Allowed

State Bank of India v. Kumar Krishna Mali

DRT7 May 2025OA/1131/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the State Bank of India's application for recovery of dues totaling Rs. 36,15,818 against a defaulting borrower. The court awarded simple interest at 9% per annum and granted authorization to sell mortgaged immovable properties.

What did the court decide?

Defendant directed to pay Rs. 36,15,818 with future interest @9% p.a.; Applicant Bank entitled to sell mortgaged immovable properties.

State Bank of India versus Kumar Krishna Mali — Contract and Commercial Disputes | DRT (2025)

¶1

Presented on: 29.06.2022 Registered on: 15.12.2022 Decided on: 07.05.2025 Duration: Y M D 02 10 08

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1131/2022.

¶3

State Bank of India ,

¶4

A Banking Company constituted under the State Bank of India Act, 1955, having its Corporate Office at State Bank Bhavan, Madam Cama Road, Nariman Point, Mumbai-400 021 and its Branch at Stressed Assets Recovery Branch, 2^nd floor, 321/A/3, Seven Loves Chowk, Shankar Sheth Road, Pune-42.

¶5

… Applicant

¶6

Versus

¶7

Mr. Kumar Krishna Mali Age 67 years, Occ.:- Agriculturist R/at Amanpur, Taluka Palus, Palus, Sangli-416 310. … Defendant

¶8

APPEARANCES

¶9

For the Applicant For the Defendant

¶10

Mrs. Nisha Ruikar Ex-parte.

¶11

TOTAL CLAIM AMOUNT – Rs.36,15,817.96Ps JUDGMENT (Delivered on 7^th May, 2025)

¶12

The Applicant Bank has filed the present application for recovery of aggregate sum of Rs.36,15,817.96Ps on account of Agricultural Term

(OA No.1131/2022)

Page 1 of 6

[ANIL]

Loan A/c No.32599216034 and Kisan Cash Credit Facility A/c No.35864648700 inclusive of interest plus future interest @10.75% and interest @12.25% respectively with yearly rests from 30.06.2022 till payment or realization of entire dues/debts from the defendant.

¶17

Brief facts of the application are as under:

¶18

Defendant approached applicant bank on 01.08.2012 and requested for agricultural Term Loan. Applicant Bank sanctioned an Agricultural Term Loan of Rs. 8.9 Lakhs on 10.10.2012 to the defendant on the terms and conditions.

¶19

Defendant has executed certain documents for the Term Loan Facility of Rs.8.9 Lakhs as set out in Para No.5.4 of the Original Application.

¶20

Defendant again approached to the applicant bank on 24.06.2016 for Agricultural Credit (New Crop Loan) of Rs.19,99,000/- under Kisan Credit Card Limit. The request of defendant was considered by applicant bank and sanctioned a Term Loan facility of Rs.19,99,000/- under KCC.

¶21

Defendant has executed certain documents for the Term Loan Facility of Rs.19,99,000/- as set out in Para No.5.6 of the Original Application.

¶22

So also, defendant executed Hypothecation Agreement dated 24.06.2016 and hypothecated the assets as under –

(OA No.1131/2022)

Page 2 of 6

[ANIL]

(a) Crop whatsoever and wherever raised or to be raised including standing crops on the land bearing Gat No.1550 admeasuring 1.02 HR and 1245 admeasuring 0.60HR, village Palus District Sangli, Gat No.636 admeasuring 1.01 HR and 634 admeasuring 0.1 HR village Amanpur District Sangli.

¶27

(b)- Herds/Fish/Flock/Silkworms and cocoons;

¶28

(c)Tools/Equipment/fixtures/boats/machines/ tractor /power tiller/tube well/electric motor/ diesel engine and/or other movables connected with and relating to framing/rearing of cattle and/or flock/fishing sericulture.

¶29

So also, defendant has executed Declaration Under Sub Section (1) of Section 5 on 24.06.2016 and thereby created charge on the land i.e. Gat No.1550 admeasuring 1.02 HR and 1245 admeasuring 0.60HR, village Palus District Sangli, Gat No.636 admeasuring 1.01 HR and 634 admeasuring 0.1 HR village Amanpur District Sangli. The said charge is registered in the office of Sub Registrar Palus in the book volume No.1, supplement Part 4 Page No.27 to 29 by registration No.126.

¶30

It is contended that the Defendant has availed the Term Loan Account and KCC Account of Rs.8.9 lakhs and Rs.19.99 Lakhs but did not pay the installments in time and, therefore, the said account became overdrawn and the Applicant Bank has classified it as NPA on 31.03.2019. Hence, the Applicant Bank through Advocate issued

(OA No.1131/2022)

Page 3 of 6

[ANIL]

Legal Notice dated 31.05.2022 to Defendant calling upon him to repay the entire amount outstanding under the said Loan Account. Despite service of Notice, defendant failed & neglected to comply with the demand in the said Notice.

¶35

Hence, this application is filed.

¶36

Defendant failed to appear despite service of summons. Hence, application proceeded ex-parte against Defendant vide Order dt.24.03.2025 passed below Application (Exh.1).

¶37

The Applicant Bank filed Claim Affidavit of evidence (Exhibit-6) of Mrs. Padmaja Pol, Chief Manager, which supports the case of the applicant elucidated in the application.

¶38

The Applicant Bank has produced in evidence the original loan documents at Annexure AW1-1 to AW1-14, which corroborate the case of the Applicant Bank.

¶39

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

¶40

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

(OA No.1131/2022)

Page 4 of 6

[ANIL]

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.

¶45

10 Considering the facts of the present case, I am of the opinion that if future interest is granted @9% per annum (simple) for both the facilities, it would be just and reasonable.

¶46

11 Hence, I pass the following order: -

¶47

ORDER

¶48

(A) Original Application No. 1131/2022 is allowed with costs.

¶49

(B) Defendant shall pay to the Applicant Bank an aggregate sum of Rs.36,15,818/- (Rupees Thirty Six Lakhs Fifteen Thousand Eight Hundred Eighteen only) with future interest @9% p.a. from the date of filing of the Original Application i.e.29.06.2022 till payment /realization of the amount mentioned in this operative order.

¶50

(C) The aforesaid adjudicated amount is secured by creating equitable mortgage on 24.06.2016 of the property i.e. Gat No.1550 admeasuring 1.02 HR and 1245 admeasuring 0.60HR, village Palus District Sangli, Gat No.636 admeasuring 1.01 HR and 634 admeasuring 0.1 HR village Amanpur District Sangli and it is registered in the office of Sub Registrar Palus in the book volume No.1, supplement Part 4 Page Nos.27 to 29 by registration No.126.

(OA No.1131/2022)

Page 5 of 6

[ANIL]

(D) The Applicant Bank is entitled to sell the above mentioned mortgaged immovable properties to recover its dues.

¶55

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

¶56

Place: Pune Date: 07.05.2025

¶57

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

¶58

(OA No.1131/2022)

¶59

Page 6 of 6

¶60

[ANIL]

State Bank of India v. Kumar Krishna Mali

Case brief

What is this about?

What did the court decide?

State Bank of India v. Kumar Krishna Mali

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank versus Pandhari Bhosle

Bank of India versus Sopan Jadhavar

Bank of India versus Balasaheb Ghumare

Bank of India versus Iranna

Rushikesh Paper Mills Pvt. Ltd. through chairman Sakharam S Landge versus the Cosmos Co-Op Bank Ltd.

Idbi Bank versus Rupali