Allowed

Bank of Maharashtra v. Sneha Enterprise

DRT14 Nov 2024OA/443/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of a defaulted cash credit loan. The court adjusted the claim by deducting penal interest and fixed future interest at 9% per annum, decreeing payment along with a recovery certificate on mortgaged properties.

What did the court decide?

Recovery of Rs. 3,07,69,040/- with future interest at 9% p.a. and issuance of Recovery Certificate secured by mortgaged properties.

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

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Presented on: 17.02.2021 Registered on: 27.04.2022 Decided on: 14.11.2024 Duration: Y M D 03 08 27

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.443/2022.

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Bank of Maharashtra ,

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A Body Corporate constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act 1970 having its Head Office at “Lokmangal” 1501, Shivajinagar, Pune-5 and Branch amongst other places at Kapil Classic Bldg., Baner Branch, Pune-411 045.

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… Applicant

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Versus

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1. M/s Sneha Enterprise

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A Registered Partnership Firm Through its Partners

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2. Mr. Vilas Madhav Atal

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3. Mr. Anurag Vilas Atal

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Having Office at – Unit No.1, Sai Estate, Kothrud, Pune-412 038.

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4- Mr. Amit Ashok Thepade

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R/at - 501, Galaxy Jay Parijat, 134/1A-5G, Bhosale Nagar, Pune City, Ganeshkhind, Pune-411 007.

…Defendants

(OA No.443/2022)

Page 1 of 6

[ANIL]

APPEARANCES For the Applicant For the Defendants

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Advocate Mrs. Priti Bhat. Ex parte.

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TOTAL CLAIM AMOUNT – Rs.3,18,26,953/-.

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JUDGMENT

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(Delivered on 14^th November, 2024)

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The Applicant Bank has filed present application for recovery of sum of Rs.3,18,26,953/- as on 04.02.2021 together with future interest thereon at the rate of contractual rate per annum till repayment or realization from the defendants.

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Brief facts of the application are as under:

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Defendant No.1 is a Partnership Firm and Defendant Nos.2 to 4 are the guarantors. Defendants requested to the Applicant Bank for Cash Credit of Rs.250 Lakhs. The Applicant Bank considered the request of the defendants and sanctioned cash credit facility of Rs.250 Lakhs to Defendant No.1.

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In order to secure the aforesaid Loan facility, Defendants have executed certain documents in favour of the Applicant Bank, as mentioned in Para No.5.4 of the Original Application. Defendant Nos.2 to 4 agreed to be guarantors and executed Deed of Guarantee dt. 22.12.2017.

(OA No.443/2022)

Page 2 of 6

[ANIL]

In addition to this, Defendants have executed Mortgage Deeds of the following immovable property i.e.-

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(A)- All that piece and parcel of Flat No.1102, on the 11^th Floor of the building 1 in the Vineet Apartments, admeasuring 66.27 sq. meters (Carpet) i.e. 86.15 sq.,mts. (built up) consisting of 4 rooms together with all the fixtures & furniture.

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(B)- A Flat/Apartment No.1101, on the 11^th Floor of the building 1 in the Vineet Apartments, admeasuring 66.27 sq. meters (Carpet) i.e. 86.15 sq.,mts. (built up) consisting of 4 rooms together with all the fixtures & furniture.

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(C) - A Flat/Apartment No.809, on the 8^th Floor of the building 1 in the Vineet Apartments, admeasuring 43.60 sq. meters (Carpet) i.e. 56.69 sq.,mts. (built up) consisting of 3 rooms together with all the fixtures & furniture, more particularly described in Para No.5.14 of the Original Application.

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Applicant Bank contended that after availing the said cash credit facility, the defendants failed and neglected to pay outstanding amount and comply with the terms and conditions in which the said facility was granted to them. Due to the defaults, the Applicant Bank has classified the accounts of the defendants as NPA in accordance with the

(OA No.443/2022)

Page 3 of 6

[ANIL]

directions and/or guidelines of the Reserve Bank of India. The Applicant Bank sent demand notice to the defendants. But the defendants did not bother to the Notice.

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Hence, this application is filed.

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Defendants have failed to appear despite service of summons. Hence, the application proceeded ex-parte against them vide Order dated 03.09.2024 passed below the Application (Exhibit-01).

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The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Safdar Hayat Khan, Senior Manager and produced on record the Loan Transaction documents at Exhibits.AW-1 to AW-11, 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 reliefs as claimed.

(OA No.443/2022)

Page 4 of 6

[ANIL]

The Applicant Bank has claimed Penal Interest of Rs.10,57,913/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.3,18,26,953/- is reduced to Rs.3,07,69,040/ -.

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10 The Applicant Bank has claimed future interest at the contractual rate 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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11 Hence, I pass the following order:-

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ORDER (A) Original Application No.443/2022 is allowed with costs.

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(B) Defendant Nos. 1 to 4 either jointly or severally shall pay sum of Rs.3,07,69,040/ - (Rupees Three Crores Seven Lakhs Sixty Nine Thousand Fourty only) with future interest @ 9% p. a. from the date of filing of the Original Application i.e.17.02.2021 till payment/ realization of the amount mentioned in this operative order, to the Applicant Bank.

(OA No.443/2022)

Page 5 of 6

[ANIL]

The Applicant Bank is entitled to sell the mortgaged immovable properties to recover its dues.

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Issue Recovery Certificate.

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The Registrar is directed to send the copy of Judgment and Recovery Certificate to the Applicant Bank and the defendants.

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Place : Pune Date: 14.11.2024

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

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(OA No.443/2022)

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Page 6 of 6

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[ANIL]

Bank of Maharashtra v. Sneha Enterprise

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. Sneha Enterprise

Case brief

What is this about?

What did the court decide?

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