Allowed

Bank of Maharashtra v. M/S Amir Chicken Centre

DRT2 Sept 2024OA/408/2022

Case brief

AI extract

What is this about?

In a debt recovery proceeding, the Debts Recovery Tribunal allowed Bank of Maharashtra's application for recovery of outstanding dues aggregating toRs. 2.17 crore from the principal borrower and guarantors, adjusted future interest rates and decreed payment with security on mortgaged property.

What did the court decide?

Recovery of Rs. 2,17,14,767/- plus future interest at specified rates; decree enforced by sale of mortgaged property; recovery certificate issued.

Bank of Maharashtra versus M/S Amir Chicken Centre — Banking and Recovery | DRT (2024)

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Presented on: 08.01.2022 Registered on: 27.11.2022 Decided on: 02.09.2024 Duration: Y M D 2 7 25

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer)

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ORIGINAL APPLICATION No.408/2022

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Bank of Maharashtra

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A Banking Company incorporated under The Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970 having it’s Head Office at “Lokmangal” 1501, Shivajinagar, Pune – 5 and branch amongst other places at Loni Kalabhor Branch, Pune.

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… Applicant

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Versus

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M/s. Amir Chicken Centre Prop. Sujata Prakash Kalbhor Age: Adult, Occupation: Business

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Mr. Prakash Rangnath Kalbhor Age: Adult, Occupation: Business Both R/at – Post Loni Kalbhor, Wadalewasti, Tal. Haveli, Dist. Pune – 412 201.

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3 Ms. Anjali Sopan Kalbhor Age: Adult, Occupation: Business R/at – Post Loni Kalbhor, Tal. Haveli,

(OA No.408/2022)

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[KAUR]

Dist. Pune – 412 201.

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Mr. Laxman Ramchandra Kalbhor Age: Adult, Occupation : Service R/at – Post Loni Kalbhor, Tal. Haveli, …Defendants

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Dist. Pune – 412 201.

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APPEARANCES

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For the Applicant	Mr. Vallabh S Tokekar - Advocate
For Defendants	Exparte

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TOTAL CLAIM AMOUNT –Rs.2,17,32,940/-

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JUDGMENT

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(Delivered on 2^nd September, 2024)

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The Applicant Bank has filed the present application for recovery of aggregate sum of Rs.2,17,32,940/-. i.e. Rs.33,81,137/(Cash Credit) together with future interest thereon @12.10% per annum with monthly rests, Rs.1,16,77,498/- (Term Loan) together with future interest thereon @12.10% per annum with monthly rests, Rs.18,01,957/- (FITL) together with future interest thereon @8.60% per annum with monthly rests, Rs.46,89,090/- (WCTL) together with future interest thereon @9.60% per annum with monthly rests and Rs.1,80,258/- (FITL under GECL) together with future interest thereon @12% p.a. with monthly rests from the date of the Application i.e.8^th January, 2022 till repayment/realization of the entire dues from the defendants.

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Brief facts of the application are as under:

(OA No.408/2022)

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[KAUR]

Defendant No.1 as principal borrower approached the applicant bank seeking financial assistance for business purpose. As per the loan applications of defendant No.1, applicant Bank sanctioned and disbursed the following loan/credit facilities from time to time. Defendant Nos.2 to 4 stood as guarantors for the credit facilities availed by defendant No.1 as detailed below:

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Name of the	Amount	Date of	Guarantors
facility		Sanction
Cash Credit	Rs.10,00,000/-	23.10.2015	Defendant Nos.2 and 3
Term Loan	Rs.1,17,00,000/-	17.10.2017	Defendant Nos.2 and 4

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The defendants executed necessary loan transaction and

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security documents including Hypothecation Agreements and Equitable Mortgage in respect of immovable property in favour of the applicant Bank as set out in the Original Application.

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In the year 2018, defendant No.1 approached the applicant Bank and requested to enhance the Cash Credit facility from Rs.10 lakhs to Rs.70 lakhs. Considering the request, the applicant Bank vide Sanction Letter dated 16^th August, 2018 enhanced the Cash Credit facility of Rs.10 Lakhs to Rs.70 Lakhs. Defendant Nos.2 and 4 stood as guarantors for the said facilities. The defendants executed necessary loan transaction and security

(OA No.408/2022)

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[KAUR]

documents in favour of the applicant Bank.

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In the year 2019, defendant No.1 again the approached the applicant Bank and requested for restructuring the credit facilities. Accordingly, the applicant Bank vide Sanction Letter dated 12^th July, 2019 restructured the existing credit facilities availed by defendant No.1 as under:

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Existing Facility	Restructured Facility
Cash Credit facility of Rs.70	Reduced to Rs.30 Lakhs
lakhs
New Term Loan	WCTL Rs.40 Lakhs
New Term Loan	FITL Rs.21.11 Lakhs
Existing Term Loan of	Restructured as Term Loan of
Rs.117.00 Lakhs	Rs.96.95 Lakhs

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Defendant Nos.2 and 4 stood as guarantors for the above mentioned credit facilities. The defendants executed necessary loan transaction documents in favour of the applicant Bank.

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Further, during Covid 19 the defendant again approached the applicant Bank and requested for additional financial assistance. Accordingly, as per the guidelines of the Reserve Bank of India to meet the requirement for repayment of interest as installments during the moratorium period the applicant Bank sanctioned FITL under GECL of Rs.1,85,870/- to defendant No.1.

