Allowed

Union Bank of India (Corporation Bank) v. Sakharam

DRT7 Oct 2024OA/437/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of outstanding dues from borrowers and guarantors. The court adjusted the future interest rate to 9% per annum simple due to a lack of detailed asset description and passed an order for sale of mortgaged property and issuance of a recovery certificate.

What did the court decide?

Payment of Rs. 26,10,882/- with future interest at 9% p.a. simple; right to sell mortgaged property; issuance of recovery certificate.

Union Bank of India (Corporation Bank) versus Sakharam — Banking and Recovery | DRT (2024)

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Presented on: 27.01.2022 Registered on: 04.05.2022 Decided on: 07.10.2024 Duration: Y M D 02 08 10

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.437/2022.

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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 Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400 021 and branch amongst other places at – 70-B, Shiv Parvati Complex, Shivaji Road, Miraj, Taluka Miraj, District Sangli-416 410.

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… Applicant

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Versus

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Mr. Sakharam Maruti Jadhav Age-80 years, Occ.- Agriculturist,

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Mr. Ankush Sakharam Jadhav Age- 52 years, Occ.- Agriculturist,

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Mr. Parsharam Shivaji Gaikwad Age- 42 years, Occ.:- Agriculturist,

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Mr. Shankar Rangu Patil Age-67 years, Occ.-Agriculturist, All R/at Vijaynagar Road, Patil Vasti, Bedag-416 410, Taluka Miraj, Dist. Sangli.

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… Defendants

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APPEARANCES

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For the Applicant Advocate Mr. B. S. Jadhav For Defendant No.1 & 2 Advocate Mrs. P. S. Botangale For Defendant No.3 & 4 Ex-parte.

(OA No.437/2022)

Page 1 of 7

[ANIL]

TOTAL CLAIM AMOUNT –Rs.26,10,882/-. JUDGMENT (Delivered on 7^th October, 2024)

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Applicant Bank has filed present application for recovery of aggregate amount of Rs.26,10,882/- (i.e. Rs.11,76,513/towards Term Loan Account and Rs.14,34,369/- towards Cash Credit Account) with future interest thereon @ 09.30% p.a. and @09.40% p.a. respectively with monthly rests from 10.01.2022 till repayment/realization of the entire dues from the defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that Defendant Nos.1 and 2 on 07.01.2017 approached to the Applicant Bank for Term Loan of Rs.9,39,000/- for Land Development and Drip Irrigation. Accordingly, the Applicant Bank sanctioned and granted Term Loan of Rs.9,39,000/- to the Defendant Nos.1 and 2. Defendant Nos.3 & 4 are the guarantors for the said Loan.

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Defendant Nos.1 to 4 have signed and executed various Loan Documents as set out in Para No.5.7 of the Original Application. Defendant No.1&2 have executed Hypothecation Agreement dated 20.01.2017 in favour of the Applicant Bank and hypothecated all the present and future

(OA No.437/2022)

Page 2 of 7

[ANIL]

movable assets in any form more particularly described and detailed in Deed of Hypothecation Agreement & Schedule-A of the Original Application.

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Defendant No.1 and 2 signed and executed Simple Mortgage registered on 12.01.2017 in respect of the immovable property i.e. all those peace and parcel of agricultural land bearing Gat No.2273 area admeasuring 1H 79 R situated at Bedag, Taluka Miraj, District Sangli, more particularly described in Schedule–B of the Original Application.

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The Applicant Bank states that Defendant No.1 and 2 again approached to the Applicant Bank for Cash Credit Limit of Rs.10,00,000/- for Working Capital as a Crop Loan. Accordingly, the Applicant Bank has sanctioned Cash Credit Limit of Rs.10,00,000/- for Crop Loan on 23.06. 2017 to Defendant No.1 and 2. Defendant Nos.3&4 are the guarantors for the said Loan.

