Allowed

Union Bank of India (Corporation Bank) v. Shivyogi Swami

DRT19 Oct 2024OA/61/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Pune, allowed an application filed by Union Bank of India against four defendants for recovery of bank loans totaling approximately Rs.73LK to Rs.42LK across various facilities. The court faced default judgments and adjusted future interest to 9% per annum, granted permission to sell mortgaged properties, and issued a recovery certificate.

What did the court decide?

Order allowed; respondents to pay adjudicated sums with 9% interest from date of application; permission granted to sell mortgaged agricultural lands; recovery certificate issued.

Union Bank of India (Corporation Bank) versus Shivyogi Swami — Banking and Recovery | DRT (2024)

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Presented on : 18.06.2021 Registered on : 08.12.2021 Decided on : 19.10.2024 Duration : Y M D 03 04 01

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 61/2022.

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Union Bank of India, Erstwhile known as Corporation Bank, A body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980, having its head office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai - 400021 and Branch Office at H. No. 1777/3-4, Adishwar Building, Opp. Roopam Photo Studio, Jodbhavi Peth, Solapur 413 002.

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.. Applicant

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Versus

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1 Mr. Shivyogi Guruligayya Swami, Age Adult, Occ. Service/Business,

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2 Mrs. Shivkanta Shivyogi Swami, Age Adult, Occ. Service/Business,

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3 Mrs. Kamalabai Vijaykumar Swami, Age Adult, Occ. Service/Business,

(OA No. 61/2022)

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4 Mr. Vijaykumar Basanna Malage, Age Adult, Occ. Service/Business, All R/at : Alage, Post Ankalge, Taluka .. Defendants

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Akkalkot, District Solapur 413 219.

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APPEARANCES

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For Applicant	Advocate Srinivas Y.
For Defendants	Exparte.

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TOTAL CLAIM AMOUNT –Rs.1,46,76,564/-

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JUDGMENT (Delivered on 19^th October, 2024)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.1,46,76,564/- together with future interest for Agricultural Term Loan @11.75% per annum, for Housing Loan i.e. Term Loan @12.50% per annum, for Vehicle Loan i.e. Agricultural Term Loan @10.05% per annum, for Kisan Credit Card facility @10.65% per annum and for Agricultural Term Loan @11.40% 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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As per the loan applications of defendant No.1 and defendant No.2, the applicant Bank sanctioned the following loan facilities

(OA No. 61/2022)

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to defendant No.1 and defendant No. 2.

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Sr. No.	Name of the facility	Amount	Date of sanction	To whom sanctioned
1	Agricultural Term Loan	45,00,000/-	09.02.2007	Defendant Nos.1 & 2
2	Home Loan i.e. Term Loan	15,00,000/-	14.07.2007	Defendant Nos.1 & 2
3	Agricultural Term Loan under CKVLY Scheme.	4,00,000/-	09.10.2009	Defendant No.1
4	Kisan Credit Card	19,20,000/-	17.05.2010	Defendant Nos.1 to 3
5	Agricultural Term Loan	7,00,000/-	09.08.2012	Defendant Nos.1 & 2

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Defendant No.3 stood guarantor for the loan facility at Sr.Nos. 1 and 5 mentioned above. Defendant No.4 stood guarantor for the loan facility at Sr.Nos. 3 and 4 mentioned above.

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In order to secure the aforesaid loan facility, the defendants executed necessary loan and security documents along with deed of mortgage of Agricultural Lands (i) Gat No. 86/3 admeasuring 03H 23.75R, (ii) Gat No. 87/3B admeasuring 01H 64.77R, (iii) Gat No. 84/3 admeasuring 03H 37R and (iv)

(OA No. 61/2022)

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Gat No. 84/2A admeasuring 03H 27R situated at village Alage, Taluka Akkalkot, District Solapur, in favour of the applicant Bank. Further, the defendants have also executed Acknowledgement of Debts and Demand Promissory Note from time to time in favour of the applicant Bank.

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 25.02.2017, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 20.11.2018, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the defendants 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 defendants failed to appear despite service of summons. Therefore, the application proceeded ex-parte against the defendants as per Order dated 12.01.2023 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of G. Veerendar Goud, Chief Manager and Power of

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Attorney Holder of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1 to AW-67 along with list (Exhibit 9), 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 future interest for Agricultural Term Loan @11.75% per annum, for Housing Loan i.e. Term Loan @12.50% per annum, for Vehicle Loan i.e. Agricultural Term Loan @10.05% per annum, for Kisan Credit Card facility @10.65% per annum and for Agricultural Term Loan @11.40% per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum

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(simple) for all loan facilities, 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. 61/2022 is allowed with costs.

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(B) Defendant Nos.1 to 3 either jointly or severally shall pay to the applicant Bank the sum of Rs.73,08,277/(Rupees Seventy Three Lakhs Eight Thousand Two Hundred Seventy Seven only) towards Agricultural Term Loan facility along with future interest @9% per annum from the date of filing of the Original Application i.e. 18.06.2021 till full

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payment/realization of the amount mentioned in this operative order.

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(C) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.10,11,540/(Rupees Ten Lakhs Eleven Thousand Five Hundred Forty only) towards Housing Loan i.e. Term Loan facility along with future interest @9% per annum from the date of filing of the Original Application i.e.

(OA No. 61/2022)

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18.06.2021 till full payment/realization of the amount mentioned in this operative order.

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(D) Defendant Nos.1 and 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.2,51,578/(Rupees Two Lakhs Fifty One Thousand Five Hundred Seventy Eight only) towards Vehicle Loan i.e. Agricultural Term Loan facility along with future interest @9% per annum from the date of filing of the Original Application i.e. 18.06.2021 till full payment/realization of the amount mentioned in this operative order.

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(E) Defendant Nos.1 to 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.42,62,599/(Rupees Forty Two Lakhs Sixty Two Thousand Five Hundred Ninety Nine only) towards Kisan Credit Card facility along with future interest @9% per annum from the date of filing of the Original Application i.e. 18.06.2021 till full payment/realization of the amount mentioned in this operative order.

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(F) Defendant Nos.1 to 3 either jointly or severally shall

(OA No. 61/2022)

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pay to the applicant Bank the sum of Rs.18,42,570/(Rupees Eighteen Lakhs Forty Two Thousand Five Hundred Seventy only) towards Agricultural Term Loan facility along with future interest @9% per annum from the date of filing of the Original Application i.e. 18.06.2021 till full payment/realization of the amount mentioned in this operative order.

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(G) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of Agricultural Lands(i) Gat No. 86/3 admeasuring 03H 23.75R,

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(ii) Gat No. 87/3B admeasuring 01H 64.77R, (iii) Gat No. 84/3 admeasuring 03H 37R and

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(iv) Gat No. 84/2A admeasuring 03H 27R,

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Situated at village Alage, Taluka Akkalkot, Distrit Solapur, more particularly described in the Para No.3-A of the Original Application.

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

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(I) Issue Recovery Certificate.

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(J) 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 : 19.10.2024

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

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(OA No. 61/2022)

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Union Bank of India (Corporation Bank) v. Shivyogi Swami

Case brief

What is this about?

What did the court decide?

Union Bank of India (Corporation Bank) v. Shivyogi Swami

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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