Allowed

Union Bank of India v. Sharmila Patil

DRT8 Jan 2024OA/316/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal at Pune allowed an original application filed by Union Bank of India for recovery of dues aggregating Rs.1.20 crores comprising long-term agriculture loans, short-term loans, and a COVID emergency credit line. The tribunal, hearing the matter ex parte due to defendants' absence, adjusted the future interest rates to 9% and 8% p.a. respectively and directed defendants to

What did the court decide?

Defendants to jointly or severally pay principal sums of Rs.92,96,215/-, Rs.26,05,413/-, and Rs.1,11,472/- with future interest at 9%, 9%, and 8% p.a. respectively; issue Recovery Certificate.

Union Bank of India versus Sharmila Patil — Banking and Recovery | DRT (2024)

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Presented on: 28.01.2022 Registered on: 18.04.2022 Decided on: 08.01.2024 Duration: Y M D 1 11 11

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.316/2022

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Union Bank of India,

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A Body Corporate constituted under the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400 021 and branch office at: Patil Bldg., Near Grampanchayat, Mhaisal, Taluka Miraj, Dist. Sangli, PIN-416 409.

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… Applicant

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Versus

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Mrs. Sharmila Raygonda Patil,

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Ms. Trupti Raygonda Patil,

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Mr. Raygonda Baburao Patil,

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Mr. Shivam Raygonda Patil, All Residing at: Patil Niwas, Gavardewadi, Vitthal Nagar, Bedag, Taluka Miraj, District Sangli-416 409.

… Defendants

(OA No.316/2022)

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APPEARANCES

For the Applicant	Mr. VSSP Sarma - Advocate
For Defendants	Exparte

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TOTAL CLAIM AMOUNT –Rs.1,20,13,100/-

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JUDGMENT

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(Delivered on 08^th January, 2024)

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The Applicant Bank has filed the present Application for recovery of aggregate sum of Rs.1,20,13,100/i.e. Rs.92,96,215/- in respect of Long Term Agri. Loan together with future interest @11.15% p.a. with half yearly rests; Rs.26,05,413/- in respect of Agri. Short Term Loan account together with future interest @9.45% p.a. with half yearly rests and Rs.1,11,472/- in respect of Covid Emergency Line of Credit with future interest @8% p.a. with half yearly rests thereon from 28^th January, 2022 till full repayment/ realization of entire dues from defendant Nos.1 to 4.

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Brief facts of the application are as under:

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The defendant Nos.1 and 2 being Farmers approached the applicant Bank on 04^th July, 2015 for sanction of Long Term Agriculture Loan of Rs.75,00,000/- for purchase of 6- 05 Hectare agricultural land along with 2-00 Hectare Grape Garden and Short Term Agriculture Loan of Rs.9,00,000/-

(OA No.316/2022)

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to meet cultivation expenses for Grape Garden. Defendant Nos.3 and 4 stood as guarantors for the said loan.

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On 17^th July, 2015, the applicant Bank sanctioned and disbursed the Long Term Agriculture Loan of Rs.75,00,000/- with interest @12.75% p.a. with half yearly rests and Short Term Agri. Loan (Crop Loan) of Rs.9,00,000/- with interest @12.50% p.a. with half yearly rests.

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Defendant Nos.1 to 4 executed loan transaction and security documents as set out in paragraph Nos.5.3 and 5.4 of the Original Application, including Hypothecation Agreements dated 23^rd July, 2015 and 17^th August, 2015. Defendant Nos.1 and 2 also created charge on their agricultural land of 6-05 Hectare situated at Gat Nos.227 & 228 at Village Narwad, Taluka Miraj, District Sangli, towards security for repayment of said loans.

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On 14^th February, 2018 and 11^th March, 2019 the aforesaid loans were reviewed/enhanced.

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The applicant Bank contended that defendant No.1 approached it on 16^th July, 2020 for Covid Emergency Credit Line of Rs.1,00,000/-. The applicant Bank sanctioned

(OA No.316/2022)

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and disbursed the said loan to provide liquidity support to the borrower/farmer affected by Covid-19 Pandemic. The loan was to carry interest @8% p.a. (fixed). The defendant No.1 signed and executed loan transaction and security documents as mentioned in paragraph No.5.11 of the Original Application and thereby extended charge on their agricultural land of 3-75 Hectare situated at Gat No.228 at Village Narwad.

