CENTRAL BANK OF INDIA vs PRATAPSINGH CHINDHA SOLANKE on 3 May 2024

JUDGMENT

IN TRANSFERRED ORIGINAL APPLICATION NO.1645 OF 2016 (Original Application No.242 of 2016) Dt.3^rd May 2024

**BEFORE THE DEBTS RECOVERY TRIBUNAL-III,** **VASHI, NAVI MUMBAI**

**PRESIDED OVER BY ARUN KUMAR SINGAL** **TRANSFERRED ORIGINAL APPLICATION NO.1645 OF 2016** **(Original Application No.242 of 2016)**

Presented on : 17.07.2015

Registered on : 06.05.2016

Decided on : 03.05.2024

**Central Bank of India,**

A body Corporate Constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Chander Mukhi, Nariman Point, Mumbai, Pin No.400 021 and one of its branch situated at Malegaon Branch, Tal. Malegaon, Dist. Nashik, Pin No.423 203.

...APPLICANT

V/s.

**1. Mr. Pratapsingh Chindha Solanke,**

Age: Major, Occ.: Agriculturist, At/Post Kaulane, Malegaon, Tal. Malegaon, Dist. Nashik, Pin 423 208.

**2. Mrs. Sushilabai Pratapsingh Solanke,**

Age: Major, Occ.: Agriculturist, At/Post Kaulane, Malegaon, Tal. Malegaon, Dist. Nashik, Pin 423 208.

**3. Mrs. Meerabai Chindha Solanke,**

Age: Major, Occ.: Agriculturist, At/Post Kaulane, Malegaon, Tal. Malegaon, Dist. Nashik, Pin 423 208.

**4. Mr. Dhondu Gatlu Patil,**

Age: Major, Occ.: Agriculturist, At/Post Kaulane, Malegaon, Tal. Malegaon, Dist. Nashik, Pin 423 208.

**5. Mr. Ratan Namdeo Unde,**

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Age: Major, Occ.: Agriculturist, At/Post Kaulane, ...DEFENDANTS Malegaon, Tal. Malegaon, Dist. Nashik, Pin 423 208.

**Argued By -**

Mr. Amol Naik and Mr. Rajiv Naik, Advocates for the Applicant Bank. Defendants ex-parte.

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

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.17,79,135/- with future interest thereon at the rate of 15% 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 to 3 approached the Applicant Bank vide Loan Application dt.11.03.2008 (Exhibit-10) for grant of Term Loan of Rs.12 Lakhs. Vide Sanction Letter dt.11.03.2008 (Exhibit-11), the Applicant Bank sanctioned the Term Loan of Rs.9 Lakhs with interest @13% per annum.

3. 3. To secure the loan facility, Defendant Nos.1 to 3 executed security documents, i.e. Loan-cum-Hypothecation Agreement dt.24.03.2008 (Exhibit-12) and the Defendant Nos.4 and 5 executed Deed of Guarantee dt.24.03.2008 (Exhibit-13).

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4. The Defendant Nos.1 to 3 also executed Registered Mortgage Deed dt.14.03.2008 (Exhibit-14) mortgaging the property i.e. all that the piece and parcel of the agricultural land bearing (i) Gat No.78/2, area admeasuring 1 H. 84 R. + P.K. 0 H. 03 R. total area admeasuring 1 H. 87 R., assessed at Rs.1=26 paise; (ii) Gat No.78/1, area admeasuring 1 H. 83 R. + P.K. 0 H. 04 R. total area admeasuring 1 H. 87 R., assessed at Rs.1=26 paise; and (iii) Gat No.90/2B, area admeasuring 2 H. 80 R., assessed at Rs.2=66 paise, all situated at Village Ghanegaon Malegaon, Tal. Malegaon, Dist. Nashik.

