Allowed

Bank of Maharashtra v. Shrinath Roadlines Prop Shri. Rahul Balaso Bhondwe

DRT16 May 2024OA/570/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of arrears from the principal borrower and guarantors after the defendants appeared ex-parte. The court reduced the total claim by deducting penal interest and lowered the future interest rate to 9%.

What did the court decide?

Recovery of Rs.33,69,972/ along with future interest @9% per annum secured by mortgaged land; recovery certificate issued.

Bank of Maharashtra versus Shrinath Roadlines Prop Shri. Rahul… — Specific Performance | DRT (2024)

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Presented on : 03.02.2021 Registered on : 06.05.2022 Decided on : 16.05.2024 Duration : Y M D 03 03 13

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 570/2022.

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Bank of Maharashtra, A Body Corporate established under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its registered office at “Lokmangal”, 1501, Shivajinagar, Pune – 411005 and one of its branch office at Market Yard, Supa, Taluka Baramati, District Pune 412 204.

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.. Applicant

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Versus

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1 Shri Rahul Balaso Bhondwe, Age : Adult, Occ. : Business, Proprietor of Shrinath Roadlines, R/o : Bhondwewadi (Supa), Taluka Baramati, District Pune 412 204.

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2 Shri Balasaheb Anandrav Bhondwe, Age : Adult, Occ. : Business, R/o : Bhondwewadi (Supa), Taluka Baramati, District Pune 412 204.

(OA No. 570/22)

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3 Shri Dilip Uddhav Bhondwe, Age : Adult, Occ. : Business, R/o : Bhondwewadi (Supa), Taluka Baramati, District Pune 412 204.

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4 Shri Asif Abbasbhai Kotwal, Age : Adult, Occ. : Business, R/o : Bhondwewadi (Supa), Taluka Baramati, District Pune 412 204. .. Defendants

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APPEARANCES

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For Applicant Advocate R.B. Ganbote. For Defendants Ex parte.

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TOTAL CLAIM AMOUNT –Rs.35,08,595/-

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JUDGMENT

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(Delivered on 16^th May, 2024)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.35,08,595/- together with future interest @12.50% per annum from the date of Application till realization of the entire dues from the defendants.

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Brief facts of the application are as under :

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Defendant No.1 is the proprietor of Shrinath Roadlines. As per the loan application of defendant No.1, the applicant Bank sanctioned the Cash Credit of Rs.25,00,000/- to defendant No.1 vide Sanction Letter dated 16.07.2013. Defendant Nos.2 to 4

(OA No. 570/22)

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stood guarantors for the repayment of loan sanctioned and disbursed to defendant No.1. Defendant No.2 also offered his property for securing the Cash Credit.

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In order to secure the aforesaid Cash Credit, the defendants executed necessary loan and security documents in favour of the applicant Bank. Defendant No.2 also executed deed of mortgage of land Gat No. 416 (P), 895 (P), 616 (P) and 429 (P) at village Bhondwewadi, Taluka Baramati, District Pune, in favour of the applicant Bank.

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Thereafter, on 05.07.2016 and 30.06.2019 the defendants executed Balance and Security Confirmation Letters in favour of the applicant Bank and confirmed the balance in the Cash Credit account.

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, the applicant Bank has classified the account of the defendant as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Despite recall of the dues by personal visits and telephonically, the defendants failed and neglected to pay the outstanding dues of the applicant Bank. Hence, this application is filed.

(OA No. 570/22)

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The defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte as per Order dated 02.02.2024 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Manoj Dinkar Bhongale, Manager and Principal Officer of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-10 along with list (Exhibit 7), 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 evidence of the applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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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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The applicant Bank has claimed Penal Interest of Rs.1,38,623/-, which cannot be granted and the same is required to be

(OA No. 570/22)

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deducted from the total claim amount. Therefore, the total claim amount of Rs.35,08,595/- is reduced to Rs.33,69,972/-.

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The applicant Bank has claimed future interest @12.50% 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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Hence, I pass the following order :-

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ORDER

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(A) Original Application No. 570/2022 is allowed with proportionate costs.

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(B) Defendant Nos.1 to 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.33,69,972/(Rs. Thirty Three Lakhs Sixty Nine Thousand Nine Hundred Seventy Two only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 03.02.2021 till full payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of land Gat Nos. 416 (P), 895 (P), 616 (P) and 429 (P) at village

(OA No. 570/22)

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Bhondwewadi, Taluka Baramati, District Pune, more particularly described in the Para No. 5.8 of the Original Application.

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(D) The applicant Bank is entitled to sell the 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 and defendants.

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Sd/(Dilip G Murumkar) Place : Pune Presiding Officer Date : 16.05.2024 Debts Recovery Tribunal, Pune.

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(OA No. 570/22)

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Bank of Maharashtra v. Shrinath Roadlines Prop Shri. Rahul Balaso Bhondwe

Case brief

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Bank of Maharashtra v. Shrinath Roadlines Prop Shri. Rahul Balaso Bhondwe

Case brief

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