The Debts Recovery Tribunal allowed the Bank of India's application for recovery of Rs.13,38,209/- including principal and interest against the borrower and two guarantors in default of a Demand Loan. The tribunal modified the future interest rate to 9% p.a.
Defendant Nos.1 to 3 to pay Rs.13,38,209/- with future interest @9% p.a.; Issue Recovery Certificate sent to Registrar.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Presented on: 30.08.2018 Registered on: 10.10.2022 Decided on: 16.03.2024 Duration: Y M D 5 6 15
IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.887/2022
Bank of India,
A body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) of 1970, having its Head Office at- Star House, C-5, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai-400 051 and one of its Branch identified as Kurul Branch, Address: At Post Kurul, Taluka Mohol, District Solapur-413 213.
… Applicant
Versus
… Defendants
(OA No.887/2022)
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APPEARANCES
For the Applicant Mr. V.S.S.P. Sarma - Advocate For Defendants Ex parte
TOTAL CLAIM AMOUNT –Rs.13,38,209/-
JUDGMENT
(Delivered on 16th March, 2024)
recovery of aggregate sum of Rs.13,38,209/- in respect of Demand Loan account together with future interest @12.55% p.a. with half yearly rests thereon from the date of filing of Original Application i.e. 30th August, 2018 till repayment/realization of entire dues from defendant Nos.1 to 3.
Defendant No.1 is the principal borrower and defendant No.2 and 3 are the guarantors to loan facilities availed by defendant No.1 from the applicant Bank.
The applicant Bank contended that defendant No.2 is a Sahakari Sakhar Karkhana engaged in the business of manufacturing of Sugar.
The applicant Bank further contended that for the purpose of carrying out activities of sugar factory,
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defendant No.2 avails services of Harvesting and Transport Contractors in every crushing season for harvesting and transportation of sugarcane from the fields to the sugar Mill.
The applicant Bank further contended that for the crushing season 2015-16 the defendant No.2 was required to engage the services of Harvesting and Transport Contractors.
The applicant further contended that Karmavir Kai. Bhimrao Mahadik Sarva Seva Sangh is a Sangh of contractors engaged in supplying transport services and sugarcane chopping services requested the defendant No.2 to give contract of transportation to its members for crushing season 2015-16, vide its Board Resolution bearing No.3 dated 02nd June, 2015.
Accordingly, defendant No.2 made an application on 09th June, 2015 to applicant Bank for grant of loan of Rs.33.92 Crores for crushing season 2015-16 to Kai. Bhimrao Mahadik Sarva Seva Sangh on behalf of individual contractors.
Accordingly, at the instance of defendant No.2, the
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defendant No.1 approached the applicant Bank for Demand Loan of Rs.9,60,000/- and agreed to repay the said loan from the payment of bills to be paid by defendant No.2 for contract work of chopping and transportation of sugarcane etc. and also agreed to repay the said loan personally in case defendant No.2 fails to repay the same in time. Defendant No.3 stood as guarantors for the repayment of the said loan.
Accordingly, the applicant Bank sanctioned to defendant No.1 the Harvesting and Transport Finance/Demand Loan of Rs.9,60,000/- on 03rd September, 2015, with interest @11.95% p.a.
On 03rd September, 2015 defendant No.1 signed and executed the loan transaction and security documents as detailed in 5(vii)(a) to (f) of the Original Application. Defendant No.2 executed stamped Undertaking. Defendant No.3 executed Deed of Guarantee and guaranteed repayment of dues under the aforesaid facility.
The applicant Bank further contended that defendant No.1 had availed the entire sanctioned Limit, however, failed and neglected to comply with the terms and
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conditions of the said Sanction. Therefore, the loan account of defendant No.1 was declared as Non-Performing Asset on 31st March, 2018.
Thereafter, the applicant Bank issued Demand Notice dated 11th June, 2018 to defendant No.2 to repay the entire dues outstanding in the loan account of defendant No.1 with accrued interest.
The applicant Bank further contended that it has also sent Notice under Section 164 of the Maharashtra Cooperative Societies Act, 1960 to the Registrar of Cooperative Societies on 08th January, 2019.
Despite issuance of the aforesaid Notices, defendants did not repay the outstanding.
Hence, this application is filed.
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the application.
ORDER
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severally pay to the applicant Bank towards Demand Loan account, the aggregate sum of Rs.13,38,209/- (Rupees Thirteen Lakhs ThirtyEight Thousand Two Hundred and Nine only) with future interest @9% p.a. from the date of filing of the Original Application i.e. 30th August, 2018 till payment/realization of the amount mentioned in this operative order.
(D) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant Bank and defendants.
Place : Pune Date : 16.03.2024
Sd/- (Dilip G Murumkar) Presiding Officer Debts Recovery Tribunal, Pune
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2 issues framed by the court
Whether the application for recovery of dues against the borrower and guarantors is maintainable in absence of their appearance.
Whether future interest should be granted at the claimed rate or a reduced rate.
1 provisions across 1 enactments
Bank of India
Sanjay Sukhdeo Wagh
M/s. Bhima Sahakari Sakhar Karkhana Ltd.
Baban Baba Wagh
Dilip G Murumkar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
