Allowed

Bank of India v. M/S. Sai Engineering Works Prop. Mrs. Seema Rajendra Jain

DRT25 Jul 2024OA/721/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Bank of India for recovery of dues amounting to roughly Rs. 93 lakhs plus future interest from M/s. Sai Engineering Works following defaults on term loans, cash credit, and working capital facilities.

What did the court decide?

Recovery of Rs. 47,41,727 (Term Loan), Rs. 35,33,543 (Cash Credit), and Rs. 10,64,467 (Working Capital Term Loan) along with future simple interest at modified rates from 08.01.2022.

Bank of India versus M/S. Sai Engineering Works Prop. Mrs… — Banking and Recovery | DRT (2024)

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Presented on : 08.01.2022 Registered on : 26.08.2022 Decided on : 25.07.2024 Duration : Y M D 02 06 17

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 721/2022.

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Bank of India, A Banking company incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 and having its head office at Star House, C-5, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai – 400051 and branch at – Dr. Ambedkar Chowk, Opposite PCMC Building, Old Mumbai Pune Highway, Pimpri, Pune 411018.

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.. Applicant

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Versus

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M/s. Sai Engineering Works,

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A proprietary concern through its Proprietor – Mrs. Seema Rajendra Jain, Age 40 years,

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Factory Add. Gat No. 19, Chikhali Moshi Phata, Dehu Alandi Road, Chikhali, Pune 412 114.

(OA No. 721/2022)

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R/at : Flat No.3, Bldg. No. 42, Gajrai Housing Society, Near Lavanya Beauty Parlour, M.P. Nagar, Pimpri, Pune 411 019.

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.. Defendant

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APPEARANCES

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For Applicant Advocate Aarti Ahuja. For Defendant Ex parte.

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TOTAL CLAIM AMOUNT –Rs.93,52,948/-

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JUDGMENT (Delivered on 25^th July, 2024)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.93,52,948/- together with future interest for Term Loan @8.55%, for Cash Credit @9.35% and for Working Capital Term Loan 7.50% 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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As per the loan application of the defendant proprietary concern, the applicant Bank sanctioned the Term Loan of Rs.48,69,000/- and Cash Credit of Rs.25,00,000/- to the defendant under CGTMSE scheme vide Sanction Letter dated 20.11.2018.

(OA No. 721/2022)

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In order to secure the aforesaid loan facilities, the defendant executed necessary loan and security documents along with deed of hypothecation, in favour of the applicant Bank.

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Again as per the loan application dated 27.07.2020 of the defendant, the applicant Bank sanctioned the Working Capital Term Loan (Star GECL) of Rs.10,00,000/- to the defendant under Credit Guarantee i.e. ECLGS by NCGTC vide Sanction Letter dated 31.07.2020.

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Further, the defendant has executed Acknowledgement of Debt/Securities on 11.11.2021 and thereby acknowledged the dues.

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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 30.03.2021, 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 29.10.2021, the applicant Bank issued legal Notice to the defendant, but it was returned unclaimed for Chikhali address and other envelope returned with remark as incomplete address. Despite Notice, the defendant failed and

(OA No. 721/2022)

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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 22.04.2024 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Rajendra Sadashiv Kale, Power of Attorney holder of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1-1 to AW1-33 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.

(OA No. 721/2022)

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The applicant Bank has claimed Penal Interest for Term Loan of Rs.5,413/-, for Cash Credit of Rs.7,629/- and for Working Capital Term Loan of Rs.169/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amounts of Rs.47,47,106/for Term Loan, Rs.35,41,172/for Cash Credit and Rs.10,64,636/- for Working Capital Term Loan are reduced to Rs.47,41,727/- for Term Loan; Rs.35,33,543/- for Cash Credit and Rs.10,64,467/- for Working Capital Term Loan.

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The applicant Bank has claimed future interest for Term Loan @8.55%, for Cash Credit @9.35% and for Working Capital Term Loan 7.50% per annum. Considering the facts of the case, I am of the opinion that if future interest is granted for Term Loan @8.55%, for Cash Credit @9% and for Working Capital Term Loan 7.50% 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. 721/2022 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank the

(OA No. 721/2022)

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sum of Rs.47,41,727/- (Rupees Forty Seven Lakhs Forty One Thousand Seven Hundred Twenty Seven only) along with future interest @8.55% per annum towards Term Loan from the date of filing of the Original Application i.e. 08.01.2022 till full payment/realization of the amount mentioned in this operative order.

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(C) The defendant shall pay to the applicant Bank the sum of Rs.35,33,543/- (Rupees Thirty Five Lakhs Thirty Three Thousand Five Hundred Forty Three only) along with future interest @9% per annum towards Cash Credit facility from the date of filing of the Original Application i.e. 08.01.2022 till full payment/realization of the amount mentioned in this operative order.

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(D) The defendant shall pay to the applicant Bank the sum of Rs.10,64,467/- (Rupees Ten Lakhs Sixty Four Thousand Four Hundred Sixty Seven only) along with future interest @7.50% per annum towards Working Capital Term Loan from the date of filing of the Original Application i.e. 08.01.2022 till full

(OA No. 721/2022)

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

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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 defendant.

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Sd/(Dilip G Murumkar) Place : Pune Presiding Officer Date : 25.07.2024 Debts Recovery Tribunal, Pune.

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(OA No. 721/2022)

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Bank of India v. M/S. Sai Engineering Works Prop. Mrs. Seema Rajendra Jain

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S. Sai Engineering Works Prop. Mrs. Seema Rajendra Jain

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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