Allowed

Federal Bank v. Satish Dubal

DRT22 Apr 2025OA/1531/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Federal Bank's application to recover Rs.28,40,820 from two agriculturist defendants who defaulted on an agricultural loan. The court granted future interest at a reduced rate of 9% per annum and directed the issuance of a Recovery Certificate secured by personal property.

What did the court decide?

Payment of Rs.28,40,820 plus future interest @9% per annum; issuance of Recovery Certificate; right to sell mortgaged property.

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

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Presented on .. 22.03.2023 Registered on .. 18.11.2023 Decided on .. 22.04.2025 Duration .. Y—M—D 02--01—00

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1531/2023.

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The Federal Bank Limited,

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A company incorporated and registered under Indian Companies Act 2013 (18/2013) and also a Banking Company, having its registered office at Federal Towers, Bank Junction, Alwaye, Ernakulum District, Kerala and branch at – K 8 to 13, Empire Estate, Pune-Mumbai Road, Pimpri Chinchwad, Pune 411019.

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… Applicant

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Versus

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1 Mr. Satish Balasaheb Dubal, Age 46 years, Occ. Agriculturist, R/o : Kolgaon, Taluka Shrigonda, District Ahmednagar 413 728.

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2 Mr. Bibhishan Sakharam Shelar, Age 48 years, Occ. Agriculturist, R/o : 782, Patail Mala, A/P Vadgaon Rasai, Taluka Shirur, District Pune 412 211.

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… Defendants

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Sanap ( OA No. 1531/2023 ) 1 of 5

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:- Appearances For Applicant For Defendants

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Adv Parth Barsode i/b Adv Nikhil Barsode. Ex parte.

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Total Claim Amount – Rs.28,40,820 /-

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JUDGEMNT (Delivered on 22^nd April, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.28,40,820/- together with future interest @12.33% 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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As per the loan application dated 07.02.2015 of defendant No.1, the applicant Bank sanctioned the FKCC loan facility of Rs.10,00,000/- to defendant No.1 for crop cultivation of sugarcane and onion, vide Sanction Letter dated 07.02.2015. Defendant No.2 supplemented request for loan as co-obligant and mortgagor.

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In order to secure the aforesaid loan facility, the defendants executed necessary loan and security documents in favour of the applicant Bank along with deed of hypothecation and mortgage of Flat No. 21 on 2^nd floor Wing C, Shriram Heights at NA Plot Nos. 8, 9, 10, 11, 12, 13 and 14, S. No. 55/2A at Shirur Pashanmala,

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Sanap ( OA No. 1531/2023 ) 2 of 5

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Taluka Shirur, District Pune, 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 06.02.2019, 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 26.04.2019, 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, the application proceeded ex-parte against the defendants as per Order dated 28.11.2024 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Pandurang Parasharam Kadam, Assistant Vice President and Authorized Signatory holding POA of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-13 along with list (Exhibit 7), which corroborates the case of the applicant Bank.

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Sanap ( OA No. 1531/2023 ) 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 future interest @12.33% 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. 1531/2023 is allowed with 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.28,40,820/(Rupees Twenty Eight Lakhs Forty Thousand Eight

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Sanap ( OA No. 1531/2023 ) 4 of 5

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Hundred Twenty only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 22.03.2023 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 Flat No. 21 on 2^nd floor Wing C, Shriram Heights at NA Plot Nos. 8, 9, 10, 11, 12, 13 and 14, S. No. 55/2A at Shirur Pashanmala, Taluka Shirur, District Pune, more particularly described in the Para No. 5.5 and Schedule 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 : 22.04.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1531/2023 ) 5 of 5

Federal Bank v. Satish Dubal

Case brief

What is this about?

What did the court decide?

Federal Bank v. Satish Dubal

Case brief

What is this about?

What did the court decide?

What the court decided

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