Allowed

Federal Bank v. Chandrakant More

DRT26 Sept 2025OA/1385/2023

Case brief

AI extract

What is this about?

In this recovery proceeding, the Debts Recovery Tribunal allowed the bank's application against non-appearing defendants for a loan facility. The court reduced the claim amount by deducting penal interest and fixed a reasonable rate for future simple interest at 9% per annum.

What did the court decide?

Recovery of Rs.44,76,514/- with future simple interest at 9% p.a. secured by mortgage on agricultural property and issue of Recovery Certificate.

Federal Bank versus Chandrakant More — Banking and Recovery | DRT (2025)

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Presented on .. 26.08.2023 Registered on .. 30.10.2023 Decided on .. 26.09.2025 Duration .. Y—M—D 02--01--00

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1385/2023.

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The Federal Bank Limited,

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A Banking Company within the meaning of Companies Act, 2013 (18/2013), having its registered office at Federal Towers, Alwaye, Kerala and branch at – Kesar Bhavan, Shambharfooti Road, Vishrambaugh, S.T. Colony, Near Ganesh Mandir, Sangli 416 415.

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… Applicant

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Versus

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1 Mr. Chandrakant Balvant More, Age 62 years, Occ. – Agri. & Business, R/o : House No. 185, Ward No.3, Matang Samaj Parisar, Erandoli, Taluka Miraj, District Sangli 416 410.

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2 Mr. Ravindra Balvant More, Age 60 years, Occ. – Agri. & Business, R/o : House No. 185, Ward No.3, Matang Samaj Parisar, Erandoli, Taluka Miraj, District Sangli 416 410.

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3 Mr. Ganesh Chandrakant More, Age 38 years, Occ. – Agri. & Business,

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Sanap ( OA No. 1385/2023 ) 1 of 5

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R/o : House No. 185, Ward No.3, Matang Samaj Parisar, Erandoli, Taluka Miraj, District Sangli 416 410.

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4 Mrs. Anjana Chandrakant More, Age 57 years, Occ. – Agri. & Business, R/o : House No. 185, Ward No.3, Matang Samaj Parisar, Erandoli, Taluka Miraj, District Sangli 416 410.

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5 Mrs. Padmavati Ravindra More, Age 51 years, Occ. – Agri. & Business, R/o : House No. 185, Ward No.3, Matang Samaj Parisar, Erandoli, Taluka Miraj, District Sangli 416 410. … Defendants

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Appearances :-

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For Applicant Adv G.H. Bet i/b Adv Nikhil Barsode. For Defendants Ex parte.

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Total Claim Amount – Rs.46,96,280/-

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JUDGMENT (Delivered on 26^th September, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.46,96,280/- together with future interest @13.05% 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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As per the loan application of defendant Nos.1 to 5, the applicant Bank sanctioned the AMTL facility of Rs.20,00,000/- for Poly House Construction and FKCC

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Sanap ( OA No. 1385/2023 ) 2 of 5

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facility of Rs.5,00,000/- for seasonal agricultural operations to the defendants vide Sanction Letter dated 13.10.2017.

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In order to secure the aforesaid loan facilities, the defendants have executed necessary loan and security documents along with registered mortgage deed dated 13.10.2017 in respect of agricultural land bearing Gat No. 1233/A admeasuring 3H 46R situated at Mauje Erandoli, Tal. Miraj, District Sangli, in favour of the applicant Bank.

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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 02.04.2021, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Thereafter, on 13.06.2021, 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 against the defendants as per Order dated 23.07.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Pravin Pandurang Savalajkar, Branch

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Sanap ( OA No. 1385/2023 ) 3 of 5

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Manager and Authorized Signatory of the applicant Bank, and has produced on record original loan transaction documents at Sr. Nos. AW1-1 to AW1-16 along with list (Exhibit 7), which corroborates the case of the applicant.

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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.2,19,766/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.46,96,280/- is reduced to Rs.44,76,514/-.

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

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The applicant Bank has claimed future interest @13.05% 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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Sanap ( OA No. 1385/2023 ) 4 of 5

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O R D E R

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A} Original Application No. 1385/2023 is allowed with costs.

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B} Defendant Nos.1 to 5 either jointly or severally shall pay to the applicant Bank the sum of Rs.44,76,514/- (Rupees Forty Four Lakhs Seventy Six Thousand Five Hundred Fourteen only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 26.08.2023 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 in respect of agricultural land bearing Gat No. 1233/A admeasuring 3H 46R situated at Mauje Erandoli, Taluka Miraj, District Sangli, more particularly described in the Para No. 5.21 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/Place : Pune ( Dilip G. Murumkar ) Date : 26.09.2025 Presiding Officer Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1385/2023 ) 5 of 5

Federal Bank v. Chandrakant More

Case brief

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Federal Bank v. Chandrakant More

Case brief

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