Allowed

Karnataka Bank Limited v. Gajanan

DRT24 Jun 2025OA/1442/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed a recovery application by Kubernetes Bank Ltd. against three defendants for a housing loan default, granting reduced future interest but disallowing penal interest and incidental charges, and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of sum Rs. 19,42,827/- with future interest at 9% p.a. simple, issuance of Recovery Certificate, and direction to sell mortgaged property.

Karnataka Bank Limited versus Gajanan — Banking and Recovery | DRT (2025)

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Presented on: 12.11.2022 Registered on: 06.11.2023 Decided on: 24.06.2025 Duration: Y M D 02 07 12

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1442/2023

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Karnataka Bank Ltd.,

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A Scheduled Bank, formed and registered under the provisions of Indian Companies Act, 1913 as Banking Company, having its Registered and Head Office at P.B. No.599, Mahaveera Circle, Kankanady, Mangaluru – 575 002, having its Regional Office at Mumbai and having its Branch Office at Kolhapur Branch at Omkar Plaza, Rajaram Road, Bagal Chowk, Kolhapur-416 008.

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… Applicant

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Versus

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Mr. Gajanan Shamrao Patil , S/o. Shamrao Patil,

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Mrs. Shubhangi Gajanan Patil , W/o Gajanan Patil Both R/at – 188, Shiroli Pulachi, Malwadi, Taluka Hatkanangale, Kolhapur- 416 122.

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Mr. Arvind Babaso Koundale , Son of Babaso Koundale R/at- 184-5, Shiroli, Taluka Hatkanangale, Kolhapur-416 122.

… Defendants

(OA No.1442/2023)

Page 1 of 5

[ANIL]

APPEARANCES

For the Applicant Mr. I. C. Shetty - Advocate For the Defendants None (Ex parte)

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TOTAL CLAIM AMOUNT–Rs. 21,05,077.05Ps

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JUDGMENT (Delivered on 24^th June, 2025)

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The Applicant Bank has filed the present Application for recovery of Rs.21,05,077.05Ps. till 31.10.2022 in the Housing /Term Loan together with future interest @8.25% p.a. plus Penal Interest @5% thereon from 01.11.2022 till

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p.a. compounded monthly repayment/realization of entire dues from the defendants.

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Brief facts of the application are as under:

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Defendant Nos.1 to 3 approached to the applicant bank on 26.12.2011 to avail Housing Loan for purchase of New House and accordingly the applicant bank on 18.01.2012 sanctioned Loan of Rs.10,50,000/- to the defendants, on certain terms and conditions.

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In order to secure the said loan facility, defendants have executed certain security documents in favour of the applicant bank, as mentioned in Para No.5.6 of the Original Application.

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Defendant No.1 secured by way of Equitable Mortgage by Depositing Title Deed of the Flat No.403, 4^th Floor, in the building No.B of “Sankalpa Sidhi”admeasuring about 55.92 sq. mtrs. saleable area about 40 sq. mtrs. constructed on the land bearing R.S.No.298/3, Part B situated at Ward A, Kalambe Tarf Thane, Tal.

(OA No.1442/2023)

Page 2 of 5

[ANIL]

Karveer, District Kolhapur, Maharashtra, as per Memorandum of Deposit Title Deed/Mortgaged Deed dated 31.01.2012, more particularly described in the Schedule-“A” of the Original Application.

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After availing the credit facility, defendants were irregular in repayment of its dues. In spite or repeated requests, defendants have failed and neglected to regularize the loan account.

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The applicant Bank contended that defendants have acknowledged the debts as on 29.11.2014, 04.10.2017 and 06.06.2020 in the Housing /Term Loan Account No.4237001800109301 to the tune of Rs.16,95,570/-.

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Therefore, the account of defendant no.1 was classified as NonPerforming Asset on 29.01.2016.

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Thereafter, the applicant Bank through its Advocate issued Demand Notice dated 01.07.2016 calling upon defendants to liquidate the entire outstanding. However, defendants neither replied the Notice nor made the payment.

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Hence, this application is filed.

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Defendants failed to appear despite service of summons. Hence, the application proceeded ex parte against them on 27.03.2025.

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Applicant Bank filed Claim Affidavit of evidence (Exh.-6) of Mr. Mrugank Yogesh Rele, Branch Manager which supports the case of the applicant elucidated in the application.

(OA No.1442/2023)

Page 3 of 5

[ANIL]

Applicant Bank has produced on record the original loan transaction documents in evidence (AW-1-1 to AW-1-14) 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 future interest @8.25% per annum + Penal Interest @5% p.a. However, having regard to 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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The applicant Bank has also claimed Penal Interest of Rs.1,17,306.51Ps. and incidental/other charges of Rs.44,944/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.21,05,077.05Ps is reduced to Rs.19,42,827/-

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.1442/2023 is allowed with

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costs.

(OA No.1442/2023)

Page 4 of 5

[ANIL]

(B) Defendant Nos.1 to 3 shall either jointly or severally pay to the applicant Bank sum of Rs. 19,42,827 /- (Rupees Ninteen Lakhs Fourty Two Thousand Eight Hundred Twenty Seven only) with future interest @9% per annum (Simple) from the date of filing of the Original Application i.e.12.11.2022 till 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 the immovable property i.e. Flat No.403, 4^th Floor, in the Building No.B of “Sankalpa Sidhi” admeasuring about 55.92 sq. mtrs. saleable area about 40.00 sq. mtrs. constructed on the land bearing R.S.No.298/3, Part-B situated at Ward-A, Kalambe Tarf Thane, Tal. Karveer, District Kolhapur, Maharashtra, as per Memorandum of Deposit Title Deed/Mortgaged Deed dated 31.01.2012, more particularly described in the Schedule-“A” 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) Presiding Officer, Place : Pune Debts Recovery Tribunal, Pune. Date : 24.06.2025

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(OA No.1442/2023)

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Page 5 of 5

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[ANIL]

Karnataka Bank Limited v. Gajanan

Case brief

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Karnataka Bank Limited v. Gajanan

Case brief

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