Allowed

Bank of Maharashtra v. Praveen Kumar Menon

DRT7 Mar 2025OA/536/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant Bank's application against two borrowers who defaulted on a housing loan. The Court directed the borrowers, in their absence, to pay the reduced claim amount along with future interest and confirmed the mortgage charge on their property.

What did the court decide?

Direct payment of Rs. 2,87,00,974 including future interest at 8.10% per annum directed; Recovery Certificate issued; Sale of mortgaged property permitted.

Bank of Maharashtra versus Praveen Kumar Menon — Banking and Recovery | DRT (2025)

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Presented on .. 22.04.2022 Registered on .. 03.06.2022 Decided on .. 07.03.2025 Duration .. Y—M—D 02—10--15

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 536/2022.

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Bank of Maharashtra,

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A Banking Company constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its registered office at ―Lokmangal‖, 1501, Shivajinagar, Pune – 411005 and one of its branch office at Yashomangal, 1183-A, 1^st Floor, F.C. Road, Shivajinagar, Pune 411 005.

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… Applicant

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Versus

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1 Mr. Praveenkumar Pradeepkumar Menon, Unit No. 2, Sr. No. 2, Sai Shraddha Enclave, Near Kingston Elysia, Pisoli, Pune 411 060.

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2 Mrs. Sreedevi Praveenkumar Menon, Unit No. 2, Sr. No. 2, Sai Shraddha Enclave, Near Kingston Elysia, Pisoli, Pune 411 060.

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… Defendants

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Sanap ( OA No. 536/2022 ) 1 of 6

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:- Appearances For Applicant Advocate Sudha Koloti. For Defendants Ex parte.

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Total Claim Amount – Rs.2,87,02,472 /-

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JUDGEMNT

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(Delivered on 07^th March, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.2,87,02,472/- together with future interest @8.10% 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 :- Defendant Nos.1 and 2 wanted to purchase a housing property i.e. bungalow with open land, therefore, approached the applicant Bank. Hence, as per the loan application of defendant Nos.1 and 2, the applicant Bank sanctioned and disbursed the Housing loan facility of Rs.2,80,00,000/- to the defendant Nos.1 and 2 vide Sanction Letter dated 03.12.2020.

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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 mortgage of all that piece and parcel

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Sanap ( OA No. 536/2022 ) 2 of 6

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bungalow admeasuring area 807 sq. ft. i.e. 75 sq. mtrs. consisting of Kitchen, Bedroom + Toilet on ground floor constructed on Plot No. 7, total admeauring area 461.17 sq. mtrs. having CTS No. 996 (old S. No. 24+25(P)) in Empress Garden View Co-operative Housing Society Ltd. (previously known as Shikshak Nagar Sahakari Gruh Rachana Sanstha Maryadit) situated at village Wanoworie, Pune, in favour of the applicant Bank. Further, the defendants have also confirmed the said mortgage vide Confirmation Letter dated 13.01.2021.

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The applicant Bank contended that the defendants have committed defaults in payment of installments and failed to regularize the accounts. Hence, on 08.03.2022, 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 07.04.2022, 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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Sanap ( OA No. 536/2022 ) 3 of 6

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as Order dated 10.02.2025 below per passed

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Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Swapnil Bhuyar, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-17 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 applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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The applicant Bank has claimed Penal Interest of Rs.1,498/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.2,87,02,472/- is reduced to Rs.2,87,00,974/-.

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The applicant Bank has claimed future interest @8.10% per annum. Considering the facts of the case, I am of

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Sanap ( OA No. 536/2022 ) 4 of 6

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the opinion that if future interest is granted @8.10% 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. 536/2022 is allowed with proportionate costs.

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B} Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.2,87,00,974/(Rupees Two Crore Eight Seven Lakhs Nine Hundred Seventy Four only) along with future interest @8.10% per annum from the date of filing of the Original Application i.e. 22.04.2022 till full payment/realization of the amount mentioned in this operative order.

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C} The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of all that piece and parcel bungalow admeasuring area 807 sq. ft. i.e. 75 sq. mtrs. consisting of Kitchen, Bedroom + Toilet on ground floor constructed on Plot No. 7, total admeauring area 461.17 sq. mtrs. having CTS No. 996 (old S. No. 24+25(P)) in Empress Garden View Cooperative Housing Society Ltd. (previously known as

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Sanap ( OA No. 536/2022 ) 5 of 6

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Shikshak Nagar Sahakari Gruh Rachana Sanstha Maryadit) situated at village Wanoworie, Pune, more particularly described in the Para No. 5.6 of the Original Application.

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D} The applicant Bank is entitled to sell the mortgaged property to recover its dues.

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

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Sd/( Dilip G. Murumkar ) Place : Pune Presiding Officer Date : 07.03.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 536/2022 ) 6 of 6

Bank of Maharashtra v. Praveen Kumar Menon

Case brief

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Bank of Maharashtra v. Praveen Kumar Menon

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