Allowed

Union Bank of India v. W. R. Metal Engg and Research Center and W. R. Infotech Prop Shri. Rohan Balasaheb Waghmare

DRT2 Aug 2024OA/304/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an ex-parte application filed by Union Bank of India for recovery of loans against two respondents. The Court modified the claimed interest rate from 12-13% to 9% per annum and granted relief for claim against mortgaged properties.

What did the court decide?

Derivative judgment allowed; Defendant No. 1 to pay Rs. 41,21,127 with interest; Defendants jointly/severally to pay Rs. 4,26,207 with interest; Recovery Certificate issued.

Union Bank of India versus W. R. Metal Engg and Research… — Banking and Recovery | DRT (2024)

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Presented on: 04.01.2022 Registered on: 01.03.2022 Decided on: 02.08.2024 Duration: Y M D 02 06 28

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.304/2022.

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Union Bank of India ,

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A Body Corporate constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act 1970 having its Head Office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400 021 and branch amongst other places at – Jeevan Tara Building, (LIC) 513 Sadar Bazar, Ganpatdas Devi Peth, Satara-415 001.

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… Applicant

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Versus

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1. Mr. Rohan Balasaheb Waghmare Proprietor of – W.R. Metal Eng. & Research Centre, W.R. Infotech and W.R. Enterprises, Having its office at – Shop No.SG-1, Rohan Heights, 407/1, Mangalwar Peth, Near Samarth Mandir, Satara-415 002.

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2. Shri. Gurudev Shrimant Deshmukh

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Age adult, Occ.-Service, R/at & Post Jaygaon, Taluka Khatav, District – Satara- 415 510.

…Defendants

(OA No.304/2022)

Page 1 of 7

[ANIL]

APPEARANCES

For the Applicant Advocate Mr R. B. Ganbote For the Defendants Ex parte TOTAL CLAIM AMOUNT –Rs.45,47,334/-

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JUDGMENT

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(Delivered on 2^nd August, 2024)

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The Applicant Bank has filed present application for recovery of aggregate sum of Rs. 45,47,334/(i.e. Rs.41,21,127/- towards Cash Credit Accounts (a,b,&c) respectively with future interest thereon @13.40% p.a. from Defendant No.1 and Rs.4,26,207/- towards Term Loan Account with future interest thereon @12.25% p.a.) from Defendant Nos.1&2 with monthly rests from 01.04.2021 respectively from the date of filing this application till repayment/realization of the entire dues from the defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that Defendant No.1 is Proprietor of (i) W.R. Metal Engg. & Research Centre; (ii) W. R. Infotech and (iii) W.R. Enterprises. Defendant No.1 time to time approached to the Applicant Bank and requested for following Cash Credit Facilities & Term Loan Account, which were sanctioned by the Applicant.

(OA No.304/2022)

Page 2 of 7

[ANIL]

Sr. No.	Loan Facility	Sanction Amount	Sanction Date
1	Cash Credit Facility for W. R. Metal Engg. & Research Centre.	Rs.20,00,000/-	31.10.2015
2	Cash Credit Facility for W.R.Infotech	Rs.10,00,000/-	15.02.2016
3	Cash Credit Facility For W.R. Enterprises	Rs.10,00,000/-	15.02.2016
4	Term Loan for purchase of Machinery	Rs.5,00,000/-	30.12.2017

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In order to secure the aforesaid Loan facilities, defendants have executed loan and security documents as set out in Para No.5.6, 5.12, 5.19 and 5.24 respectively of the Original Application, in favor of the Applicant Bank.

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The Applicant Bank states that Defendant No.1 has executed Common Deeds of Hypothecation of movables/ assets/ debts in favour of the applicant Bank.

