Allowed

Bank of Maharashtra v. Vitthal

DRT1 May 2024OA/385/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Bank of Maharashtra's application for recovery of loan dues. After deducting penal interest and adjusting the future interest rate to 9%, the tribunal ordered the respondents to pay the principal amounts along with future interest and directed the issuance of a recovery certificate.

What did the court decide?

Direction to pay reduced principal amounts for KCC and Term loans with future interest at 9% per annum and issuance of Recovery Certificate.

Bank of Maharashtra versus Vitthal — Contract and Commercial Disputes | DRT (2024)

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Presented on : 11.02.2022 Registered on : 01.03.2022 Decided on : 01.05.2024 Duration : Y M D 02 02 18

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 385/2022.

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Bank of Maharashtra, A Body Corporate established under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its registered office at “Lokmangal”, 1501, Shivajinagar, Pune – 411005 and one of its branch office at Bhigwan Chowk, Baramati, Taluka Baramati, District Pune.

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.. Applicant

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Versus

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1 Shri Vitthal Pandurang Mane,

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Age Adult, Occ. : Agriculture,

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2 Shri Somnath Shivaji Narute, Age Adult, Occ. : Agriculture,

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3 Shri Sachin Vitthal Mane, Age Adult, Occ. : Agriculture,

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4 Shri Eknath Vitthal Mane, Age Adult, Occ. : Agriculture, All R/o : At and Post Kazad, Taluka Indapur, District Pune 413 104.

.. Defendants

(OA No. 385/2022)

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APPEARANCES

For Applicant Advocate R.B. Ganbote. For Defendants Ex parte.

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TOTAL CLAIM AMOUNT –Rs.41,23,569/-

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JUDGMENT (Delivered on 01^st May, 2024)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.41,23,569/- together with future interest for Mahabank Kisan Credit Card Loan @13.60% and for Term Loan @14.60% per annum 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 : As per the loan application of defendant No.1, the applicant Bank sanctioned and disbursed the Mahabank Kisan Credit Card Loan of Rs.7,50,000/- to defendant No.1 vide Sanction Letter dated 25.10.2016. Defendant Nos. 2 and 3 stood guarantors for the repayment of loan sanctioned and disbursed to defendant No.1. In order to secure the aforesaid KCC Loan, defendant Nos.1 to 3 executed necessary loan and security documents in favour of the applicant Bank along with deed of hypothecation and mortgage of land Gat No. 132 (P)

(OA No. 385/2022)

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admeasuring 01 Hector 66 Aar at village Kazad, Taluka Indapur, District Pune, in favour of the applicant Bank.

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Thereafter, again defendant Nos.1 to 4 approached the applicant Bank. As per the loan application of defendant No.1, the applicant Bank sanctioned and disbursed the Term Loan of Rs.18,00,000/- to defendant No.1 vide Sanction Letter dated 23.11.2016. Defendant Nos. 2 to 4 stood guarantors for the repayment of loan sanctioned and disbursed to defendant No.1. In order to secure the aforesaid KCC Loan, defendant Nos.1 to 4 executed necessary loan and security documents in favour of the applicant Bank along with deed of hypothecation and mortgage of land Gat No. 132 (P) admeasuring 01 Hector 66 Aar at village Kazad, Taluka Indapur, District Pune, in favour of the applicant Bank.

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Thereafter, on 11.09.2019 the defendants executed two separate Balance and Security Confirmation letters in favour of the applicant Bank.

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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 07.02.2022, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the

(OA No. 385/2022)

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defendants failed and neglected to pay the outstanding dues of the applicant Bank.

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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 05.02.2024 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Dhirendra Kumar, Chief Manager and Principal Officer of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-20 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

(OA No. 385/2022)

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terms of hypothecated assets cannot be granted.

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The applicant Bank has claimed Penal Interest of Rs.33,516/for Mahabank Kisan Credit Card and Rs.49,979/- for the Term Loan, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount for Mahabank Kisan Credit Card of Rs.11,10,951/- is reduced to Rs.10,77,435/- and the total claim amount for Term Loan of Rs.30,12,618/- is reduced to Rs.29,62,639/-.

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The applicant Bank has claimed future interest for Mahabank Kisan Credit Card Loan @13.60% and for Term Loan @14.60% per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple), 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. 385/2022 is allowed with proportionate costs.

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(B) Defendant Nos.1 to 3 either jointly or severally shall pay to the applicant Bank the sum of Rs.10,77,435/-

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(Rs. Ten Lakhs Seventy Seven Thousand Four

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Hundred Thirty Five only) towards Mahabank Kisan Credit Card Loan along with future interest @9% per annum from the date of filing of the Original Application i.e. 11.02.2022 till full payment/realization of the amount mentioned in this operative order.

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(C) Defendant Nos.1 to 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.29,62,639/(Rs. Twenty Nine Lakhs Sixty Two Thousand Six Hundred Thirty Nine only) towards Term Loan along with future interest @9% per annum from the date of filing of the Original Application i.e. 11.02.2022 till full payment/realization of the amount mentioned in this operative order.

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(D) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of immovable property i.e. land Gat No. 132 (P) admeasuring 01 Hector 66 Aar at village Kazad, Taluka Indapur, District Pune, more particularly described in the Para Nos. 5.7 and 5.14 of the Original Application.

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(E) The applicant Bank is entitled to sell the mortgaged

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property to recover its dues.

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(F) Issue Recovery Certificate.

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(G) 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 : 01.05.2024

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

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(OA No. 385/2022)

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Bank of Maharashtra v. Vitthal

Case brief

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What did the court decide?

Bank of Maharashtra v. Vitthal

Case brief

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