Allowed

Union Bank of India v. Sharada Patil

DRT28 Oct 2024OA/328/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by Union Bank of India to recover Rs.1,50,12,097/- from defaulting borrowers. The court reduced future interest to 9% p.a., secured the decree on mortgaged properties, and directed sale proceedings.

What did the court decide?

Defendants to pay Rs.1,50,12,097/- with future interest at 9% p.a.; mortgaged properties to be sold; Recovery Certificate issued.

Union Bank of India versus Sharada Patil — Contract and Commercial Disputes | DRT (2024)

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Presented on: 07.10.2021 Registered on: 24.03.2022 Decided on: 28.10.2024 Duration: Y M D

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.328/2022.

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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 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-411 021 and branch at Near Grampanchayat, Mhaisal, Taluka Miraj, District Sangli-416 409.

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… Applicant

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Versus

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1. Mrs. Sharada Babaso Patil

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Age 38 years, Occ.:- Housewife,

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2. Mr. Uttam Annaso Patil

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Age 51 years, Occ.-Agriculturist,

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3. Mr. Babaso Annaso Patil

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Age 45 years, Occ.-Agriculturist ,

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4. Mrs. Shobha Maruti Shinde

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Age 51 years, Occ.-Housewife,

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5. Parvati Annaso Patil Since deceased, Defendant Nos.2 to 4 as LRs .

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All R/at Laxminagar Road, Narwad-416 409, Tal. Miraj, Dist. Sangli.

…Defendants

(OA No.328/2022)

Page 1 of 8

[ANIL]

APPEARANCES

For the Applicant For the Defendants

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Advocate Mr. Balaso Jadhav Ex-parte

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TOTAL CLAIM AMOUNT –Rs.1,50,12,097/-.

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JUDGMENT

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(Delivered on 28^th October, 2024)

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The Applicant Bank has filed present application for recovery of aggregate sum of Rs.1,50,12,097/(i.e.Rs.1,37,82,863/towards Term Loan Facility and Rs.12,29,234/- towards Cash Credit Facility) with future interest thereon @11.00% p.a. and @11.65% p.a. respectively with half yearly rests from 22.09.2021 till repayment/ realization of the entire dues from defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that Defendant Nos.1to5 approached to the Applicant Bank and requested for following Term Loan Facility and Cash Credit Facilities, which were sanctioned by the Applicant, as under:-

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Sr. No.	Loan Facility	Sanction Amount	Sanction Date
1	Term Loan Facility to repay the loan availed from A.P.Patil Gramin Sahkari Pat Sanstha Ltd. Hasur.	Rs.75,00,000/-	08.08.2014
2	Cash Credit Facility to meet cultivation expenses.	Rs.8,00,000/-	08.08.2014

(OA No.328/2022)

Page 2 of 8

[ANIL]

On 29.09.2017, Defendant No.1 approached to the Applicant Bank for renewal of Cash Credit Limit of Rs.8,00,000/- and the Applicant Bank accorded sanction for renewal.

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In order to secure the aforesaid Loan facilities, the defendants have executed loan and security documents as set out in Para Nos.5.6 and 5.9 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 Hypothecation Agreements on 28.08.2014 for all present and future movables/assets/debts, standing crops, grape orchard, structure etc in the Land of Gat No.288/1, 288/2, 288/3 situated at Narwad, Taluka Miraj, District Sangli, in favour of the applicant Bank.

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So also, the Defendants have secured the above said loan accounts by valid and subsisting Declaration in respect of the following immovable properties i.e.

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Immovable property owned and mortgaged by Defendant No.1 :- all those peace and parcel of agricultural land bearing Gat No.288/1 area admeasuring H 02+40 R+ Pot Kharaba H 00-02 R situated at Narwad, Taluka Miraj, District Sangli;

(OA No.328/2022)

Page 3 of 8

[ANIL]

Immovable property owned and mortgaged by Defendant No.2 :-

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(a)- All those peace and parcel of agricultural land admeasuring area H 0-92 R out of Gat No.291/B area admeasuring H 01-34 R + Pot Kharaba H 00-04R situated at Narwad, Taluka Miraj, District Sangli;

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(b)- all those peace and parcel of agricultural land bearing Gat No.288/2 area admeasuring H 01+48 R+ Pot Kharaba H 00-01 R situated at Narwad, Taluka Miraj, District Sangli; and

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(c) - all those peace and parcel of agricultural land bearing Gat No.288/3 area admeasuring H 00-47 R situated at Narwad, Taluka Miraj, District Sangli, more specifically mentioned in the Schedule–B, of the Original Application.

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The Applicant Bank contended that Defendants after availing the aforesaid loan facilities initially regularly paid the installments and served interests for some time and thereafter, started committing defaults in repayment of the instalments in Term Loan Facility and Cash Credit Facility in spite of reminders from the Applicant Bank.

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The Applicant Bank contended that even after continuous demand, the defendants have failed to pay the

(OA No.328/2022)

Page 4 of 8

[ANIL]

interest in the Term Loan Account and Cash Credit Account and also failed to regularize the accounts with the Applicant Bank. Hence, the said accounts of the Defendants with the Applicant Bank became Non-Performing on 31.03.2021 as per the Reserve Bank of India norms. Thereafter, the Applicant Bank issued Notice dated 31.08.2021 to the Defendants calling upon them to pay the outstanding due loan amount together with interest, costs, charges and expenses, but failed to pay the due amount. 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 29.01.2024 passed below Application (Exhibit-1).

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The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Suryaji Balvant Sankpal, Manager and Power of Attorney Holder has produced on record the Original Loan Transaction documents at Exhibit Nos. AW-1 to AW-25, 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

(OA No.328/2022)

Page 5 of 8

[ANIL]

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 @11.00% p.a. on Term Loan Facility and @11.65% p.a. on Cash Credit Facility. 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.

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11 Hence, I pass the following order:-

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ORDER

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(B) Defendant Nos. 1to4 & 5A to 5C either jointly or severally shall pay an aggregate sum of Rs.1,50,12,097/- Rupees One Crore Fifty Lakhs Twelve Thousand Ninety Seven Only ( i.e.Rs.1,37,82,863/- towards Term Loan Facility & Rs.12,29,234/- towards Cash Credit facility ) with future interest @9% p.a. (Simple) from the date of filing of the Original Application i.e.07.10.2021 till payment/realization of the

(OA No.328/2022)

Page 6 of 8

[ANIL]

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 Declaration of Charge of the following immovable property i.e.-

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Immovable property owned and mortgaged by Defendant No.2 :-

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(a)All those peace and parcel of agricultural land admeasuring area H 0-92 R out of Gat No.291/B area admeasuring H 01-34 R + Pot Kharaba H 00-04R situated at Narwad, Taluka Miraj, District Sangli;

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(b)All those peace and parcel of agricultural land bearing Gat No.288/2 area admeasuring H 01+48 R+ Pot Kharaba H 00-01 R situated at Narwad, Taluka Miraj, District Sangli; and

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(c)All those peace and parcel of agricultural land bearing Gat No.288/3 area admeasuring H 00-47 R situated at Narwad, Taluka Miraj, District Sangli, more specifically mentioned in the Schedule–B, of the Original Application.

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(D)

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The Applicant Bank is entitled to sell the mortgaged properties to recover the dues.

(OA No.328/2022)

Page 7 of 8

[ANIL]

(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: 28.10.2024 Debts Recovery Tribunal, Pune.

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(OA No.328/2022)

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Page 8 of 8

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[ANIL]

Union Bank of India v. Sharada Patil

Case brief

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Union Bank of India v. Sharada Patil

Case brief

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