Allowed

Punjab National Bank v. M//S. v T Enterprises Prop. Mr. Vikas Sharadchandra Agrawalrwal

DRT12 Feb 2025OA/30/2022

Case brief

AI extract

What is this about?

Ex-parte allowance of recovery application by Punjab National Bank against five defendants for Cash Credit and Term Loans. Court reduced claim by penal interest and adjusted future interest rates to pass final order.

What did the court decide?

Defendants ordered to pay reduced principal amounts jointly or severally with future interest as per judgment, and the bank is entitled to recover dues by selling the hypothecated vehicle.

Punjab National Bank versus M//S. v T Enterprises… — Contract and Commercial Disputes | DRT (2025)

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Presented on: 06.06.2021 Registered on: 16.11.2021 Decided on: 12.02.2025 Duration: Y M D 03 08 06

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.30/2022.

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Punjab National Bank ,

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A Body Corporate constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act of 1970 having its Registered Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and amongst others one of its branch at 156-A-1, Anandghan, Parihar Chowk, Opp. ITI Aundh, Pune 411 007. Then transferred to SASTRA (Recovery) Centre at 9, Moledina Road, Aurora Towers, Camp, Pune - 411 001.

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… Applicant

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Versus

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1. M/s V T Enterprises

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Prop.–Mr.Vikas Sharadchandra Agrawal Age adult, Occ.:- Business, R/at- 383/2, Sinbai Niwas, Gokhale Nagar Road, Model Colony, Pune-411 016.

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2. Mrs. Teena Vikas Agrawal

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Age adult, Occ.:- Business,

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3. Mr. Nilesh Sharadchandra Agrawal

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Age adult, Occ.:- Business

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4. Mr. Sharadchandra Vinodilal Agrawal

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Age adult, Occ.:- Business

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5. Mr. Nirmala Sharadchandra Agrawal Age adult, Occ.:- Business

(OA No.30/2022)

Page 1 of 6

[ANIL]

Nos. 2 to 5 - R/at - Flat No.3, Varda Park, Bavdhan Pashan Road, S.No.1, Hissa No.9/2+10/1, Plot No.8, Tal. Mulshi, District Pune-411 021. …Defendants

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APPEARANCES

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For the Applicant For the Defendants

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Advocate Nisha Ruikar Ex-parte.

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TOTAL CLAIM AMOUNT –Rs.50,46,850/-.

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JUDGMENT (Delivered on 12^th February 2025)

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The Applicant Bank has filed present application for recovery of aggregate sum of Rs.50,46,850/- (i.e.Rs. 48,40,108/- on account of Cash Credit Loan Account No.08614025001554 with future interest @8.20% per annum and Rs.2,06,742/- on account of Term Loan Account No.08616515003863 with future interest @10.35% per annum with monthly rests from 07.06.2021 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 borrower running business of Travel Agency under the name and style V.T. Enterprises. In the year 2013, Defendant No.1 approached the applicant bank requesting for Cash Credit Facility of Rs. 5 Lakhs for the proprietorship firm business.

(OA No.30/2022)

Page 2 of 6

[ANIL]

Applicant Bank considered the request of Defendant No.1 and sanctioned Cash Credit Facility for an amount of Rs.5 Lakhs, on certain terms and conditions.

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Defendants have executed certain documents in favour of the applicant bank to secure the above said Cash Credit Facility as mentioned in Para No.5.3 of the Original Application.

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Defendant No.1 made request to Applicant Bank to enhance the said facility of Rs.5 Lakhs to Rs.20 Lakhs. The request of Defendant No.1 was considered by the Applicant Bank and enhanced Cash Credit Facility for an amount of Rs.20 Lakhs on 03.11.2014, on certain terms and conditions.

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Defendants have again executed certain documents in favour of the applicant bank to secure the above said enhanced Cash Credit Facility as mentioned in Para No.5.5 of the Original Application. Defendant Nos.2 to 5 stood mortgagors and Guarantors to the enhanced Cash Credit Facility to Defendant No.1.

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Again, Defendant No.1 made request to applicant bank to enhance the said cash credit facility of Rs.20 Lakhs to Rs.35 lakhs. The request of Defendant No.1 was considered by the Applicant Bank and enhanced Cash Credit Facility for an amount of Rs.35 Lakhs on 06.08.2015, on certain terms and conditions.

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Defendants have again executed certain documents in favour of the applicant bank to secure the above said enhanced Cash Credit Facility as mentioned in Para No.5.7 of the Original Application.

