Allowed

Bank of India v. M/S Shree Motors Prop. Prakash Sakharam Sawant

DRT9 Jan 2024OA/539/2022

Case brief

AI extract

What is this about?

In an ex-parte recovery application, the Tribunal allowed the bank's claim for outstanding dues secured by term loans and cash credit. The respondent was ordered to pay the adjudicated amounts along with future interest at reduced rates deemed just and reasonable.

What did the court decide?

Respondent ordered to pay adjudicated principal amounts with future interest and directed to sell hypothecated property to recover dues.

Bank of India versus M/S Shree Motors Prop. Prakash Sakharam… — Company and Corporate | DRT (2024)

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Presented on : 02.11.2021 Registered on : 04.06.2022 Decided on : 09.01.2024 Duration : Y M D 02 02 07

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 539/2022.

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Bank of India,

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A Banking Company incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 and 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, Yashwat Plaza, Yashwant Nagar, Opposite Radison Hotel, Kharadi, Pune 411014.

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.. Applicant

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Versus

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Prakash Sakharam Sawant, Proprietor of M/s. Shree Motors, Age 28 years, Occ. Business, Address :- (a) Aalandi Devachi, Dehu Road, Dehu Phata, Near Union Bank of India, Aalandi Pune Road, Taluka Haveli, District Pune 412105.

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(b) Dudhalgaon, Aalandi Moshi Road, Taluka Haveli, District Pune 412105.

.. Defendant

(OA No. 539/2022)

Page 1 of 6

Sanap

APPEARANCES

For Applicant Advocate Tejshree Hirve. For Defendant Ex parte.

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TOTAL CLAIM AMOUNT –Rs.41,76,426=64

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JUDGMENT (Delivered on 09^th January, 2024)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.41,76,426=64 together with future interest @10.15, 6.85, 6.85 and 11% per annum respectively with monthly rests from the date of Application till realization of the entire dues from the defendant.

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Brief facts of the application are as under :

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The defendant-borrower is a Proprietor of M/s. Shree Motors. As per the loan applications of the defendant, the applicant Bank sanctioned the following loan facilities to the defendant.

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*Name of the facility*		*Amount*	*Date of sanction*
Cash Credit A/c 055530110000097	No.	Rs.30,00,000/-	13.03.2019
Term Loan A/c 055570110000010	No.	Rs.3,00,000/-	13.07.2020
Term Loan A/c 055573610000046	No.	Rs.5,97,000/-	14.08.2020

(OA No. 539/2022)

Page 2 of 6

Sanap

Term Loan (FITL) A/c Rs.1,59,808=60 -- No. 055565810000012

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In order to secure the aforesaid loan facilities, the defendant executed necessary loan and security documents along with deed of hypothecation of goods and debts in favour of the applicant Bank.

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The applicant Bank contended that the defendant committed defaults in payment of installments and failed to regularize the accounts. Therefore, on 21.09.2021, the applicant Bank issued legal Notice to the defendant. Despite service of Notice, the defendant failed and neglected to pay the outstanding dues of the applicant Bank.

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Hence, this application is filed.

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The defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte as per Order dated 19.12.2023 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Kunwar Singh, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-36 along with list (Exhibit 7), which corroborates the case of the applicant Bank.

(OA No. 539/2022)

Page 3 of 6

Sanap

I have heard arguments of the learned Advocate for the applicant Bank.

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Since the defendant 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 future interest @10.15%, 6.85%, 6.85% and 11% per annum respectively. However, considering the facts of the case, I am of the opinion that if future interest is granted @9%, 6.85%, 6.85% and 9% per annum (simple), it would be just and reasonable rate of interest.

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Hence, I pass the following order :-

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ORDER

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(A) Original Application No.539/2022 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank the sum of Rs.30,98,661/- (Rupees Thirty Lakhs Ninety Eight Thousand Six Hundred Sixty One only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 02.11.2021 till full payment/realization of the amount mentioned in this operative order.

(OA No. 539/2022)

Page 4 of 6

Sanap

(C) The defendant shall pay to the applicant Bank the sum of Rs.2,81,093/- (Rupees Two Lakhs Eighty One Thousand Ninety Three only) along with future interest @6.85% per annum from the date of filing of the Original Application i.e. 02.11.2021 till full payment/realization of the amount mentioned in this operative order.

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(D) The defendant shall pay to the applicant Bank the sum of Rs.6,24,424/- (Rupees Six Lakhs Twenty Four Thousand Four Hundred Twenty Four only) along with future interest @6.85% per annum from the date of filing of the Original Application i.e. 02.11.2021 till full payment/realization of the amount mentioned in this operative order.

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(E) The defendant shall pay to the applicant Bank the sum of Rs.1,72,248/- (Rupees One Lakh Seventy Two Thousand Two Hundred Forty Eight only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 02.11.2021 till full payment/realization of the amount mentioned in this operative order.

(OA No. 539/2022)

Page 5 of 6

Sanap

(F) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecation of the movable property i.e. Stock and Book debts, described in the Schedule II of the Original Application.

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(G) The applicant Bank is entitled to sell the hypothecated property to recover its dues.

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(H) Issue Recovery Certificate.

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

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Sd/(Dilip G Murumkar) Place : Pune Presiding Officer Date : 09.01.2024 Debts Recovery Tribunal, Pune.

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(OA No. 539/2022)

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Page 6 of 6

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Sanap

Bank of India v. M/S Shree Motors Prop. Prakash Sakharam Sawant

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S Shree Motors Prop. Prakash Sakharam Sawant

Case brief

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What did the court decide?

What the court decided

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