Allowed

Federal Bank v. Udaysingh Bhujangrao Phadnaik

DRT23 Jul 2024OA/535/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed a recovery application filed by Federal Bank Limited for a shortfall of Rs. 96,76,092. The court reduced the claimed amount by deducting unproven charges and penal interest and awarded future interest at 9% per annum. The debt is secured by mortgaged agricultural lands.

What did the court decide?

Respondents to pay Rs. 96,76,092 with future interest at 9% p.a.; mortgage to be realized; Recovery Certificate issued.

Federal Bank versus Udaysingh Bhujangrao Phadnaik — Insolvency and Bankruptcy | DRT (2024)

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Presented on : 14.04.2022 Registered on : 07.05.2022 Decided on : 23.07.2024 Duration : Y M D 02 03 09

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 535/2022.

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The Federal Bank Limited, A Banking Company within the meaning of Indian Companies Act, 2013 (18/2013) having its registered office at Federal Towers, Bank Junction, Alwaye, Ernakulum District, Kerala and branch at – Ganesh Apartment, Ground Floor, Shaniwar Peth, Karad 415 110, District Satara.

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.. Applicant

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Versus

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1 Mr. Udaysingh Bhujangrao Phadnaik, Age 49 years, Occ.Agriculturist, R/o : Palus, Near Mahadev Mandir, Taluka Palus, District Sangli 416 310.

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2 Mrs. Sarita Udaysingh Phadnaik, Age 43 years, Occ. : -, R/o : Palus, Near Mahadev Mandir, Taluka Palus, District Sangli 416 310.

.. Defendants

(OA No. 535/2022)

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APPEARANCES

For Applicant	Advocate Nikhil Barsode
For Defendants	Exparte.

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TOTAL CLAIM AMOUNT –Rs.1,00,01,067/-

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JUDGMENT (Delivered on 23^rd July, 2024)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.1,00,01,067/- together with future interest for AMTL @10.40% and for FKCC @12.20% per annum from the date of Application till realization of the entire dues from the defendants.

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Brief facts of the application are as under:

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Defendant No.1 is borrower and defendant No.2 is co-obligant. As per the loan application dated 15.09.2016 of defendant No.1, the applicant Bank sanctioned the AMTL of Rs.46,00,000/- and FKCC of Rs.14,00,000/- to defendant No.1 vide Sanction Letter dated 28.10.2016.

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In order to secure the aforesaid loan facilities, the defendants executed necessary loan and security documents along with deed of mortgage of Agricultural Lands Gat No. 300 area 2H 43R, Gat No. 302 area 2R and Gat No. 1260 area 3H

(OA No. 535/2022)

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66R at village Palus, District Sangli, in favour of the applicant Bank.

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The applicant further submitted that the defendants again approached the applicant Bank vide loan application dated 26.07.2018 for enhancement of FKCC from R.14 Lakhs to Rs.27 Lakhs. Accordingly, the applicant Bank enhanced the limit to Rs.27,00,000/-. Further, the defendants executed Confirmation and Balance Letters on 28.09.2018 and 17.03.2021.

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 26.09.2021, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 14.09.2021 and 25.11.2021, the applicant Bank issued legal Notices to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank.

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Hence, this application is filed.

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per Order dated 17.05.2024 passed below Application (Exhibit-1).

(OA No. 535/2022)

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Dipak A. Latthe, Authorized Signatory and POA holder of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1-1 to AW1-26 along with list (Exhibit 7), which corroborates the case of the applicant Bank.

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

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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 Bank is entitled for reliefs as claimed.

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The applicant Bank has claimed relief in respect of hypothecated assets. However, there is no detailed description with respect to the hypothecated assets, therefore, the relief in terms of hypothecated assets cannot be granted.

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The applicant Bank has claimed other charges of Rs.45,968/and Penal Interest of Rs.1,22,293/- for FKCC Loan and other charges of Rs.14,591/- and Penal Interest of Rs.1,42,123/- for AMTL loan i.e. total of Rs.3,24,975/-, which cannot be granted and the same is required to be deducted from the total claim

(OA No. 535/2022)

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amount. Therefore, the total claim amount of Rs.1,00,01,067/is reduced to Rs.96,76,092/-.

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The applicant Bank has claimed future interest for AMTL @10.40% and for FKCC @12.20% per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple), 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. 535/2022 is allowed with proportionate costs.

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(B) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.96,76,092/(Rupees Ninety Six Lakhs Seventy Six Thousand Ninety Two only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 14.04.2022 till full payment/realization of the amount mentioned in this operative order.

(OA No. 535/2022)

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Gat No. 300 area 2H 43R, Gat No. 302 area 2R and Gat No. 1260 area 3H 66R at village Palus, District Sangli, more particularly described in the Schedule-I of the Original Application.

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(D) The applicant Bank is entitled to sell the mortgaged property 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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Sd/(Dilip G Murumkar) Place : Pune Presiding Officer Date : 23.07.2024 Debts Recovery Tribunal, Pune.

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(OA No. 535/2022)

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Federal Bank v. Udaysingh Bhujangrao Phadnaik

Case brief

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Federal Bank v. Udaysingh Bhujangrao Phadnaik

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