Allowed

Federal Bank v. Sandeep Powar

DRT29 Apr 2025OA/1559/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by Federal Bank Limited for recovery of Rs.21,44,875/- along with future interest at 9% p.a. The court reduced the claim by disallowing penal interest and denied relief on hypothecated assets due to lack of detailed description, but granted charge over mortgaged agricultural land.

What did the court decide?

Defendants to pay Rs.21,44,875/- plus future interest at 9% p.a. from 12.09.2023. Charge declared over mortgaged agricultural land and Recovery Certificate issued.

Federal Bank versus Sandeep Powar — Banking and Recovery | DRT (2025)

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Presented on .. 12.09.2023 Registered on .. 18.11.2023 Decided on .. 29.04.2025 Duration .. Y—M—D 01--07--17

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1559/2023.

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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 under Section 2 (20) of the Companies Act, 2013 (18/2013) and a Banking Company under Section 5 (c) of Banking Regulation Act, 1949 (10 of 1949), having its registered office at Federal Towers, Bank Junction, Alwaye, Ernakulum District, Kerala and branch at – Ganjdhinagar, Ganesh Talkies, Gad Mudshingi, Kolhapur.

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… Applicant

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Versus

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1 Mr. Sandip Mohanrao Powar, Age 42 years, Occ. – Agriculturist, R/o – 920, C Ward, Raviwar Peth, Near Sontakke Talim, Rajaram Road, Kolhapur, Taluka Karveer, District Kolhapur 416 002.

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2 Miss Madhuri Mohanrao Powar, Age 64 years, Occ. – Agriculturist, R/o – 920, C Ward, Raviwar Peth,

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Sanap ( OA No. 1559/2023 ) 1 of 5

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Near Sontakke Talim, Rajaram Road, Kolhapur, Taluka Karveer, District Kolhapur 416 002. … Defendants

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:- Appearances For Applicant Adv G.H. Bet i/b Adv Nikhil Barsode. For Defendants Ex parte.

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Total Claim Amount – Rs.23,05,159/-

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JUDGEMNT

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(Delivered on 29^th April, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.23,05,159/- together with future interest for Term Loan @12.73% per annum and for FKCC @10.38% 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 and 2 are traditional farmers and wanted financial assistance by way of Agricultural loans. As per the loan application of defendant Nos.1 and 2, the applicant Bank sanctioned the following loan facilities to the defendants for well deepening, irrigation and cultivation of crops.

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	Name of facility	Amount Rs.	Date of Sanction
1	AMTL	6,95,000/-	27.07.2015
2	FKCC	3,00,000/-	27.07.2015

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Sanap ( OA No. 1559/2023 ) 2 of 5

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In order to secure the aforesaid loan facilities, the defendants executed loan and necessary security documents along with deed of hypothecation and mortgage of Agricultural land Gat Nos. 352, 490, 509 and 512 situated at Adur, Taluka Karveer, District Kolhapur, 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 01.04.2018, 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 30.06.2023, 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 07.04.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Satish Ramchandra Tikale, Senior Manager and Authorized Signatory of the applicant Bank, and has produced on record original loan transaction documents at

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Sanap ( OA No. 1559/2023 ) 3 of 5

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Sr. Nos. AW-1 to AW-15 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 Penal Interest of Rs.1,60,284/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.23,05,159/- is reduced to Rs.21,44,875/-.

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The applicant Bank has claimed future interest for Term Loan @12.73% per annum and for FKCC @10.38% 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. Hence, I pass the following order.

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Sanap ( OA No. 1559/2023 ) 4 of 5

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O R D E R

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A} Original Application No. 1559/2023 is allowed with proportionate 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.21,44,875/- (Rupees Twenty One Lakhs Forty Four Thousand Eight Hundred Seventy Five only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 12.09.2023 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 Nos. 352, 490, 509 and 512 situated at Adur, Taluka Karveer, District Kolhapur, more particularly described in the Para No. 5.20 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 : 29.04.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1559/2023 ) 5 of 5

Federal Bank v. Sandeep Powar

Case brief

What is this about?

What did the court decide?

Federal Bank v. Sandeep Powar

Case brief

What is this about?

What did the court decide?

What the court decided

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