Allowed

Federal Bank v. Rajgonda

DRT25 Jul 2025OA/1541/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's recovery application filed against two defendants for a loan default. In the absence of the defendants, the court directed them to pay the principal amount along with future interest at 9% per annum, secured by the mortgaged property, and issued a recovery certificate.

What did the court decide?

Defendants to pay Rs. 24,81,093 with future interest @9% per annum from 21.03.2023; mortgage property retained as security and recovery certificate issued.

Federal Bank versus Rajgonda — Execution and Attachment | DRT (2025)

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Presented on .. 21.03.2023 Registered on .. 18.11.2023 Decided on .. 25.07.2025 Duration .. Y—M—D 02--04--04

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1541/2023.

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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 within the meaning of Companies Act, 2013 (18/2013), having its registered office at Federal Towers, Bank Junction, Alwaye, Ernakulum District, Kerala and branch at – House No. 315, Gat No. 579, Miraj Kagwad Road, A/P Vaddi, Taluka Miraj 416 410.

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… Applicant

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Versus

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1 Shri Rajgonda Mahavir Patil, Age 53 years, Occ. Agriculturist, R/o Ward No. 6, Patil Galli, Malgaon, Taluka Miraj, District Sangli 416 407.

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2 Sou. Madhuri Rajgonda Patil, Age 46 years, Occ. Housewife, R/o Ward No. 6, Patil Galli, Malgaon, Taluka Miraj, District Sangli 416 407

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… Defendants

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Sanap ( OA No. 1541/2023 ) 1 of 5

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:- Appearances For Applicant Adv Parth Barsode i/b Adv Nikhil Barsode For Defendants Ex parte.

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Total Claim Amount – Rs.24,81,093/-

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JUDGMENT (Delivered on 25^th July, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.24,81,093/- together with future interest @12.73% 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 09.11.2015 of defendant Nos.1 and 2, the applicant Bank sanctioned and disbursed the FKCC loan facility of Rs.10,00,000/- to the defendants vide Sanction Letter dated 09.11.2015.

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In order to secure the aforesaid loan facility, the defendants have executed necessary loan and security documents in favour of the applicant Bank. The defendants have also executed deed of mortgage dated 07.11.2015 in respect of Gat No. 1371 admeasuring 4H 6R situated at village Grampanchayat Malgaon, Taluka Miraj, District Sangli, in favour of the applicant Bank. The defendants have also executed Balance Confirmation

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Sanap ( OA No. 1541/2023 ) 2 of 5

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Letters dated 13.07.2018, 15.06.2021 and 23.01.2023 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 18.10.2019, 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 29.07.2020, 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 22.04.2025 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 on behalf of the applicant Bank, and has produced on record the original loan transaction

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Sanap ( OA No. 1541/2023 ) 3 of 5

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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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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 @12.73% 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. 1541/2023 is allowed with costs.

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Sanap ( OA No. 1541/2023 ) 4 of 5

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B} Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.24,81,093/(Rupees Twenty Four Lakhs Eighty One Thousand Ninety Three only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 21.03.2023 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 in respect of Gat No. 1371 admeasuring 4H 6R situated at village Grampanchayat Malgaon, Taluka Miraj, District Sangli, more particularly described in the Para No. 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 : 25.07.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1541/2023 ) 5 of 5

Federal Bank v. Rajgonda

Case brief

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Federal Bank v. Rajgonda

Case brief

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