Allowed

Punjab National Bank v. M/s. Sai Prasad Enterprises

DRT25 Feb 2026OA/435/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of dues amounting to Rs. 27,47,422/-, excluding penal interest and charges not supported by evidence. The tribunal fixed future interest rates at 9% for cash credit and 8.40% for term loans and held respondents liable only to the extent of inherited property.

What did the court decide?

Directed defendants to pay Rs. 27,47,422/- comprising principal and future interest @9% p.a. for Cash Credit and @8.40% p.a. for Term Loan; Recovery Certificate issued. Defendants liable only to exten

Punjab National Bank versus M/s. Sai Prasad Enterprises — Banking and Recovery | DRT (2026)

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Presented on: 21.10.2022 Registered on: 12.04.2023 Decided on: 25.02.2026 Duration: Y M D 03 04 04

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.435/2023.

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Punjab National Bank ,

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A Nationalized Bank, Government of India Undertaking, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 having its office at Punjab National Bank, Circle 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 Sai Prasad Enterprises Proprietor–Mr. Basavraj Krishnat Patil (Deceased)

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Through Legal Representatives /Heirs

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1A) - Smt. Sangita Basavraj Patil

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Age adult, Occ.: - Housewife ,

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1B) - Ms. Amruta D/o Basavraj Patil

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Age adult, Occ.: - Student ,

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1C ) – Mast. Vijay Basavraj Patil

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Age Minor, Occ.: - Student,

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Since Minor through Natural Guardian Smt. Sangita Basavraj Patil All R/at – 35/1, Nandanvan Colony, Dagdoba Chowk, Chinchwade Nagar, Chinchwad, Pune – 411 033.

…Defendants

(OA No.435/2023)

Page 1 of 7

[ANIL]

APPEARANCES

For the Applicant Advocate Mr. Satyan Jagtap For the Defendants Ex-parte.

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TOTAL CLAIM AMOUNT –Rs.29,25,493/-.

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JUDGMENT (Delivered on 25^th February, 2026)

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The Applicant Bank has filed present application for recovery of aggregate sum of Rs.29,25,493/- (i.e. Rs.24,62,449/- towards Cash Credit Account and Rs.4,63,004/- towards Working Capital Term Loan Account) with future interest @10.95% p.a. along with 2% penal interest and @8.40% p.a. respectively with effect from 04.10.2022 till payment or 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 Proprietary Firm and deceased Mr. Basavraj Krishnat Patil was its Proprietor. The firm was engaged in the business of Fabrication and all type of work. Defendant No.1 Mr. Basavraj Krishnat Patil is survived by his legal representatives/ heirs i.e. Defendant Nos.1A, 1B and 1C.

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Deceased Defendant No.1 was enjoying Cash Credit Facility since the year 2013. Deceased Defendant No.1 in the year 2019 approached to the applicant bank requesting for enhancement of said Cash Credit Facility of Rs.10 lakhs to Rs.20 Lakhs for day to day Working Capital requirement of the Firm.

(OA No.435/2023)

Page 2 of 7

[ANIL]

Applicant Bank considered the request of deceased Defendant No.1 and granted and Cash Credit Facility of Rs.10 Lakhs was enhanced to Rs.20 Lakhs on 14.01.2019, on certain terms and conditions.

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In order to secure the aforesaid Loan facility, deceased defendant No.1 executed loan and security documents as set out in Para Nos.5.6 of the Original Application, in favor of the Applicant Bank.

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Deceased Defendant No.1 hypothecated with the applicant bank entire Current Assets of the Firm (present and future) First and Exclusive Charge by way of hypothecated of entire Fixed Assets of the Firm.

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The applicant bank submits that due to Covid-19 deceased Defendant No.1 was in financial crunch and was not able to maintain Cash Credit Account with the applicant and hence requested financial help for availing facility under Guarantee Emergency Credit Line (GECL).

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The request of deceased Defendant No.1 was considered by the applicant bank and Working Capital Term Loan (WCTL) under GECL of Rs.4 Lakhs was sanctioned to deceased Defendant No.1, on 19.06.2020 on certain terms and conditions mentioned in Para No.5.9 of the Original Application.

