Allowed

Federal Bank v. Kerba Patil

DRT10 Mar 2025OA/1245/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Federal Bank Limited for recovery of dues. The tribunal allowed the principal claim but deducted penal interest and reduced the future interest rate on FKCC to 9% per annum. The debt is secured by hypothecation of a vehicle and mortgage of agricultural lands.

What did the court decide?

Defendants directed to pay Rs.12,28,367 with future interest at 8.73% and Rs.13,70,485 with future interest at 9%; Recovery Certificate issued; mortgaged property authorized for sale.

Federal Bank versus Kerba Patil — Insolvency and Bankruptcy | DRT (2025)

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Presented on .. 30.12.2022 Registered on .. 15.09.2023 Decided on .. 10.03.2025 Duration .. Y—M—D 02—02--10

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1245/2023.

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The Federal Bank Limited,

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A Banking Company within the meaning of Companies Act, 2013 and also a (18/2013) banking company, having its registered office at Federal Towers, Alwaye, Kerala and having branch at – Ground Floor, Samant Towers, Ford Corner, Laxmiuri, Kolhapur 416 002.

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… Applicant

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Versus

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1 Mr. Kerba Dattu Patil, Age 66 years, Occ. Agriculturist, R/o : Post Anadur, Shenawadi, Taluka Gaganbawada, District Kolhapur 416 206.

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2 Mr. Tanaji Kerba Patil, Age : Adult, Occ. Agriculturist, R/o : Post Anadur, Shenawadi, Taluka Gaganbawada, District Kolhapur 416 206.

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… Defendants

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Sanap ( OA No.1245/2023 ) 1 of 7

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:- Appearances

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For Applicant For Defendants

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Advocate Bet i/b Advocate Barsode. Ex parte.

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Total Claim Amount – Rs.26,18,070 /-

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JUDGEMNT

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(Delivered on 10^th March, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.26,18,070/- together with future interest for Term Loan account @8.73% per annum and for FKCC account @11.70% 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 :- Defendant No.1 is a principal borrower whereas defendant No.2, son of defendant No.1, supplemented the request for loan as co-obligant. As per the loan application of the defendants, the applicant Bank sanctioned the following loan facilities to the defendants for purchase of vehicle and crop cultivation.

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Name of the facility	Amount Rs.	Date of sanction
Agri Mobile Term Loan	10,80,000/-	30.08.2016
FKCC	6,50,000/-	30.08.2016

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Sanap ( OA No.1245/2023 ) 2 of 7

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In order to secure the aforesaid loan facilities, the defendants executed necessary loan and security documents in favour of the applicant Bank along with deed of hypothecation of Scorpio S-10 Registration No. MH-09-DX-6905 and mortgage of agricultural land 3.83H out of Gat No. 122, 30, 563, 607/A, 607/B, 648 and 86 at Anadur, Kolhapur, in favour of the applicant Bank. The defendants have also executed Balance Confirmation Letters dated 31.08.2019 and 30.07.2022 and thereby confirmed the balance outstanding in loan accounts.

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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 18.09.2019, the applicant Bank has classified the account of the defendant as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 17.10.2019, the applicant Bank issued legal Notice to the defendant. Despite service of Notice, the defendant failed and neglected to pay the outstanding dues of the applicant Bank. Hence, this application is filed.

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Sanap ( OA No.1245/2023 ) 3 of 7

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as Order dated 13.02.2025 below per passed

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Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Pandurang Parasharam Kadam, Senior Manager/Authorized Signatory holding Power of Attorney of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-18 and 20 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 Penal Interest of Rs.18,915/- for Term Loan, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total Term Loan claim amount of Rs.12,47,282/- is reduced to Rs.12,28,367/-.

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Sanap ( OA No.1245/2023 ) 4 of 7

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Further, the applicant Bank has also claimed Penal Interest of Rs.303/- for FKCC account, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total FKCC claim amount of Rs.13,70,788/- is reduced to Rs.13,70,485/-.

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The applicant Bank has claimed future interest for Term Loan account @8.73% per annum and for FKCC account @11.70% per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted for Term Loan account @8.73% per annum (simple) and for FKCC account @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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O R D E R

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A} Original Application No. 1245/2023 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.12,28,367/(Rupees Twelve Lakhs Twenty Eight Thousand Three Hundred Sixty Seven only) towards Term Loan

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Sanap ( OA No.1245/2023 ) 5 of 7

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account along with future interest @8.73% per annum from the date of filing of the Original Application i.e. 30.12.2022 till full payment/realization of the amount mentioned in this operative order.

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C} Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.13,70,485/(Rupees Thirteen Lakhs Seventy Thousand Four Hundred Eighty Five only) towards FKCC Loan account along with future interest @9% per annum from the date of filing of the Original Application i.e. 30.12.2022 till full payment/realization of the amount mentioned in this operative order.

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D} The aforesaid adjudicated amount is secured by the valid and subsisting hypothecation of Scorpio S-10 Registration No. MH-09-DX-6905 and mortgage of agricultural lands Gat No. 122, 30, 563, 607/A, 607/B, 648 and 86 aggregate area 383 Ares situated at Anadur, Taluka Gaganbawada, Kolhapur, more particularly described in the Para Nos. 5.25 of the Original Application.

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E} The applicant Bank is entitled to sell the mortgaged property to recover its dues.

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Sanap ( OA No.1245/2023 ) 6 of 7

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F} Issue Recovery Certificate.

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G} 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 : 10.03.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No.1245/2023 ) 7 of 7

Federal Bank v. Kerba Patil

Case brief

What is this about?

What did the court decide?

Federal Bank v. Kerba Patil

Case brief

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What did the court decide?

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