UCO BANK vs MR. SUDHAKAR GULABRAO SOMWANSHI on 2 February 2024

**J U D G M E N T**

1. 1. The case of the Applicant Bank is that the Defendant No.1 and 2 approached the Applicant Bank vide Loan Application dt.10.08.2005 Exh.13 for grant of Term Loan of Rs.10,00,000/- for development of Grape Garden. The loan was sanctioned vide Sanction Letter dt.12.08.2005 Exh.14. The loan was to be repaid in 5 years annual installments of Rs.2,00,000/- plus interest.

2. 2. To secure the above Term Loan of Rs.10,00,000/-, the Defendant No.1 and 2 executed Hypothecation Agreement for Agriculture Loans dt.12.08.2005 Exh.15. The Defendant No.3 stood Guarantor and executed Letter of Guarantee dt.12.08.2005 Exh.16.

3. 3. The Defendant No.1 and 2 again approached the Applicant Bank vide Loan Application dt.19.07.2006 Exh.18 for grant

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of Crop Loan (K.C.C.) of Rs.5,00,000/- for Working Capital and Development of Grape Garden. The loan was sanctioned vide Sanction Letter dt.19.07.2006 Exh.19.

1. 4. To secure the Crop Loan (K.C.C.) of Rs.5,00,000/-, the Defendant No.1 and 2 executed Demand Promissory Note with Delivery Letter dt.10.07.2006 Exh.20, Hypothecation cum agreement for agriculture loan dt.10.07.2006 Exh.21. The Defendant No.3 stood Guarantor and executed Letter of Guarantee dt.10.07.2006 Exh.22.

2. 5. Also, to secure the above credit facilities, the Defendant No.1 and 2 executed Declarative mortgage dt.28.05.2005 Exh.17 and dt.17.07.2006 Exh.23, whereby, they mortgaged the property i.e. i) Gat No.496/3, area admeasuring 1 H. 21 R assessed at Rs.4=47 Paise, ii) Gat No.491 area admeasuring 0 H. 75 R assessed at Rs.4=01 Paise, iii) Gat No.492 area admeasuring 2 H. 93 R assessed at Rs.15=33 Paise and iv) Gat No.432 area admeasuring 0 H. 37 R assessed at Rs.00=09 Paise situated at & post Mohadi, Tal. Dindori, Dist. Nashik with the Applicant Bank.

3. 6. The Defendant No.1 and 2 also executed Acknowledgment of Debt and Security dt.30.06.2008 Exh.24, dt.31.03.2010 Exh.25, dt.13.04.2012 Exh.26 and dt.31.03.2013 Exh.27.

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1. 7. The Applicant Bank has further submitted that the Defendants committed breach of terms and conditions of sanction and security documents and failed to adhere to the financial discipline of the Bank.

2. 8. The Applicant Bank issued Legal Notice to Defendants through their Advocate dt.30.09.2015 Exh.28 calling upon Defendants to pay and clear the dues of the Applicant Bank under the said loan but to no effect, hence, this Original Application for recovery of Rs.25,30,299/- alongwith interest at the rate of 13.5% p.a. has been filed

3. 9. The notice of this Original Application was issued to Defendants but they failed to appear despite service and hence, they were proceeded against ex-parte.

4. 10. To prove his case, the Applicant Bank has filed Claim Affidavit of Shri. Nilesh Vijay Bhor, Chief Manager of Applicant Bank and he has supported the case of the Applicant Bank in all material particulars and he has also proved the documents executed between the parties.

5. 11. The Applicant Bank has placed on record Statement of Account Exh.29 and Exh.30 which corroborates the version of Shri. Nilesh Vijay Bhor, Chief Manager of Applicant Bank.

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12. The evidence so brought on record by the Applicant Bank goes un-rebutted, unchallenged and unopposed and there is no reason to disbelieve the version of Applicant Bank.

13. In view of evidence brought on record, this Tribunal finds that the Defendant No.1 and 2 availed the loan and they mortgaged the property i.e. i) Gat No.496/3, area admeasuring 1 H. 21 R assessed at Rs.4=47 Paise, ii) Gat No.491 area admeasuring 0 H. 75 R assessed at Rs.4=01 Paise, iii) Gat No.492 area admeasuring 2 H. 93 R assessed at Rs.15=33 Paise and iv) Gat No.432 area admeasuring 0 H. 37 R assessed at Rs.00=09 Paise situated at & post Mohadi, Tal. Dindori, Dist. Nashik with the Applicant Bank and Defendant No.3 stood Guarantor but Defendant No.1 to 3 failed to repay the outstanding loan amount despite repeated requests and Legal Notice dt.30.09.2015 was sent by the Bank through Advocate but still the Defendants failed to repay the outstanding loan amount, hence, the Applicant Bank is entitled to Rs.25,30,299/- alongwith further interest at the rate of 13.5% p.a. from the date of filing of application till realization. Defendant No.1 to 3 are held jointly and severally liable to pay outstanding loan amount of Rs.25,30,299/- alongwith interest pendentelite and future interest at rate of 13.5% p.a. Thus,

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Applicant Bank has been able to prove his case by preponderance of probabilities. Original Application No.2051 of 2016 is allowed accordingly.

1. 14. As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award interest depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others Taking Stock of all the circumstances, this Tribunal is of the opinion that the ends of justice would meet if the Applicant Bank is awarded interest pendente lite and future interest at the rate of 13.5% p.a. from the date of filing of Original Application till final recovery is made from Defendants.

ORDER

O.A. stands allowed with cost and the Defendant No.1 to 3 are held jointly and severally liable to pay to the Applicant Bank within two months a sum of Rs.25,30,299/-

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together with interest pendente lite and future interest @13.5% per annum from the date of filing of this O.A. till the date of realization; failing which the aforesaid amount shall be recovered from the sale of mortgaged property i.e. i) Gat No.496/3, area admeasuring 1 H. 21 R assessed at Rs.4=47 Paise, ii) Gat No.491 area admeasuring 0 H. 75 R assessed at Rs.4=01 Paise, iii) Gat No.492 area admeasuring 2 H. 93 R assessed at Rs.15=33 Paise and iv) Gat No.432 area admeasuring 0 H. 37 R assessed at Rs.00=09 Paise situated at & post Mohadi, Tal. Dindori, Dist. Nashik and in case of shortfall, the same shall be recovered from the sale of the movable and immovable properties of the Defendants.

1. 15. Defendant No.1 to 3 are directed to declare, on oath, to the Recovery Officer, Debts Recovery Tribunal - III, Mumbai, both moveable and immovable assets of them for the purpose of attachment and sale for realizing the shortfall.

2. 16. Let a Recovery Certificate be issued with memo of cost immediately u/s 19(22) of The Recovery of Debts and

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Bankruptcy Act, 1993 together with the details of the properties, if any, by fixing 03.04.2024 before Learned R.O., DRT - III, Vashi, Navi Mumbai.

17. The Defendant No.1 to 3 are restrained from depleting, transferring, encumbering, alienating or in any way dealing with their properties/assets without first paying the claim of the Applicant Bank.

18. Copies of this judgment be sent to the parties free of cost and file be consigned to record room.

Give under my hand and the seal of this Tribunal on this date : 02.02.2024.

Dictated on 02.02.2024.

*Arun Kumar* (ARUN KUMAR SINGAL) PRESIDING OFFICER DRT-III, VASHI, NAVI MUMBAI

Typed By - Mrs. Monika Pawar, Stenographer.