Allowed

Bank of India v. M/S. Shri Saraswati Industries

DRT10 Mar 2025OA/1088/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed a recovery application filed by Bank of India against a partnership firm and its partners. The court affirmed the principal debt and reduced future interest to 9% simple per annum, directing the sale of hypothecated properties and issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 21,99,690/- and annual interest at 9% simple from 13.08.2022; direction to sell hypothecated properties; issue of recovery certificate.

Bank of India versus M/S. Shri Saraswati Industries — Banking and Recovery | DRT (2025)

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Presented on: 13.08.2022 Registered on: 09.12.2022 Decided on: 10.03.2025 Duration: Y M D 02 06 27

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1088/2022.

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Bank of India ,

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A Bank constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act 1970 having its Head Office at Star House, C-5, ‘G’Block, Bandra Kurla Complex, Bandra-East, Mumbai-400 051 and having one of its branches at Ichalkaranji Branch, Devaki, 7/5, Adat Peth, Main Road, Ichalkaranji, District Kolhapur-416 115.

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… Applicant

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Versus

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1. M/s Shri Saraswati Industries A Partnership Firm,

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Gat No.746, 747/1, Plot No.22,

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Ganeshnagar, 6^th Laone, Post Ganganagar,

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Ichalkaranji, District Kolhapur-416 115.

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2. Sou. Sulbha Raju Mete

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Age adult, Occ.:- Business,

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3. Mr. Rushabh Raju Mete

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Age adult, Occ.:- Business No.2 & 3 R/at 10/1116, Station Road,

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Behind Fire Fighter, Raj Rajeshwari Nagar,

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Ichalkaranji, District Kolhapur - 416 115.

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…Defendants

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APPEARANCES

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For the Applicant Advocate Satyan Jagtap For the Defendants Ex parte TOTAL CLAIM AMOUNT – Rs.21,99,690.05Ps.

(OA No.1088/2022)

Page 1 of 5

[ANIL]

JUDGMENT (Delivered on 10^th March, 2025)

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The Applicant Bank has filed present application for recovery of aggregate sum of Rs.21,99,690.05Ps. together with future interest @09.05% p.a. with monthly rests from 02.08.2022 till repayment/ realization of the entire dues from the defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that Defendant No.1 is a Partnership Firm and Defendant Nos.2 and 3 are the partners of Defendant No.1 Firm. Defendants on 07.05.2016 approached to the Applicant Bank for Cash Credit Facility to the tune of Rs.30,00,000/-, under CGTMSE Scheme, as working capital for the business of Defendant No.1.

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The Applicant Bank vide its Sanction Letter dated 01.09.2016 granted Cash Credit Loan facility of Rs.30 Lakh as a working capital for business of defendant No.1.

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In order to secure the aforesaid Loan facility, defendants have executed loan and security documents as set out in Para Nos.5.5 of the Original Application, in favor of the Applicant Bank.

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In addition to this, the applicant says that as a security for grant of said facility defendants have hypothecated all the Tangible Movables including in particular stock of Starch Chemical, Fuel Material, Plant and Machinery, Book Debts etc. lying at Gat No.746, 747/1, Plot No.22, Ganeshnagar, 6^th Lane, Post Ganeshnagar,

(OA No.1088/2022)

Page 2 of 5

[ANIL]

Ichalkaranji, District Kolhapur, as mentioned in Para No.5.6 of the Original Application.

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The Applicant Bank contended that defendants have executed acknowledgement of Debts/Securities Letter dated 22.08.2019 for Cash Credit Facility and further admitted an outstanding in the said Cash Credit Account for Rs.18,81,322.78Ps as on 21.08.2019.

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The Applicant Bank contended that defendants failed and neglected to comply with the terms and conditions in which the said facility was granted. Applicant therefore, repeatedly called upon the defendants to regularize the account, but defendants failed and neglected to comply with the same. Thus, the loan account of the defendants became NPA on 09.06.2021.

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Thereafter, the applicant through Advocate also issued legal notice dated 11.03.2022 to the defendants and thereby called upon them to repay the entire amount outstanding under the said loan account. However, defendants failed to comply with the requisitions contained in the legal notice and failed to repay the amounts outstanding in the said loan account.

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Hence, this application is filed.

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per order dated 04.02.2025 passed below Application (Exhibit-1).

(OA No.1088/2022)

Page 3 of 5

[ANIL]

The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Shrikant Ashok Wikhe, Branch Manager and has produced on record the Original Loan Transaction documents at Exhibits AW-1/1 to AW-1/13, which corroborates 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 the reliefs claimed.

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The Applicant Bank has claimed future interest @09.05% per annum with monthly rests for the loan facility. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple), it would be just and reasonable rate of interest.

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10. Hence, I pass the following order:-

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ORDER

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(A) Original Application No.1088/2022 is allowed with costs.

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(B) Defendant Nos.1 to 3 either jointly or severally shall pay sum of Rs.21,99,690/- (Rupees Twenty One Lakhs Ninety Nine Thousand Six Hundred Ninety only) towards Cash Credit Facility A/c

(OA No.1088/2022)

Page 4 of 5

[ANIL]

No.091530110000527 with future interest @ 9% p.a. (simple) from the date of filing of the Original Application i.e.13.08.2022 till payment/ realization of the amount mentioned in this operative order, to the Applicant Bank.

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(C) The aforesaid adjudicated amount is secured by creation of hypothecation of all the Tangible Movables including in particular stock of Starch Chemical, Fuel Material, Plant and Machinery, Book Debts etc. lying at Gat No.746, 747/1, Plot No.22, Ganeshnagar, 6^th Lane, Post Ganeshnagar, Ichalkaranji, District Kolhapur, as mentioned in Para No.5.6 of the Original Application.

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(D) The Applicant Bank is entitled to sell the hypothecated properties to recover the 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 the defendants.

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Sd/-

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(Dilip G. Murumkar) Place : Pune Presiding Officer, Date: 10.03.2025 Debts Recovery Tribunal, Pune

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Note :- Correction carried out vide order dated 20.03.2025 in Speaking to the Minutes with the approval of the Hon’ble P.O. DRT, Pune.

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(OA No.1088/2022)

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Page 5 of 5

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[ANIL]

Bank of India v. M/S. Shri Saraswati Industries

Case brief

What is this about?

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Bank of India v. M/S. Shri Saraswati Industries

Case brief

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