Allowed

Canara Bank v. Jignesh Naram

DRT18 Jun 2024OA/634/2022

Case brief

AI extract

What is this about?

This judgment is a Debt Recovery Tribunal order allowing Canara Bank's original application for recovery against two defendants. The defendants failed to appear. The Tribunal directed joint and several payment of the principal amount and fixed future interest at 9% per annum, while confirming the bank's right to sell the mortgaged property. Subjects and issues are inferred from the text.

What did the court decide?

Payment of Rs.24,25,515/- with future interest at 9% p.a.; direction to sell mortgaged property; issuance of Recovery Certificate.

Canara Bank versus Jignesh Naram — Banking and Recovery | DRT (2024)

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Presented on: 30.05.2022 Registered on: 22.06.2022 Decided on: 18.06.2024 Duration: Y M D 2 - 19

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.634/2022.

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CANARA BANK,

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A Body corporate constituted under the Banking Companies Acquisition and Transfer of Undertakings Act, 1970 having its Head Office 112 JC Road, Bangalore, Karnataka and having one of its branches amongst other places at City Survey No.1123, Bhavani Peth Palkhi Vithoba Chowk, Pune-42.

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… Applicant

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Versus

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1. Mr. Jignesh Murarji Naram Age Adult,, Ocup: Business,

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Mr. Murarji Hirjee Naram Age: Adult, Ocup. Business, Both R/at- 1305, Bhavani Peth, Pune- 411 042.

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… Defendants

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APPEARANCES

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For the Applicant Mr. R.B.Ganbote - Advocate For Defendant Ex parte

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TOTAL CLAIM AMOUNT –Rs.24,25,515/-

(OA No.634/2022)

Page 1 of 6

[ANIL]

JUDGMENT

(Delivered on 18^th June, 2024)

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1 The applicant Bank has filed the present application for recovery of sum of Rs.24,25,515/- together with future interest thereon @12.20% per annum with monthly rests from the date of filing of Original Application till repayment/realization of entire dues from the defendants.

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2 Brief facts of the application are as under:

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Defendant No.1 is Proprietor of Ashapura Enterprises and doing business of cleaning. Defendant No.1 & 2 requested the Applicant Bank on 13.06.2017 for Cash Credit of Rs.20,00,000/- as Working Capital for cleaning material business. Defendant No.2 stood guarantor and offered his personal property for securing the Cash Credit to be availed by Defendant No.1. The Applicant Bank sanctioned and disbursed the Cash Credit of Rs.20,00,000/- as working Capital to Defendant No.1.

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In order to secure the credit facilities, the defendants executed necessary loan transaction and security documents. Further, defendants mortgaged the immovable property i.e. All that piece and parcel of Shop No.3 admeasuring 163 Sq.Ft.

(OA No.634/2022)

Page 2 of 6

[ANIL]

on ground floor of the building known as “Shree Swami Samarth Niwas”, constructed on the land bearing City Survey No.1172, Nana Peth, Pune, within the limits of Pune Municipal Corporation, Pune.

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It is contended that defendants have executed Acknowledgment of Debt and Security on 18.08.2020 and confirmed balance in the Cash Credit Account. It is further contended that after availing and utilizing credit facilities, defendants failed to repay the loan amounts as per terms of sanction. Hence, the loan accounts were classified as Non-Performing Asset as per Reserve Bank of India norms.

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Thereafter, the applicant Bank on 31.05.2021 issued Notice U/s 13(2) of SARFAESI Act 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 22.02.2024 passed below the Application (Exhibit-01).

(OA No.634/2022)

Page 3 of 6

[ANIL]

The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Sou. Vibha Vijay Kamble, 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-1/13 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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Considering the facts of the present case, I am of the opinion that if future interest is granted @9% per annum (simple) for all the facilities, it would be just and reasonable.

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10 Hence, I pass the following order: -

(OA No.634/2022)

Page 4 of 6

[ANIL]

ORDER

(A) Original Application No.634/2022 is allowed with costs.

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(B) Defendant No.1 &2 either jointly or severally shall pay to the Applicant Bank towards Ledger Balance in Cash Credit Account Rs.24,25,515/-( Twenty Four Lakhs Twenty Five Thousand Five Hundred Fifteen only) with future interest @9% per annum from the date of filing of the Original Application i.e.30.05.2022 till 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 immovable property i.e All that piece and parcel of Shop No.3 admeasuring 163 Sq. Ft. on ground floor of the building known as “Shree Swami Samarth Niwas”, constructed on the land bearing City Survey No.1172, Nana Peth, Pune, within the limits of Pune Municipal Corporation, Pune, as described in Para No.5.8 of the Original Application.

(OA No.634/2022)

Page 5 of 6

[ANIL]

(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) Presiding Officer Debts Recovery Tribunal, Pune

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Place: Pune Date: 18.06.2024

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(OA No.634/2022)

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Page 6 of 6

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[ANIL]

Canara Bank v. Jignesh Naram

Case brief

What is this about?

What did the court decide?

Canara Bank v. Jignesh Naram

Case brief

What is this about?

What did the court decide?

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