Allowed

Punjab National Bank v. Lilabai Kharat

DRT19 Jan 2024OA/825/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of dues aggregating over Rs.42 lakhs from borrowers. The court directed payment of principal with future interest at reduced rates, issued a recovery certificate, and directed the sale of mortgaged properties.

What did the court decide?

Defendants directed to jointly pay Term Loan and KCC loan amounts totaling Rs.42,73,412/- with future interest at 9% and 7% p.a. respectively. Recovery Certificate issued. Directe

Punjab National Bank versus Lilabai Kharat — Execution and Attachment | DRT (2024)

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Presented on: 15.11.2019 Registered on: 18.05.2022 Decided on: 19.01.2024 Duration: Y M D 4 2 4

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.825/2022

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Punjab National Bank

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A Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 having its Corporate Office at Plot No.4, Sector-10, Dwarka, New Delhi-110 075 and one of the branch at Baramati, having its address atOpposite Sunshine Plaza, Bhigwan Road, Baramati, District Pune-413 102.

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… Applicant

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Versus

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Mrs. Lilabai Chatrapati Kharat, Age-30 years, OccupationAgriculture,

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Mrs. Ujjawala Pravin Kharat, Age-27 years, OccupationAgriculture, Both R/at-Shindewadi, TalukaIndapur, District Pune-413 104.

… Defendants

(OA No.825/2022)

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APPEARANCES

For the Applicant	Mr. Yogesh Hirve - Advocate
For Defendants	Exparte

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TOTAL CLAIM AMOUNT –Rs.42,73,412/-

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JUDGMENT

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(Delivered on 19^th January, 2024)

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The Applicant Bank has filed the present Application for recovery of aggregate sum of Rs.42,73,412/- in respect of 03 Term Loan accounts together with future interest @12.75% p.a. thereon and @11.05% p.a. in respect of KCC loan account from 15^th November, 2019 till full repayment/realization of entire dues from the defendants.

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Brief facts of the application are as under:

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The defendant Nos.1 and 2 approached the applicant Bank on 28^th June, 2014 for grant of loan of Rs.24,00,000/for the purpose of Minor Irrigation and Horticulture.

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On 02^nd July, 2014, the applicant Bank sanctioned and disbursed the Term Loan (Agri.) of Rs.22,00,000/- and KCC loan of Rs.2,00,000/- for the purpose of Grapes Plantation and Water Storage Tank.

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The Term Loan (Agri.) was to be repaid in 7 yearly installments of Rs.3,14,285/- with interest @12.75% p.a. and

(OA No.825/2022)

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KCC loan was to be repaid annually with interest @7% p.a. (floating).

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On 03^rd July, 2014, defendant Nos.1 and 2 signed and executed loan transaction and security documents including Mortgage Deed in favour of the applicant Bank more particularly mentioned in paragraph No.5.5 of the Original Application. The mortgage is registered with Sub Registrar, Baramati at Sr.No.5910/2014 dated 04^th July, 2014.

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Defendant Nos.1 and 2 also executed Hypothecation Agreement dated 07^th August, 2014 and other loan documents as mentioned in paragraph No.5.6 of the Original Application.

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The applicant Bank contended that defendant No.1 also executed Balance and Security Confirmation Letter dated 04^th August, 2017 acknowledging balance outstanding in the Agricultural Term Loan accounts.

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The applicant Bank further contended that after availing the Term Loan (Agri.) and KCC Loan, the defendants were irregular in payment of the EMIs and made persistent default in repayment. Therefore, loan

(OA No.825/2022)

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accounts of defendants became Non-Performing Asset on 29^th September, 2017.

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Thereafter, the applicant Bank through its Advocate issued Recall Notice dated 04^th January, 2019 calling upon defendants to pay the outstanding amount along with interest in their loan accounts. In spite of issuance of Recall Notice, defendants failed and neglected to comply with 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 03^rd January, 2024 passed below the application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Jayant Bhagwat Mahajan, Senior Manager, which supports the case of the applicant Bank elucidated in the application.

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The applicant Bank has produced on record the original loan transaction documents (Sr.Nos.AW-1/1 to AW-1/20) which corroborate the case of the applicant Bank.

(OA No.825/2022)

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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 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 @12.75% p.a. for Term Loan (Agri.) account and @11.05% p.a. for KCC loan account. However, having regard to the facts of the case, I am of the opinion that if future interest is granted @9% p.a. for Term Loan and @7% p.a. for KCC loan account, it would be just and reasonable rate of interest.

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Hence, I pass the following order:-

(OA No.825/2022)

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ORDER

(A) Original Application No.825/2022 is allowed with costs.

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(B) Defendant Nos.1 & 2 shall either jointly or severally pay to the applicant Bank towards Term Loan (Agri.) the sum of Rs.19,67,063/- (Rupees Nineteen Lakhs Sixty-Seven Thousand and Sixty-Three only) with future interest @9% p.a. from the date of filing of the Original Application i.e. 15^th November, 2019 till full realization of the amount mentioned in this operative order.

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(C) Defendant Nos.1 & 2 shall either jointly or severally pay to the applicant Bank towards Term Loan the sum of Rs.17,87,054/- (Rupees Seventeen Lakhs Eighty-Seven Thousand and Fifty-Four only) with future interest @9% p.a. from the date of filing of the Original Application i.e. 15^th November, 2019 till full realization of the amount mentioned in this operative order.

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(D) Defendant Nos.1 & 2 shall either jointly or severally

(OA No.825/2022)

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pay to the applicant Bank towards Term Loan the sum of Rs.3,17,130/(Rupees Three Lakhs Seventeen Thousand One Hundred and Thirty only) with future interest @9% p.a. from the date of filing of the Original Application i.e. 15^th November, 2019 till full realization of the amount mentioned in this operative order.

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(E) Defendant Nos.1 & 2 shall either jointly or severally pay to the applicant Bank towards Cash Credit loan account the sum of Rs.2,02,165/- (Rupees Two Lakhs Two Thousand One Hundred and Sixty-Five only) with future interest @7% p.a. from the date of filing of the Original Application i.e. 15^th November, 2019 till full realization of the amount mentioned in this operative order.

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(F) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of immovable properties i.e.

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All that piece and parcel of land admeasuring 00H 40 Aar, out of Gat No.464, at Village Shindewadi, Taluka Indapur, District Pune and

(OA No.825/2022)

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within the jurisdiction of Sub Registrar Baramati and

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All that piece and parcel of land admeasuring 00H 55 Aar, out of Gat No.466, at Village Shindewadi, Taluka Indapur, District Pune and within the jurisdiction of Sub Registrar Baramati.

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more particularly mentioned in Schedule-I of the Original Application.

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(G) The applicant Bank is entitled to sell the mortgaged properties to recover its dues.

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(H) Issue Recovery Certificate.

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

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Place : Pune Date : 19.01.2024

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

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(OA No.825/2022)

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Punjab National Bank v. Lilabai Kharat

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Lilabai Kharat

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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