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Defendant Nos.2 to 5 being guarantors in their personal capacity for the extended Cash Credit Facility of Rs.35 Lakhs, have

(OA No.30/2022)

Page 3 of 6

[ANIL]

executed certain documents in favour of the applicant bank as mentioned in Para No.5.10 & 5.11 of the Original Application.

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On 12.05.2016, Defendant No.1 in his personal capacity made loan application for Term Loan for purchase of Four Wheeler. The said loan of Rs.7.25 Lakhs was sanctioned by the applicant bank on 13.05.2016, on certain terms and conditions.

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Defendant No.1 to secure the Term Loan of Rs.7.25 Lakhs has executed certain documents in favour of the applicant bank as mentioned in Para No.5.14 of the Original Application. So also, Defendant No.1 has hypothecated Car Ertiga VXI B S IV bearing Engine No.K14BN4028018 and Chassis No.MH3EIMG1500389197.

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The Applicant Bank contended that defendant No.1 committed defaults in payment of installments in Cash Credit Loan Account and Term Loan Account as per the terms of sanction. Hence, the accounts of Defendant No.1 with the applicant Bank have become Non-Performing Asset on 29.02.2017 & 30.12.2019, respectively in accordance with the guidelines of Reserve Bank of India.

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The defendants failed and neglected to comply with the terms and conditions in which the said facilities were granted. The accounts of Defendant No.1 was running irregular and the defendants are reluctant to pay the amounts, hence, the Applicant Bank had issued Legal Notice dated 13.0-7.2020 to the defendants and called upon them to repay the entire amount outstanding under the said loan accounts immediately but they failed to coply with the requisitions contained in the Notice.

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Hence, this application is filed.

(OA No.30/2022)

Page 4 of 6

[ANIL]

The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per order dated 30.08.2024 passed below Application (Exhibit-1).

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The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Shailendra Gopinath Pakhare, Senior Manager and has produced on record the Original Loan Transaction documents at Exhibits.AW1-1 to AW1-33, 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 penal interest of Rs.3,50,055/towards Cash Credit Facility and Rs.6,268/- towards Term Loan Facility, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs. 50,46,850/- is reduced to Rs.46,90,527 /-.

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The Applicant Bank has claimed future interest under the Cash Credit Facility @8.20% per annum and under the Term Loan Facility @10.35 per annum with monthly. However, considering the facts of the case, I am of the opinion that if future interest is granted @8.20% per annum (simple) for cash credit Facility and @9% per annum (simple) for Term Loan Facility, it would be just and reasonable rate of interest.

(OA No.30/2022)

Page 5 of 6

[ANIL]

11. Hence, I pass the following order:-

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ORDER

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(A) Original Application No.30/2022 is allowed with costs.

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(B) Defendant Nos.1 to 5 either jointly or severally shall pay sum of Rs.44,90,053/- (Rupees Fourty Four Lakhs Ninety Thousand Fifty Three only] towards Cash Credit Loan Account No.08614025001554 with future interest @ 8.20% p.a. from the date of filing of the Original Application i.e.06.06.2021 till payment /realization of the amount mentioned in this operative order, to the Applicant Bank.

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(C) Defendant No.1 shall pay sum of Rs.2,00,474/ - (Rupees Two Lakhs Four Hundred Seventy Four only] towards Term Loan Account No.08616515003863 with future interest @9% p.a. from the date of filing of the Original Application i.e.06.06.2021 till payment /realization of the amount mentioned in this operative order, to the Applicant Bank.

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(D) The aforesaid adjudicated amount of Rs.2,00,474/towards Term Loan Account No.08616515003863 is secured by hypothecation of the vehicle i.e.–Car Ertiga VXI B S IV bearing Engine No.K14BN4028018 & Chassis No. MH3EIMG1500389197, more particularly mentioned in Para No.5.15 of the Main Application.

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(E) The Applicant Bank is entitled to Sell the hypothecated vehicle to recover its dues towards Term Loan A/c No.08616515003863.

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(F) Issue Recovery Certificate. (G) 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/(Dilip G. Murumkar) Place : Pune Presiding Officer Date: 12.02.2025 Debts Recovery Tribunal, Pune

(OA No.30/2022)

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[ANIL]

[ANIL] (OA No.30/2022) Page 7 of 6

Punjab National Bank v. M//S. v T Enterprises Prop. Mr. Vikas Sharadchandra Agrawalrwal

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M//S. v T Enterprises Prop. Mr. Vikas Sharadchandra Agrawalrwal

Case brief

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What did the court decide?

What the court decided

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