DRT passed an ex-parte recovery order in favour of the Bank, reducing the penal interest and capping the future interest at 9% per annum.
The Debts Recovery Tribunal (DRT), Pune Bench, presided over by Mr. Dilip G. Murumkar, addressed the original application filed by the bank and held that the Applicant Bank was entitled to recover its dues from the defendants. The Tribunal reduced the claim by excluding penal interest and capped the future interest at 9% per annum, noting that the defendants failed to contest the application and the mortgage security remained valid for recovery of the adjudicated amounts.
The Applicant Bank filed an application for recovery of ₹1,75,97,168/- along with future interest at 15% and 16.45% per annum from the defendants. Defendant No. 1, a private limited company, availed a Term Loan of ₹90,00,000/- and a Cash Credit facility of ₹30,00,000/- under a Sanction Letter dated 16.03.2013. Defendant Nos. 2 to 5, along with Late Khandu Shankar Moholkar, stood as guarantors for the loan. Subsequently, the Bank sanctioned a Short-Term Loan of ₹20,00,000/- vide Sanction Letter dated 31.12.2015, with Defendant Nos. 2 to 5 again serving as guarantors. To secure the loan facilities, the defendants executed necessary loan and security documents, including a mortgage over immovable properties in Baramati and Phaltan.
The Bank contended that Defendant Nos. 6 to 10, as legal heirs of Late Khandu Shankar Moholkar, were liable to the extent of the estate inherited. The defendants defaulted on repayments, leading to the classification of their account as a Non-Performing Asset (NPA) under RBI guidelines. A legal notice dated 29.11.2016 was issued; however, the defendants failed to regularize the accounts or respond. The application proceeded ex-parte as the defendants did not appear despite the service of summons.
The Bank submitted evidence through a Claim Affidavit and original loan documents, which were uncontroverted. After considering the arguments, the Tribunal held that the Bank was entitled to recover its dues but reduced the total claim amounts by deducting penal interest. The claim of ₹1,66,70,448/- for the Term Loan and Cash Credit was reduced to ₹1,63,55,415/-, and the Short-Term Loan amount was revised from ₹9,26,720/- to ₹8,90,467/-. The Tribunal further determined that future interest at 9% per annum (simple) would be just and reasonable instead of the claimed rates of 15% and 16.45%.
The defendants were held jointly and severally liable for the adjudicated amounts. However, the liability of Defendant Nos. 6 to 10 was restricted to the estate inherited from Late Khandu Shankar Moholkar. The mortgaged properties described in the application were held as valid security, and the Bank was granted the right to sell the said properties to recover its dues. The Tribunal directed the issuance of a Recovery Certificate and instructed the Registrar to provide copies of the judgment and certificate to all parties.
Mr. R.B. Ganbote, Advocate, represented the Applicant Bank. No one appeared for the Defendant.
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