Debts Recovery Tribunals and Appellate Tribunals
BANK OF BARODA vs YASHWANT TUKARAM SANDHAN on 1 March 2024
Citations and Judicial Treatment
Cited by
0
Decisions in the index citing it
Cites
0
Decisions referred to
In this index
0
Of the decisions it cites
Overruled / Questioned
0
No negative treatment found
Loading the citing and cited decisions…
This judgment in the centre: on the left the decisions it cites, on the right the decisions citing it. Colour is the treatment; choose a decision to open it.
JUDGMENT
IN ORIGINAL APPLICATION NO.1981 OF 2016 Dt.1<sup>st</sup> March 2024
**BEFORE THE DEBTS RECOVERY TRIBUNAL-III,** **VASHI, NAVI MUMBAI**
**PRESIDED OVER BY ARUN KUMAR SINGAL** **TRANSFERRED ORIGINAL APPLICATION NO.1981 OF 2016**
Presented on : 31.08.2015 Registered on : 24.09.2016 Decided on : 01.03.2024
**Bank of Baroda,**
A body Corporate Constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Baroda Bhavan, R.C. Dutt Road, Alkapuri, Baroda 390 007, Corporate at Baroda Corporate Centre, Plot No.C-26, Balock G. Bandra Kurla Complex, Bandra (East), Mumbai 400 051 and Bhadrakali Branch at Renuka Plaza, Opp. GPO, Tryambak Road, Nashik 422 001.
...APPLICANT
v/s.
**1. Sandhan Yashwant Tukaram,**
An adult Indian Inhabitant, having his address at Post Chinchkhed, Taluka Dindori, District Nashik 422 209.
**2. Sandhan Chindu Tryambak,**
An adult Indian Inhabitant, having his address at Post Chinchkhed, Taluka Dindori, District Nashik 422 209.
**3. Sandhan Shankar Sakharam,**
An adult Indian Inhabitant, having his address at Post Chinchkhed, Taluka Dindori, District Nashik 422 209.
...DEFENDANTS
*Arun* 01.03.2024
**Argued By -**
Mr. Amol Naik, Advocate for the Applicant Bank. Defendants ex-parte.
**JUDGMENT**
1. 1. This is an application under Section 19(1) of the Recovery of the Debts due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 to recover Rs.38,43,949/- with future interest thereon at the rate of 11.75% p.a. from the date of presentation of the Original Application till payment/ realization.
2. 2. The case of the Applicant Bank is that Defendant No.1 approached the Applicant Bank vide Loan Application dt.20.08.2005 (Exhibit-10) for grant of Agricultural Loan of Rs.10 Lakhs. Vide Sanction Letter dt.26.09.2005 (Exhibit-11), the Applicant Bank sanctioned the Agricultural Loan of Rs.9.60 Lakhs, with interest @10% per annum.
3. 3. To secure the loan facility, Defendant No.1 executed various security documents, i.e. Demand Promissory Note (Exhibit-12), Hypothecation Agreement for Agriculture Loan (Exhibit-13) and General Letter of Lien (Exhibit-15 & 16), all dt.26.09.2005, Declaration dt.01.09.2005 (Exhibit-17). The Defendant Nos.2 and 3 executed Deed of Guarantee dt.26.09.2005 (Exhibit-14).
*ahm* 01.03.2024
4. The Defendant No.1 again approached the Applicant Bank with Agricultural Loan Application dt.20.11.2005 (Exhibit-18) for Rs.5 Lakhs. Vide Sanction Letter dt.05.01.2006 (Exhibit-19), the Applicant Bank sanctioned the Agricultural Loan/Cash Credit under DKCC of Rs.4.68 Lakhs, with interest @8.50% per annum.
5. To secure the aforesaid loan, the Defendant No.1 executed various security documents, i.e. Hypothecation Agreement for Agriculture Loan (Exhibit-2), General Letter of Lien (Exhibit-22 & 23), Letter of Continuity (Exhibit-24) and Demand Promissory Note (Exhibit-25), all dt.05.01.2006. The Defendant Nos.2 and 3 executed Deed of Guarantee dt.05.01.2006 (Exhibit-21).