(OA No.408/2022)

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[KAUR]

It is further contended by the applicant Bank that defendants agreed to repay the credit facilities in following manner:

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Facility	Repayment Schedule
Cash Credit facility	To be reviewed every year
Term Loan of Rs.96.95	108 monthly installments of
Lakhs	Rs.89,800/- + interest w.e.f July, 2020
FITL Rs.21.11 Lakhs	24 monthly installments of Rs.88,000/- + interest
WCTL Rs.40.00 Lakhs	108 monthly installments of Rs.37,100/- + interest
FITL Rs.1,85,870/-	One strokepayment.

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After availing and utilizing credit facilities, defendant borrower failed to repay the loan amounts as per terms of sanction. Consequently, accounts of defendant No.1 were classified NonPerforming Asset on 31^st March, 2021.

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Thereafter, on 20^th December, 2021 the applicant Bank issued legal Notice to the defendants and called upon them to pay the outstanding amount with interest. Despite service of Notice, defendants failed and neglected to comply with the demand in the said Notice. 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 2^nd May, 2024 passed below the Application (Exhibit-01).

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The applicant Bank has filed Claim Affidavit of evidence

(OA No.408/2022)

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[KAUR]

(Exhibit-6) of Mr. Pallav Kumar Ghosh, Chief Manager and relied upon the original loan transaction and security documents at Sr.Nos.AW-1/1 to AW-1/34 produced along with List (Exhibit-7) 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 reliefs as claimed.

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The applicant bank has claimed Penal Interest in the sum of Rs.3,481/- (Cash Credit), Rs.975/- (Term Loan), Rs.9,868/(FITL), Rs.806/- (WCTL) and Rs.3,043/- (FITL under GECL) aggregating to Rs.18,173/- as shown in Particulars of Claim. However, the same cannot be granted and it shall be deducted from the total claim amount. Thus, the total claim amount stands reduced from Rs.2,17,32,940/- to Rs.2,17,14,767/-.

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The applicant Bank has claimed future interest @12.10% per annum with monthly rests for Cash Credit and Term Loan facility, @8.60% per annum with monthly rests for FITL, @9.60% p.a. with monthly rests for WCTL and @12% p.a. with monthly rests for FITL under GECL. However, considering the facts of

(OA No.408/2022)

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[KAUR]

the present case, I am of the opinion that if future interest is granted @9% per annum for Cash Credit, Term Loan, WCTL and FITL under GECL and @8.60% p.a. for FITL, it would be just and reasonable.

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.408/2022 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 Cash Credit facility the sum of Rs.33,77,656/- (Rupees ThirtyThree Lakhs Seventy-Seven Thousand Six Hundred Fifty-Six only) with future interest @9% per annum from the date of filing of the Original Application i.e. 8^th January, 2022 till payment/realization of the amount mentioned in this operative order.

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(C) Defendant Nos.1, 2 and 4 either jointly or severally shall pay to the applicant Bank towards Term Loan facility the sum of Rs.1,16,76,523/- (Rupees One Crore Sixteen Lakhs Seventy-Six Thousand Five Hundred and Twenty-Three only) with future interest @9 % per annum from the date of filing of the Original Application i.e. 8^th January, 2022 till

(OA No.408/2022)

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[KAUR]

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

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(D) Defendant Nos.1, 2 and 4 either jointly or severally shall pay to the applicant Bank towards FITL the sum of Rs.17,92,089/- (Rupees Seventeen Lakhs NinetyTwo Thousand and Eighty-Nine only) with future interest @8.60 % per annum from the date of filing of the Original Application i.e. 8^th January, 2022 till payment/realization of the amount mentioned in this operative order.

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(E) Defendant Nos.1, 2 and 4 either jointly or severally shall pay to the applicant Bank towards WCTL the sum of Rs.46,88,284/- (Rupees Forty-Six Thousand Eighty-Eight Lakhs Two Hundred and Eighty-Four only) with future interest @9 % per annum from the date of filing of the Original Application i.e. 8^th January, 2022 till payment/realization of the amount mentioned in this operative order.

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(F) Defendant Nos.1, 2 and 4 either jointly or severally shall pay to the applicant Bank towards FITL under GECL the sum of Rs.1,77,215/- (Rupees One Lakh Seventy-Seven Thousand Two Hundred and Fifteen only) with future interest @9 % per annum from the

(OA No.408/2022)

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[KAUR]

date of filing of the Original Application i.e. 8^th January, 2022 till payment/realization of the amount mentioned in this operative order.

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(G) The aforesaid adjudicated amounts are secured by the valid and subsisting mortgage of immovable property i.e. All that piece and parcel property NonAgricultural land bearing Gat No.965 Hissa No.1 total area admeasuring about 05H 36Ares out of which 00H 76Ares i.e. 7600 Sq.Mtr situated at Village Loni Kalbhor Tal. Haveli,, Dist. Pune within the local limits of Grampanchayat Loni Kalbhor, Tal. Haveli, Dist. Pune together with more particularly described in Schedule of the application.

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

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(I) Issue Recovery Certificate.

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

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Sd/(Dilip G. Murumkar) Place : Pune Presiding Officer Date: 02.09.2024 Debts Recovery Tribunal, Pune

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(OA No.408/2022)

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[KAUR]

Bank of Maharashtra v. M/S Amir Chicken Centre

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. M/S Amir Chicken Centre

Case brief

What is this about?

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