Allowed

State Bank of India v. M/S. Trimurti Stone Industries Prop. Mr. Rajan Waman Angane

DRT2 Sept 2024OA/643/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal at Pune allowed an application by State Bank of India for a recovery certificate against a proprietor engaged in quarrying. The Court and which allowed the WA and why. The Court reduced the claim amount by deducting penal interest and granted future interest at 9% p.a., securing the decree against mortgaged property and ordering issuance of a recovery certificate. Thee pass

What did the court decide?

Recovery certificate directed; Defendant to pay Rs.89,55,026.39 plus future interest at 9% p.a.; Property to be sold for recovery.

State Bank of India versus M/S. Trimurti Stone Industries… — Company and Corporate | DRT (2024)

¶1

Presented on: 19.04.2022 Registered on: 21.06.2022 Decided on: 02.09.2024 Duration: Y M D 02 04 13

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.643/2022.

¶3

State Bank of India ,

¶4

A Banking Company constituted under the State Bank of India Act, 1955, having its Corporate Office at State Bank Bhavan, Madam Cama Road, Nariman Point, Mumbai-400 021 and one of its Branch office known as State Bank of India Sawantwadi Branch and Stressed Assets Recovery Branch, Vardhaman Building, 2^nd floor, 321/A/3, Seven Loves Chowk, Shankar Sheth Road, Pune-42.

¶5

… Applicant

¶6

Versus

¶7

M/s Trimurti Stone Industries Through Proprietor – Mr. Rajan Waman Angane A/p Kariwade, Taluka –Sawantwadi, District – Sindhudurg – 416 510. … Defendant

¶8

APPEARANCES

¶9

For the Applicant Mr. Satyan Jagtap For Defendant Ex parte. TOTAL CLAIM AMOUNT – Rs.1,01,66,792.39 Ps.

(OA No.643/2022)

Page 1 of 6

[ANIL]

JUDGMENT

(Delivered on 2^nd September, 2024)

¶15

The Applicant Bank has filed the present application for recovery certificate of Rs.1,01,66,792.39Ps for Demand Cash Credit Facility as on 10.04.2022 inclusive of interest plus interest thereon @11.25% p.a. with monthly rests with effect from 11.04.2022 till payment or realization of entire dues/debts from the defendant.

¶16

Brief facts of the application are as under:

¶17

Defendant is a proprietary firm engaged in the business of quarrying stone at Kariwade, Taluka Sawantwadi, District Sindhudurg and enjoying various credit facilities from the Applicant Bank since 2005.

¶18

The Defendant has executed registered mortgage deeds dated 14.03.2006 and 19.03. 2008 for aggregate limit of Rs.50 lakhs and Rs.25 Lakhs respectively on the property i.e. all the piece and parcel of land Survey No.99 (Old 151), Hissa No.1A, admeasuring area 01-68-53 Hectare situated at village Bhairavwadi-Kariwade, Taluka Sawantwadi, District Sindhudurg.

(OA No.643/2022)

Page 2 of 6

[ANIL]

In the year 2009, Defendant approached Applicant Bank at Sawantwadi Branch and requested for Demand Cash Credit Facility of Rs.54 Lakhs and Term Loan of Rs.40 Lakhs for his business of quarrying stone. Applicant Bank considered the request of Defendant and granted Demand Cash Credit Facility of Rs.54 Lakhs and Term Loan of Rs.40 Lakhs vide Letter of Arrangement dated 05.02.2009, on certain terms and conditions mentioned therein.

¶23

Further, in the year 2011, on the request of Defendant to renew Cash Credit Facility of Rs.40 Lakhs and existing Term Loan Limit of Rs.14 Lakhs, the Applicant Bank vide Letter of Arrangement dated 15.04.2011 renewed both the accounts.

¶24

Further, in the year 2018, the Defendant approached Applicant Bank and requested for enhancement of Cash Credit Facility of Rs. 40 Lakhs to Rs.60 Lakhs. The Applicant Bank vide Arrangement Letter dated 19.01.2018 considered the request of Defendant and enhanced Cash Credit Facility to Rs.60 Lakhs.

