Allowed

Bank of India v. Bhausaheb Rayate

DRT6 Sept 2024OA/81/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Bank of India for recovery against three respondents who failed to appear. The Tribunal held the evidence of the applicant sufficient and granted recovery of principal with reduced future interest.

What did the court decide?

Recovery of Rs. 13,46,623.95 plus future interest at 9% per annum simple from 29.08.2018; issuance of Recovery Certificate.

Bank of India versus Bhausaheb Rayate — Contract and Commercial Disputes | DRT (2024)

¶1

Presented on: 29.08.2018 Registered on: 21.01.2023 Decided on: 06.09.2024 Duration: Y M D 06 -- 08

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.81/2023.

¶3

BANK OF INDIA ,

¶4

A Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Star House C-5, ‘G’-Block, Bandra Kurla Complex, Bandra (East), Mumbai-400 051, having branch at Post Kurul, Taluka Mohol, District Solapur-413 213, known as Kurul Branch.

¶5

… Applicant

¶6

Versus

¶7

1. Mr. Bhausaheb Santaram Rayate R/at Post Dongarkini, Taluka Patoda, District Beed - 431 523.

¶8

2. M/s Bhima Sahakari Sakhar Karkhana Ltd. Address- At Post Takali Sikandar, Taluka-Mohol, District Solapur-413 248

¶9

3. Mr. Vasant Sarjerao Raut R/at Post Dongarkini, Taluka Patoda, District Beed - 431 523. … Defendants

¶10

APPEARANCES

¶11

For the Applicant Mr. Satyan Jagtap - Advocate. For the Defendant Ex parte.

¶12

TOTAL CLAIM AMOUNT –Rs.13,46,623.95Ps.

(OA No.81/2023)

Page 1 of 5

[ANIL]

JUDGMENT (Delivered on 06^th September, 2024)

¶17

The Applicant Bank has filed present application for recovery of Rs.13,46,623.95Ps. together with interest thereon @12.55% per annum with half yearly rests, from the date of filing of the application till actual payment and realization of entire dues from the defendants.

¶18

Brief facts of the application are as under:-

¶19

Defendant No.1 is a Principal Borrower and recipient of the Loan Facility granted by the Applicant Bank and Defendant No.2 is Bhima Sahakari Sakhar Karkhana Ltd. engaged in business of manufacturing of Sugar and services of harvesting and transport contractors in every crushing season. Defendant No.2 approached to the Applicant Bank on 09.06.2015 requesting to grant loan of Rs.33.92 Crore for Crushing Season 2015-16 to Kai Bhimrao Mahadik Sarva Seva Sangh. The Applicant Bank sanctioned aggregate/cumulative clean demand loan limit of Rs.24.96 Crores for harvesting & transportation units to be employed by Defendant No.2 for crushing season 2015-16, on certain terms and conditions.

¶20

Defendant No.1 submitted Loan application on 03.09.2015 to the Applicant Bank for loan of Rs.9,60,000/- and

(OA No.81/2023)

Page 2 of 5

[ANIL]

agreed to repay the said loan from the payment of bills to be paid by Defendant No.2. Upon the request of Defendant No.1, the Applicant Bank has sanctioned him Harvesting and Transport Finance/Demand Loan of Rs.09,60,000/-, vide Sanction Letter dated 03.09.2015. Defendant No.1 has executed following security documents for due repayment of the said loan facility i.e. Demand Promissory Note, Declaration, Agreement/ Letter of authority, Consent-cumundertaking and Composite Undertaking etc.

¶25

Defendant No.2 through its Director, Executive Director & Vice Chairman has given stamped undertaking regarding H & T advance for the season 2015-16 repayable by July 2016.

¶26

Defendant No.3 has executed and delivered a Deed of Guarantee dated 03.09.2015 and thereby guaranteed repayment of the dues under the aforesaid facilities to the Applicant Bank.

¶27

Defendant No.2 was to recover the dues of the Applicant Bank from Defendant No.1’s Harvesting and Transport Bill payable to him and the same was to be deposited in the Loan Account of Defendant No.1 with the Applicant Bank.

¶28

It is contended by the Applicant Bank that Defendant No.1 has availed the aforesaid facilities sanctioned by the

(OA No.81/2023)

Page 3 of 5

[ANIL]

Applicant Bank. However, Defendant No.1 failed and neglected to regularize the said loan account and failed to maintain the cash credit account, despite of various reminders. Therefore, the said loan account of Defendant No.1 has been declared as NPA on 31.03.2018. Thereafter, Applicant Bank on 14.05.2018 issued Notice through Advocate to the defendants to pay the outstanding amounts. Despite service of the Notice, defendants failed and neglected to comply with the demand in the said recall Notice.

¶33

Hence, this application is filed.

¶34

Defendant Nos.1 to 3 failed to appear despite service of summons. Hence, the application proceeded ex parte against them vide Order dated 05.06.2024 passed below the Application (Exhibit-01).

¶35

The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Ashok Kanagi, Chief Manager and produced on record the Original Loan Transaction documents at Exhibits AW-1 to AW-19, which corroborates the case of the Applicant Bank.

¶36

I have heard arguments of the learned Advocate for the Applicant Bank.

(OA No.81/2023)

Page 4 of 5

[ANIL]

Since 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.

¶41

Applicant Bank has claimed future interest @12.55% p.a. 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.

¶42

Hence, I pass the following order :-

¶43

ORDER

¶44

(A) Original Application No.81/2023 is allowed with costs.

¶45

(B) Defendant Nos.1 to 3 either jointly or severally shall pay to the Applicant Bank Rs.13,46,623.95Ps (Rupees Thirteen Lakhs Fourty Six Thousand Six Hundred Twenty Three and Ninety Five Paise only) with future interest @9% per annum (Simple) from the date of filing of the Original Application i.e.29.08.2018 till payment/realization of the amount mentioned in this operative order.

¶46

¶47

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

¶48

Sd/Place: Pune (Dilip G. Murumkar) Date: 06.09.2024. Presiding Officer, Debts Recovery Tribunal, Pune.

(OA No.81/2023)

Page 5 of 5

[ANIL]

[ANIL] (OA No.81/2023) Page 6 of 5

Bank of India v. Bhausaheb Rayate

Case brief

What is this about?

What did the court decide?

Bank of India v. Bhausaheb Rayate

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Mr. Umang Bharatbhushan Madan

Bank of India versus Mahesh Choughule

Icici Bank Limited versus Vikas Kotwal

Bank of India versus Sampat Neharkar

Punjab National Bank versus Palak Electronics and Mobile Shopee Prop. Mrs. Nikita Vikas Parakh

The South Indian Bank Ltd. versus Mrs. Rajkumari Ashok Jhosi, Prop. M/S. Raj Enterprises