Allowed

Bank of Maharashtra v. Mr Kirtikumar Kanhyalal Devi Prop Yash Metals

DRT28 May 2025OA/1441/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Bank of Maharashtra for recovery of dues aggregating over Rs.4.39 crores from a borrower and two guarantors. The court enhanced interest rate to 9%.

What did the court decide?

Decree for payment of Rs.4,39,66,042/- with future interest at 9% p.a., secured by mortgage over specified properties, and issue of recovery certificate.

Bank of Maharashtra versus Mr Kirtikumar Kanhyalal… — Contract and Commercial Disputes | DRT (2025)

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Presented on: 12.05.2023 Registered on: 06.11.2023 Decided on: 28.05.2025 Duration: Y M D 02 -- 16

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1441/2023.

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Bank of Maharashtra ,

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A Body Corporate constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act 1970 having its Head Office at “Lokmangal” 1501, Shivajinagar, Pune-5 and Branch office at Deccan Gymkhana, J M Road, Shivajinagar, Pune and transferred to Asset Recovery Branch, 444, Somwar Peth, Agarkar High School Building,Pune-411 011.

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… Applicant

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Versus

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Kirtikumar Kanhyalal Devi Prop. – Yash Metals A-S 66, ‘A’ Wing, K.K.Market, S.No.19/A/38 Dhankawadi, Pune-411 043.

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Also at – S.No.674, 675, CTS No.850, Bibvewadi, Pune-46.

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Also at –

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N.31, Additional MIDC, Satara-415 004.

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Also at –

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Flat No.503, Near Mangalwar Tale, Prathamesh Vaibhav Apartment, Vyakateshpura Peth, Satara – 415 002.

(OA No.1441/2023)

Page 1 of 10

[ANIL]

2. Mr. Amol Subhash Jagdale R/at- 277, Koregaon Kumthe Mauli Tal. Koregaon, District Satara-415501.

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3. Mr. Atul Ramesh Nikam R/at- Sangavi Khandobanagar Sunaraki Ramoshi, Tal. Koregaon, Dist. Satara-415501.

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…Defendants

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APPEARANCES

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For the Applicant Mrs. Sudha Koloti - Advocate For the Defendants Ex-parte.

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TOTAL CLAIM AMOUNT – Rs.4,39,66,042/-.

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JUDGMENT

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(Delivered on 28^th May, 2025)

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The Applicant Bank has filed present application for recovery of aggregate sum of Rs.4,39,66,042/- [ i.e.Rs.81,52,556/- towards Term Loan Account No.60305962342; Rs.3,37,39,739/- towards Cash Credit Account No. 60305976310; and Rs.20,73,747/- towards FITL Account No.25049991012 ] with future interest @13.90%, @14.55% & @11.65% per annum respectively with monthly rest from 12.05.2023 till realization of certificate amount from the defendants.

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Brief facts of the application are as under:

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Defendant No.1 was engaged in the business of manufacturing of Machinery and Equipment N.F.C. under the name and style “M/s Yash Metals”, which is a proprietary concern. Defendants No.2 & 3 stood guarantors in their personal capacity to the credit facilities granted by the applicant bank to Defendant No.1.

(OA No.1441/2023)

Page 2 of 10

[ANIL]

Defendant Nos.1 to 3 approached the Applicant Bank for availing financial assistance for an amount of Rs.4,25,00,000/consisting of three facilities i.e. (i)- Term Loan for amount of Rs.75,00,000/-; (ii)- Cash Credit for an amount of Rs.1,50,00,000/and (iii)- Letter of Credit (Inland) for an amount of Rs.2,00,00,000/-, for its business.

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The Applicant Bank on 21.03.2018 considered the request of the defendants for an aggregate amount of Rs.4,25,00,000/- consisting of three facilities i.e. (Term Loan for amount of Rs.75,00,000/-; Cash Credit for an amount of Rs.1,50,00,000/- and Letter of Credit (Inland) for an amount of Rs.2,00,00,000/-), for its business, on certain terms and conditions mentioned in Para No.5.6 of the Original Application.

