Allowed

Bank of India v. Netaji Chougale

DRT3 Apr 2024OA/604/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application filed by Bank of India for recovery of dues from NBFC/Term Loan account. The court rejected a claim for penal interest and directed joint and several liability of the respondents to pay the reduced amount with future interest.

What did the court decide?

Respondents jointly/severally liable to pay Rs. 25,45,819/- with future interest at 7.60% p.a. from 13th April 2022; mortgage recognized; Recovery Certificate issued.

Bank of India versus Netaji Chougale — Contract and Commercial Disputes | DRT (2024)

¶1

Presented on: 13.04.2022 Registered on: 07.07.2022 Decided on: 03.04.2024 Duration: Y M D 1 11 22

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.604/2022

¶3

Bank of India,

¶4

A Banking Company incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act V of 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 At & Post Sadoli Khalsa, Taluka Karveer, District Kolhapur-416 001.

¶5

… Applicant

¶6

Versus

¶7

Mr. Netaji Dattatraya Chougale, (Since deceased, through his legal heirs viz.)-

¶8

a) Mrs. Shantabai Dattatraya Chougale, Age: 64 Years, Occupation: Housewife (Mother of deceased Mr. Netaji Dattatraya Chougale)

¶9

b) Smt. Savita Netaji Chougale, Age: 40 Years, Occupation: Housewife (Widow of deceased Mr. Netaji Dattatraya Chougale)

(OA No.604/2022)

Page 1 of 8

[ npb ]

c) Miss Akshata Netaji Chougale, Age: 15 Years, Occupation: Student (Daughter of deceased Mr. Netaji Dattatraya Chougale)

¶14

d) Master Swapnil Netaji Chougale, Age: 15 Years, Occupation: Student (Son of deceased Mr. Netaji Dattatraya Chougale)

¶15

Defendant Nos. c) and d) since minor through their natural guardian mother Smt. Savita Netaji Chougale,

¶16

Defendant Nos.1(a to d) R/at: At Post Haldi, Taluka: Karveer, District: Kolhapur-416 001.

¶17

Mr. Santosh Dattatraya Chougale, Age: 40 Years, Occupation: Business, R/at: At Post Haldi, Taluka: Karveer, District: Kolhapur-416 001.

¶18

Mr. Dattatraya Doulu Chougale, Age – 69 Years, Occupation-Agriculture R/at: At Post Haldi, Taluka: Karveer, District: Kolhapur-416 001.

¶19

Mr. Ashok Mahipati Shelke, Age: 55 Years, Occupation: Agriculturist, R/at: Shelkewadi Post Washi, Taluka: Karveer, District: Kolhapur.

¶20

… Defendants

¶21

APPEARANCES

¶22

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

(OA No.604/2022)

Page 2 of 8

[ npb ]

TOTAL CLAIM AMOUNT –Rs.25,48,952.18Ps.

¶27

JUDGMENT

¶28

(Delivered on 03^rd April, 2024)

¶29

The Applicant Bank has filed the present Application for recovery of Rs.25,48,952.18Ps. in respect of Term Loan account together with future interest @7.60% p.a. thereon from 13^th April, 2022 plus penal interest, charges and damages thereon till full repayment/realization of entire dues from the defendants.

¶30

Brief facts of the application are as under:

¶31

The applicant Bank contended that Late Mr. Netaji Dattatraya Chougale being defendant No.1 and defendant Nos.2 and 3 are principal borrowers and defendant No.4 is the guarantor for the Term Loan facility availed by deceased defendant No.1 along with defendant Nos.2 and 3.

¶32

The applicant Bank further contended that on 20^th June, 2016 Late Mr. Netaji Dattatraya Chougale and defendant Nos.2 and 3 had approached it for grant of Housing Loan of Rs.20,00,000/-.

¶33

On 04^th July, 2016 the applicant Bank sanctioned and

(OA No.604/2022)

Page 3 of 8

[ npb ]

disbursed the Term Loan of Rs.20,00,000/- to deceased defendant and defendant Nos.2 and 3. The Term was to be repaid in 240 monthly installments of Rs.18,905/commencing from 18 months from first disbursement or completion of house whichever is earlier. The Term Loan was to carry interest @9.70% p.a. (floating).

