Allowed

Canara Bank v. M/S Susheel Engineers Prop Mr. Sidram Gundappa Sirure

DRT16 Feb 2024OA/379/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Canara Bank for recovery of outstanding dues amounting to approximately Rs. 6,99 lakh plus interest. The respondents failed to appear; the court reduced the claim by deducting unexplained penal interest and directed payment with a recovery certificate.

What did the court decide?

Order allowed; Respondents to pay adjudicated sums of approx. Rs. 6.99 crore plus future interest; Recovery Certificate issued; Hypothecated assets relief declined.

Canara Bank versus M/S Susheel Engineers Prop Mr. Sidram… — Company and Corporate | DRT (2024)

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Presented on : 21.02.2022 Registered on : 04.04.2022 Decided on : 16.02.2024 Duration : Y M D 01 11 23

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 379/2022.

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Canara Bank, (Erstwhile Syndicate Bank), A Body Corporate constituted by and under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 having its head office at 112 JC Road, Bangalore and branch office at Shop No. 4- 12 N Building, Empire Estate, CTS No. 4510/1, Mumbai Pune Road, Chinchwad, Pune 411019.

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.. Applicant

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Versus

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1 M/s. Susheel Engineers, Prop. Mr. Sidram Gundappa Sirure s/o Gundappa Mahadappa Sirure, R/o : Plot T/151, Pimpri IndustrialArea, Bhosari, Taluka Haveli, District Pune. Also at :-

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Shiv Co Housing Society, Sector No. 26, Near Ganesh Talav, Nigadi, Pradhikaran, P.C.N.T. Pune 411044.

(OA No. 379/2022)

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2 Mrs. Sadhana Sidram Sirure W/o Mr. Sidram Gundappa Sirure, R/o : Shiv Co Housing Society, Sector No. 26, Near Ganesh Talav, Nigadi, Pradhikaran, P.C.N.T. Pune 411044. .. Defendants

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APPEARANCES

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For Applicant	Advocate Sudha Koloti.
For Defendants	Exparte.

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TOTAL CLAIM AMOUNT –Rs.6,98,77,002/-

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JUDGMENT (Delivered on 16^th February, 2024)

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The Applicant Bank has filed the present application for recovery of total sum of Rs.6,98,77,002/- (Rs.3,30,36,554/- + Rs.2,84,14,919/- + Rs.70,32,448/- + Rs.14,03,081/-) together with future interest @8.35%, 7.35%, 7.50% and 8.25% per annum respectively with monthly rests from the date of Application till realization of the entire dues from the defendants.

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Brief facts of the application are as under :

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Defendant No.1 is the sole proprietor of the Proprietorship firm M/s. Susheel Engineers and a borrower. Defendant No. 2 is guarantor to the Credit facilities sanctioned by applicant Bank to defendant No.1.

(OA No. 379/2022)

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Defendant No.1 approached the applicant Bank requesting Credit facilities for takeover of credit facilities from Saraswat Bank. Accordingly, the applicant Bank sanctioned and disbursed following Credit facilities aggregating to Rs.12,00,71,000/- to defendant No.1.

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Name of the facility	Amount	Date of sanction
SODH	Rs.7,20,00,000/-	16.12.2015
Term Loan	Rs.2,30,71,000/-	16.12.2015
Inland BG	Rs.1,00,00,000/-	16.12.2015
Inland LC	Rs.1,50,00,000/-	16.12.2015

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In order to secure the aforesaid facilities, the defendants executed necessary loan and security documents in favour of the applicant Bank along with deed of mortgage of immovable properties i.e. (1) Plot T/151, Pimpri Industrial Area, Bhosari, Taluka Haveli, District Pune; (2) Plot No. 205, Sector 7, PCNTDA, Village Bhosari, Pune and (3) Row House No. B-2, Plot No. 39, Sector 6, PCNTDA, Moshi, Taluka Haveli and hypothecation of goods in favour of the applicant Bank.

