Allowed

Bank of Maharashtra v. M/S Maks Technologies

DRT29 Jan 2024OA/597/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant Bank of Maharashtra's application against defaulters to recover classified loans, sanctions, and future interest while dismissing unverified claims regarding hypothecated assets.

What did the court decide?

Ordered payment of Rs.2,80,94,668.73 plus future interest at 8.75%-9% p.a. Additionally, the applicant is entitled to sell mortgaged properties and a Recovery Certificate was issued.

Bank of Maharashtra versus M/S Maks Technologies — Banking and Recovery | DRT (2024)

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Presented on: 16.04.2022 Registered on: 04.07.2022 Decided on: 29.01.2024 Duration: Y M D 1 9 13

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.597/2022

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Bank of Maharashtra

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A banking company constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at “Lokmangal”, 1501, Shivajinagar, Pune-411 005 and one of its Branch i.e. Chatushrungi, Sai Capital Building, S.B. Road, Pune-411 016.

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...Applicant

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Versus

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M/s. Maks Technologies, A Partnership Firm, Office No.4, Bizzbay, Off. NIBM Road, Kondhwa, Pune-411 048.

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Mr. Nilesh Pravin Jain, 365/23, Rajashri Vintage, Ekbote Colony, Ghorpadi Peth, Pune-411 042.

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Mr. Pradeep Amritlal Jain, Flat No.F/6, 6^th Floor, Sathe Chambers, Shukrawar Peth, Rameshwar Chowk, Pune-411 002.

(OA No.597/2022)

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Mr. Pravinkumar Kundanmal Jain,

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365/23, Rajashree Vintage, Ekbote Colony, Ghorpadi Peth, Pune-411 042.

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Mrs. Manjula Pravinkumar Jain, 365/23, Rajashree Vintage, Ekbote Colony, Ghorpadi Peth, Pune-411 042.

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Bharat Bio Fuel & Distillery Pvt. Ltd. Registered Office at: 1639, Shukrawar Peth, Nehru Chowk, Pune-411 002.

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…Defendants

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APPEARANCES

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For the Applicant Mrs. Sudha Koloti - Advocate For Defendants Ex parte

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TOTAL CLAIM AMOUNT –Rs.28,13,53,502.73Ps.

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JUDGMENT

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(Delivered on 29^th January, 2024)

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The Applicant Bank has filed the present Application for recovery of aggregate sum Rs.28,13,53,502.73Ps. i.e.

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1. Rs.6,06,69,097,97Ps. on account of Cash Credit loan account together with future interest @12.85% p.a. with monthly rests;

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1. Rs.19,91,72,607.00 on account of Working Capital Term Loan account with future interest @9.75% p.a. with monthly rests;

(OA No.597/2022)

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1. Rs.1,81,48,181.76Ps. on account of Funding Interest Term Loan-I account with future interest @8.75% p.a. with monthly rests and

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1. Rs.33,63,616.00 on account of Funding Interest Term Loan-I account with future interest @13.30% p.a. with monthly rests thereon from 17^th April, 2022 till repayment/realization of the entire dues from defendant Nos.1 to 6.

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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 and 3 are its partners and personal guarantors for the credit facilities availed by them from the applicant Bank. Defendant Nos.3 and 5 are guarantors and mortgagors and defendant No.6 is a corporate guarantor for the credit facilities availed by defendant Nos.1 to 3 from the applicant Bank.

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Defendant No.1 was carrying on business of manufacturing of copper wire with the use of imported copper rods under the name and style of M/s. Maks Technologies.

