Allowed

Punjab National Bank v. Mr. Amararam Chaudhari Prop. M/S. the Beauty Centre

DRT26 Nov 2024OA/649/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of dues against a sole proprietor. The Tribunal corrected the principal amount to Rs.28,52,792/- including unapplied interest but denied penal interest and relief on hypothecated assets due to lack of details. Future interest at 8.50% per annum was granted.

What did the court decide?

Recovery of Rs.28,52,792/- with future interest @8.50% p.a. from 25.05.2022; Issue of Recovery Certificate.

Punjab National Bank versus Mr. Amararam Chaudhari Prop. M/S… — Company and Corporate | DRT (2024)

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Presented on : 25.05.2022 Registered on : 21.07.2022 Decided on : 26.11.2024 Duration : Y M D 02 06 01

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 649/2022.

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Punjab National Bank, Erstwhile Oriental Bank of Commerce, A body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act V of 1970 having its registered office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and branch at – MSME Cluster Pune, Co. OBC Tower, F.C. Road, Pune and thereafter file transferred to Circle Sastra Centre, Pune at Aurora Towers, 9, Moledina Road, Camp, Pune 411 001.

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.. Applicant

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Versus

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Mr. Amararam Chaudhari, Prop. M/s. The Beauty Centre, Near Talathi Office, Sonali Residency, Rahatni, Pune 411 027.

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Also at :- Building A, Shop No.3, Dwarkadhish Residencey, S. No. 120-

(OA No. 649/2022)

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122, Shivar Chowk, Pimple Saudagar, Pune 411027. Also at :- Shop No. 1/3, Dwarkadhish Residencey, Shivar Chowk, Pimple Saudagar, Pune 411027. Also at :- Bera Peli Khar, Dadai, Pali, Rajasthan 306601.

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.. Defendant

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APPEARANCES

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For Applicant Advocate Nahid Shaikh i/b Madhu Abrol. For Defendant Ex parte.

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Total Claim Amount – Rs.29,93,757/-

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JUDGMENT

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( Delivered on 26^th November, 2024 )

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The Applicant Bank has filed the present application for recovery of the sum of Rs.29,93,757/- together with future interest @8.50% per annum from the date of Application till realization of the entire dues from the defendant.

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Brief facts of the application are as under :

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The defendant is sole proprietor of the firm under the name and style M/s. The Beauty Centre. As per the loan application dated 13.11.2018 of the defendant under CGTMSE, the applicant Bank sanctioned the Cash Credit facility of Rs.25,00,000/- to the defendant vide Sanction Letter dated 16.11.2018.

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In order to secure the aforesaid loan facility, the

(OA No. 649/2022)

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defendant executed necessary loan and security documents in favour of the applicant Bank along with deed of hypothecation in favour of the applicant Bank.

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Further, on 19.10.2019 the defendant requested for renewal of Cash Credit facility vide application dated 19.10.2019. Accordingly, the applicant Bank sanctioned the same and renewed the Cash Credit facility vide Sanction Letter dated 04.12.2019. The defendant has also executed Balance and Security Confirmation dated 04.12.2019.

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The applicant Bank contended that the defendant committed defaults in payment of installments and failed to regularize the accounts. Hence, on 31.05.2021, the applicant Bank has classified the account of the defendant as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 10.05.2022, the applicant Bank issued legal Notice to the defendant. Despite service of Notice, the defendant failed and neglected to pay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte as per Order dated 21.06.2024 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit

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1. of Praveen Chandra Potdar, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-16 along with list (Exhibit 7), 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 defendant 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 Ledger balance as on 31.05.2021 of Rs.29,93,757/-, but on perusal of the account extract produced by the applicant Bank itself, outstanding balance amount is of Rs.26,10,415=78 as on 31.05.2021. Thus, the applicant Bank is entitled to recover Rs.26,10,416/-. The applicant Bank has also claimed unapplied interest of Rs.2,42,376/- to which it is entitled. The applicant Bank has also claimed penal interest and legal and other charges, which cannot be granted. Thus, total claim comes to Rs.26,10,416/- + Rs.2,42,376/- i.e. total of Rs.28,52,792/-.

(OA No. 649/2022)

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The applicant Bank has claimed future interest @8.50% per annum. Considering the facts of the case, I am of the opinion that if future interest is granted @8.50% per annum (simple), 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. 649/2022 is allowed with proportionate costs.

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(B) The defendant shall pay to the applicant Bank the sum of Rs.28,52,792/- (Rupees Twenty Eight Lakhs Fifty Two Thousand Seven Hundred Ninety Two only) along with future interest @8.50% per annum from the date of filing of the Original Application i.e. 25.05.2022 till full payment/realization of the amount mentioned in this operative order.

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

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Sd/(Dilip G Murumkar) Place : Pune Presiding Officer Date : 26.11.2024 Debts Recovery Tribunal, Pune.

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(OA No. 649/2022)

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Punjab National Bank v. Mr. Amararam Chaudhari Prop. M/S. the Beauty Centre

Case brief

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Punjab National Bank v. Mr. Amararam Chaudhari Prop. M/S. the Beauty Centre

Case brief

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What did the court decide?

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