Allowed

Federal Bank v. Sadashiv Patil

DRT7 Feb 2024OA/494/2022

Case brief

AI extract

What is this about?

In this original application before the DRT, Pune, the bank sought recovery of dues from two farmers who defaulted on agricultural term loans. The applicants submitted loan documents and affidavits while defendants appeared ex parte. The tribunal reduced claimed interest and other charges, allowed the application, and directed payment of reduced principal with future interest at 9%. The judgment a

What did the court decide?

Recovery of reduced principal amounts of Rs.40,73,364/- with future interest at 9% p.a.; entitlement to sell secured properties; issuance of recovery certificate.

Federal Bank versus Sadashiv Patil — Company and Corporate | DRT (2024)

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Presented on: 30.03.2022 Registered on: 06.06.2022 Decided on: 07.02.2024 Duration: Y M D 1 10 8

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.494/2022

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The Federal Bank Ltd. A Banking Company within the meaning of Companies Act, 1013 [18/2013] and also a banking company, having its registered office at Federal Towers, Bank Junction, Alwaye, Ernakulum District, Kerala and having one of its branches amongst other places at Holkar Complex, Islampur, TalWalwa, Dist. Sangli-415 409.

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… Applicant

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Versus

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Mr. Sadashiv Aaba Patil, Age-64 years, Occupation-Agriculturist, R/o. House No.457, Rakhmaji Patil Galli, A/p. Kapusakhed, Tal-Walwa, Dist.-Sangli-415 407, Maharashtra State.

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Mr. Abhijit Sadashiv Patil, Age-39 years, Occupation-Agriculturist, R/o. House No.457, Rakhmaji Patil Galli, A/p. Kapusakhed, Tal-Walwa, Dist.-Sangli-415 407, Maharashtra State.

… Defendants

(OA No.494/2022)

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APPEARANCES

For the Applicant	Mr. Nikhil D. Barsode - Advocate
For Defendants	Exparte

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TOTAL CLAIM AMOUNT –Rs.42,54,290/-

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JUDGMENT

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(Delivered on 07^th February, 2024)

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The Applicant Bank has filed the present application for recovery of aggregate sum of Rs.42,54,290/- i.e. Rs.15,94,354/in respect of AMTL-I account together with future interest @16.23% p.a. with monthly rests and Rs.26,59,936/- in respect of AMTL-II account with future interest @14.50% p.a. with monthly rests from 30^th March, 2022 till repayment/realization of the entire dues from the defendant Nos.1 and 2.

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Brief facts of the application are as under:

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Defendant Nos. 1 and 2 being traditional farmers and owners of land bearing Gat Nos.1331, 1199 and 1066 at Village Kapuskhed, Dist. Sangli were in need of Agricultural Term loan for Poly house construction etc.

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The applicant Bank contended that defendant Nos.1 and 2 approached the applicant Bank on 07^th January, 2015 for AMTL of Rs.16,50,000/- which was sanctioned and disbursed on 24^th January, 2015, with interest @13.30% p.a. to be repaid in 7 yearly installment of Rs.2,35,714/-.

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The defendant Nos.1 and 2 signed and executed loan transaction and security documents in favour of the applicant Bank as set out in paragraph No.5.5 of the Original Application.

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In order to secure both the AMTL, defendant Nos.1 and 2 created Registered Mortgage thereby mortgaged their immovable properties bearing Gat Nos.1331, 1199 & 1066 at Village Kapuskhed, Dist. Sangli, more particularly mentioned in paragraph No.5.5 of the Original Application.

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The defendants also created Hypothecation of movable assets i.e. irrigation and fertigation system, poly house structure and other movables, more particularly described in paragraph no.5.4 of the Original Application.

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The applicant Bank further contended that the defendants again approached it on 23^rd May, 2016 for another AMTL loan of Rs.22,00,000/- for poly house construction which was sanctioned and disbursed on 18^th July, 2016, with interest payable @11.67% to be repaid by quarterly installment of Rs.84,615/in 84 months. Defendants signed and executed necessary loan transaction

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and security documents as mentioned in paragraph No.5.9 of the Original Application.

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The applicant Bank further contended that loan accounts

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went into default and arrears although initially they were satisfactory. Therefore, time and again defendants were called upon to regularize the loan accounts but defendants failed to regularize the loan accounts.