5. The Applicant Bank further submits that after availing the loan, Defendant Nos.1 to 5 did not adhere to the financial discipline of the Applicant Bank and failed and neglected to repay the loan amount and consequent thereto, the Legal Notice dt.13.10.2014 (Exhibit-A) was issued to the Defendant Nos.1 to 5 through the Advocate of the Applicant Bank calling upon Defendant Nos.1 to 5 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.17,79,135/- along with interest @15% p.a. has been filed.

6. The notice of this Original Application was issued to Defendant Nos.1 to 5 but they failed to appear despite service and hence they were proceeded against ex-parte.

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7. 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.

8. To prove his case, the Applicant Bank has filed Claim Affidavit of Mr. Santosh Khairnar, Authorised Officer of the 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.

9. The Applicant Bank has placed on record Statement of Account (Exhibit-15) and Certificate regarding Information Technology Act, 2000 (Exhibit-16), which corroborates the version of Mr. Santosh Khairnar, Authorised Officer of the Applicant Bank.

10. 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.

11. From the evidence brought on record, this Tribunal finds that the Defendant Nos.1 to 3 availed the Term Loan and mortgaged the property, i.e. all that the piece and parcel of the agricultural land bearing (i) Gat No.78/2, area admeasuring 1 H. 84 R. + P.K. 0 H. 03 R. total area admeasuring 1 H. 87 R., assessed at Rs.1=26 paise; (ii) Gat No.78/1, area admeasuring 1 H. 83 R. + P.K. 0 H. 04 R. total area admeasuring 1 H. 87 R., assessed at Rs.1=26 paise; and

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(iii) Gat No.90/2B, area admeasuring 2 H. 80 R., assessed at Rs.2=66 paise, all situated at Village Ghanegaon Malegaon, Tal. Malegaon, Dist. Nashik and Defendant Nos.4 and 5 stood Guarantors but Defendant Nos.1 to 5 failed to repay the outstanding loan amount despite repeated requests and Legal Notice dt.13.10.2014 was sent by the Applicant Bank through Advocate but still the Defendant Nos.1 to 5 failed to repay the outstanding loan amount. Hence, the Applicant Bank is entitled to recover Rs.17,79,135/- along with further interest @13% p.a. from the date of filing of application till realization. Defendant Nos.1 to 5 are held jointly and severally liable to pay the outstanding dues of Rs.17,79,135/- along with interest pendentelite and future interest @13% p.a. Thus, the Applicant Bank has been able to prove his case by preponderance of probabilities. The Transferred Original Application No.1645 of 2016 is allowed accordingly.

12. 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

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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 pendentelite and future interest at the rate of 13% p.a. with monthly rests from the date of filing of Original Application till final recovery is made from Defendants.

ORDER

Transferred Original Application No.1645 of 2016 stands allowed with cost against Defendant Nos.1 to 5. Defendant Nos.1 to 5 are held jointly and severally liable to pay to the Applicant Bank within two months a sum of Rs.17,79,135/- together with interest pendentelite and future interest @13% p.a. with monthly rests 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. all that the piece and parcel of the agricultural land bearing (i) Gat No.78/2, area admeasuring 1 H. 84 R. + P.K. 0 H. 03 R. total area admeasuring 1 H. 87 R., assessed at Rs.1=26 paise; (ii) Gat No.78/1, area admeasuring 1 H. 83 R. + P.K. 0 H. 04 R. total area admeasuring 1 H. 87 R., assessed at Rs.1=26 paise; and (iii) Gat No.90/2B, area admeasuring 2 H. 80 R., assessed at Rs.2=66 paise, all situated at Village Ghaneaon Malegaon, Tal. Malegaon, 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 5.

13. Defendant Nos.1 to 5 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.

14. 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 04.07.2024 before Learned R.O., DRT - III, Vashi, Navi Mumbai.

15. The Defendant Nos.1 to 5 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.

16. 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 :

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03.05.2024.

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

Typed By - S S Dhawale, PS

**DRT-III MUMBAI**