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The Applicant Bank states that Defendant No.1 executed Registered Deeds of Simple Mortgage on 31.102015, 25.04.2016 and 09.02.2016 for Cash Credit Facilities and Term Loan facility, respectively and mortgaged the following properties:-

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(i)- Flat no.F-4, admeasuring 41.82 sq. ft. in ‘Rohan Heights’, constructed on the land bearing City Survey No.407/1, Mangalwar Peth, Satara; and

(OA No.304/2022)

Page 3 of 7

[ANIL]

(ii)- Flat no.SF-4, admeasuring 700 sq. ft in ‘Rohan Heights’, constructed on the land bearing City Survey No.407/1, Mangalwar Peth, Satara, more specifically mentioned in the Original Application.

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The Applicant Bank contended that Defendant No.1 after availing the aforesaid loans failed to repay the instalments in Cash Credit Facilities and Term Loan Account in spite of reminders from the Applicant Bank. Defendant No.1 confirmed and acknowledged the Debit Confirmation Letter dated 31.10.2018 in favour of the Applicant Bank.

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The Applicant Bank contended that even after continuous demand, the defendants have failed to pay the interest in all the Cash Credit Accounts and Term Loan Account and also failed to regularize the account with the Applicant Bank. Hence, account of Defendants with Applicant Bank becomes Non-Performing.

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Hence, this application is filed.

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Defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per order dated 16.05.2024 passed below Application (Exhibit-1).

(OA No.304/2022)

Page 4 of 7

[ANIL]

The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Rishi Vasta, Chief Manager and produced on record the Original Loan Transaction documents at Exhibits AW-1 to AW-50 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 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 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 @13.40% per annum on Cash Credit Accounts (a),(b)&(c) and @12.25% per annum on Term Loan Account. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple) for both the loan facilities, it would be just and reasonable rate of interest.

(OA No.304/2022)

Page 5 of 7

[ANIL]

11 Hence, I pass the following order:-

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ORDER

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(A) Original Application No.304/2022 is allowed with costs.

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(B) ( A ) Defendant No.1 shall pay sum of Rs.41,21,127/- (Rupees Fourty One Lakhs Twenty One Thousand One Hundred Twenty Seven only) towards Cash Credit Accounts (a),(b) & (c) with future interest @ 9% per annum from the date of filing of the Original Application i.e.04.01.2022 till payment/ realization of the amount mentioned in this operative order, to the Applicant Bank;

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( B ) Defendant No. 1 & 2 either jointly or severally shall pay a sum of Rs.4,26,207/(Rupees Four Lakhs Twenty Six Thousand Two Hundred Seven only) towards Term Loan Account; Total Rs.45,47,334/ - (Total Rupees Fourty Five Lakhs Fourty Seven Thousand Three Hundred Thirty Four only) with future interest @ 9% per annum from the date of filing of the Original Application i.e.04.01.2022 till payment/realization of the amount mentioned in this operative order, to the Applicant Bank.

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(C)

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The aforesaid adjudicated amount is secured by creation of Deeds of Simple Mortgage regarding immovable property i.e.

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(i)- Flat no.F-4, admeasuring 41.82 sq. ft. in ‘Rohan Heights’, constructed on the land bearing City Survey No.407/1, Mangalwar Peth, within the limits of Registration District

(OA No.304/2022)

Page 6 of 7

[ANIL]

Satara, Sub Registration District Satara No.1, District Satara AND

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(ii)- Flat no.SF-5, admeasuring 700 sq. ft in ‘Rohan Heights’, constructed on the land bearing City Survey No. 407/1, Mangalwar Peth, within the limits of Registration District Satara, Sub Registration District Satara No.1, District Satara, more specifically mentioned in the Original Application.

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(D) The Applicant Bank is entitled to sell the mortgaged properties to recover the 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 Bank and the defendants.

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Sd/(Dilip G. Murumkar) Place : Pune Presiding Officer, Date: 02.08.2024 Debts Recovery Tribunal, Pune.

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(OA No.304/2022)

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Page 7 of 7

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[ANIL]

Union Bank of India v. W. R. Metal Engg and Research Center and W. R. Infotech Prop Shri. Rohan Balasaheb Waghmare

Case brief

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Union Bank of India v. W. R. Metal Engg and Research Center and W. R. Infotech Prop Shri. Rohan Balasaheb Waghmare

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