¶38

The applicant Bank further contended that deceased defendant and defendant Nos.2 and 3 executed loan transaction and security documents as set out in paragraph No.5.5 of the Original Application including creation of Equitable Mortgage by deceased defendant and defendant No.2, by deposit of title deeds of immovable property bearing Grampanchayat Milkat No.393, more particularly mentioned in paragraph No.5.6 as well as Schedule-I of the Original Application.

¶39

The applicant Bank further contended that deceased defendant and defendant Nos.2 and 3 have also signed and executed Acknowledgement of Debt/Securities dated 15^th April, 2019 acknowledging balance outstanding as on that date.

¶40

The applicant Bank further contended that after

(OA No.604/2022)

Page 4 of 8

[ npb ]

availing Housing Term Loan, deceased defendant and defendant Nos.2 and 3 were irregular in payment of the said loan facility and made persistent default in repayment, despite applicant Bank’s repeated requests. Consequently, their loan account became Non-Performing Asset on 31^st January, 2019.

¶45

The applicant Bank further contended that Mr. Netaji Dattatraya Chougale died on 25^th July, 2021 and his legal heirs were brought on record as defendant Nos.1(a) to 1(d).

¶46

Thereafter, on 11^th April, 2022 the applicant Bank through its Advocate issued Demand/Recall Notice calling upon defendants to pay the outstanding amount along with interest thereon within 3 days from the date of receipt of Recall Notice. However, in spite of said Notice, defendants failed and neglected to comply with the said Notice.

¶47

Hence, this application is filed.

¶48

Defendant Nos.1(a) to (d) and 2 to 4 failed to appear despite service of summons. Hence, the application proceeded ex parte against them vide order dated 09^th February, 2024 passed below the Application (Exhibit-1).

¶49

The applicant Bank has filed Claim Affidavit of evidence

(OA No.604/2022)

Page 5 of 8

[ npb ]

(Exhibit-6) of Mr. Mahabaleshwar S. Bhat Hosmane, Authorized Signatory which supports the case of the applicant Bank elucidated in the application.

¶54

The applicant Bank has produced on record the original loan transaction documents (Sr.Nos.AW-1/1 to AW-1/23) which corroborate the case of the applicant Bank.

¶55

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

¶56

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.

¶57

The applicant Bank has claimed total Penal Interest of Rs.3,133/- in Term Loan account which cannot be granted and this amount shall be deducted from the total claim amount. Thus, the total claim amount stands reduced from Rs.25,48,952.18Ps. to Rs.25,45,819.18Ps. (rounded off to Rs.25,45,819/-).

¶58

Hence, I pass the following order:-

(OA No.604/2022)

Page 6 of 8

[ npb ]

ORDER

(A) Original Application No.604/2022 is allowed with costs.

¶64

(B) Defendant Nos.1(a) to (d) and 2 to 4 shall either jointly or severally pay to the applicant Bank towards Term Loan account the sum of Rs.25,45,819/- (Rupees Twenty-Five Lakhs FortyFive Thousand Eight Hundred and Nineteen only) with future interest @7.60% p.a. from the date of filing of the Original Application i.e. 13^th April, 2022 till full realization of the amount mentioned in this operative order.

¶65

(C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of immovable property i.e. All that piece and parcel of property being Grampanchayat Milkat No.393 (its C.S. No.441), admeasuring area 245.25 Square Meters along with construction thereon, at Village Haldi, Taluka Karveer, District Kolhapur within the local limits of Haldi Grampanchayat, Panchayat Samiti

(OA No.604/2022)

Page 7 of 8

[ npb ]

Karveer and Jilha Parishad Kolhapur, and within the jurisdiction of Karveer Sub Registration District Kolhapur, more particularly mentioned in Schedule-I of Original Application.

¶70

(D) The applicant Bank is entitled to sell the mortgaged property to recover its dues.

¶71

(E) Issue Recovery Certificate.

¶72

(F) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant Bank and defendants.

¶73

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

¶74

Place : Pune Date : 03.04.2024

¶75

(OA No.604/2022)

¶76

Page 8 of 8

¶77

[ npb ]

Bank of India v. Netaji Chougale

Case brief

What is this about?

What did the court decide?

Bank of India v. Netaji Chougale

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Union Bank of India versus Vijay Tendolkar

Union Bank of India versus Tukaram Shinde

Bank of Baroda versus M/S. Quality Cement Veet Products and Suppliers Prop. Mr. Netaji Ramchandra Yadav

Bank of India versus Vikas Garbade

Bank of Maharashtra versus Sagar Pansare

Bank of India versus Aasaram Dhaval