Allowed

Federal Bank v. Vidyulata Mali

DRT24 Mar 2025OA/1388/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 22.11 lakhs regarding an agricultural loan. The court confirmed the default, adjusted the claim by deducting penal interest, and awarded future interest at 9% p.a. secured by mortgaged land.

What did the court decide?

Respondents to pay Rs. 21,45,967/- with future interest @ 9% per annum; Recovery Certificate issued; direction to sell mortgaged property if dues remain unpaid.

Federal Bank versus Vidyulata Mali — Contract and Commercial Disputes | DRT (2025)

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Presented on .. 21.03.2023 Registered on .. 30.10.2023 Decided on .. 24.03.2025 Duration .. Y—M—D 02--00--03

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1388/2023.

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The Federal Bank Limited,

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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 – House No. 315, Gat No. 579, Miraj Kagwad Road, A/p Vaddi, Taluka Miraj 416 410.

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… Applicant

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Versus

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1 Mrs. Vidyulata Prashant Mali, Age 56 years, Occ. : Agriculturist / Housewife, R/o – Mali Vasti, Malgaon, Taluka Miraj, District Sangli 416 410.

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2 Mr. Prashant Jaywant Mali, Age 55 years, Occ. : Agriculturist, R/o – Mali Vasti, Malgaon, Taluka Miraj, District Sangli 416 410.

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Sanap ( OA No. 1388/2023 ) 1 of 5

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3 Mr. Manthan Prashant Mali, Age 27 years, Occ. : Agriculturist, R/o – Mali Vasti, Malgaon, Taluka Miraj, District Sangli 416 410. … Defendants

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:- Appearances For Applicant Advocate Nikhil Barsode. For Defendants Ex parte.

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Total Claim Amount – Rs. 22,11,255/-

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JUDGEMNT (Delivered on 24^th March, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.22,11,255/- together with future interest for Term Loan @13.73% per annum and for FKCC loan @14.23% 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 borrower and mortgagor and defendant Nos. 2 and 3 are co-obligants. As per the loan application dated 12.10.2015 of the defendants, the applicant Bank sanctioned and disbursed AMTL loan of Rs.5,00,000/- and FKCC loan facility of Rs.5,00,000/- to the defendants vide Sanction Letter dated 19.10.2015.

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In order to secure the aforesaid loan facilities, the defendants executed loan and necessary security documents in favour of the applicant Bank along with deed

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Sanap ( OA No. 1388/2023 ) 2 of 5

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of hypothecation and deed of mortgage of agricultural land Gat No. 548 admeasuring 1H 25R at village Grampanchayat Malgaon, Taluka Miraj, District Sangli, in favour of the applicant Bank. The defendants have also executed Balance Confirmation Letters on 14.05.2018, 07.05.2021 and 12.10.2021 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 18.10.2019, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 24.12.2019, 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 24.02.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Pandurang Parasharam Kadam, Assistant Vice President and Authorized Signatory holding POA of the applicant Bank, and has produced on record the

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Sanap ( OA No. 1388/2023 ) 3 of 5

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original loan transaction documents at Sr. Nos. AW-1-1 to AW-1-18 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 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 Penal Interest of Rs.65,288/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.22,11,255/- is reduced to Rs.21,45,967/-.

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The applicant Bank has claimed future interest for Term Loan @13.73% per annum and for FKCC loan @14.23% 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

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interest. Hence, I pass the following order.

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Sanap ( OA No. 1388/2023 ) 4 of 5

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O R D E R

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A} Original Application No. 1388/2023 is allowed with proportionate costs.

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B} Defendant Nos.1 to 3 either jointly or severally shall pay to the applicant Bank the sum of Rs.21,45,967/- (Rupees Twenty One Lakhs Forty Five Thousand Nine Hundred Sixty Seven only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 21.03.2023 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 of agricultural land Gat No. 548 admeasuring 1H 25R at village Grampanchayat Malgaon, Taluka Miraj, District Sangli, more particularly described in the Para No. 5.23 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 : 24.03.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1388/2023 ) 5 of 5

Federal Bank v. Vidyulata Mali

Case brief

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Federal Bank v. Vidyulata Mali

Case brief

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