The Debt Recovery Tribunal allowed an application filed by Bank of India to recover a term loan amount of Rs. 56.70 lakh along with future interest from the borrowers who defaulted on repayment, enforcing hypothecated securities.
Recovery of Rs. 56,70,653.49 with future interest at 12% p.a., enforcement of hypothecated securities, and issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
ORIGINAL APPLICATION NO.348 OF 2023
DEBTS RECOVERY TRIBUNAL No.2, MUMBAI
PRESIDING OFFICER: HARISH KUMAR KAUSHIK
ORIGINAL APPLICATION NO.348 OF 2023
Date of Institution: 17.05.2022 Date of Decision: 13.04.2026
TOTAL CLAIM AMOUNT : ₹ 56,70,653.49/-
BANK OF INDIA,
A bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970, having their Head Office at Star House, C-5. G-Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, and one of its Branch Office Amongst other known as Vile Parle (West) Branch, situated at 377, Smit Kiran Building, S.V. Road, Vile Parle (West), Mumbai – 400 056, through its Constituted Attorney, Mr. Rajesh Kumar Tiwari, Chief Manager of the Applicant.
… Applicant
Versus
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ORIGINAL APPLICATION NO.348 OF 2023
APPEARANCES For the Applicant : Mr A. B. Shinde - Advocate
For Defendants : None
J U D G M E N T
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ORIGINAL APPLICATION NO.348 OF 2023
The details of the claim amount are as under: -
| Sr | Nature of Facili ty | O/s. inclusiv e of |
|---|---|---|
| No | Unapplied i nterest | |
| 1 | Ter m Loan Facility |
₹55, 31, 476. 63/- |
| Account No. 005870410000023 |
||
| 2. | Unapplied Interest @ |
₹1,39, 176. 86/ - |
| 9.55% p.a. from |
||
| 12.01. 2022 t o 07. 05.2022 | ||
| Total A m ou nt as on |
₹ 56,70 ,653 .49/ - | |
| 07.05 .2022 at |
||
| contractual rate. |
(3) Defendant no.1, a proprietory concern through its proprietrix i.e. Defendant no.2 are the principal borrowers who approached the Applicant Bank and sought financial assistance by way of Term Loan Facility. Pursuant to the loan application made by defendants, the Applicant sanctioned the loan vide Sanction Letter dated 16.01.2019 in sum of ₹47,00,000/- (Rupees Forty-Seven Lakhs Only) payable in 84 EMIs of ₹81,633/- (Rupees Eighty-One Thousand Six Hundred Thirty-Three Only) with accrued interest. The instalments to meet working capital requirements of the unit. The First Installment starting from June 2019.
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ORIGINAL APPLICATION NO.348 OF 2023
The loan is covered under CGTMSE Scheme.
The details of the Sanction amount are as under: -
| Sr | Date of |
Amount | ROI | Security | |
|---|---|---|---|---|---|
| No | Sanction | ||||
| 1 | 16.01.2019 | ₹47,00,000/- | 2% CRP |
Hypothecated | |
| over 0.30 |
Camera equip |
ments, | |||
| BSS above |
Lenses and |
semi- | |||
| annual | finished goods, | spare | |||
| week | parts, compo |
nents | |||
| equivalent to 11% . |
(including spare and stores relat plant and mac |
parts ing to hinery |
|||
| both present |
and | ||||
| future situate |
at |
||||
| Charkop, Kandiv | ali. | ||||
| Total Amount |
₹47,00,000/- | - | - |
The details of the documents executed by the Defendants are as under: -
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ORIGINAL APPLICATION NO.348 OF 2023
16.01.2019;
16.01.2019;
(5) After availing the loan, defendants did not adhere to the financial discipline and committed default
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ORIGINAL APPLICATION NO.348 OF 2023
in payment of instalments and repayment of the loan and accordingly the accounts of the borrowers were declared as Non-Performing Assets (N.P.A.) on 12.01.2022 as per RBI Guidelines. Therefore, on 20.01.2022, the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of ₹55,28,976.63/(Rupees Fifty-Five Lakhs Twenty-Eight Thousand Nine Hundred Seventy-Six and paisa Sixty-Three Only) under Term Loan Account No. 00587041000023 with future interest @ 9.55% per annum with monthly rest plus 2% per annum penal interest due from 12.01.2022 till payment and/or realization within 15 days from receipt of the said notice. Despite notice, defendant nos. 1 and 2 failed and neglected to pay.
(6) As on 17.05.2022, there was owing, due and payable by defendants to the applicant the aggregate sum of 56,70,653.49/- (Rupees Fifty-Six Lakhs Seventy Thousand Six Hundred Fifty-Three and Paise Forty-nine Only) under Term Loan Account No. 00587041000023 with future interest @ 9.55% per annum with monthly rest thereon. The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of the banking business.
(7) Since, defendants failed and neglected to make
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ORIGINAL APPLICATION NO.348 OF 2023
the payment, the applicant was left with no other alternate but to file the Original Application which was presented on 17.05.2022.
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ORIGINAL APPLICATION NO.348 OF 2023
the applicant bank.
ORDER
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ORIGINAL APPLICATION NO.348 OF 2023
hypothecated properties as per law failing which the applicant has right to proceed to sell the hypothecated properties and recover dues as per law.
(Harish Kumar Kaushik) Presiding Officer, DRT-2, Mumbai
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1 issue framed by the court
Whether the Original Application filed by the Bank under Section 19(1) of the RDB Act for recovery of dues against defaulting borrowers could be allowed.
2 provisions across 2 enactments
Bank of India
M/S Sanyogita Movies
Sanyogita Ojha
Harish Kumar Kaushik
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
