Allowed

Federal Bank v. Gajanan Chaudhari

DRT2 Jun 2025OA/1294/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's claim for recovery of agricultural and food crop credit loans. The principal amount was reduced by dropping excessive penal interest, and future interest was fixed at 9% per annum. The dues are secured by mortgaged agricultural land.

What did the court decide?

Recovery of Rs. 20,74,565/- with future interest @9% p.a. secured by mortgaged properties via Recovery Certificate.

Federal Bank versus Gajanan Chaudhari — Contract and Commercial Disputes | DRT (2025)

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Presented on: 30.12.2022 Registered on: 11.10.2023 Decided on: 02.06.2025 Duration: Y M D 02 05 03

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1294/2023.

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The Federal Bank Ltd.

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A Banking Company within the meaning of Companies Act, 1013 [18/2013] and also a banking company, having its registered office at Federal Towers, Alwaye, Kerala and having one of its branches amongst other places at Ground Floor, Samant Towers, Ford Corner, Laxmipuri Kolhapur – 416 002.

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… Applicant

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Versus

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1. Mr. Gajanan Maruti Chaudhari Age-60 years, Occupation-Agriculturist,

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2. Mrs. Shobha Gajanan Chaudhari

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Age-55 years, Occupation-Agriculturist, Both R/at – Choudharwado. Djimdavade. Kale, Taluka Gaganbavda, District Kolhapur 416 205.

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… Defendants

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APPEARANCES

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For the Applicant Mr. G. H. Bet i/b Mr. N. D.Barsode - Advocate For the Defendants Ex-parte.

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TOTAL CLAIM AMOUNT –Rs.21,20,944.58Ps.

(OA No.1294/2023)

(ANIL)

Page 1 of 7

JUDGMENT

(Delivered on 2^nd June, 2025)

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The Applicant Bank has filed present application for recovery of Rs.21,20,944.58Ps (i.e.Rs.11,74,932.58Ps towards AMTL Account No.14556600002955 and Rs.9,46,012/- towards FKCC Account No.14555500003147) with future interest @12.60% p. a. and @12.70% p.a.+ 2% penal interest respectively with monthly rests till repayment/realization of the entire dues from the defendants.

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Brief facts of the application are as under:

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Defendants No. 1 & 2 were in need of Agri Finance assistance and thus, in October 2017 approached the applicant Bank and requested for AMTL AND FKCC loans. The applicant bank on 03.10.2017 sanctioned AMTL (Direct Agricultural) for Rs.7,00,000/and KFCC for Rs.5,00,000/- to the defendants.

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The defendants have executed the loan transaction and security documents for AMTL and KFCC loans in favour of the applicant Bank as set out in paragraph No.5.6 of the Original Application.

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In order to secure the AMTL & KFCC loan facilities, the Defendants have mortgaged the immovable properties i.e.

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(i)- All that piece and parcel of agricultural land owned by Mrs. Shobha Gajanan Chaudhari area admeasuring 2H 38 Ares of Gat No.606 at village Dhundavade, Taluka Gaganbavda, District Kolahpur;

(OA No.1294/2023)

(ANIL)

Page 2 of 7

(ii)- All that piece and parcel of agricultural land owned by Mr. Gajanan Maruti Chaudhari area admeasuring 0H 20 Ares of Gat No.535, at village Dhundavade, Taluka Gaganbavda, District Kolahpur; AND

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(iii)- All that piece and parcel of agricultural land owned by Mr. Gajanan Maruti Chaudhari area admeasuring 0H 40 Ares of Gat No.702 at village Dhundavade, Taluka Gaganbavda, District Kolahpur, more particularly described in Para No.5.27 (Schedule-I) of the Original Application.

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So also defendants have hypothecated standing crop on agricultural land and other assets procured out of bank finance, more particularly described in Para No.5.27 (Schedule-II) of the Original Application.

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The applicant Bank contended that the loan operations were absolutely not satisfactory. Loan accounts were went into defaults and arrears. Time and again the defendants were requested to regularize the loan accounts, but all the requests went futile attempts. Eventually, the defendants executed Balance Confirmation Letter dated 30.09.2020 confirming balance due and payable under AMTL and FKCC accounts. So, the applicant has issued Legal Notice dated 03.05.2021 through Advocate Ravindra Ingrole to the defendants to liquidate the entire dues in both the loan accounts. Even though, the

(OA No.1294/2023)

(ANIL)

Page 3 of 7

applicant issued recall letters dt. 11.03.2019, 06.07.2019, 02.02.2021, 05.02.2021 and 17.03.2021, still the dues were not liquidated. Therefore, the loan accounts dwindled to NPA and have been classified as NPA on 13.04.2021.

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Hence, this application is filed.

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Defendant Nos.1 & 2 failed to appear despite service of summons. Hence, the application proceeded ex-parte against them vide Order dated 11.02.2025 passed below the Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Pandurang Parasharam Kadam, Senior Manager & Authorized Signatory, which supports the case of the applicant Bank elucidated in the application. The applicant Bank has produced on record the original loan transaction documents (Sr.Nos.AW-1/1 to AW-1/16) 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 for.

(OA No.1294/2023)

(ANIL)

Page 4 of 7

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 Rs.46,380/- towards Penal interest for AMTL Account, which cannot be granted. Hence, the said amount shall be deducted from total claim amount. Thus, the total claim amount shall be reduced from Rs.21,20,944.58/- to Rs. 20,74,565/-.

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The applicant has claimed future interest @12.60% p. a. for AMTL Account and @12,70% p.a. for FKCC Account, respectively with monthly rests. However, in my opinion, rate of interest claimed by applicant Bank is exorbitant. Having regard to the facts of the case, I am of the opinion that if future interest is granted @9% p.a. for both the loan facilities, it would be just and reasonable rate of interest and the same is granted.

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.1294/2023 is allowed with costs. (B) Defendant Nos.1 & 2 either jointly or severally shall pay to the applicant bank an aggregate sum of

(ANIL)

(OA No.1294/2023)

Page 5 of 7

Rs. 20,74,565 /- (Rupees Twenty Lakhs Seventy Four Thousand Five Hundred Sixty Five only) (i.e. Rs.11,28,553/towards AMTL Account No. 14556600002955 and Rs.9,46,012/- towards FKCC Loan Account No.14555500003147) with future interest @9% p.a. (Simple) 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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(i)- All that piece and parcel of agricultural land owned by Mrs. Shobha Gajanan Chaudhari area admeasuring 2H 38 Ares of Gat No.606 at village Dhundavade, Taluka Gaganbavda, District Kolahpur;

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(ii)- All that piece and parcel of agricultural land owned Mr. Maruti Chaudhari area by Gajanan admeasuring 0H 20 Ares of Gat No.535, at village Dhundavade, Taluka Gaganbavda, District Kolahpur;

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AND

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(iii)- All that piece and parcel of agricultural land owned Mr. Maruti Chaudhari area by Gajanan admeasuring 0H 40 Ares of Gat No.702 at village Dhundavade, Taluka Gaganbavda, District Kolahpur, more particularly described in Para No.5.27 (Schedule-I) of the Original Application.

(OA No.1294/2023)

(ANIL)

Page 6 of 7

(D) The applicant is entitled to sell the mortgaged immovable 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 the defendants.

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Place : Pune Date : 02.06.2025

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

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(OA No.1294/2023)

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(ANIL)

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Page 7 of 7

Federal Bank v. Gajanan Chaudhari

Case brief

What is this about?

What did the court decide?

Federal Bank v. Gajanan Chaudhari

Case brief

What is this about?

What did the court decide?

What the court decided

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