Allowed

Union Bank of India (Andhra Bank) v. M/S. Shree Samrarth Engineering Works Prop. Mr. Sanket Gokul Dumbre

DRT17 Feb 2025OA/916/2022

Case brief

AI extract

What is this about?

The DT allowed the recovery application filed by Union Bank of India against the defaulting proprietor of Shree Samarth Engineering Works for aggregate dues of Rs. 25.39 Lakhs. The court reduced future interest to 9% per annum and granted adliences over hypothecated assets.

What did the court decide?

Ordered defendant to pay Rs. 25,39,678 with future interest @9% p.a. from 13.12.2019; confirmed security over assets; issued Recovery Certificate.

Union Bank of India (Andhra Bank) versus M/S… — Contract and Commercial Disputes | DRT (2025)

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Presented on: 13.12.2019 Registered on: 23.08.2022 Decided on: 17.02.2025 Duration: Y M D 05 02 04

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.916/2022.

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Union Bank of India , Previously – Andhra Bank

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A Body Corporate constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act of 1970 having its Head office at Dr. Pattabhi Bhawan, Saifabad, Hyderabad and branch at Shivajinagar (1152), Pune-411 005.

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… Applicant

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Versus

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M/s Shree Samarth Engineering Works Through its Proprietor, Mr. Sanket Gokul Dumbre A- Nimbalkar Wasti, Khopade Nagar Behind Shree Data Hardware, Kartaj, Pune- 411 043.

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B- Mayuranand Society S.No.8, Hissa No.6+7 +8/4 & 6+7+8/8, Dhanakawadi, Pune 411 043.

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C- S.No.43, D Datt Nagar, Ambegaon Pune 411 046. D- S.No.39/10, A-I Saisadan Building Ambegaon Bk. Pune-46

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E- Flat Number 1, 1^st floor, Neha Corner Bldg., Gulan Nagar Chowk, Main Road, Dhanakawadi, Pune-411 043.

… Defendant

(OA No.916/2022)

Page 1 of 5

[ANIL]

APPEARANCES

For the Applicant Advocate –Mrs. Pooja Mali, i/b M V Kini & Co. For the Defendant Ex parte

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TOTAL CLAIM AMOUNT –Rs.25,39,678/-

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JUDGMENT

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(Delivered on 17^th February 2025)

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The Applicant Bank has filed present application for recovery of aggregate sum of Rs.25,39,678/- (Consisting of Rs.14,49,681/towards Term Loan Account No.115230100010192 and Rs.10,89,997/towards Cash Credit Loan Account No.115213100000292 as on 02.12.2019 with future interest @12.20% per annum till the date of realization.

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Brief facts of the application are as under:

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Defendant is a Proprietor of M/s Shree Samarth Engineering Works approached to the Applicant Bank on 13.10.2017 to avail Term Loan and open Cash Credit Loan for business purpose under CGTMSE Scheme.

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The Applicant Bank vide its Sanction Letter dated 13.10.2017 granted and disbursed the said loan amounts in the respective loan accounts of the defendant.

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In order to secure the aforesaid Loan facilities, the defendant has executed loan and security documents as set out in Par No.5.6 of the Original Application, in favor of the Applicant Bank.

(OA No.916/2022)

Page 2 of 5

[ANIL]

The Applicant Bank submits that defendant has hypothecated all present and future fixed assets and proposed machinery to be purchased from M/s Shree Sadguru Engineering Works, equipments and other assets to be created out of Term Loan and Milling Machine with all Tooling (2 Quantity); Lathe Machiner (1 Quantity); Agro Drilling Machine (2 Quantity) and CNMC Machine Tooling (1 Set).

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So also, Defendant has created charge over the immovable property i.e.Mayuranand Society, S.No.8, Hissa No.6+7+8 and 6+7+8 Dhankawadi, District Pune, as mentioned in Schedule-A & Schedule-B, of the Original Application.

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The Applicant Bank contended that defendant has utilized the said loan facilities for business purpose and initially made partial repayment of the said credit facilities, but thereafter, violated and failed to stick to the terms and conditions and also failed to maintain relevant records as required under law and therefore they are guilty of mismanagement and negligence. Therefore, the loan accounts of the defendant were classified as NPA on 30.06.2019. Thereafter, the Applicant Bank issued Legal Notice dated 06.12.2019 calling upon them to pay the entire outstanding dues, but defendant failed to repay the loan amount.

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Hence, this application is filed.

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The defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte as per order dated 05.02.2025 passed below Application (Exh-1).

(OA No.916/2022)

Page 3 of 5

[ANIL]

5.^{The Applicant Bank has filed Claim Affidavit (Exhibit-6) of} Mr. Kaushik Mitra, Authorized Signatory and has produced on record the Original Loan Transaction documents at Exhibits.AW-1 to AW-18, 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 defendant 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 future interest @12.20% p.a. for the loan facilities availed. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% p.a. (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.916/2022 is allowed with costs.

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(B) Defendant shall pay an aggregate sum of Rs.25,39,678/- (Rupees Twenty Five Lakhs Thirty Nine Thousand Six Hundred Seventy Eight Only) {i.e. Rs.14,49,681 towards Term Loan Account No.115230100010192 and Rs.10,89,997/- towards Cash Credit Loan A/c No.115213100000292; with future interest @9% p.a. (Simple) from the date of filing of the

(OA No.916/2022)

Page 4 of 5

[ANIL]

Original Application i.e. 13.12.2019 till payment/ realization of the amount mentioned in this operative order, to the Applicant Bank.

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(C) The aforesaid adjudicated amounts are secured by way of hypothecation of fixed assets and proposed machinery to be purchased from M/s Shree Sadguru Engineering Works, equipment and other assets to be created out of Term Loan and Milling Machine with all Tooling (2 Quantity); Lathe Machin (1 Quantity); Agro Drilling Machine (2 Quantity) and CNMC Machine Tooling (1 Set) as mentioned in Schedule-A of the Original Application.

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So also, by way of creating charge over the immovable property i.e.Mayuranand Society, S.No.8, Hissa No.6+7+8 and 6+7+8 Dhankawadi, District Pune, as mentioned in Schedule-B, of the Original Application.

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(D) The Applicant Bank is entitled to sell the hypothecated properties & mortgaged property to recover its dues.

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(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 defendant.

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Sd/-

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Place : Pune (Dilip G. Murumkar) Date: 17.02.2025 Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.916/2022)

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Page 5 of 5

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[ANIL]

Union Bank of India (Andhra Bank) v. M/S. Shree Samrarth Engineering Works Prop. Mr. Sanket Gokul Dumbre

Case brief

What is this about?

What did the court decide?

Union Bank of India (Andhra Bank) v. M/S. Shree Samrarth Engineering Works Prop. Mr. Sanket Gokul Dumbre

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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