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The above said loan facilities were renewed from time to time by the defendants. On 13.09.2019, SODH facility was

(OA No. 379/2022)

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reduced to Rs.3,00,00,000/- and the Term Loan facility to Rs.2,87,00,000/-. In view of reduction in the credit facilities, two properties i.e. (1) Plot T/151, Pimpri Industrial Area, Bhosari, Taluka Haveli, District Pune and (2) Row House No. B-2, Plot No. 39, Sector 6, PCNTDA, Moshi, Taluka Haveli were released.

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Thereafter, on 02.11.2020 defendant No.1 approached the applicant Bank for sanction of four facilities. Accordingly, the applicant Bank vide Sanction Letter dated 02.11.2020 sanctioned following facilities.

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Sr. No.	Type	Amount
1	SODH	Rs.3,00,00,000/-
2	Term Loan	Rs.2,87,00,000/-
3	Covid FITL	Rs.12,88,482/-
4	GECL	Rs.65,00,000/-
	Total:-	Rs.6,64,88,482/-

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Therefore, on 05.02.2022, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of

(OA No. 379/2022)

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the applicant Bank.

Hence, this application is filed.

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per Order dated 17.01.2024 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-5) of Raghuveer C, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-47 along with list (Exhibit 7), 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 evidence of the applicant Bank. Therefore, the applicant Bank is entitled for reliefs as 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 Penal Interest of Rs.4,80,926/-

(OA No. 379/2022)

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for SODH Loan, Rs.9,29,047/- for Term Loan, Rs.1,07,549/- for GECL facility and Rs.21,260/- for Covid FITL Loan, which cannot be granted and the same is required to be deducted from the claim amounts. Therefore, the claim amounts of Rs.3,30,36,554/- for SODH Loan, Rs.2,84,14,919/- for Term Loan, Rs.70,32,448/- for GECL facility and Rs.14,03,081/- for COVID FITL are reduced to Rs.3,25,45,628/-; Rs.2,74,85,872/-, Rs.69,24,899/- and Rs.13,81,821/-.

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Hence, I pass the following order :-

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ORDER

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(A) Original Application No.379/2022 is allowed with costs.

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(B) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.3,25,45,628/(Rupees Three Crores Twenty Five Lakhs Forty Five Thousand Six Hundred Twenty Eight only) towards SODH Loan along with future interest @8.35% per annum from the date of filing of the Original Application i.e. 21.02.2022 till full

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payment/realization of the amount mentioned in this operative order.

(OA No. 379/2022)

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(C) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.2,74,85,872/(Rupees Two Crores Seventy Four Lakhs Eighty Five Thousand Eight Hundred Seventy Two only) towards Term Loan along with future interest @7.35% per annum from the date of filing of the Original Application i.e. 21.02.2022 till full payment/realization of the amount mentioned in this operative order.

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(D) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.69,24,899/(Rupees Sixty Nine Lakhs Twenty Four Thousand Eight Hundred Ninety Nine only) towards GECL facility along with future interest @7.50% per annum from the date of filing of the Original Application i.e. 21.02.2022 till full payment/realization of the amount mentioned in this operative order.

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(E) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.13,81,821/(Rupees Thirteen Lakhs Eighty One Thousand Eight Hundred Twenty One only) towards COVID FITL

(OA No. 379/2022)

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along with future interest @8.25% per annum from the date of filing of the Original Application i.e. 21.02.2022 till full payment/realization of the amount mentioned in this operative order.

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(F) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of immovable property of the movable property i.e. Plot No. 205, Sector 7, PCNTDA, Village Old S.No. 83, Bhosari, Pune, more particularly described in Para No. 6 (f) of the Original Application.

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

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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 and defendant.

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Place : Pune Date : 16.02.2024

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

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(OA No. 379/2022)

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Canara Bank v. M/S Susheel Engineers Prop Mr. Sidram Gundappa Sirure

Case brief

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Canara Bank v. M/S Susheel Engineers Prop Mr. Sidram Gundappa Sirure

Case brief

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