STATE BANK OF INDIA vs MR. ARVIND KRISHNA PATIL, PROP. OF M/S. SHIV TRANSPORT on 21 May 2022

JUDGMENT

(Delivered on 21st May, 2022)

1. This is an application under sub-section (1) of Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 (for short, ‘the 1993 Act’) filed by the applicant for the recovery of the dues in the sum of Rs.26,98,853.91Ps together with future interest thereon from the date of filing of the Original Application till repayment/realization against defendants.

2. Brief facts of the application are as under:

Defendant No.1 is the borrower who approached the applicant with loan application for grant of Term Loan limit of Rs.15,50,000/- for purchase of two Truck Trailers and accordingly, it was sanctioned by the applicant bank on 31st August, 2007. Further, defendant No.1 executed necessary loan transaction and security documents namely Proforma

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Invoice, Receipts dated 8th September, 2007 and 25th September, 2007 for Rs.1,86,620/- and Rs.15,50,000/- respectively paid to M/s. Automotive Manufacturers Pvt. Ltd. Defendant No.2 stood as guarantor for the Term Loan facility availed by defendant No.1 and executed Guarantee Agreement dated 24th September, 2007. Further, on 24th September, 2007 the defendant No.1 by executing Agreement of Loan cum Hypothecation hypothecated two Trucks bearing Registration No.MH-06- AC-8796 and MH-06-AC-8857 with the applicant bank. The defendants failed to repay the outstanding amount and neglected to regularize the account. Therefore, the applicant bank through its Advocate issued Notice dated 6th February, to the defendants and demanded outstanding loan amount together with future interest. Despite service of Notice, defendants failed and neglected to comply with the demand in the said Notice. Hence, the applicant bank filed present Original Application for recovery of Rs.26,98,853.91Ps towards loan from defendants along with future interest @ 14.75% per

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annum compounded monthly from 30th March, 2012 till realization of the said amount.

3. Defendants were duly served with the summons. Despite service of summons, defendants failed to appear. Hence, the application proceeded ex parte against defendants and order of ex parte hearing has been passed on 28th April, 2022.

4. The applicant has filed Claim Affidavit of evidence (Exhibit-

11) of Ms. Monika Milind Thakur which supports the case of the applicant elucidated in the application. The documents namely (1) Sanction Letters (Exhibit-13); (2) Proforma Invoice (Exhibit-14) along with Receipts (Exhibit- 15 and 16); (3) Agreement of Loan–cum-Hypothecation (Exhibit-17); (4) Letter of Arrangement (Exhibit-18); (5) Guarantee Agreement (Exhibit-19); (6) Revival Letter (Exhibit-20), (7) Statement of Account (Exhibit-21) and (8) Particular of Claims (Exhibit-22) produced along with list of documents (Exhibit-12) corroborates the case of the applicant.

5. I have heard arguments of learned Advocate for the applicant.

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6. Since the defendants failed to appear and contest the application, I find no reason to disbelieve evidence of the applicant. Therefore, the applicant is entitled for reliefs as claimed for.

7. So far as future interest is concerned, the applicant is claiming rate of interest @14.75% with monthly rests which in my view is exorbitant. Hence, granting of future interest @12.75% (i.e. agreed rate) per annum would meet the ends of justice.

8. Hence, I pass the following order:-

ORDER

(A) Original Application No.151/2015 is allowed with costs. (B) Defendant Nos.1 and 2 shall pay to the applicant either jointly or severally sum of Rs.26,98,853.91Ps (Rupees Twenty-Six Lakhs Ninety-Eight Thousand Eight Hundred Fifty-Three and Paise Ninety-One only) with future interest @12.75%per annum on principal amount of Rs.15,50,000/- from the date of filing of the Original Application i.e. 30th March, 2012 till payment/realization of amount mentioned

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in this Operative order. (C) The aforesaid adjudicated amount is secured by valid and subsisting hypothecation of Ashok Leyland Trucks bearing Registration No.MH-06- AC-8796 and MH-06-AC-8857 bearing Chassis No. WPR 156369, Engine No. WPE 002886 and Chassis No. WPR 156198 and Engine No. WPE 002827 respectively. (D) Issue Recovery Certificate. (E) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

Sd/- (Dilip G Murumkar) Presiding Officer Debts Recovery Tribunal, Pune