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On 11^th May, 2013 the applicant Bank sanctioned and

(OA No.597/2022)

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disbursed the following facilities to defendant Nos.1 to 3:

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Sr. No.		Head	Sanctioned on	Amount	Rate of Interests
1.	Takeo Saras with Busin Rs.9,5 Consi	ver loan from wat Co-op. Bank enhancement of ess Loan Credit of 0,000/- sting of:	11.05.2013
	(A)	Cash Credit facility		Rs.2,50,00,000/-	@14% p.a. with monthly rests
	(B)	Letter of Credit		Rs.7,00,00,000/-	@14% p.a. with monthly rests
2.	Enha renew	ncement and al of Business Loan	30.09.2014
	Credi	t from
	Rs.7,0 Rs.14, consis	0,00,000/- to 00,00,000/-) ting of
	A. B.	Cash Credit facility (Rs.2,50,00,000/-) Letter of Credit Facility renewed		Rs.7,00,00,000 Rs.7,00,00,000/-	@14.90% p.a. @14.90% p.a.
3.	Enha renew	ncement and al of Business Loan	18.11.2015
	Credi	t from
	Rs.7,0 Rs.17, consis	0,00,000/- to 00,00,000/-) ting of
	A.	Cash Credit facility
	B.	(Rs.7,00,00,000/-) Letter of Credit Facility renewed		Rs.10,00,00,000 Rs.7,00,00,000/-	@14.90% p.a. @14.90% p.a.

(OA No.597/2022)

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Defendants signed and executed the loan transaction and security documents as set out in paragraph No.5.10 including Equitable Mortgage by defendant Nos.3 to 5 of the immovable properties and Composite Deed of Hypothecation dated 30.05.2013 as mentioned in paragraph No.5.9 (d) of the Original Application.

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On 30.09.2014 defendants got the credit facilities enhanced and renewed and executed security documents as mentioned in paragraph No.5.18 of the Original Application.

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Defendant Nos.2 to 5 stood as personal guarantors and defendant No.6 stood as corporate guarantor for enhancement and renewal of credit facilities for total of Rs.14,00,00,000/-.

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On 18.11.2015 defendants got the credit facilities enhanced and renewed and executed security documents as mentioned in paragraph No.5.25 of the Original Application.

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On 13.06.2017 defendants again got the credit facilities enhanced and renewed for total amount of Rs.29,00,00,000/consisting of Three facilities i.e. Cash Credit enhanced from Rs.10,00,00,000/- to Rs.15,00,00,000/; Letter of Credit Limit renewal for Rs.7,00,00,000/- and Forward Cover renewal for

(OA No.597/2022)

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Rs.7,00,00,000/- and defendants renewed/executed security documents as mentioned in paragraph No.5.31 of the Original Application.

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On 12.12.2018 defendants again approached the applicant Bank and got the credit facilities renewed with reduction to a total of Rs.23,87,29,000/- as mentioned in paragraph No.5.35 of the Original Application.

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The applicant Bank contended that it has registered its charge with CERSAI on 20.02.2019.

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The applicant Bank further contended that defendant Nos.1 to 6 executed Balance Confirmation Letter dated 05.03.2019.

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The applicant Bank further contended that defendants were irregular in repayment and after lot of persuasion and follow up defendants made last repayment as indicated in paragraph No.5.44 of the Original Application.

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Resultantly, the loans accounts of defendant No.1 were classified as Non-Performing Asset on 31.03.2021 as per RBI Guidelines.

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Thereafter, the applicant Bank through its Advocate issued Recall Notice dated 09.12.2021 to defendant Nos.1 to 3.

(OA No.597/2022)

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Despite Recall Notice, defendants failed to comply with requisitions contained in the Recall Notice.

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Hence, this application is filed.

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Defendant Nos.1 to 6 failed to appear despite service of summons. Hence, the application proceeded ex parte against them vide Order dated 08^th January, 2024 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mrs. Sandhya Dattatraya Shende, Chief Manager which supports the case of the applicant elucidated in the application.

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The applicant Bank has produced on record the original/copies of loan transaction documents (Sr.Nos.AW1/1 to AW-1/68) which corroborate the case of the applicant Bank.

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

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Since the defendants failed to appear and contest the application, I find no reason to disbelieve evidence of the applicant Banks. Therefore, the applicant Bank is entitled for reliefs as claimed.

(OA No.597/2022)

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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 Simple Penal Interest of Rs.1,82,797/- in Working Capital Term Loan Account; Rs.1,55,422/- in Funding Interest Term Loan-I Account and Rs.65,616/- in Funding Interest Term Loan-II Account which cannot be granted and these amounts are required to be deducted from the respective total claim amounts. Thus, the aggregate claim amount is reduced from Rs.28,13,53,502.73 to Rs.28,09,49,667.73Ps. (rounded off to Rs.28,09,49,668/-).

