Allowed

Bank of India v. Shivaji Mulik

DRT8 Oct 2024OA/33/2023

Case brief

AI extract

What is this about?

In an ex parte application, the Debts Recovery Tribunal allowed the Bank of India's claim for recovery of loan dues totaling Rs.19.43 lakhs, pending future interest at 9% p.a., and directed the sale of mortgaged immovable properties.

What did the court decide?

Issued a recovery certificate and directed the sale of mortgaged immovable properties; fixed future interest at 9% p.a. Rejected claim for relief regarding hypothecated assets.

Bank of India versus Shivaji Mulik — Banking and Recovery | DRT (2024)

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Presented on: 20.03.2019 Registered on: 18.01.2023 Decided on: 08.10.2024 Duration: Y M D 05 06 19

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.33/2023.

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Bank of India ,

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A Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) of 1970, having its Head Office at STAR HOUSE, C-5, “ G” Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, and one of its branch identified as Shalgaon, having address at Shalgaon, Taluka Kadegaon District Sangli-415304.

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… Applicant

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Versus

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1. Mr. Shivaji Shankar Mulik

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Age-adult, Occ.-Agriculturist ,

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2. Mr. Janardhan Rangnath Mulik Age-adult, Occ.-Agriculturist Both R./at- Raigaon, TalukaKadegaon, District – Sangali, Maharashtra- 415 304.

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3. Sampatrao Deshmukh Sahakari Pani Puravtha Sanstha Maryadit (SDSPPSM) Having its registered office atRaigaon, Taluka-Kadegaon, District – Sangali, Maharashtra, Pin- 415 304.

(OA No.33/2023)

Page 1 of 7

[ANIL]

4. CANE AGRO ENERGY (INDIA) LTD. A Company registered under the Companies Act, 1956, having its Registered Office at – Raigaon, Post – Hingangaon (Bk), TalukaKadegaon, District Sangli-415 304.

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… Defendants

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APPEARANCES

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For the Applicant Mr. Parikshit P. Parab - Advocate For the Defendants Ex parte.

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TOTAL CLAIM AMOUNT – Rs.19,43,132.83Ps.

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JUDGMENT

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(Delivered on 8^th October, 2024)

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The Applicant Bank has filed present application for recovery certificate of aggregate sum of Rs.19,43,132.83Ps. together with future interest thereon @12.45% p.a. with half yearly rest from the date of filing of the Application till repayment/ realization of entire dues/debts from defendants.

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Brief facts of the application are as under :

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Defendant No.1 is borrower and Defendant No.2 and 3

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are guarantors to the Loan Facilities availed by Defendant No.1 from the Applicant Bank. Defendant No.3 is a Society constituted by defendant No.4 for bringing dry / unproductive land of the farmers under drip irrigation by lifting irrigation water from Krishna River. Defendant No.3 and 4 had conjoined with 324 farmers within village-Raigaon and Shalgaon for raising finance to implement Drip

(OA No.33/2023)

Page 2 of 7

[ANIL]

Irrigation Scheme. Defendant No.3 at the behest of defendant No.4 applied to the Applicant Bank for grant of an aggregate Credit Limit of Rs.50 Crores in principle for disbursing the same to total 324 farmers, who are the members of Defendant No3. Society, as well as Defendant No.4 Company.

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The Applicant Bank sanctioned an aggregate Credit Facility of Rs.32,56,14,900/- in Principle to Defendant No.3. Defendant No.3 had signed and executed a Common Guarantee Agreement on 10.04.2013 thereby securing entire credit facility of Rs.50 Crores in accordance with sanction letter dt. 24.01.2013. By the said agreement, Defendant No.3 has jointly and severally agreed to repay the composite outstanding within the loan account of 324 Farmers, including Defendant No.1. Defendant No.3 also created a mortgaged charge in favour of Applicant Bank over the immovable properties owned by Defendant No.3 for securing the entire Credit Facility of Rs.50 Crores. The details of the mortgaged properties are as under –

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All that piece and parcel of Land bearing Survey No.1346/1, admeasuring 00H 36R of village Hingangaon (Bk), Taluka Kadegaon, District Sangli alongwith building and other structure and machinery, fixtures, fittings thereon.

(OA No.33/2023)

Page 3 of 7

[ANIL]

All that piece and parcel of Land bearing Survey No.59, admeasuring 01H 85 R of village Shelgaon, Taluka Kadegaon, District Sangli alongwith building and other structure and machinery, fixtures, fittings thereon.

