Allowed

Federal Bank v. Balasaheb Chougule

DRT28 Aug 2025OA/1514/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Federal Bank Limited against six respondents for recovery of dues. The bank had been denied dues on agricultural and residential loans and classified accounts as NPAs. Defendants were absent. The tribunal adjusted claimed amount by deducting penal interest, rejected hypothecated asset relief due to lack of description, and granted fu

What did the court decide?

Respondents to pay Rs. 22,71,666/- plus future interest at 9% p.a. from 12.09.2023. Pending interest of Rs. 90,632/- deducted. Recovery Certificate issued. Right to sell mortgaged property confirmed.

Federal Bank versus Balasaheb Chougule — Banking and Recovery | DRT (2025)

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Presented on .. 12.09.2023 Registered on .. 18.11.2023 Decided on .. 28.08.2025 Duration .. Y—M—D 01--11--16

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1514/2023.

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The Federal Bank Limited, A company incorporated and registered under Indian Companies Act, 2013 (18/2013) and Section 2 (20) of the Companies Act, 2013 (18/2013) and a Banking company under section 5 (c) of Banking Regulation Act, 1949, having its registered office at Federal Towers, Bank Junction, Alwaye, Ernakulum District, Kerala and branch office at – Gandhinagar, Ganesh Talkies, Gad Mudshingi, Kolhapur 416 119.

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… Applicant

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Versus

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1 Mr. Balasaheb Shivram Chougule, Age 67 years, Occ. Agriculturist, R/o : Mali Galli, Shiroli Dumala, Tal. Karveer, District Kolhapur 416 001.

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2 Mr. Yashvant Shivram Chougule, Age 88 years, Occ. Agriculturist, R/o : Mali Galli, Shiroli Dumala, Tal. Karveer, District Kolhapur 416 001.

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Sanap ( OA No. 1514/2023 ) 1 of 7

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3 Mr. Sambhaji Shivram Chougule, Age 80 years, Occ. Agriculturist, R/o : Mali Galli, Shiroli Dumala, Tal. Karveer, District Kolhapur 416 001.

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4 Mr. Arvind Balasaheb Chougule, Age 38 years, Occ. Agriculturist, R/o : Mali Galli, Shiroli Dumala, Tal. Karveer, District Kolhapur 416 001.

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5 Mr. Naman Balasaheb Chougule, Age 36 years, Occ. Agriculturist, R/o : Mali Galli, Shiroli Dumala, Tal. Karveer, District Kolhapur 416 001.

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6 Mr. Ramchandra Yashvant Patil, Age 87 years, Occ. Agriculturist, R/o : Mali Galli, Shiroli Dumala, Tal. Karveer, District Kolhapur 416 001.

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… Defendants

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

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Total Claim Amount – Rs.23,62,298/-

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JUDGMENT

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(Delivered on 28^th August, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.23,62,298/- together with future interest @13.35% 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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Sanap ( OA No. 1514/2023 ) 2 of 7

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Defendant No.1 is owner of agricultural land admeasuring H 0-65.80 Ares out of Gat No. 14 situated at Shiroli Dumala, Taluka Karveer, District Kolhapur and defendant Nos.1 to 3 are owners of residential plot admeasuring 33 square meters bearing C.S. No. 533 along with construction thereon of 33.45 square meters having GPP No. 16 situated at Shiroli Dumala, Taluka Karveer, District Kolhapur.

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On 27.09.2018, the defendants approached the applicant Bank for financial assistance by way of AMTL and FKCC with loan application, for land development and cultivation of crops. Accordingly, the applicant Bank sanctioned the AMTL for Rs.11,50,000/- and FKCC for Rs.1,37,000/- to the defendants vide Sanction Letter dated 28.09.2018.

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In order to secure the aforesaid loan facilities, the defendants have executed necessary loan and security documents in favour of the applicant Bank. The defendants have also executed registered mortgage in respect of agricultural land admeasuring H 0-65.80 Ares out of Gat No. 14 situated at Shiroli Dumala, Taluka Karveer, District Kolhapur and residential plot admeasuring 33 square meters bearing C.S. No. 533

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Sanap ( OA No. 1514/2023 ) 3 of 7

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along with construction thereon of 33.45 square meters having GPP No. 16 situated at Shiroli Dumala, Taluka Karveer, District Kolhapur, in favour of the applicant Bank. The defendants have also executed Balance Confirmation Letter on 25.02.2021 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 01.10.2021, 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 13.09.2021, the applicant Bank issued Recall 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 against the defendants as per Order dated 02.07.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Satish Ramchandra Tikale, Senior

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Sanap ( OA No. 1514/2023 ) 4 of 7

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Manager and Authorized Signatory holding power of attorney of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-19 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.90,632/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.23,62,298/- is reduced to Rs.22,71,666/-.

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The applicant Bank has claimed future interest @13.35% per annum. However, considering the facts of the case, I

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Sanap ( OA No. 1514/2023 ) 5 of 7

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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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O R D E R

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A} Original Application No. 1514/2023 is allowed with proportionate costs.

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B} Defendant Nos.1 to 6 either jointly or severally shall pay to the applicant Bank the sum of Rs.22,71,666/- (Rupees Twenty Two Lakhs Seventy One Thousand Six Hundred Sixty Six only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 12.09.2023 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 admeasuring H 0-65.80 Ares out of Gat No. 14 situated at Shiroli Dumala, Taluka Karveer, District Kolhapur and residential plot admeasuring 33 square meters bearing C.S. No. 533 along with construction thereon of 33.45 square meters having GPP No. 16 situated at Shiroli Dumala, Taluka Karveer, District Kolhapur, more particularly described in the Para No.

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Sanap ( OA No. 1514/2023 ) 6 of 7

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5.22 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 : 28.08.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1514/2023 ) 7 of 7

Federal Bank v. Balasaheb Chougule

Case brief

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Federal Bank v. Balasaheb Chougule

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