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The applicant Bank further contended that defendant Nos.1 and 2 have executed Composite Debit Balance Confirmation Letters on 05^th October, 2016 and 22^nd November, 2016 in Long Term Agri. Loan and Agri. Short Term Loan (Crop Loan) accounts.

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The applicant Bank further contended that after availing the aforesaid loan facility, defendant Nos.1 and 2 failed to repay the installments with interest. Therefore, the applicant Bank classified all the three accounts of defendant Nos.1 and 2 as Non-Performing Asset on 01^st August, 2021 as per the guidelines of Reserve Bank of India.

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Thereafter, on 26^th October, 2021 the applicant Bank through its Advocate issued Demand Notice calling upon

(OA No.316/2022)

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them to repay the dues. Despite issuance of Demand Notice, defendants failed to repay the dues.

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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 against them vide Order dated 19^th December, 2023 below the Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Shri Suryaji Balvant Sankpal, Senior Manager, which supports the case of the applicant Bank elucidated in the application.

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The applicant Bank has produced on record the original loan transaction documents (Sr.Nos.AW-1/1 to AW-1/53) which corroborate 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

(OA No.316/2022)

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reliefs as claimed.

The applicant Bank has claimed future interest @11.15% p.a. with half yearly rests for Long Term Agri. loan account; @9.45% p.a. with half yearly rests and @8% p.a. with half yearly rests for Covid Emergency Line of Credit account. However, considering facts of the case, I am of the opinion that if future interest is granted @9% p.a. (simple) for aforesaid two Term Loan accounts and 8% p.a. (simple) for Covid Emergency Line of Credit account, 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.316/2022 is allowed with costs.

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(B) Defendant Nos.1 to 4 shall either jointly or severally pay to the applicant Bank towards Long Term Agri. Loan account the sum of Rs.92,96,215/(Rupees Ninety-Two Lakhs Ninety-Six Thousand Two Hundred and Fifteen only) with future interest @9% p.a. from the date of filing of the

(OA No.316/2022)

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Original Application i.e. 28^th January, 2022 till full realization of the amount mentioned in this operative order.

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(C) Defendant Nos.1 to 4 shall either jointly or severally pay to the applicant Bank towards Agri. Short Term Loan account the sum of Rs.26,05,413/(Rupees Twenty-Six Lakhs Five Thousand Four Hundred and Thirteen only) with future interest @9% p.a. from the date of filing of the Original Application i.e. 28^th January, 2022 till full realization of the amount mentioned in this operative order.

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(D) Defendant Nos.1 to 4 shall either jointly or severally pay to the applicant Bank towards Covid Emergency Line of Credit account the sum of Rs.1,11,472/- (Rupees One Lakh Eleven Thousand Four Hundred and Seventy-Two only) with future interest @8% p.a. from the date of filing of the Original Application i.e. 28^th January, 2022 till full realization of the amount mentioned in this

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operative order.

(E) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of immovable properties i.e. All that pieces or parcel of agricultural land of 6-05 Hectare situated at Gat Nos.227 & 228 at Village Narwad, Taluka Miraj, Dist. Sangli more particularly mentioned in The Second Schedule of Hypothecation Agreement dated 23.07.2015 and paragraph No.5.4 of Original Application.

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(F) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecation of movable properties comprising Pipelines, machinery belonging to defendant Nos.1 and 2, more particularly mentioned in The Fourth Schedule of Hypothecation Agreements dated 23^rd July, 2015 and 17^th August, 2015.

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(G) The applicant Bank is entitled to sell the hypothecated/mortgaged properties to recover its dues.

(OA No.316/2022)

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(H) Issue Recovery Certificate.

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(I) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant Bank and defendants.

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Place : Pune Date : 08.01.2024

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

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(OA No.316/2022)

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Union Bank of India v. Sharmila Patil

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sharmila Patil

Case brief

What is this about?

What did the court decide?

What the court decided

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