Allowed

Federal Bank v. Aba

DRT9 Apr 2025OA/1516/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Federal Bank Limited for recovery of dues of approx. Rs. 28.44 lakh with future interest @9% from respondents for failed dairy loan repayments, where respondents appeared ex-parte. The court adjusted claim and granted sale of mortgaged property.

What did the court decide?

Defendants to pay Rs.28,44,534/- with future interest @9% p.a.; mortgaged land declared security; recovery certificate issued.

Federal Bank versus Aba — Specific Performance | DRT (2025)

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Presented on .. 28.01.2023 Registered on .. 18.11.2023 Decided on .. 09.04.2025 Duration .. Y—M—D 02--02--11

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1516/2023.

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The Federal Bank Limited,

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A banking company within the meaning of Companies Act, 2013 and also a (18/2013) Banking Company, having its registered office at Federal Towers, Alwaye, Kerala and having one of its branch at – Plot No. 15/3, Malhar Plaz, Radhika Road, Satara 415 002.

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… Applicant

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Versus

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1 Mr. Aba Jaysing Nikam, Age 47 years, Occ. Dairy Farming, R/o – At Post 28-2, Jamb Budruk, Taluka Koregaon, Dist. Satara 415 501

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2 Mr. Jaysing Nathu Nikam, Age 90 years, Occ. Dairy Business, R/o – At Post 28-2, Jamb Budruk, Taluka Koregaon, Dist. Satara 415 501

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3 Mr. Dharmendra Jaysing Nikam, Age 44 years, Occ. Business, R/o – At Post 28-2, Jamb Budruk, Taluka Koregaon, Dist. Satara 415 501

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Sanap ( OA No. 1516/2023 ) 1 of 5

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4 Mr. Jitendra Jaysing Nikam, Age 42 years, Occ. Dairy Business, R/o – At Post 28-2, Jamb Budruk, Taluka Koregaon, Dist. Satara 415 501 … Defendants

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:- Appearances

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For Applicant Advocate Nikhil Barsode. For Defendants Ex parte.

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Total Claim Amount – Rs.29,81,304/-

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JUDGEMNT

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(Delivered on 09^th April, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.29,81,304/- together with future interest @10.75% 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 :- Defendant No.1 is principal borrower and other defendants are co-obligants and mortgagors. As per the loan application of the defendants, the applicant Bank sanctioned the Term loan facility of Rs.20,00,000/- to the defendants for Dairy Development vide Sanction Letter dated 16.04.2018.

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In order to secure the aforesaid loan facility, the defendants executed loan and necessary security documents in favour of the applicant Bank. The defendants have also executed deed of hypothecation and

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Sanap ( OA No. 1516/2023 ) 2 of 5

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deed of mortgage of agricultural land Gat No. 232 area 15.5 Ares, Gat No. 42 area 9 Ares and Gat No. 327 area 2480 sq. ft. at village Jamb Budruk, Taluka Koregaon, District Satara, in favour of the applicant Bank.

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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 17.04.2019, 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 28.08.2019, 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, application proceeded ex-parte as per order dated 21.02.2025 passed below Application (Exh.1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Pravin Pandurang Savalajkar, Branch Head/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 AW1-14 along with list (Exhibit 9), which corroborates the case of the applicant Bank.

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Sanap ( OA No. 1516/2023 ) 3 of 5

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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.1,944/and penal interest of Rs.1,34,826/- total of Rs.1,36,770/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.29,81,304/- is reduced to Rs.28,44,534/10. The applicant Bank has claimed future interest @10.75% 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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O R D E R

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A} Original Application No. 1516/2023 is allowed with

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Sanap ( OA No. 1516/2023 ) 4 of 5

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proportionate costs.

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B} Defendant Nos.1 to 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.28,44,534/- (Rupees Twenty Eight Lakhs Forty Four Thousand Five Hundred Thirty Four only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 28.01.2023 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 of agricultural land Gat No. 232 area 15.5 Ares, Gat No. 42 area 9 Ares and Gat No. 327 area 2480 sq. ft. at village Jamb Budruk, Taluka Koregaon, District Satara, 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 ) Place : Pune Presiding Officer Date : 09.04.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1516/2023 ) 5 of 5

Federal Bank v. Aba

Case brief

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What did the court decide?

Federal Bank v. Aba

Case brief

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What did the court decide?

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