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The applicant Bank has claimed future interest @12.85% p.a. with monthly rests for Cash Credit loan account; @9.75% p.a. with monthly rests for Working Capital Term Loan account; @8.75% per annum for Funding Interest Term Loan-I account and @13.30% for Funding Interest Term Loan-II account. However, considering facts of the case, I am of the opinion that if future interest is granted @8.75% per annum (simple) for Funding Interest Term Loan-I account and @9% p.a.

(OA No.597/2022)

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(simple) for other three loan accounts i.e. Cash Credit loan account, Working Capital Term Loan account & Funding Interest Term Loan-II accounts, it would be just and reasonable.

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.597/2022 is allowed with costs.

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(B) Defendant Nos.1 to 6 shall either jointly or severally pay to the applicant Bank towards Cash Credit loan account the sum of Rs.6,06,69,098/- (Rupees Six Crores Six Lakhs Sixty-Nine Thousand and NinetyEight only) with future interest @9% per annum from the date of filing of the Original Application i.e. 16^th April, 2022 till full payment/realization of the amount mentioned in this operative order.

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(C) Defendant Nos.1 to 6 shall either jointly or severally pay to the applicant Bank towards Working Capital Term Loan account the sum of Rs.19,89,89,810/(Rupees Nineteen Crores Eighty-Nine Lakhs EightyNine Thousand Eight Hundred and Ten only) with

(OA No.597/2022)

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future interest @8.75% per annum from the date of filing of the Original Application i.e. 16^th April, 2022 till full payment/realization of the amount mentioned in this operative order.

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(D) Defendant Nos.1 to 6 shall either jointly or severally pay to the applicant Bank towards Funding Interest Term Loan-I account the sum of Rs.1,79,92,760/(Rupees One Crore Seventy-Nine Lakhs Ninety-Two Thousand Seven Hundred and Sixty only) with future interest @9% per annum from the date of filing of the Original Application i.e. 16^th April, 2022 till full payment/realization of the amount mentioned in this operative order.

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(E) Defendant Nos.1 to 6 shall either jointly or severally pay to the applicant Bank towards Funding Interest Term Loan-II account the sum of Rs.32,98,000/(Rupees Thirty-Two Lakhs Ninety-Eight Thousand only) with future interest @9% per annum from the date of filing of the Original Application i.e. 16^th April, 2022 till full payment/realization of the amount mentioned in this operative order.

(OA No.597/2022)

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(F) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of the immovable properties i.e.

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Flat No.1 admeasuring 142.34 sq. mtrs. equivalent to 1532.18 sq. ft. built up area (which is inclusive of areas of the balconies) situate on the Stilt Floor together with terrace attached/adjacent to the said Flat No.1 admeasuring 8.69 sq. mtrs. equivalent to 93.50 sq. ft. built up area and exclusive use, utilization, occupation and enjoyment of one Car Parking Space admeasuring 9.29 sq. mtrs. equivalent to 100 sq. ft. and exclusive use, utilization, occupation and enjoyment of Car & scooter parking areas admeasuring 72.32 sq. mtrs. equivalent to 778.50 sq. ft. and exclusive use, utilization, occupation and enjoyment totally admeasuring 133.31 sq. mtrs. equivalent to 1435.00 sq. ft. in the project known as “Rajshree Vintage” situated at Final Plot No.295 corresponding CTS No.365/23, situate at

(OA No.597/2022)

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Ghorpadi Peth, Pune City within the limits of Municipal Corporation of Pune and

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All that piece and parcel of land bearing Gat No.280 admeasuring 301392 sq. ft. situated at Village Kurkumbh, Taluka Daund, District Pune.

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more particularly mentioned in Prayer Clause 6(f) of the Original Application.

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(G) The applicant Bank is entitled to sell the mortgaged properties 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 defendants.

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Place : Pune Date : 29.01.2024

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

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(OA No.597/2022)

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Bank of Maharashtra v. M/S Maks Technologies

Case brief

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Bank of Maharashtra v. M/S Maks Technologies

Case brief

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