Allowed

Federal Bank v. Mahavir Mali

DRT7 Mar 2025OA/1250/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of loan dues. After deducting specific charges and penal interest, the tribunal directed the defaulting borrowers to pay the reduced principal plus future simple interest at 9%, secured by the mortgaged agricultural land.

What did the court decide?

Defendants shall pay Rs.22,27,397/- with future interest @9% p.a. from 19.11.2022; recovery certificate issued; bank entitled to sell mortgaged land.

Federal Bank versus Mahavir Mali — Banking and Recovery | DRT (2025)

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Presented on .. 19.11.2022 Registered on .. 15.09.2023 Decided on .. 07.03.2025 Duration .. Y—M—D 02—03--18

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1250/2023.

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The Federal Bank Limited, A company incorporated under the Companies Act, 2013 (18/2013) and a Banking Company within the meaning of Companies Act, 2013, having its registered office at Federal Towers, Bank Junction, Alwaye, Ernakulum District, Kerala and branch at – village Vaddi, House No. 315, Gat No. 579, Miraj Kagwad Road, A/P Vaddi, Taluka Miraj, District Sangli 416 410.

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… Applicant

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Versus

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1 Mr. Mahavir Mahadev Mali, Age 59 years, Occ. Agricultural, R/o : Gundewadi, Mali Vasti, Malgaon, Taluka Miraj, District Sangli 416 407.

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2 Mrs. Ranjana Mahavir Mali, Age 46 years, Occ. Agri. & House wife, R/o : Gundewadi, Mali Vasti, Malgaon, Taluka Miraj, District Sangli 416 407.

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Sanap ( OA No. 1250/2023 ) 1 of 5

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:- Appearances For Applicant Adv. G.H. Bet i/b Adv. N.D. Barsode. For Defendants Ex parte.

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Total Claim Amount – Rs. 23,00,778/-

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JUDGEMNT

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(Delivered on 07^th March, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.23,00,778/- together with future interest @12.73% 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 a borrower and defendant No.2 is coborrower. As per the loan application dated 08.07.2015 of the defendants, the applicant Bank sanctioned the following loan facilities to the defendants.

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Name of facility Amount Date of Sanction 1 AMTL 5,00,000/09.07.2015 2 FKCC 5,00,000/09.07.2015

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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 and deed of mortgage of agricultural land Gat No. 662 area 91.5R, situated at

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Sanap ( OA No. 1250/2023 ) 2 of 5

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village Malgaon, District Sangli, in favour of the applicant Bank. The defendants have also executed Balance Confirmation Letters on 09.05.2018 and 07.05.2021 and thereby confirmed the balance outstanding in loan account.

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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 31.07.2017, 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 18.11.2017, 20.03.2019 and 03.07.2020, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank. 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 14.02.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Rajkumar Shankar Sherekar, Branch Manager and Authorized Signatory of the applicant Bank, and has produced on record the original

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Sanap ( OA No. 1250/2023 ) 3 of 5

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loan transaction documents at Sr. Nos. AW-1-1 to AW-124 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 other charges of Rs.2,819/- and Rs.2,955/- for both loans and Penal Interest of Rs.67,607/- for AMTL loan account, total of Rs.73,381/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.23,00,778/- is reduced to Rs.22,27,397/-.

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The applicant Bank has claimed future interest @12.73% 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. Hence, I pass the following order.

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O R D E R

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A} Original Application No. 1250/2023 is allowed with

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Sanap ( OA No. 1250/2023 ) 4 of 5

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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.22,27,397/(Rupees Twenty Two Lakhs Twenty Seven Thousand Three Hundred Ninety Seven only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 19.11.2022 till full payment/realization of the amount mentioned in this operative order.

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C} The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of agricultural land Gat No. 662 area 91.5R, situated at village Malgaon, District Sangli, more particularly described in the Para No. 5.5 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 : 07.03.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1250/2023 ) 5 of 5

Federal Bank v. Mahavir Mali

Case brief

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Federal Bank v. Mahavir Mali

Case brief

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