Allowed

Bank of India v. Mr. Asif Khawaja Sayyad, Prop. of M/S. Heena Tours and Travels

DRT29 May 2024OA/601/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal at Pune allowed the application filed by Bank of India for recovery of a defaulted cash credit of Rs. 20,74,386 including future interest. The tribunal heard the case ex parte against the defendants and awarded future interest at 9% per annum instead of the claimed 10.80%.

What did the court decide?

Defendants shall pay Rs. 20,74,386 with future interest at 9% per annum from 10.02.2022 and an issue of Recovery Certificate.

Bank of India versus Mr. Asif Khawaja Sayyad, Prop. of M/S… — Company and Corporate | DRT (2024)

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Presented on: 10.02.2022 Registered on: 23.06.2022 Decided on: 29.05.2024 Duration: Y M D 2 3 19

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.601/2022

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Bank of India

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A Banking Company constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at “Star House”, C-5, “G” Block, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051 and having its one of the branch at Kharadi having its address at – Survey No.8, Yashwant Plaza, Yashwant Nagar, Opposite Radison Hotel, Kharadi, Pune – 411 014.

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… Applicant

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Versus

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1. Mr. Asif Khawaja Sayyad, Proprietor of M/s. Heena Tours and Travels

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Age: 29 years, Occupation – Business Having addresses at –

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a) Lane No.11, Ubale Building, Ubale Nagar, Wagholi, Pune – 411 007.

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b) Flat No.102, Royal One Society,

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Ubale Nagar, Wagholi, Pune-411 007.

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Mr. Appaso Balbim Pawar Adult, Occupation : Business Having address at: Flat No.102, Royal One Society, Ubale Nagar, Wagholi, Pune-411 007.

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… Defendants

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APPEARANCES For the Applicant Mr. Yogesh Hirve - Advocate For Defendants Ex parte

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TOTAL CLAIM AMOUNT –Rs.20,74,385.59Ps

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JUDGMENT

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(Delivered on 29^th May, 2024)

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The applicant Bank has filed the present application for recovery of the sum of Rs.20,74,385.59Ps (rounded off to Rs.20,74,386/-) together with future interest thereon @10.80% per annum with monthly rests from the date of filing of the Original Application i.e. 10^th February, 2022 till repayment/realization of entire dues from the defendants. 2. Brief facts of the application are as under:

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Defendant No.1 proprietor of M/s. Heena Tours and Travels approached the applicant Bank seeking financial assistance in the form of Cash Credit for the purpose of his business requirement. As per the loan application, the applicant Bank on 23^rd March, 2015 sanctioned and disbursed

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the Cash Credit facility of Rs.5 Lakhs to the defendant No.1. Further, defendant No.1 accepted the terms of sanction and executed necessary loan transaction and security documents in favour of the applicant Bank. Defendant No.2 stood as guarantor for the said credit facility and executed Deed of Guarantee in favour of the applicant Bank as set out in the Original Application.

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Subsequently, in the month of May, 2016 defendant No.1 again approached the applicant Bank and requested for enhancement of Cash Credit facility from Rs.5 Lakhs to Rs.10 Lakhs. The applicant Bank considered the said request and on 23^rd May, 2016 sanctioned and disbursed the said amount to defendant No.1. Further, the defendant No.1 executed necessary loan documents and also created security by way of Hypothecation of assets i.e. Automobile spare parts. Defendant No.2 stood as guarantor for the aforesaid Cash Credit facility of Rs.10 Lakhs and executed Deed of Guarantee in favour of the applicant Bank.

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It is further contended by the applicant Bank that after availing and utilizing credit facility, defendant No.1 failed to repay the loan amount as per terms of sanction. On 28^th February, 2019 defendant No.1 acknowledged the liability in

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the loan account. Consequently, the loan account was classified as Non-Performing Asset on 30^th April, 2019 as per the Reserve Bank of India norms.

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Thereafter, the applicant Bank on 19^th March, 2021 issued legal Notice to the defendants calling upon them to pay the outstanding amounts. Despite service of Notice, defendants failed and neglected to comply with the demand in the said Notice.

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Hence, this application is filed.

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Defendants failed to appear despite service of summons. Hence, the application proceeded ex parte against them vide Order dated 21^st February, 2024 passed below the Application (Exhibit-01).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Milind Hari Purohit, Chief Manager which supports the case of the applicant elucidated in the application.

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The applicant Bank has produced in evidence the original loan documents at Sr.Nos.AW-1/1 to AW-1/27 which corroborate 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 future interest @10.80% per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum, 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.601/2022 is allowed with costs.

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(B) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.20,74,386/- (Rupees Twenty Lakhs Seventy-Four Thousand Three Hundred and Eighty-Six only) with future interest @9% per annum from the date of filing of the Original Application i.e. 10^th February, 2022 till payment/realization of the amount mentioned in this operative order.

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