In an ex-parte application for recovery of dues, the Debts Recovery Tribunal allowed the bank's claim of Rs. 25,70,088 minus a reduction in future interest rates to a just and reasonable rate of 9% p.a.
Allowed recovery of Rs.25,70,088 with future interest at 9% p.a. from 05.04.2021 and issued Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
| Presented on | : 05.04.2021 |
|---|---|
| Registered on | : 17.05.2022 |
| Decided on | : 04.11.2024 |
| Duration | : Y M D |
| 03 07 00 |
IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 537/2022.
Bank of India,
A Banking company incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 and Banking Company as defined in Section 2 (e) of Recovery of Debts to Banks and Financial Institutions Act, 1993 having its head office at Star House, C-5, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai – 400051 and branch at – Kharadi, Survey No. 8, Yashwant Plaza, Yashwant Nagar, Opposite Radison Hotel, Kharadi, Pune 411 014.
.. Applicant
Versus
(OA No. 537/2022)
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.. Defendants
APPEARANCES
| For Applicant | Advocate Yogesh Hirve. |
|---|---|
| For Defendants | Exparte. |
Total Claim Amount – Rs.25,70,088/-
JUDGMENT (Delivered on 04th November, 2024)
(OA No. 537/2022)
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defendant No.1, the applicant Bank sanctioned the following Loan facilities to defendant No.1.
| Name of the facility | Amount | Date of sanction |
|---|---|---|
| Term Loan | Rs.10,00,000/- | 13.07.2015 |
| Cash Credit | Rs.5,00,000/- | 13.07.2015 |
Defendant No.2 stood guarantor for the repayment of loan availed by defendant No.1.
In order to secure the loan facilities, the defendants executed necessary loan and security documents along with deed of hypothecation in favour of the applicant Bank.
Further, the defendants have also executed Acknowledgement of Debt/Securities dated 16.06.2016 and 16.06.2019 in favour of the applicant Bank and thereby acknowledged the balance outstanding in the loan accounts. 3. The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 30.09.2016, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 08.02.2021, the applicant Bank issued legal Notice
(OA No. 537/2022)
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to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank. Hence, this application is filed.
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opinion that if future interest is granted @9% per annum (simple), it would be just and reasonable rate of interest.
Hence, I pass the following order :-
ORDER
(B) Defendant Nos. 1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.25,70,088/- (Rupees Twenty Five Lakhs Seventy Thousand Eighty Eight only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 05.04.2021 till full payment/realization of the amount mentioned in this operative order.
Place : Pune Date : 04.11.2024
Sd/(Dilip G Murumkar) Presiding Officer Debts Recovery Tribunal, Pune.
(OA No. 537/2022)
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2 issues framed by the court
Whether the Debt Recovery Tribunal is entitled to reduce the future interest rate claimed by the bank from the contractual rate to a just and reasonable rate.
Whether the defendants are liable to pay the outstanding dues along with future interest from the date of filing the application.
1 provisions across 1 enactments
Bank of India
M/s. Shree Gurukrupa Enterprises
Mrs. Madhavi Dhiraj Pathare
Mr. Dheeraj Dhanaji Pathare
Dilip G Murumkar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