6. The Defendant No.1 again approached the Applicant Bank for restructure of the aforementioned loan facilities to which the Applicant Bank, vide Agreements for Restructuring of Credit Facilities dt.28.06.2013 (Exhibit-28 & 29), restructured the Loan of Rs.8,58,930/- and of Rs.18,91,253/- respectively with interest repayable in 3 yearly instalment commencing from June 2014. The Defendant No.1 also executed Acknowledgment of Debt & Security dt.29.06.2023 (Exhibit-30 & 31). The Defendant No.1 acknowledged the liability to the tune of Rs.31,11,074/- as on 28.08.2013 by executing
Chun 01.03.2024
Acknowledgment of Debt & Security dt.28.08.2013 (Exhibit-32).
1. 7. The Applicant Bank further submits that after availing the loan, Defendant Nos.1 to 3 did not adhere to the financial discipline and failed and neglected to repay the loan amount and consequent thereto, the Legal Notice dt.01.06.2015 (Exhibit-33) was issued to the Defendant Nos.1 to 3 through the Advocate of the Applicant Bank calling upon Defendant Nos.1 to 3 to repay the outstanding dues of the Applicant Bank under the said Loan but to no effect. Hence, this Original Application for recovery of Rs.38,43,949/- along with interest @11.75% p.a. has been filed.
2. 8. The notice of this Original Application was issued to Defendant Nos.1 to 3 but they failed to appear despite service and hence they were proceeded against ex-parte.
3. 9. This Tribunal has given dispassionate consideration to the arguments advanced by the counsel for the Applicant Bank and has gone through the evidence brought on record.
4. 10. To prove his case, the Applicant Bank has filed Claim Affidavit of Mr. Subodh Kumar, Officer of the Applicant Bank and he has supported the case of the Applicant Bank in all material
*df rum* 01-03-2024
particulars and he has also proved the documents executed between the parties.
1. 11. The Applicant Bank has placed on record Statement of Account (Exhibit-34 to 36) and Certificate regarding Information Technology Act, 2000 (Exhibit-37), which corroborates the version of Mr. Subodh Kumar, Officer of the Applicant Bank.
2. 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 the Applicant Bank.
3. 13. From the evidence brought on record, this Tribunal finds that the Defendant No.1 availed the Loan and hypothecated the property, i.e. Land bearing Survey No.585, admeasuring 3.03 Hr. and Survey No.582, admeasuring 0.02 Hr. situated at Village Chichkhed, Dist. Nashik, and Defendant Nos.2 and 3 stood Guarantors but Defendant Nos.1 to 3 failed to repay the outstanding loan amount despite repeated requests and Legal Notice dt.01.06.2015 (Exhibit-33) was sent by the Applicant Bank through Advocate but still the Defendant Nos.1 to 3 failed to repay the outstanding loan amount. Hence, the Applicant Bank is entitled to recover Rs.38,43,949/- along with further interest @11.75% p.a. from the date of filing of
*Akum* 01.03.2024.
application till realization. Defendant Nos.1 to 3 are held jointly and severally liable to pay the outstanding dues of Rs.38,43,949/- along with interest pendente lite and future interest @11.75% p.a. Thus, the Applicant Bank has been able to prove his case by preponderance of probabilities. The Original Application No.1981 of 2016 is allowed accordingly.
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 11.75% p.a. from the date of filing of Original Application till final recovery is made from Defendants.
ORDER
Transferred Original Application No.1981 of 2016 stands allowed with cost against Defendant Nos.1
O. Arun 01.03.2024
to 3. Defendant Nos.1 to 3 are held jointly and severally liable to pay to the Applicant Bank within two months a sum of Rs.38,43,949/- together with interest pendente lite and future interest @11.75% p.a. 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 hypothecated Land bearing Survey No.585, admeasuring 3.03 Hr. and Survey No.582, admeasuring 0.02 Hr. situated at Village Chichkhed, Dist. Nashik and in case of shortfall, the same shall be recovered from the sale of the movable and immovable properties of the Defendant Nos.1 to 3.
15. Defendant Nos.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.
16. Let a Recovery Certificate be issued with memo of cost immediately u/s 19(22) of The Recovery of Debts and Bankruptcy Act, 1993 together with the details of the properties, if any, by fixing 02.05.2024 before Learned R.O., DRT - III, Vashi, Navi Mumbai.
*Arun* 01.03.2024
17. The Defendant Nos.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.
Given under my hand and the seal of this Tribunal on this date : 01.03.2024.
(ARUN KUMAR SINGAL) PRESIDING OFFICER DRT-III, VASHI, NAVI MUMBAI
Typed By - S S Dhavale, PS