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Accordingly, the defendants have executed all the relevant loan and security documents in favour of the applicant bank as mentioned in Para No.5.7 of the Original Application.

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Defendants have executed Deed of Hypothecation dated 16.04.2018 and hypothecated present and future movables, plants, machineries, goods, stocks of raw materials, items, inventories, stocks in process, semi-finished goods, stores and spares, stock in trade, goods in process movables in transit and present and future tangible and intangible assets, vehicles, goodwill, trademark, copyright, patent and all the right title interest and benefit of the borrower in upon or over all contracts and agreements and amount and right to collect receive and recovery the same together with all movables, situated or located at any place and now lying being

(OA No.1441/2023)

Page 3 of 10

[ANIL]

affixed or installed at any place at any time and all outstanding monies, claims, bills, receivables, book debts due or to become due to the borrower any time of from time to time and all of the borrower’s rights, title or interest therein in favour of the applicant, more particularly mentioned in Para No.5.8 of the Original Application and in the agreement.

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In addition to this, Defendant No.1 to secure the said loans also created equitable mortgage by deposit of Title Deed vide Memorandum of Record of Deposit of Equitable Mortgage dated 05.05.2018 in favour of the applicant bank and thereby mortgaged the properties mentioned below :-

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( A ) - All that piece and parcel of the Office No. A-S-66 on 2^nd floor, Wing No.A admeasuring about 288.75 sq. fts. Carpet area i.e. 346.50 sq.fts. built up area i.e. 32.20 sq.mtrs. built up in the building known as K.K. Market constructed and situated at bearing S.No.19A/3B in the village of Dhankawadi and S.No.674 and S.No.675 having CTS No.850 in the village of Bibvewadi within the limits of Pune Municipal Corporation, Pune;

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( B ) – All that piece and parcel of land and building at Plot No.12 admeasuring about 117.12 sq. mtrs. Carpet and 129.30 sq. mtrs. consisting of 8 rooms and constructed on all those pieces and parcel of land situated at village Karanje Tarf in the registration District of Satara admeasuring about 117.12 sq. mtrs. at Grampanchayat Shahupuri bearing Milkat No.305/2 RS No.401/1B/2;

(OA No.1441/2023)

Page 4 of 10

[ANIL]

( C ) – All those NA Plots bearing Nos.1 (area 166.31 sq. mtrs); 3 (area 238.50 sq. mtrs.); 4 (area 271.50 sq. mtrs.); 5 (area 162.40 sq. mtrs.); 6 (area 166.14 sq. mtrs.); 7 (area 165.48 sq. mtrs.); 8 (area 231.69 sq. mtrs.); 9 (area 154 sq. mtrs.); 11 (area 148.75 sq. mtrs.); 15 (area 148.39 sq. mtrs.); 31 (area 147.70 sq. mtrs.); 39 (area 144.55 sq. mtrs.); 41 (area 143.07 sq. mtrs.); 42 (area 148.86 sq. mtrs.); and Plot No.43 (area 148.97 sq. mtrs.) collectively admeasuring about at 2586.31 sq. mtrs. situated at Survey No.1024/B at Mahagaon Taluka and District Satara; and

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( D )- All that piece and parcel of factory land and building at Plot No.31, admeasuring total 10,000 sq. mtrs. carpet area and factory shed admeasuring 471.90 sq. mtrs. thereon at MIDC, Koldoli at Satara outside the limits of Satara Municipal Corporation, Taluka and District Satara, more particularly described in Para No.5.11 of the Original Application.

¶46

Defendant No.1 again approached the applicant bank in the year 2019 for Review/Renewal with enhancement of Credit Facilities aggregating for an amount of Rs.8.88,37,000/- consisting of three facilities i.e. Cash Credit enhancement from Rs.1,50,00,000/to Rs.7,00,00,000/-; Letter of Credit (at outstanding balance) Rs.1,27,14,000/- & Term Loan (Present outstanding) Rs.61,23,000/-.

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Applicant Bank considered the said request for Review/Renewal with restructure of Credit Facilities for an amount of Rs.3,76,44,643/- and reduced vide Sanction Letter dated 29.03.2019 on the terms and conditions mentioned in Para No.5.17 of the Original Application.