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Defendant Nos.1 to 4 have signed and executed various Loan Documents as set out in Para No.5.10 of the Original Application. Defendant No.1 and 2 have executed Hypothecation Agreement dated 01.07.2017 in favour of the Applicant Bank and hypothecated all the present and future movable assets in any form more particularly described

(OA No.437/2022)

Page 3 of 7

[ANIL]

and detailed in Deed of Hypothecation Agreement & Schedule-A of the Original Application.

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Defendant No.1 signed and executed Simple Mortgage Deed which is registered on 12.06.2017 in respect of the immovable property i.e. all those peace and parcel of agricultural land bearing Gat No.2273 area admeasuring 1Hector 79 Aar situated at Bedag, Taluka Miraj, District Sangli, more particularly described in Schedule –B of the Original Application.

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Applicant Bank contended that Defendant No.1 to 2 after availing the aforesaid loan facilities have regularly paid installments and served the interest for some time and thereafter started committing default in repayment of EMI’s and service of interest in respect of aforesaid loan facility accounts.

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The Applicant Bank contended that even after continuous demand, the defendants have failed to pay the interest in Term Loan Account and Cash Credit Account and also failed to regularize the account with the Applicant Bank. Hence, account of Defendants with Applicant Bank became Non-Performing Assets as per the guidelines of the RBI, on 31.03.2021. Thereafter, Applicant Bank has issued

(OA No.437/2022)

Page 4 of 7

[ANIL]

Recall Notice on 05.08.2021 to all the defendants calling upon them to liquidate the entire outstanding amount in both the Loan Accounts. Despite receipt of notices, defendants failed to make the repayment within the stipulated period.

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Hence, this application is filed.

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Advocate for Defendant Nos.1 & 2 appeared but failed to file Written Statement on record. Defendant Nos.3 and 4 failed to appear despite service of summons. Hence, the application proceeded ex-parte against them as per order dated 26.04.2024 passed below Application (Exhibit-1).

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The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Raosaheb Sarate, Manager and produced on record the True copy/Original Loan Transaction documents at Exhibits AW-1 to AW-20 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 the Applicant Bank. Therefore, the Applicant Bank is entitled for the reliefs claimed.

(OA No.437/2022)

Page 5 of 7

[ANIL]

Applicant Bank has claimed the 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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Applicant Bank has claimed future interest @9.30% per annum on Term Loan Account and @9.40% p.a. on Cash Credit Account. However, considering the facts of the case, I am of the opinion that if future interest is granted @9.00% 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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(A) Original Application No.437/2022 is allowed with costs.

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(B) Defendant Nos.1 to 4 jointly or severally shall pay sum of Rs.26,10,882/- (Rupees Twenty Six Lakhs Ten Thousand Eight Hundred Eighty Two only ) (i.e. Rs.11,76,513/- towards Term Loan Account No.560931000072697 and Rs.14,34,369/- towards Cash Credit Account No.560381001223025) with future interest @ 9% p.a. (Simple) from the date of filing of the Original Application i.e.27.01.2022 till payment /realization of the amount mentioned in this operative order, to the Applicant Bank.

(OA No.437/2022)

Page 6 of 7

[ANIL]

(C) The aforesaid adjudicated amount is secured by creation of Registered Mortgage Deed regarding immovable property i.e. all those peace and parcel of agricultural land bearing Gat No.2273 area admeasuring 1Hector 79 Aar situated at Bedag, Taluka Miraj, District Sangli, more particularly described in Schedule-B of the Original Application.

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

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Sd/(Dilip G. Murumkar)

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Place : Pune Presiding Officer, Date: 07.10.2024 Debts Recovery Tribunal, Pune.

(OA No.437/2022)

Page 7 of 7

[ANIL]

[ANIL] (OA No.437/2022) Page 8 of 7

Union Bank of India (Corporation Bank) v. Sakharam

Case brief

What is this about?

What did the court decide?

Union Bank of India (Corporation Bank) v. Sakharam

Case brief

What is this about?

What did the court decide?

What the court decided

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