant bank in the month of January, 2016 seeking financial assistance of total Rs.3,00,000/- as a crop loan facility for the purpose to meet crop Loan /- and then once again approached the applicant bank in the month of June, 2017 seeking financial assistance of total Rs.20,00,000/- as a term loan facility for the purpose Construction of Poly house.

¶23

The applicant bank after considering the request and loan applications submitted by the Defendants, the applicant bank sanctioned various credit facilities to the Defendants subject to the terms and conditions as stipulated in the sanction letter dated 22.01.2016 & 24.07.2017.

(OA No.282/2022)

Page 3 of 10

[APK]

On 22.01.2016 & 24.07.2017 the Defendants have signed and executed the security documents and has executed simple mortgage deeds on 27.07.2017, as set out in paragraph no.5.3 of the Original Application.

¶28

In order to further secure the loan facilities availed by Defendants nos.1 to 3, on 27.07.2017 the Defendants have executed registered mortgage deed with respect to the immovable property i.e.

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All that piece and parcel of an agricultural land bearing Gat No.119/1A, admeasuring 1-Hector 70-R, situated at village Pimpalkotha Pra Cha Shivar, Tq. Erandol, Dist. Jalgaon, belonging to Defendants No. 1 to 3 commonly.

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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.

¶31

In order to secure the loan facilities availed by Defendant no.1, the Defendants have executed Deed of Hypothecation thereby hypothecated the Crops standing in the agricultural land bearing Gat No.119/1A, admeasuring 1-Hector 70-R, situated at village Pimpalkotha Pra Cha Shivar, Tq.

(OA No.282/2022)

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[APK]

Erandol, Dist. Jalgaon, belonging to defendant No. 1 to 3 commonly more particularly described in paragraph 5.5 of the Original Application.

¶36

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 classified as NPA on 30.06.2020. As such the bank has issued legal notice on 06.10.2021 & 05.02.2022 to the Defendants nos. 1 to 4.

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The applicant bank submits that the Defendants nos.1 to 3 being the borrowers and Defendants no.4 being the guarantor is liable to pay the outstanding dues of Rs.31,49,221.88 /- as on 31.03.2022 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.

(OA No.282/2022)

Page 5 of 10

[APK]

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.

¶42

At the foot of the account, there was owing, due and payable by Defendants to the applicant bank the aggregate sum of Rs.31,49,221.88 /- as on 31.03.2022. 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 the 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 05^th May, 2022.

¶43

The Defendants nos. 1 to 4 were duly served with the summons by hand. Despite service defendant did not choose to enter appearance either personally or through their Advocate. Hence, defendant nos.1 to 3 have failed to

(OA No.282/2022)

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[APK]

show cause as to why reliefs prayed for should not be granted and as such Bank is entitled for decree as prayed for.

¶48

The applicant bank has filed claim affidavit (Exhibit-04) of Shri Rahul Sheshrao Biradar 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-30 which are admitted in evidence, read, recorded and exhibited.

¶49

Heard the learned counsel for the applicant. The learned counsel for the applicant bank submits that the loan documents were executed on 22.01.2016 & 24.07.2017. Thereafter the account became NPA on 30.06.2020 and the applicant bank has issued legal notice on 06.10.2021 & 05.02.2022. The Defendants have also acknowledged their liability to pay the amount outstanding and due under the Term loan accounts by executing Acknowledgements of Debt on 31/03/2020, 09/03/2021 and 15/01/2022 as such the present application filed on 05^th May, 2022 is in limitation.

(OA No.282/2022)

Page 7 of 10

[APK]

I have scrutinized and examined the averments made in the 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.

¶54

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.

¶56

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:-

(OA No.282/2022)

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[APK]

ORDER

(A) Original Application No.282/2022 is allowed with cost.

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(B) Defendants nos.1 to 4 are ordered and directed to pay to the applicant either jointly or severally the aggregate sum of Rs.31,49,221.88/- [Rupees Thirty-One Lacs Forty-Nine Thousand Two Hundred Twenty-One Rupees & Eighty-Eight paisa Only] with pendent lite and future interest @ 8% per annum simple from the date of the filing of the Original Application i.e. 05^th May, 2022 till actual payment /realisation.

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All that piece and parcel of an agricultural land bearing Gat No.119/1A, admeasuring 1- Hector 70-R, situated at village Pimpalkotha Pra Cha Shivar, Tq. Erandol, Dist. Jalgaon, belonging to Defendants No. 1 to 3 commonly.

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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.

(OA No.282/2022)

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[APK]

(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.282/2022)

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Page 10 of 10

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[APK]

Union Bank of India v. Raju Dattu Patil

Case brief

What is this about?

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Union Bank of India v. Raju Dattu Patil

Case brief

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