¶25

Defendant has executed fresh new documents for the total cash Credit Facility of Rs.60 Lakhs as set out in Para No.5,14 of the Original Application. So also, the property mortgaged in the mortgaged Deeds dated 14.03.2006 and

(OA No.643/2022)

Page 3 of 6

[ANIL]

19.03.2008, respectively, is available to the Applicant Bank as mortgaged security for the Cash Credit Facility of Rs.60 Lakhs. The said loan facility was payable as per the terms and conditions mentioned in various documents.

¶30

The Term Loan Facility of Rs.40 Lakhs granted to Defendant has been repaid by the Defendant. Thus, Applicant Bank has closed the Term Loan Account, as there are no dues against the Defendant.

¶31

It is contended that the Defendant has availed the Cash Credit Facility of Rs.60 Lakhs but did not pay the installments in time and therefore, the said account became overdrawn and the Applicant Bank has classified it as NPA on 31.12.2018. Hence, the Applicant Bank through Advocate issued Legal Notice dated 23.03.2022 to Defendant calling upon his to repay the entire amount outstanding under the said Loan Account. Despite service of Notice, defendant failed & neglected to comply with the demand in the said Notice.

¶32

Hence, this application is filed.

¶33

Defendant failed to appear despite service of summons. Hence, application proceeded ex-parte against Defendant vide Order dt.27.05.2024 passed below Application (Exh.1).

(OA No.643/2022)

Page 4 of 6

[ANIL]

The Applicant Bank filed Claim Affidavit of evidence (Exhibit-6) of Mr. Jagdish Mohan Nakade, Chief Manager, which supports the case of the applicant elucidated in the application.

¶38

The Applicant Bank has produced in evidence the original loan documents at Annexure AW1-1 to AW1-20, which corroborate the case of the Applicant Bank.

¶39

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

¶40

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

¶41

10 The Applicant Bank has claimed Penal Interest of Rs.12,11,766/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.1,01,66,792.39Ps is reduced to Rs.89,55,026.39Ps .

¶42

11 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.

¶43

12 Hence, I pass the following order: -

(OA No.643/2022)

Page 5 of 6

[ANIL]

ORDER

(A) Original Application No.643/2022 is allowed with costs.

¶49

(B) Defendant shall pay to the Applicant Bank towards Demand Cash Credit FacilityRs.89,55,026.39Ps (Rupees Eighty Nine Lakhs Fifty Five Thousand Twenty Six and Thirty Nine Paise only) with future interest @9% per annum from the date of filing of the Original Application i.e.19.04.2022 till payment /realization of the amount mentioned in this operative order.

¶50

(C) The aforesaid adjudicated amount is secured by the valid and subsisting registered mortgage of immovable property i.e. - all the piece and parcel of land Survey No.99 (Old 151), Hissa No.1A, admeasuring area 01-68-53 Hectare situated at village Bhairavwadi - Kariwade, Taluka Sawantwadi, District Sindhudurg.

¶51

(D) The Applicant Bank is entitled to sell the above mentioned mortgaged immovable properties to recover its dues.

¶52

(E) Issue Recovery Certificate.

¶53

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

¶54

Sd/-

¶55

Place: Pune Date: 02.09.2024

¶56

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

¶57

(OA No.643/2022)

¶58

Page 6 of 6

¶59

[ANIL]

State Bank of India v. M/S. Trimurti Stone Industries Prop. Mr. Rajan Waman Angane

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Trimurti Stone Industries Prop. Mr. Rajan Waman Angane

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Prashant Pratap Ahir versus Hdfc Bank

Central Bank of India versus Sampat Askat

Icici Bank Limited versus Sachin Godambe

Hdfc Bank versus Amol Balasaheb Dhamdhere

Bank of Maharashtra versus M/S Amir Chicken Centre

Bank of India versus Mahesh Choughule