Allowed

Federal Bank v. Shivaji

DRT19 Dec 2025OA/1515/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of a loan of Rs.9,00,000/- advanced for crop cultivation. The court reduced the claim by disallowing unproven hypothecated assets and excessive charges, and fixed future interest at 9%, directing realization against the mortgaged land.

What did the court decide?

The defendants shall jointly or severally pay Rs.27,46,026/- along with future interest at 9% p.a. from 31.01.2023, recoverable via sale of mortgaged land.

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

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Presented on .. 31.01.2023 Registered on .. 18.11.2023 Decided on .. 19.12.2025 Duration .. Y—M—D 02--10--19

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1515/2023.

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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, Sangli 416 415.

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… Applicant

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Versus

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1 Mr. Shivaji Subrao Patil, Age 68 years, Occ. Agriculturist, R/o – H.No. 275, Grampanchayat Samaj Mandir Road, Erandoli Rasta, A/P Khanderajuri, Taluka Miraj, District Sangli 416 426.

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2 Mr. Shamrao Subrao Patil, Age 52 years, Occ. Agriculturist, R/o – H.No. 275, Grampanchayat Samaj Mandir Road, Erandoli Rasta, A/P Khanderajuri, Taluka Miraj, District Sangli 416 426.

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Sanap ( OA No. 1515/2023 ) 1 of 5

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3 Mr. Ramrao Subrao Patil, Age 63 years, Occ. Agriculturist, R/o – House No. 2421, Varche Galli, Dhabugade Aad, Tasgona, Taluka Tasgona, District Sangli 416312. … 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.30,75,937=71

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JUDGMENT

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(Delivered on 19^th December, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.30,75,937=71, by rounding Rs.30,75,938/- together with future interest @13.13% 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 to 3 are farmers and owners of agricultural land Gat No. 322. As per the loan application dated 01.06.2013 of the defendants, the applicant Bank sanctioned the FKCC loan facility of Rs.9,00,000/- for crop cultivation to the defendants vide Sanction Letter dated 03.06.2013.

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In order to secure the aforesaid loan facility, the defendants have executed necessary loan and security

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Sanap ( OA No. 1515/2023 ) 2 of 5

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documents in favour of the applicant Bank. The defendants have also executed registered deed of mortgage in favour of the applicant Bank in respect of agricultural land bearing Gat No. 322 at village Khanderajuri, Taluka Miraj, District Sangli.

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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 31.05.2017, 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 27.02.2019, 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.

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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 31.10.2025 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

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Sanap ( OA No. 1515/2023 ) 3 of 5

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documents at Sr. Nos. AW1-1 to AW1-12 along with list (Exhibit 9), 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 other charges of Rs.3,29,912/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.30,75,938/- is reduced to Rs.27,46,026/-.

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The applicant Bank has claimed future interest @13.13% 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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Sanap ( OA No. 1515/2023 ) 4 of 5

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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. 1515/2023 is allowed with 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.27,46,026/- (Rupees Twenty Seven Lakh Forty Six Thousand Twenty Six only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 31.01.2023 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. 322 at village Khanderajuri, Taluka Miraj, District Sangli, more particularly described in the Para No. 5.6 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, Date : 19.12.2025 Pune.

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Sanap ( OA No. 1515/2023 ) 5 of 5

Federal Bank v. Shivaji

Case brief

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What did the court decide?

Federal Bank v. Shivaji

Case brief

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