Allowed

Bank of Baroda v. Abusab Gabsavalgi

DRT4 Oct 2024OA/791/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application ex parte for a recovery certificate. The court ordered defendants to pay the principal outstanding plus future interest at 9% per annum, secured by pledged stock, after deducting penal interest.

What did the court decide?

Recovery Certificate issued; Defendants to pay Rs.52,61,279 plus future interest at 9% per annum; Stock security recognized; authority to sell pledged stock granted.

Bank of Baroda versus Abusab Gabsavalgi — Banking and Recovery | DRT (2024)

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Presented on: 20.12.2019 Registered on: 23.08.2022 Decided on: 04.10.2024 Duration: Y M D 04 09 14

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.791/2022.

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Bank of Baroda ,

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A Body corporate constituted by Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Baroda House, Mandavi, Baroda – 390 006, Gujrat and one of its branch at Bank of Baroda, High School Road, Vakhar Bhag, Sangli, Maharashtra 416 416. Versus

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… Applicant

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1. Mr. Abusab Davalsab Gabsavalgi R/at – Post Gundwan, Tal. Bijapur, Karnataka.

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2. Mr. Pradumna Balgonda Patil Proprietor- Abhuday Cold Storage Address- At Post Gat No.105/1B, Tasgaon-Manerajuri Road, Matkunki, Taluka Tasgaon, District Sangli.

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3. CNX Corporation Limited Add -301, 3^rd Floor, Embassy Center, Nariman Point, Mumbai-400 021. AND 12-A, Haji Kasam Building, 3^rd Floor, 66 Tamarind Lane, Fort, Mumbai, Maharashtra - 400 001.

… Defendants

(OA No.791/2022)

Page 1 of 7

[ANIL]

APPEARANCES

For the Applicant

For Defendant

M. V. Kini and Co. Advocates & Solicitors, Pune. Ex-parte

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TOTAL CLAIM AMOUNT –Rs.53,10,650.11Ps.

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JUDGMENT (Delivered on 4^th October, 2024)

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The Applicant Bank has filed present application for recovery certificate of Rs. 53,10,650.11Ps for outstanding amount as on 30.09.2019 alongwith with future interest thereon @09.30% till repayment/realization of entire dues/debts from defendant Nos. 1&2.

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Brief facts of the application are as under:

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Defendant No.1 is a borrower. Defendant No.2 entered in Tripartite Agreement dated 21.02.2018 with the Applicant Bank and Defendant No.3 thereby agreed to abide by certain obligations in respect of Demand Loan/Short Term Loan Facility extended to Defendant No.1 on the basis of pledged/ hypothecated stock of goods in the custody of Defendant No.2. Defendant No.3 has entered into collateral Management Agreement dated 31.12.2016 with Applicant Bank in respect of Loan Facility extended to Defendant No.1.

(OA No.791/2022)

Page 2 of 7

[ANIL]

Defendant No.1 approached and requested the Applicant Bank for availing Demand Loan/Short Term Loan Facility of Rs.47,00,000/- for the purpose of trading of agricultural produce i.e. RAISIN. The Applicant Bank considered the request and sanctioned following credit facility vide Sanction Letter reference Number BOB/ SANGLI/AGRI/ADV/2018-19 dated 28.05.2018.

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Nature of Loan	Sanction Limit	Rate of Interest	Repayment period
Demand	Rs.47,00,000/-	One Year	To be done
Loan/ Short		MCLR+1% (at	within 12
Term Loan		present MCLR is 8.40% + Strategic Premium 0.25%)	months.

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In order to secure the Demand Loan/Short Term Loan of Rs.47,00,000/-, defendant No.1 executed necessary loan transaction and security documents, on 28.05.2018 in favour of the Applicant Bank and the same is secured by pledge of Agricultural Produce i.e. Raisins/commodity, stocks stored in the warehouse or godown or cold storage receipts in any form and other details more particularly described and detailed in the said Loan Agreement.

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The Applicant Bank further submits that it is agreed between the Applicant Bank, Defendant No.1 and Defendant

(OA No.791/2022)

Page 3 of 7

[ANIL]

No.2 and 3 that defendant No.3 will issue Storage Receipt for the pledged goods of Defendant No.1 and stored in the warehouse Godown/cold storage owned by Defendant No.2. 3. It is contended that during the inspection of Cold Storage of Defendant No.2 on 21.12.2018, Authorized Officer of the Applicant Bank found that there is shortfall of boxes/bags of stock, pledged Goods/commodities warehoused with Defendant No.2 comparing with initial pledged stock as per receipt dated 07.05.2018 and accordingly made report to the Applicant Bank. In the report, it was mentioned that the said shortfall of pledged stock is due to sale of the same. It was also agreed between the parties that sale proceeds of pledged goods shall be credited to the Loan Accounts of Defendant No.1 and without consent of the Applicant Bank, the said pledged goods cannot be removed from the Godown/Warehouse/ Cold Storages. Without the consent of the Applicant Bank, said pledged goods were removed. So, the Authorized Officer of the Applicant Bank filed FIR dated 01.07.2019.

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It is contended that despite of various reminders, defendant No.1 failed to repay the loan installments as

(OA No.791/2022)

Page 4 of 7

[ANIL]

principal sum under Demand Loan/Short Term Loan Account No.04410600002581. Hence, the said loan account has become Non-Performing Asset on 31.03.2019, as per Reserve Bank of India norms.

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Thereafter, the applicant Bank on 26.11.2019 through its advocate issued Loan Recall Notice to defendant No.1 calling upon 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 18.04.2024 passed below the Application (Exhibit-01).

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The applicant Bank filed Claim Affidavit of evidence (Exhibit-6) of Mr. Bhrigu Talwar, Authorized Signatory which supports the case of the applicant elucidated in the application.

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The applicant Bank has produced in evidence the loan documents at Annexs.- AW-1 to AW-22 which corroborate the case of the applicant Bank.

(OA No.791/2022)

Page 5 of 7

[ANIL]

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 the evidence of the Applicant Bank. Therefore, the Applicant Bank is entitled for reliefs as claimed.

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10 The Applicant Bank has claimed Penal Interest of Rs.49,371.31Ps. which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.53,10,650.11Ps. is reduced to Rs.52,61,278.80Ps.

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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.

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12 Hence, I pass the following order: -

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ORDER

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(A) Original Application No.791/2022 is allowed with costs.

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(B) Defendant Nos.1 & 2 either jointly or severally shall pay to the Applicant Bank Rs.52,61,279 /- (Rupees Fifty Two Lakhs Sixty One Thousand Two Hundred Seventy Nine only) towards Demand Loan/ Short Term Loan A/c No. 04410600002581 with future interest @9.00% per annum (Simple)

(OA No.791/2022)

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[ANIL]

from the date of filing of the Original Application i.e.20.12.2019 till payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the Applicant Bank with Defendant No.2 vide Storage Receipt No.CNX/BOB/2018-2019/08891, dated 28.05.2018 (Number of Units 5268 Boxes) Net weight 79.02 MT, as set out in Annexure-2 and Schedule-A of the Original Application.

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(D) The Applicant Bank is entitled to sell the pledged stock/property to recover its dues.

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(E) Issue Recovery Certificate. (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: 04.10.2024.

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(OA No.791/2022)

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Page 7 of 7

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[ANIL]

Bank of Baroda v. Abusab Gabsavalgi

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Abusab Gabsavalgi

Case brief

What is this about?

What did the court decide?

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