Allowed

Canara Bank v. Ranjit

DRT21 Feb 2025OA/1336/2023

Case brief

AI extract

What is this about?

In an ex parte original application, the Debts Recovery Tribunal allowed Canara Bank's claim for recovery of dues totaling approximately Rs. 12.79 lakhs for a home loan and Rs. 15.34 lakhs for a cash credit facility against the defaulting respondents, adjusting the claimed future interest rate.

What did the court decide?

Respondents to pay Rs. 12,79,124/- for Home Loan with 8.75% interest and Rs. 15,34,334/- for Cash Credit with 9% interest; entitlement to sell mortgaged property and issue Recovery Certificate granted

Canara Bank versus Ranjit — Consumer Protection | DRT (2025)

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Presented on : 30.08.2023 Registered on : 19.10.2023 Decided on : 21.02.2025 Duration : Y M D 01 05 21

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1336/2023.

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Canara Bank,

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A Body Corporate under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1980 having its head office at J C Road, Bangalore, Karnataka and branch office at Shendre 415 001, Taluka and District Satara.

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.. Applicant

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Versus

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1 Mr. Ranjit Pralhad Deshmukh, Age 46 years, Occ. Business, R/o : Sonashwini Residency, A Wing, Flat No. 504, Fourth Floor, Vanvaswadi 415001, Taluka Satara, District Satara.

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2 M/s Pawan Lift, Through its Prop. – Mr. Ranjit Pralhad Deshmukh, Age 46 years, Occ. Business, R/o : Sonashwini Residency, A Wing, Flat No. 504, Fourth Floor, Vanvaswadi 415001, Taluka Satara, District Satara.

(OA No. 1336/2023)

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Sanap

3 Mr. Jagdish Vijaysinh Shinde, Age 52 years, Occ. Business, R/o : Sonashwini Residency, A Wing, Flat No. 302, Third Floor, Vanvaswadi 415001, Taluka Satara, District Satara. .. Defendants

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APPEARANCES

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For Applicant Advocate Balaso S. Jadhav. For Defendants Ex parte.

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Total Claim Amount – Rs.28,13,458/-

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JUDGMENT (Delivered on 21^st February, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.28,13,458/- together with future interest for Home Loan @8.75% per annum and for Cash Credit facility @9.75% 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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As per the provisions of Amalgamation Scheme, erstwhile Syndicate Bank is amalgamated with Canara Bank i.e. the applicant Bank with effect from 01.04.2020.

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As per the loan application dated 22.02.2017 of defendant No.1, the applicant Bank sanctioned the Home loan of Rs.11,00,000/- to defendant No.1 vide Sanction Letter dated

(OA No. 1336/2023)

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Sanap

29.03.2017. Defendant No.3 stood guarantor for the repayment of loan availed by defendant No.1.

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Further, as per the loan application dated 31.10.2017 of defendant No.2, the applicant Bank sanctioned the Cash Credit Limit of Rs.5,00,000/- to defendant No.2 vide Sanction Letter dated 31.10.2017 and as per application of defendant Nos.2 and 3 dated 25.01.2019, the same was enhanced to Rs.10,00,000/- on 31.01.2019. Defendant No.3 stood guarantor for the repayment of loan availed by defendant No.2.

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In order to secure the aforesaid loan facility, the defendants executed necessary loan and security documents in favour of the applicant Bank along with deed of hypothecation and deed of mortgage of Flat No. 504 built up area admeasuring 58.09 sq. mtrs., situated at Fourth Floor out of Sonashwini Residency, constructed on S. No. 28A/3 situated at Mauje Vanawaswadi, Taluka and District Satara owned by defendant No.1 and Flat No. 302 built up area admeasuring 58.09 sq. mtrs., situated at Second Floor out of Sonashwini Residency, constructed on S. No. 28A/3 situated at Mauje Vanawaswadi, Taluka and District Satara owned by defendant No.3, in favour of the applicant Bank. Further, defendant No.2

(OA No. 1336/2023)

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has executed Acknowledgement of Debt and Security on 30.03.2021 and 07.04.2021.

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 01.11.2020, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 20.02.2023, 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.

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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 05.02.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Yogesh K. Auty, Constituted Authorized Signatory of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-24 along with list (Exhibit 7), which corroborates the case of the applicant Bank.

(OA No. 1336/2023)

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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 for Home Loan @8.75% per annum and for Cash Credit facility @9.75% per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted for Home Loan @8.75% per annum and for Cash Credit facility @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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ORDER

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(A) Original Application No. 1336/2023 is allowed with costs.

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(B) Defendant Nos. 1 and 3 either jointly or severally

(OA No. 1336/2023)

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shall pay to the applicant Bank the sum of Rs.12,79,124/- (Rupees Twelve Lakhs Seventy Nine Thousand One Hundred Twenty Four only) towards Home Loan along with future interest @8.75% per annum from the date of filing of the Original Application i.e. 30.08.2023 till full payment/realization of the amount mentioned in this operative order.

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(C) Defendant Nos. 2 and 3 either jointly or severally shall pay to the applicant Bank the sum of Rs.15,34,334/- (Rupees Fifteen Lakhs Thirty Four Thousand Three Hundred Thirty Four only) towards Cash Credit facility along with future interest @9% per annum from the date of filing of the Original Application i.e. 30.08.2023 till full payment/realization of the amount mentioned in this operative order.

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(D) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of Flat No. 504 built up area admeasuring 58.09 sq. mtrs., situated at Fourth Floor out of Sonashwini Residency,

(OA No. 1336/2023)

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constructed on S. No. 28A/3 situated at Mauje Vanawaswadi, Taluka and District Satara owned by defendant No.1 and Flat No. 302 built up area admeasuring 58.09 sq. mtrs., situated at Second Floor out of Sonashwini Residency, constructed on S. No. 28A/3 situated at Mauje Vanawaswadi, Taluka and District Satara owned by defendant No.3, more particularly described in the Schedule B of the Original Application.

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(E) The applicant Bank is entitled to sell the mortgaged property to recover its dues.

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(F) Issue Recovery Certificate.

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

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Place : Pune Date : 21.02.2025

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

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(OA No. 1336/2023)

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Sanap

Canara Bank v. Ranjit

Case brief

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What did the court decide?

Canara Bank v. Ranjit

Case brief

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