Allowed

Federal Bank v. Ganpati Kumbhar

DRT28 Aug 2025OA/1537/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal at Pune allowed an original application filed by The Federal Bank Limited for recovery of dues from three borrowers. The court reduced the penal interest claim and fixed future interest at 9% per annum, ordering the defendants to pay the adjusted amount secured by a mortgage on agricultural land.

What did the court decide?

Defendants ordered to pay Rs. 29,04,277/- plus future interest @9% p.a. secured by mortgage; Recovery Certificate issued.

Federal Bank versus Ganpati Kumbhar — Company and Corporate | DRT (2025)

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Presented on .. 01.02.2023 Registered on .. 18.11.2023 Decided on .. 28.08.2025 Duration .. Y—M—D 02--06--27

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1537/2023.

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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. Ganpati Krishna Kumbhar, Age 78 years, Occ. Agri. & Business, R/o : Bramhnath Road, Ward No. 4, Malabhag, Khanderajuri, Taluka Miraj, District Sangli 416 410.

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2 Mr. Kumbhar Shrikrishna Ganpat, Age 39 years, Occ. Agri. & Business, R/o : Bramhnath Road, Ward No. 4, Malabhag, Khanderajuri, Taluka Miraj, District Sangli 416 410.

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3 Mr. Kumbhar Bharat Ganpat, Age 34 years, Occ. Agri. & Business,

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Sanap ( OA No. 1537/2023 ) 1 of 5

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R/o : Bramhnath Road, Ward No. 4, Malabhag, Khanderajuri, Taluka Miraj, District Sangli 416 410. … Defendants

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

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Total Claim Amount – Rs.32,02,005/-

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JUDGMENT (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.32,02,005/- together with future interest @12.63% 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 No.1 is a borrower and defendant Nos.2 and 3 supplemented request as co-obligant. As per the loan application of the defendants, the applicant Bank sanctioned the financial assistance by way of AMTL of Rs.4,00,000/- and FKCC facility of Rs.8,00,000/- for land development and crop cultivation to the defendants vide Sanction Letter dated 04.06.2014.

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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. Defendant

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Sanap ( OA No. 1537/2023 ) 2 of 5

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No.1 has also executed registered mortgage in respect of all that piece and parcel of agricultural land bearing Gat No. 118 area 2H 31R out of total land area 6H 92R, fallow land area 16R at village Khanderajuri, Taluka Miraj, District Sangli, 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 05.06.2017, 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 31.01.2019, 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 01.07.2025 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. 1537/2023 ) 3 of 5

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documents at Sr. Nos. AW1-1 to AW1-20 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 Penal Interest of Rs.2,97,728/- (Rs.1,04,457 for AMTL and Rs.1,93,271/- for FKCC), which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.32,02,005/- is reduced to Rs.29,04,277/-.

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The applicant Bank has claimed future interest @12.63% 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. 1537/2023 is allowed with proportionate costs.

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Sanap ( OA No. 1537/2023 ) 4 of 5

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B} Defendant Nos.1 to 3 either jointly or severally shall pay to the applicant Bank the sum of Rs.29,04,277/- (Rupees Twenty Nine Lakhs Four Thousand Two Hundred Seventy Seven only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 01.02.2023 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 all that piece and parcel of agricultural land bearing Gat No. 118 area 2H 31R out of total land area 6H 92R, fallow land area 16R at village Khanderajuri, Taluka Miraj, District Sangli, more particularly described in the Schedule I 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. 1537/2023 ) 5 of 5

Federal Bank v. Ganpati Kumbhar

Case brief

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Federal Bank v. Ganpati Kumbhar

Case brief

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