Allowed

Canara Bank v. Kalpavruksha Agro Industries

DRT19 Oct 2024OA/804/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application by Canara Bank for recovery of dues from a partnership firm and its partners/guarantors. Being an ex-parte proceeding, the court awarded the principal amount reduced the claimed compound interest to 9% simple interest per annum, and directed execution against mortgaged flats.

What did the court decide?

Defendants to pay Rs.57,46,312/- with future interest @9% p.a. Simple from filing date; execution against specified immovable properties directed.

Canara Bank versus Kalpavruksha Agro Industries — Execution and Attachment | DRT (2024)

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Presented on: 09.09.2019 Registered on: 07.05.2022 Decided on: 19.10.2024 Duration: Y M D 05 01 10

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.804/2022.

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CANARA BANK ,

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A Body corporate constituted under the Banking Companies Acquisition and Transfer of Undertakings Act, 1970 having its Head Office 112 JC Road, Bangalore, Karnataka-560002 and having one of its branches amongst other places at Deep Heights, Sankalpnagari, Vadgaonsheri, Nagar Road, Pune-411 … Applicant 014.

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Versus

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1. M/s Kalpavruksha Agro Industries

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A Partnership Firm – at - Gat No.3421,

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Sanaswadi Road, Talegaon Dhamdhere,

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Taluka Shirur, District Pune.

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2. Mr. Mahendra Sainath Mandlik

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3. Mr. Javed Ibrahim Inamdar

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4. Mrs. Anjum Javed Inamdar All Residing at –Kshitij Vihar, Phase-3, Talegaon Dhamdhere Road, Shikrapur, … Defendants Taluka Shirur, District Pune.

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APPEARANCES

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For the Applicant Mr. R. B. Ganbote - Advocate. For the Defendants Ex-parte.

(OA No.804/2022)

Page 1 of 9

[ANIL]

TOTAL CLAIM AMOUNT –Rs.57,46,312/-. JUDGMENT

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(Delivered on 19^th October, 2024)

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The Applicant Bank has filed present application for recovery of aggregate sum of Rs.57,46,312/- i.e. Rs.12,86,300/- towards Term Loan Account with future interest thereon @12.40% p.a. from Defendant Nos. 1 to 3 and Rs.44,60,012/- towards Cash Credit Account with future interest thereon @13% p.a. from Defendant Nos.1to4, till repayment of the entire dues.

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Brief facts of the application are as under:

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Defendant No.1 is a Partnership Firm and Defendant Nos.2 and 3 are its partners. Defendant No.1 to 3 approached to the Applicant Bank and requested for Term Loan of Rs.20,00,000/- for purchase of machinery, on 20.11.2014.

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Applicant Bank considered the request of Defendant No.1 to 3 and sanctioned Term Loan of Rs.20,00,000/- on 25.11.2014, on certain terms and conditions. Defendant Nos.2 and 3 are guarantors for the said Term Loan.

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In order to secure the Term Loan, Defendant Nos.1 to 3 have executed necessary loan transaction and security documents, in favour of the Applicant Bank for securing the said Term Loan as set out in Para No.5.6 of the Original Application.

(OA No.804/2022)

Page 2 of 9

[ANIL]

Defendant No.1 through Defendant Nos.1 to 3 again approached the Applicant Bank in December 2014 and requested for Cash Credit of Rs.30,00,000/- as Working Capital for its business purpose. Defendant Nos.2 to 4 are the guarantors for securing the Cash Credit to be availed by Defendant No.1. The Applicant Bank considered the request of Defendant Nos. 1 to 4 and sanctioned Cash Credit of Rs.30,00,000/- on 27.12.2014 on certain terms and conditions.

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So also, Defendant No.2 has deposited Title Deeds on 26.12.2014 and created Equitable Mortgage in favour of the Applicant Bank for securing Cash Credit of Rs.30,00,000/- of the following immovable properties.

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(A)- All that piece and parcel of Flat No.28 admeasuring 26x11 sq.ft. in the building constructed at Gat No.1313/2 at village Shikrapur within the limits of Grampanchayat Shikrapur and also within the limits of Registration District Pune, Sub Registrar District Shirur, District Pune, as

(OA No.804/2022)

Page 3 of 9

[ANIL]

mentioned in Para No.5.12 (a) of the Original Application.

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(B)- All that piece and parcel of Flat No.32 admeasuring 32.62 sq.Mtrs. in the building constructed at Gat No.1313/2 at village Shikrapur within the limits of Grampanchayat Shikrapur and also within the limits of Registration District Pune, Sub Registrar District Shirur, District Pune, as mentioned in Para No.5.12 (b) of the Original Application.

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So also, Defendant No.4 has deposited Title Deeds on 26.12.2014 and created Equitable Mortgage in favour of the Applicant Bank for securing Cash Credit of Rs.30,00,000/- of the following immovable properties.

