Allowed

Bank of India v. Kashinath Sangale

DRT25 Jun 2025OA/118/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Bank of India's application for recovery of Rs. 13,44,247 that was declared a non-performing asset. The Tribunal found the defendants jointly and severally liable and granted future interest at 9% per annum.

What did the court decide?

Defendants jointly or severally ordered to pay Rs. 13,44,247 with future interest at 9% per annum; Recovery Certificate issued.

Bank of India versus Kashinath Sangale — Contract and Commercial Disputes | DRT (2025)

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Presented on .. 29.08.2018 Registered on .. 25.01.2023 Decided on .. 25.06.2025 Duration .. Y—M—D 06--09--26

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 118/2023.

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Bank of India,

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A Bank constituted under the Banking Companies (Acquisition & 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 branch office - At Post Kurul, Taluka Mohol, District Solapur 413 213.

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… Applicant

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Versus

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1 Mr. Kashinath Haribhau Sangale, Age Adult, Occ. Agriculture, R/o : At Post Sangalwadi, Taluka Patoda, District Beed – 414 204.

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2 M/s. Bhima Sahakari Sakhar Sarkhana Ltd., Takli Sikandar, Incorporated and registered under the provision of the Maharashtra Cooperative Societies Act, 1960 having registered office : Takli Sikandar, Tal. Mohol, District Solapur – 413248.

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Sanap ( OA No.118/23 ) 1 of 5

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3 Mr. Vinayak Kashinath Sangale, Age Adult, Occ. Agriculture, R/o : At Post Sangalwadi, Taluka Patoda, District Beed – 414 204. … Defendants

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:- Appearances For Applicant Advocate Satyen Jagtap. For Defendants Ex parte.

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Total Claim Amount – Rs.13,44,246=89

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JUDGMENT (Delivered on 25^th June, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.13,44,246=89 by rounding up Rs.13,44,247/- together with future interest thereon @12.55% per annum from the date of Application till realization of the entire dues from the defendants.

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Brief facts of the application are as under :-

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Defendant No. 1 is a Transport Contractor and Principal Borrower. Defendant No. 2, Sahakari Sakhar Karkhana, is engaged in the business of manufacturing of Sugar and avails services of Harvesting and Transport contractors owning trucks/tractors/bullock carts in every crushing season for Harvesting and Transportation of Sugarcane from fields of agriculturists to the premises of Karkhana.

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Karmaveer Kai. Bhimrao Mahadik Sarva Seva Sangha which is a Sangh of contractors, requested defendant No. 2

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Sanap ( OA No.118/23 ) 2 of 5

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to give the contract of transportation of sugarcane to its members for crushing season 2015-16. As per request of said Sangh, defendant No. 2 resolved in its meeting for furnishing guarantee for the repayment of the loan advanced/to be advanced to the contractors.

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Accordingly, defendant No. 2 made an application to the applicant Bank requesting to grant loan of Rs.33.92 Crore for crushing season 2015-16 to Kai. Bhimrao Mahadik Sarva Seva Sangh. The request of defendant No. 2 and the said Sangh was considered by the applicant Bank and sanctioned aggregate/cumulative clean demand loan limit of Rs.24.96 Crores for the harvesting and transportation units to be employed by defendant No. 2 vide Sanctioned Letter dated 02.09.2015.

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At the instance of defendant No.2, defendant No.1 submitted loan application dated 01.09.2015 and after due consideration request of defendant No.1, the applicant Bank sanctioned him Harvesting and Transport Finance/Demand loan of Rs.9,60,000/-. Defendant Nos.2 and 3 stood guarantors for repayment of loan availed by defendant No.1.

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In order to secure the aforesaid loan facility, the defendants have executed necessary loan and security documents in favour of the applicant Bank.

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Sanap ( OA No.118/23 ) 3 of 5

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The applicant Bank contended that defendant No. 1 failed and neglected to regularize the said loan account. Therefore, said loan account of defendant No.1 has been declared as Non Performing Asset on 31.03.2018. Thereafter, on 14.05.2018, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte against the defendants as per Order dated 24.01.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Ashok Kanagi, Officer of the applicant Bank which supports the case of the applicant Bank elucidated in the application. The applicant Bank has also produced on record the original loan transaction documents at Sr. Nos. AW-1-1 to AW-1-19 along with list (Exhibit 7), 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 evidence of the

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Sanap ( OA No.118/23 ) 4 of 5

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applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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The applicant Bank has claimed future interest @12.55% per annum. 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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Hence, I pass the following order.

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O R D E R

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A} Original Application No. 118/2023 is allowed with costs.

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B} Defendant Nos.1 to 3 either jointly or severally shall pay to the applicant Bank the sum of Rs.13,44,247/- (Rupees Thirteen Lakhs Forty Four Thousand Two Hundred Forty Seven only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 29.08.2018 till full payment/realization of the amount mentioned in this operative order.

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C} Issue Recovery Certificate.

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

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Sd/-

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( Dilip G. Murumkar ) Presiding Officer Place : Pune Debts Recovery Tribunal, Date : 25.06.2025 Pune.

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Sanap ( OA No.118/23 ) 5 of 5

Bank of India v. Kashinath Sangale

Case brief

What is this about?

What did the court decide?

Bank of India v. Kashinath Sangale

Case brief

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