Allowed

Union Bank of India (Corporation Bank) v. M/S Sahyadri Drip and Sprinklers

DRT29 Oct 2024OA/455/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of ﬁ.06 crore against non-appearance of borrowers. The tribunal reduced future interest to simple 9% per annum and ordered realization through sale of a mortgaged property in Baramati.

What did the court decide?

Respondents to pay ﬁ.06,46,266/- with 9% p.a. simple interest from filing date; mortgaged property in Baramati made security; recovery certificate issued; right to sell granted.

Union Bank of India (Corporation Bank) versus M/S… — Contract and Commercial Disputes | DRT (2024)

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Presented on: 22.11.2019 Registered on: 27.04.2022 Decided on: 29.10.2024 Duration: Y M D 04 11 07

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.455/2022.

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Union Bank of India ,

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Having its branch office at – Shop No.4 to 6, Avdhoot Plaza, Bhigwan Road, Baramati, Taluka Baramati, District Pune.

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Versus

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1. M/s Sahyadri Drip & Sprinklers

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A Partnership Firm, G-338, MIDC, Baramati,

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… Applicant

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Taluka Baramati, District Pune.

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2. Mr. Rajendra Eknath Kharade

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Age Adult, Occ.-Business, Asara Niwas, Avchat Estate, Patas Road, Baramati, Taluka Baramati, District Pune.

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3. Mr. Satish Sadashiv Bharate

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Age Adult, Occ.- Business, Satsang Bungalow, Avdhoot Nagar, Near TC College, Baramati, Taluka Baramati, District Pune.

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4. Mr. Ashokkumar Mahadeo Mulik

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Age Adult, Occ.-Business,

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5. Mr. Dattatraya Sopanrao Mane

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Age adult, Occ.:-Business All R/at Karmveer Colony, Near Devkate Bungalow, Pragati Nagar, TC College Road, Baramati, Taluka Baramati, District Pune.

…Defendants

(OA No.455/2022)

Page 1 of 6

[ANIL]

APPEARANCES

For the Applicant For the Defendants

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Advocate Mr. R.B. Ganbote Ex-parte

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TOTAL CLAIM AMOUNT –Rs.1,06,46,266/-.

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JUDGMENT (Delivered on 29^th October, 2024)

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The Applicant Bank has filed present application for recovery of aggregate sum of Rs.1,06,46,266/(i.e.Rs.53,21,099/towards Term Loan Facility and Rs.53,25,167/- towards Cash Credit Facility) with future interest @15.95% p.a. and @15.35% p.a. respectively with monthly rests from the date of filing of this Application till repayment/realization of the entire dues from defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that Defendant Nos.1to5 approached to the Applicant Bank and requested for Term Loan Facility and Cash Credit Facilities, which were sanctioned by the Applicant, as under:-

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Sr.	Loan	Facility	Sanction	Sanction
No.			Amount	Date
1	Term Part Prope	Loan Facility for Finance of the rty.	Rs.74,00,000/-	March 2014
2	Cash meet requir	Credit Facility to working capital ement.	Rs.37,50,000/-	March 2014

(OA No.455/2022)

Page 2 of 6

[ANIL]

In order to secure the aforesaid Loan facilities, the defendants have executed loan and security documents as set out in Para Nos.5.6, 5.8, 5.10 and 5.11 of the Original Application, in favor of the Applicant Bank.

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The Applicant Bank states that Defendant No.1 has executed Common Deed of Hypothecation for all present and future movables/Assets, in favour of the applicant Bank for both Loan facilities.

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So also, the Defendants have secured the above said loan accounts by executing Deed of Simple Mortgage on 09.09.2014, in respect of the following immovable properties i.e. all those peace and parcel of Plot No.G-338 admeasuring 800 Sq.Mtrs. alongwith construction thereon admeasuring 591.18 sq. mtrs. in Baramati Industrial Area, within the village limits of Katphal, Taluka-Baramati and also within the limits of Registration District Pune, Sub Registration District Baramati, District Pune, more particularly mentioned in Para No.5.8 of the Original Application.

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The Applicant Bank contended that after availing the aforesaid loan facilities Defendant No.1 adhere to the terms and conditions of the sanction and failed to pay the installments in the Term Loan account and committed

(OA No.455/2022)

Page 3 of 6

[ANIL]

breach of the sanction terms and hence, the said accounts of the Defendants with the Applicant Bank became NonPerforming Asset as per the Reserve Bank of India norms. Thereafter, the Applicant Bank issued Notice dated 04.12.2018 to the Defendants calling upon them to pay the outstanding due loan amount together with interest, costs, charges and expenses, but failed to pay the due amount. Hence, this application is filed.

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Defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte 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. Phutki Chintaman Narayan, Senior Manager and Power of Attorney Holder has produced on record the Original Loan Transaction documents at Exhibit Nos. AW-1 to AW-22, which corroborates 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.455/2022)

Page 4 of 6

[ANIL]

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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Applicant Bank has claimed future interest @15.95% p.a. on Term Loan Facility and @15.35% p.a. on Cash Credit Facility. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% 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.455/2022 is allowed with costs.

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(B) Defendant Nos. 1 to 5 either jointly or severally shall pay an aggregate sum of Rs.1,06,46,266/- Rupees One Crore Six Lakhs Fourty Six Thousand Two Hundred Sixty Six Only ( i.e.Rs.53,21,099/- towards Term Loan Facility & Rs.53,25,167/- towards Cash Credit facility ) with future interest @ 9% p.a. (Simple) from the date of filing of the Original Application i.e. 22.11.2019 till payment/realization of the amount mentioned in this operative order, to the Applicant Bank.

(OA No.455/2022)

Page 5 of 6

[ANIL]

(C) The aforesaid adjudicated amount is secured by executing Deed of Simple Mortgage dated 09.09.2014 of the following immovable property i.e.- all those peace and parcel of Plot No.G-338 admeasuring 800 Sq.Mtrs. along with construction thereon admeasuring 591.18 sq. mtrs. in Baramati Industrial Area, within the village limits of Katphal, TalukaBaramati and also within the limits of Registration District Pune, Sub Registration District Baramati, District Pune, more particularly mentioned in Para No.5.8 of the Original Application.

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(D) The Applicant Bank is entitled to sell the mortgaged properties to recover the 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/Place : Pune (Dilip G. Murumkar) Date: 29.10.2024 Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.455/2022)

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Page 6 of 6

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[ANIL]

Union Bank of India (Corporation Bank) v. M/S Sahyadri Drip and Sprinklers

Case brief

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Union Bank of India (Corporation Bank) v. M/S Sahyadri Drip and Sprinklers

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