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The applicant further contended that defendants executed Balance Confirmation Letters on 08^th August, 2016 and 02^nd January, 2018 confirming balance due and payable in both the loan accounts.

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The applicant Bank called upon defendants by Loan Recall Letters dated 18^th April, 2018, 08^th October, 2018, 23^rd October, 2019 and 21^st January, 2021. However, defendants made no repayment in their loan accounts.

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Therefore, the loan accounts were classified as NonPerforming Asset on 02^nd April, 2021 as per RBI guidelines.

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Thereafter, the applicant Bank through its Advocate issued Legal Notice dated 17^th September, 2019 calling upon defendants to repay the outstanding amount. However, defendants failed to make any repayment even thereafter.

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Hence, this application is filed.

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Defendant Nos.1 and 2 failed to appear despite service of

(OA No.494/2022)

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summons. Hence, the application proceeded ex parte against them vide Order dated 11^th January, 2024 passed below the Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Sachin Nanasheb Kadbane, Assistant Vice President and Authorized Signatory which supports the case of the applicant Bank elucidated in the application.

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The applicant Bank has produced on record the original loan transaction documents (Sr.Nos.AW-1/1 to AW-1/21) which corroborate the case of the applicant Bank.

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

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

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The applicant Bank has claimed Rs.1,282/- towards Other Charges and Rs.71,586/- towards Penal Interest in AMTL-I account as well as Rs.1,058/- towards Other Charges and

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Rs.1,07,098.64Ps. towards Penal Interest in AMTL-II account which cannot be granted. Hence, these amounts are required to be deducted from respective total of claim amounts. Thus, the aggregate claim amount is reduced from Rs.42,54,290/to Rs.40,73,364/-.

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The applicant Bank has claimed future interest @16.23% p.a. with monthly rests for AMTL-I account and @14.50% p.a. with months for AMTL-II loan account. However, having regard to the facts of the case, I am of the opinion that if future interest is granted @9% p.a. (simple) for both the loan accounts, it would be just and reasonable rate of interest.

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.494/2022 is allowed with costs.

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(B) Defendant Nos.1 and 2 shall either jointly or severally pay to the applicant Bank towards Agricultural Term Loan-I account, the sum of Rs.15,21,485/- (Rupees Fifteen Lakhs Twenty-One Thousand Four Hundred and Eighty-Five only)

(OA No.494/2022)

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with future interest @9% per annum from the date of filing of the Original Application i.e. 30^th March, 2022 till full payment/realization of the amount mentioned in this operative order.

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(C) Defendant Nos.1 and 2 shall either jointly or severally pay to the applicant Bank towards Agricultural Term Loan-II account, the sum of Rs.25,51,879/- (Rupees Twenty-Five Lakhs FiftyOne Thousand Eight Hundred and Seventy-Nine only) with future interest @9% per annum from the date of filing of the Original Application i.e. 30^th March, 2022 till full payment/realization of the amount mentioned in this operative order.

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(D) The aforesaid adjudicated amount is secured by valid and subsisting mortgage of the immovable properties i.e.

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(A) All that piece and parcel of Agricultural land bearing Gat No.1331 area admeasuring 37 Ares at Village and Grampanchayat Kapuskhed, Taluka Walwa, District Sangli;

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(B) All that piece and parcel of Agricultural land bearing Gat No.1199 area admeasuring 23 Ares at Village and Grampanchayat Kapuskhed, Taluka Walwa, District Sangli and

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(C) All that piece and parcel of Agricultural land bearing Gat No.1066 area admeasuring 7 Ares at Village and Grampanchayat Kapuskhed, Taluka Walwa, District Sangli

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more particularly mentioned in Schedule-I of the Original Application.

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(E) The aforesaid adjudicated amount is secured by valid and subsisting hypothecation of the movable properties i.e. Poly House structure and other movable assets, more particularly mentioned in paragraph No.5.4 of the Original Application.

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(D) The applicant is entitled to sell the mortgaged/hypothecated properties to recover its dues.

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(E) Issue Recovery Certificate.

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(F) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

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Place : Pune Date : 07.02.2024

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

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(OA No.494/2022)

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Federal Bank v. Sadashiv Patil

Case brief

What is this about?

What did the court decide?

Federal Bank v. Sadashiv Patil

Case brief

What is this about?

What did the court decide?

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