(OA No.1441/2023)

Page 5 of 10

[ANIL]

In pursuance to the said for Review with enhancement for an aggregating amount of Rs.8,88,37,000/- consisting of three facilities i.e. Cash Credit enhancement from Rs.1,50,00,000/to Rs.7,00,00,000/-, Letter of Credit for Rs.1,27,14,000/- and Term Loan for Rs.61,23,000 vide sanction letter dated 30.09.2019 and to secure the said loan defendants have executed Sanction Letter dated 30.09.2019, in favour of the applicant bank.

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Thereafter, the applicant bank converted the interest into FITL loan for an amount of Rs.14,71,204/- as per RBI guidelines and opened a FITL Loan Account No.25049991012 and disbursed in the said loan account.

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The Applicant Bank contended that defendants were not regular in repayment of the said installments under the Term Loan facilities and the operations under Cash Credit Facility was not satisfactory and hence, all three accounts were classified as NPA on 31.03.2021, as per RBI guidelines.

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Defendant Nos.1 to 3 have violated and failed to stick with the terms and conditions of which they were granted said credit facilities. Thus, defendant Nos.1 to 3 failed to repay the loan as per the terms and arrangement letters. Hence, the Applicant Bank through Advocate Sudha Koloti issued Legal Notice dated 04.01.2023 to the defendants calling upon them to pay outstanding amounts together with costs, however, the defendants failed to pay the demanded amount.

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Hence, this application is filed.

(OA No.1441/2023)

Page 6 of 10

[ANIL]

The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per order dated 11.02.2025 passed below Application (Exhibit-1).

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7.^{The Applicant Bank has filed Claim Affidavit (Exhibit-6) of} Mr. Manish Edlabadkar, Asst. General Manager and Authorized Signatory who has produced on record the Loan Transaction documents at Exhibits.AW-1/1 to AW-1/36, 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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10.^{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 @13.90%, @14.55%, @11.65% p.a, for Term Loan Account, Cash Credit Account, and FITL Account, respectively. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per

(OA No.1441/2023)

Page 7 of 10

[ANIL]

annum (simple) for all the loan facilities, 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.1441/2023 is allowed with costs.

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(B) Defendant Nos.1 to 3 either jointly or severally shall pay sum of Rs . 4,39,66,042 /- (Rupees Four Crores Thirty Nine Lakhs Sixty Six Thousand Fourty Two only) [i.e. Rs.81,52,556/- towards Term Loan Account No.60305962342; Rs.3,37,39,739/- towards Cash Credit Account No. 60305976310; and Rs.20,73,747/- towards FITL Account No.25049991012 ] with future interest @ 9% per annum with monthly rests from the date of filing of the Original Application i.e.12.05.2023 till payment /realization of the amount mentioned in this operative order, to the Applicant Bank.

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(C)

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The aforesaid adjudicated amounts are secured by creating Mortgage regarding immovable property i.e.-

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( A ) - All that piece and parcel of the Office No. A-S-66 on 2^nd floor, Wing No.A admeasuring about 288.75 sq. fts. Carpet area i.e.346.50 sq.fts. built up area i.e. 32.20 sq.mtrs. built up in the building known as K. K. Market constructed and situated at bearing S.No.19A/3B in the village of Dhankawadi and S.No.674 and S.No.675 having CTS No.850 in the village of Bibvewadi within the limits of Pune Municipal Corporation, Pune;

(OA No.1441/2023)

Page 8 of 10

[ANIL]

(D)

The Applicant Bank is entitled to sell the mortgaged immovable properties to recover its dues.

(OA No.1441/2023)

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[ANIL]

(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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Place : Pune Date: 28.05.2025

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

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(OA No.1441/2023)

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Page 10 of 10

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[ANIL]

Bank of Maharashtra v. Mr Kirtikumar Kanhyalal Devi Prop Yash Metals

Case brief

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Bank of Maharashtra v. Mr Kirtikumar Kanhyalal Devi Prop Yash Metals

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