Allowed

Punjab National Bank (Oriental Bank of Commerce) v. Mr. Shrinivas Nagesh Alle Prop M/S Pranoti Packaging

DRT1 Jan 2024OA/774/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of dues totaling Rs. 11,37,116/- along with future interest @9% per annum against the proprietor who defaulted on cash credit facility and failed to appear in court.

What did the court decide?

The defendant shall pay Rs.11,37,116/- plus future interest @9% per annum; Recovery Certificate issued.

Punjab National Bank (Oriental Bank of Commerce)… — Contract and Commercial Disputes | DRT (2024)

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Presented on : 07.02.2019 Registered on : 28.04.2022 Decided on : 01.01.2024 Duration : Y M D 04 10 22

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 774/2022

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Punjab National Bank, (Oriental Bank of Commerce, A body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act V of 1980 having its Corporate office at Plot No. 5, Institutional Area, Sector 32, Gurgaon 122001 and branch at – Manorama Sadan, Patwardhan Chowk, Railway Lines, Solapur 413001.

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.. Applicant

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Versus

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Mr. Shrinivas Nagesh Alle, Proprietor of M/s Pranoti Packaging, Age 28 years, Occ. Business, Plot No. C/19/1, MIDC Akkalkot Road, Solapur 413006 and R/o : 186 A, Sakar Peth, Solapur.

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.. Defendant

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APPEARANCES

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For Applicant Advocate Nisha Ruikar. For Defendant Ex parte.

(OA No. 774/2022)

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TOTAL CLAIM AMOUNT – Rs.11,37,116/-

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JUDGMENT (Delivered on 01^st January, 2024)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.11,37,116/- (by rounding) together with future interest @10.50% per annum with monthly rests 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 : The defendant is a sole proprietor of M/s. Pranoti Packaging. The defendant had approached the applicant Bank requesting Cash Credit facility for his business vide loan application dated 18.02.2016. As per the loan application of defendant, applicant Bank sanctioned and disbursed the Cash Credit facility of Rs.10,00,000/- under CGTMSE Scheme against the security of hypothecation of stock of Raw material, Stock in progress, finish goods, stores and spares and receivables and assets created out of bank finance.

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

(OA No. 774/2022)

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of goods in favour of the applicant Bank. The agreed rate of interest was @10.70% per annum with monthly rests. The defendant has also executed Balance and Security confirmation letter dated 20.01.2018 and thereby confirmed the outstanding amount.

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The applicant Bank contended that the defendant committed defaults in payment of installments and failed to regularize the accounts. Therefore, on 03.01.2019, 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 18.12.2023 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Vikas Joshi, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-8 alongwith 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.

(OA No. 774/2022)

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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 future interest @10.50% per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% 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.774/2022 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank the sum of Rs.11,37,116/- (Rupees Eleven Lakhs Thirty Seven Thousand One Hundred Sixteen only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 07.02.2019 till

(OA No. 774/2022)

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

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