BANK OF BARODA vs SHARDUL EKNATH PARVAT on 10 June 2024

JUDGMENT

IN TRANSFERRED ORIGINAL APPLICATION NO.1831 OF 2016 (Original Application No.542 of 2016) Dt.10^th June 2024

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

**PRESIDED OVER BY ARUN KUMAR SINGAL** **TRANSFERRED ORIGINAL APPLICATION NO.1831 OF 2016** **(Original Application No.542 of 2016)**

**Presented on : 27.07.2015** **Registered on : 27.07.2016** **Decided on : 10.06.2024**

**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, Block 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. Shardul Eknath Parvat,**

An adult, Indian Inhabitant, having his address at Post Ahiwantwadi, Taluka Dindori, Nashik 422 215.

**2. Bhavar Dilip Sakharam,**

An adult, Indian Inhabitant, having his address at Post Ganeshgaon, Taluka Dindori, Nashik 422 213.

**3. Gangurde Annada Sitaram,**

An adult, Indian Inhabitant, having his address at Post Ambaner, Taluka Dindori, Nashik 422 215.

...DEFENDANTS

*Arun* 10.06.2024

Argued By -

Mr. Chetan Shah, 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.13,10,401/- 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.28.09.2010 (Exhibit-15) for grant of Agricultural Loan of Rs.8.40 Lakhs. Vide Sanction Letter dt.28.09.2010 (Exhibit-16), the Applicant Bank sanctioned the Agricultural Loan of Rs.8.40 Lakhs with interest @10.50% per annum.

3. 3. To secure the loan facility, Defendant No.1 executed security documents, i.e. Hypothecation Agreement (Exhibit-17), General Letter of Lien and set-off (Exhibit-19), and Demand Promissory Note (Exhibit-21), all dt.28.09.2010. The Defendant Nos.2 and 3 executed Letter of Guarantee (Exhibit-18) and General Letter of Lien and set-off (Exhibit-20), both dt.28.09.2010. The Defendant

*Chetan* 10.06.2024

No.1 also executed Acknowledgement of Debt & Security dt.31.08.2013 (Exhibit-23).

1. 4. The Defendant No.1 also executed Simple Mortgage Deed dt.07.05.2010 (Exhibit-22) mortgaging the property i.e. all those pieces and parcels of land situate being and lying at Village Ahiwantwadi, Registration Dist. Nashik, admeasuring 1.26 hectre and bearing Gat No./Survey No.146.

2. 5. The Applicant Bank further submits that after availing the loan, Defendant Nos.1 to 3 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.01.06.2015 (Exhibit-24) 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.13,10,401/- along with interest @11.75% p.a. has been filed.

3. 6. 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.

Okrun

10.06.2024

1. 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.

2. 8. To prove his case, the Applicant Bank has filed Claim Affidavit of Mr. Rahul Girase, Manager 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.

3. 9. The Applicant Bank has placed on record Statement of Account and Certificate regarding Information Technology Act, 2000 (Exhibit-28), which corroborates the version of Mr. Rahul Girase, Manager of the Applicant Bank.

4. 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.

5. 11. From the evidence brought on record, this Tribunal finds that the Defendant No.1 availed the Agricultural Loan and mortgaged the property, i.e. all those pieces and parcels of land situate being and lying at Village Ahiwantwadi, Registration Dist. Nashik, admeasuring 1.26 hectre and bearing Gat No/Survey No.146 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 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.13,10,401/- along with further interest @10.50% p.a. from the date of filing of application till realization. Defendant Nos.1 to 3 are held jointly and severally liable to pay the outstanding dues of Rs.13,10,401/- along with interest pendentelite and future interest @10.50% p.a. Thus, the Applicant Bank has been able to prove his case by preponderance of probabilities. The Transferred Original Application No.1831 of 2016 is allowed accordingly.

1. 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 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 10.50% 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.1831 of 2016 stands allowed with cost against Defendant Nos.1 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.13,10,401/- together with interest pendentelite and future interest @10.50% 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 those pieces and parcels of land situate being and lying at Village Ahiwantwadi, Registration Dist. Nashik, admeasuring 1.26 hectre and bearing Gat No/Survey No.146 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.

13. Defendant Nos.1 to 3 are directed to declare, on oath, to the Recovery Officer, Debts Recovery Tribunal - III, Mumbai, both

*Akram* 10.06.2024

moveable and immoveable 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 12.08.2024 before Learned R.O., DRT - III, Vashi, Navi Mumbai.

15. 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.

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 : 10.06.2024.

*Arun Kumar*

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

Typed By - S S Bhawale, PS