Allowed

Federal Bank v. Shital Kagwade

DRT25 Mar 2025OA/1391/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Federal Bank Limited for recovery of loans defaulted by two agriculturist respondents. The Tribunal granted relief subject to adjustments on penal interest and fixed future interest at 9% per annum, also recognizing security over mortgaged agricultural land.

What did the court decide?

Respondents shall pay Rs. 22,36,308 with future interest @ 9% p.a. The adjudicated amount is secured by the mortgaged agricultural land, and the applicant is entitled to sell the property to recover d

Federal Bank versus Shital Kagwade — Specific Performance | DRT (2025)

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Presented on .. 01.02.2023 Registered on .. 30.10.2023 Decided on .. 25.03.2025 Duration .. Y—M—D 02--01--24

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1391/2023.

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The Federal Bank Limited, A Banking company within the meaning of the Companies Act, 2013 and also a (18/2013) Banking Company, having its registered office at Federal Towers, Alwaye, Kerala and branch at – S T Colony (Sangli), Kesar Bhavan, 100 Ft Road, Nr. Ganesh Mandir Vishrambag, Sangli -416 415, Taluka Miraj, District Sangli.

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… Applicant

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Versus

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1 Mr. Shital Dhanchandra Kagwade, Age 51 years, Occ. Agriculturist, R/o : House No. 541, Ward No.1, Miraj Road, Kagwade Mala, Khanderajuri, Taluka Miraj, District Sangli – 416 410.

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2 Mrs. Neeta Shital Kagwade, Age 49 years, Occ. Agriculturist, R/o : House No. 541, Ward No.1, Miraj Road, Kagwade Mala, Khanderajuri, Taluka Miraj, District Sangli – 416 410. … Defendants

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Sanap ( OA No. 1391/2023 ) 1 of 5

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:- Appearances For Applicant For Defendants

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

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Total Claim Amount – Rs. 24,53,611/-

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JUDGEMNT (Delivered on 25^th March, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.24,53,611/- together with future interest @12.98% 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 Nos.1 and 2 are the farmers and owners of Agri. Land Gat No. 682 at village Khanderajuri. As per the loan application 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 FKCC 7,60,000/17.06.2014 2 AMTL 1,50,000/18.06.2014

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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 of hypothecation and deed of mortgage of Agricultural Land Gat No. 682 area 2H 23R at village Khanderajuri, Taluka Miraj, District Sangli, in favour of

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Sanap ( OA No. 1391/2023 ) 2 of 5

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the applicant Bank. The defendants have also executed Balance Confirmation Letters on 06.06.2017 and 20.08.2018 and thereby confirmed the balance outstanding in loan account. The last credit in the loan account took place on 22.01.2020.

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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 19.06.2017, 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 02.01.2017, 13.04.2017 and 05.01.2018, 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.

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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 20.02.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Gangadhar Raghunath Joshi, Senior Manager and Authorized Signatory of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1-1 to AW-1-22 along with list

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Sanap ( OA No. 1391/2023 ) 3 of 5

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(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.2,17,303/- (for FKCC of Rs.1,99,720/- + for Term Loan of Rs.17,583/-), which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.24,53,611/- is reduced to Rs.22,36,308/-.

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The applicant Bank has claimed future interest @12.98% 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.

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Hence, I pass the following order.

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Sanap ( OA No. 1391/2023 ) 4 of 5

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O R D E R

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A} Original Application No. 1391/2023 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.22,36,308/(Rupees Twenty Two Lakhs Thirty Six Thousand Three Hundred Eight only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 01.02.2023 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. 682 area 2H 23R at village Khanderajuri, 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/( Dilip G. Murumkar ) Place : Pune Presiding Officer Date : 25.03.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1391/2023 ) 5 of 5

Federal Bank v. Shital Kagwade

Case brief

What is this about?

What did the court decide?

Federal Bank v. Shital Kagwade

Case brief

What is this about?

What did the court decide?

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