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Defendant No.1 being one of the beneficiary amongst 324 Farmers had applied and requested to the Applicant Bank for grant of an aggregate Credit Limit of Rs.14,30,000/-, which includes the following credit limits –

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KCC (Kisan Cash Credit) Facility- Rs.3,00,000/-

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Term Loan-I for Drip Irrigation of Rs.10,80,000/-&

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Term Loan-II (Kisan Tatkal Loan) of Rs.50,000/-.

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Considering the request made by Defendant No.1, the Applicant Bank had sanctioned and granted aggregate credit facility of Rs.14,30,000/-vide sanction letter dated 25.03.2013, to defendant No.1.

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In order to secure the Loan Facility, the defendants have executed necessary loan transaction & security documents in favour of the Applicant Bank for securing the aggregate Loan facility of Rs.14,30,000/-. Defendant No.1 also signed and executed Hypothecation cum Loan Agreement dated 25.03.2013 and hypothecated the entire standing crop of Sugar Cane and Drip Irrigation Set, tools and equipment in favour of the Applicant Bank.

(OA No.33/2023)

Page 4 of 7

[ANIL]

It is contended that after availing and utilizing Term Loan facility, Defendant No.1 failed and neglected to repay the loan amounts as per terms of sanction. Defendant No.3 & 4 being common guarantor and indemnifier has not responded to the calls of the Applicant Bank. Hence, the said loan account has become Non-Performing Asset on 31.12.2017. Thereafter, the Applicant Bank on 04.03.2019 issued Demand Notice through its advocate to the defendants calling upon them to pay the outstanding amounts of Loan Account. Despite service of Notice, defendants failed & neglected to comply with the demand in the said Notice.

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Hence, this application is filed.

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Defendant Nos.1 to 4 failed to appear despite service of summons. Hence, the application proceeded ex parte against all the defendants vide Order dated 21.05.2024 passed below the Application (Exhibit-01).

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The Applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Avinash Bhise, Manager, which supports the case of the applicant elucidated in the application.

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The applicant Bank has produced in evidence the original loan documents at Exhs.AW-1 to AW-16 which corroborate the case of the Applicant Bank.

(OA No.33/2023)

Page 5 of 7

[ANIL]

I have heard arguments of the learned Advocate for the Applicant Bank.

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Since defendant Nos.1 to 4 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 reliefs as claimed.

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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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10 Considering the facts of the present case, I am of the opinion that if future interest is granted @9% per annum (simple) for all the facilities, it would be just and reasonable.

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11 Hence, I pass the following order: -

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ORDER

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(A) Original Application No.33/2023 is allowed with costs.

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(B) Defendant Nos.1 to 4 either jointly or severally shall pay to the Applicant Bank towards Term Loan Account No.I (No.160676210000043) Rs.18,79,004.29 Ps. (Rupees Eighteen Lakhs Seventy Nine Thousand Four and Twenty Nine Paise only); and Term Loan Account-II (No.160676110000077) Rs.64,128.54 (Rupees Sixty Four Thousand One Hundred Twenty Eight and Fifty Four Paise only) i.e. [ Total

(OA No.33/2023)

Page 6 of 7

[ANIL]

Rs.19,43,132.83Ps. (Rupees Ninteen Lakhs Fourty Three Thousand One Hundred Thirty Two and Eighty Three Paise only) ] with future interest @9% p. a. from the date of filing of the Original Application i.e.20.03.2019 till payment/ realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of immovable properties by Defendant No.3 i.e.-

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(i)- All that piece and parcel of Land bearing Survey No.1346/1, admeasuring 00H 36R of village Hingangaon (Bk), Taluka Kadegaon, District Sangli alongwith building and other structure and machinery, fixtures, fittings thereon.

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(ii)- All that piece and parcel of Land bearing Survey No.59, admeasuring 01H 85 R of village Shelgaon, Taluka Kadegaon, District Sangli alongwith building and other structure and machinery, fixtures, fittings thereon, as described in Para No.5 (k) of the Original Application.

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

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Place: Pune Date: 08.10.2024

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

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(OA No.33/2023)

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Page 7 of 7

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[ANIL]

Bank of India v. Shivaji Mulik

Case brief

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Bank of India v. Shivaji Mulik

Case brief

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