(OA No.435/2023)

Page 3 of 7

[ANIL]

In addition to this, towards Security for the repayment of the said loan facility, deceased defendant No.1 executed certain documents as set out in Para No.5.10 of the Original Application.

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Deceased Defendant No.1 also extended the hypothecation charge on the entire present and future current assets of the Firm. Deceased Defendant No.1 also acknowledged debts in Audited Balance Sheets for the year ended 31.03.2019 and 31.03.2020 confirming the outstanding balances and debts in the loan account and thereby extending limitation for the purpose of Section 18 of the Limitation Act, 1963.

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Applicant Bank contended that defendant No.1 failed and neglected to comply with terms and conditions in which the said facility was granted to him. Cash Credit Facility Working Capital Term Loan of the defendant was running irregular and deceased defendant No.1 was reluctant to pay the amounts and hence, the account of Deceased defendant No.1 with the applicant Bank has become Non-Performing Asset on 30.06.2021 in accordance with the guidelines of Reserve Bank of India. Therefore, the applicant bank through Advocate issued Legal Notice dated 11.02.2022 to the Defendant Nos.1A, 1B, and 1C as legal heirs of Mr. Basavraj Krishnat Patil and called upon them to repay the entire amount outstanding under the said loan accounts. But they failed to comply with the requisitions contained in the legal notice and failed to repay the amounts outstanding.

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Hence, this application is filed.

(OA No.435/2023)

Page 4 of 7

[ANIL]

The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per order dated 01.07.2025 passed below Application (Exhibit-1).

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The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Praveen Chandra Potdar, Chief Manager and has produced on record the Loan Transaction documents at Exhibits.AW-1 to AW-16, 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 relief in respect of hypothecated assets. However, there is no detailed description with respect to the hypothecated assets in the Hypothecation Agreement dated 14.01.2019. Therefore, the relief in terms of hypothecated assets cannot be granted.

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Applicant bank has claimed Simple Penal Interest of Rs. 1,08,014/and Legal and other charges of Rs.59,270/- for Cash Credit Account and penal interest of Rs.10,786/- towards Working Capital Term

(OA No.435/2023)

Page 5 of 7

[ANIL]

Loan Account, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.29,25,493/- is reduced to Rs.27,47,422/-.

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Applicant Bank has claimed future interest @10.95% p.a. & @8.40%p.a. for Cash Credit Facility & for Working Capital Term Loan, respectively. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple) for Cash Credit Facility, it would be just and reasonable rate of interest. The futured interest @8.40% p.a. claimed for Working Capital Term Loan is just and reasonable.

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.435/2023 is allowed with costs.

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(B) Defendant Nos.1A, 1B & 1C either jointly or severally shall pay sum of Rs.27,47,422/- (Rupees Twenty-Seven Lakhs Fourty Seven Thousand Four Hundred Twenty-Two only) to the applicant bank as follows -

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(C) Defendant Nos.1A, 1B & 1C either jointly or severally shall pay sum of Rs.22,95,164/- (Rupees Twenty-Two lakhs Ninety-Five Thousand One Hundred Sixty-Four only] towards Cash Credit Account No.1239250308090 with future interest @9% p.a. (Simple) from the date of filing of the Original Application i.e. 21.10.2022 till payment/ realization of the amount mentioned in this operative order.

(OA No.435/2023)

Page 6 of 7

[ANIL]

(D) Defendant Nos.1A, 1B & 1C either jointly or severally shall pay sum of Rs.4,52,258/- (Rupees Four Lakhs Fifty-Two Thousand Two Hundred Fifty-Eight only] towards Working Capital Term Loan Account No.1239306413507 with future interest @8.40% p.a. (Simple) from the date of filing of the Original Application i.e. 21.10.2022 till payment/ realization of the amount mentioned in this operative order.

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(E) Defendant Nos.1A, 1B and 1C are liable to pay the dues of the applicant bank only to the extent of the property inherited of Deceased - Mr. Basavraj Krishnat Patil, by them.

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(F) Issue Recovery Certificate.

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(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/Place : Pune (Dilip G. Murumkar) Date: 25.02.2026 Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.435/2023)

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Page 7 of 7

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[ANIL]

Punjab National Bank v. M/s. Sai Prasad Enterprises

Case brief

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Punjab National Bank v. M/s. Sai Prasad Enterprises

Case brief

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