Allowed

Canara Bank v. M/S. Sai Fabrication, Prop. Shri Sagar Shivaji Solunke

DRT29 Apr 2024OA/894/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Canara Bank for recovery of dues amounting to Rs.20,10,732/- along with future interest at a reduced rate of 9% per annum from a defaulting borrower who failed to appear.

What did the court decide?

Recovery of Rs.20,10,732/- with future interest @9% p.a., sale of hypothecated machinery, and issuance of Recovery Certificate.

Canara Bank versus M/S. Sai Fabrication, Prop. Shri Sagar… — Execution and Attachment | DRT (2024)

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Presented on: 11.09.2019 Registered on: 10.10.2022 Decided on: 29.04.2024 Duration: Y M D 4 7 18

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.894/2022

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Canara Bank

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A Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970 having its Head Office at 112 JC Road, Bangalore in the State of Karnataka and one of its Branch Offices amongst other places at 67, Ganesh Peth, Laxmi Road, Pune-411 002 known as `Laxmi Road Branch’.

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… Applicant

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Versus

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Shri Sagar Shivaji Solunke, Adult, Occ: Business, Proprietor of M/s. Sai Fabrication, Residing at – Gat No..1051, Malthan Phata, Shikrapur, Taluka-Shirur, District-Pune – 412 208.

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… Defendant

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APPEARANCES

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For the Applicant Mr. Ramesh B. Ganbote - Advocate For Defendant Ex parte TOTAL CLAIM AMOUNT –Rs.20,10,732/-

(OA No.894/2022)

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JUDGMENT (Delivered on 29^th April, 2024)

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The Applicant Bank has filed the present Application for recovery of Rs.20,10,732/- in respect of Term Loan account together with future interest @13.45% p.a. with monthly rests thereon from 11^th September, 2019 till repayment/realization of entire dues from defendant.

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Brief facts of the application are as under:

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The defendant is the Proprietor of Sai Fabrication who approached the applicant Bank on 08^th October, 2014 with a request for Term Loan of Rs.14,75,000/- for purchase of machineries.

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The applicant Bank considered the request of defendant and sanctioned and disbursed Term Loan of Rs.14,75,000/on 18^th October, 2014 with interest @11.45% p.a. to be repaid in 84 EMI of Rs.26,991/- and last installment of Rs.26,581/commencing from 18.03.2015.

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In order to secure the repayment of Term Loan, defendant signed and executed Deed of Hypothecation Re: machinery on 18^th November, 2014 thereby hypothecated machinery more particularly mentioned in Schedule “A” of

(OA No.894/2022)

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the said Deed of Hypothecation Re: machinery.

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The applicant Bank contended that after availing the Term Loan, defendant initially made payments in the Term Loan account from time to time and made payment finally on 30^th January, 2017. However, later on defendant was not paying the installments as originally agreed and subsequently committed breach of terms and conditions of Sanction. Resultantly, the Term Loan account of defendant was classified as Non-Performing Asset as per Reserve Bank of India norms.

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The applicant Bank further contended that it has demanded the payment by personal visits and telephonically. However, defendant has given only false promise and has failed to regularize or close the Term Loan account.

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Despite follow up made by the applicant Bank, defendant failed to pay the outstanding.

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Hence, this application is filed.

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Defendant failed to appear despite service of Summons. Hence, the application proceeded ex parte against him vide Order dated 06^th February, 2024 passed below the

(OA No.894/2022)

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application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Shri Anandrao Dhondiba Palave, Branch Manager and Principal Officer, 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 to AW-6) 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 defendant 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 future interest @13.45% p.a. with monthly rests in respect of Term Loan account. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% p.a. (simple), it would be just and reasonable rate of interest.

(OA No.894/2022)

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.894/2022 is allowed with costs.

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(B) Defendant shall pay to the applicant Bank towards Term Loan account the sum of Rs.20,10,732/(Rupees Twenty Lakhs Ten Thousand Seven Hundred and Thirty-Two only) with future interest @9% p.a. from the date of filing of the Original Application i.e. 11^th September, 2019 till full realization of the amount mentioned in this operative order.

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Welding Machine with CO² welding

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Air Compressor-7.5 H.P.

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Heavy Duty Drilling Machine

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Hand Cutter Machine

(OA No.894/2022)

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Fabrication Rack for Material

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6. Office Furniture & Computers,

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Stored/installed at Gat No.1051, Malthan Phata, Shikrapur, Taluka – Shirur, Dist. Pune, more particularly mentioned in Schedule “A” and “B” of Deed of Hypothecation Re: Machinery dated 18.11.2014 of the Original Application.

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(D) The applicant Bank is entitled to sell the hypothecated property 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 Bank and defendant.

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Place : Pune Date : 29.04.2024

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

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(OA No.894/2022)

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Canara Bank v. M/S. Sai Fabrication, Prop. Shri Sagar Shivaji Solunke

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Sai Fabrication, Prop. Shri Sagar Shivaji Solunke

Case brief

What is this about?

What did the court decide?

What the court decided

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