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All that piece and parcel of Flat No.9 admeasuring 44.46 Sq.Mtrs. in the building constructed at Gat No.1313/2 at village Shikrapur within the limits of Grampanchayat Shikrapur and also within the limits of Registration District Pune, Sub Registrar District Shirur, District Pune, as mentioned in Para No.5.14 of the Original Application.

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It is contended that Defendant Nos.1 to 4 requested the Applicant Bank for renewal of the existing Cash Credit Facility with enahcement from Rs.30,00,000/to Rs.55,00,000/- on 09.03.2016 and pursuant to the said request, the Applicant Bank sanctioned said request and enhanced the

(OA No.804/2022)

Page 4 of 9

[ANIL]

Credit Facility by Rs.25,00,000/-. Defendant Nos.1 to 4 have executed certain documents on 10.03.2016 in favour of the Applicant Bank for securing the Cash Credit of Rs.55,00,000/as set out in Para No.5.18 of the Original Application.

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Defendant No.2 has executed various loan documents in respect of said Cash Credit Facility, in favour of the Applicant Bank. So also, Defendant No.2 has created security interest over the following immovable properties by way of Equitable Mortgage on 10.03.2016

(OA No.804/2022)

Page 5 of 9

[ANIL]

So also, Defendant No.4 has deposited Title Deeds on 10.03.2016 and created Equitable Mortgage in favour of the Applicant Bank for securing Cash Credit of Rs.55,00,000/- of the following immovable properties.

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It is further contended that after availing and utilizing Term Loan facility, the Defendants failed to repay the loan amounts as per terms of sanction. Therefore, the Applicant Bank has decided to terminate the Credit Facilities of Defendant No.1 and has demanded payment from Defendant Nos.1to4 by personal visits and telephonic calls and reminders However, Defendants have failed to pay the installments and also failed to regularize the account.

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Hence, this application is filed.

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Defendant Nos.1to4 failed to appear despite service of summons. Hence, the application proceeded ex-parte vide Order dated 19.04.2024 passed below Application (Exh.-01).

(OA No.804/2022)

Page 6 of 9

[ANIL]

Applicant Bank filed Claim Affidavit of evidence (Exhibit-6) of Mr. Amit Kumar, Manager, which supports the case of the Applicant elucidated in the application.

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Applicant Bank has produced in evidence original loan documents at Sr.Nos.AW-1 to AW-31, which corroborate 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 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 Applicant Bank has claimed future interest @12.40% p.a. for Term Loan and @13.00% p.a. for Cash Credit Facility. 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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11 Hence, I pass the following order: -

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ORDER

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(A) Original Application No.804/2022 is allowed with costs.

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(B) Defendant Nos.1 to 3 jointly or severally shall pay to the Applicant Bank amount of Rs.12,86,300/towards Term Loan Account and Defendant Nos.1

(OA No.804/2022)

Page 7 of 9

[ANIL]

to 4 jointly or severally shall pay amount of Rs.44,60,012/-( Total amount Rs.57,46,312/- Rupees Fifty Seven Thousand Fourty Six Thousand Three Hundred Twelve only) with future interest @ 9% p.a. (Simple) from the date of filing of the Original Application i.e.09.09.2019 till payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by executing registered Mortgage Deed of the following immovable properties in favour of the Applicant Bank.

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( A )- All that piece and parcel of Flat No.28 admeasuring 26x11sq.ft. in the building constructed at Gat No.1313/2 at village Shikrapur within the limits of Grampanchayat Shikrapur and also within the limits of Registration District Pune, Sub Registrar District Shirur, District Pune, as mentioned in Para No.5.20 (a) of the Original Application.

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( B )- All that piece and parcel of Flat No.32 admeasuring 32.62 sq. Mtrs. in the building constructed at Gat No.1313/2 at village Shikrapur within the limits of Grampanchayat Shikrapur and also within the limits of Registration District Pune, Sub Registrar District Shirur, District Pune, as mentioned in Para No.5.20 (b) of the Original Application.

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( C ) All that piece and parcel of Flat No.9 admeasuring 44.46 Sq. Mtrs. in the building constructed at Gat No.1313/2 at village Shikrapur within the limits of Grampanchayat Shikrapur and also within the limits of Registration District Pune, Sub Registrar District Shirur, District Pune, as

(OA No.804/2022)

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[ANIL]

mentioned in Para No.5.22 of the Original Application.

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

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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 defendants.

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

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Place: Pune Date: 19.10.2024

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(OA No.804/2022)

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Page 9 of 9

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[ANIL]

Canara Bank v. Kalpavruksha Agro Industries

Case brief

What is this about?

What did the court decide?

Canara Bank v. Kalpavruksha Agro Industries

Case brief

What is this about?

What did the court decide?

What the court decided

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