Allowed

Federal Bank v. Prashant Mali

DRT9 May 2025OA/1562/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of non-performing loan dues against two agriculturists who appeared ex-parte. The court reduced the claim by deducting penal interest, approved a lower rate of future interest, and ordered recovery secured by mortgaged agricultural land.

What did the court decide?

Defendants to pay Rs.45,16,160/- plus future interest at 9% per annum; recovery enforced against mortgaged agricultural land.

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

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Presented on .. 03.03.2023 Registered on .. 18.11.2023 Decided on .. 09.05.2025 Duration .. Y—M—D 02--02--06

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1562/2023.

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The Federal Bank Limited,

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A Banking Company within the meaning of Indian Companies Act, 2013 (18/2013), having its registered office at Federal Towers, Bank Junction, Alwaye, Ernakulum District, 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. Prashant Jaywant Mali, Age 53 years, Occ. – Agriculturist, R/o – 1772 B3, Hulle Galli, Mali Vasti, A/P Malgaon, Taluka Miraj, District Sangli 416 407.

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2 Mrs. Vidyulata Prashant Mali, Age 54 years, Occ. – Agriculturist, R/o – 1772 B3, Hulle Galli, Mali Vasti, A/P Malgaon, Taluka Miraj, District Sangli 416 407.

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… Defendants

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Sanap ( OA No. 1562/2023 ) 1 of 5

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:- Appearances For Applicant For Defendants

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Adv G.H. Bet i/b Adv Nikhil Barsode. Ex parte.

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Total Claim Amount – Rs.49,69,695/-

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JUDGMENT

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(Delivered on 09^th May, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.49,69,695/- together with future interest respectively @12.73 and 11.73% 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 of defendant Nos.1 and 2, the applicant Bank sanctioned the AMTL loan OF Rs.12,00,000/- and FKCC loan facility of Rs.8,00,000/- to defendant Nos.1 and 2 respectively for Farm development and crop cultivation vide Sanction Letter dated 25.03.2015.

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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 along with registered mortgage deed dated 26.03.2015 of Agricultural land bearing Gat No. 561 area 9.83R out of total area 59R; Gat No.562 area 1H 29R out of total area 3H 9R; Gat No. 585 area 72R out of total area 2H 16R and Gat No. 593 area

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Sanap ( OA No. 1562/2023 ) 2 of 5

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34.99R out of total area 1H 5R situated at village Malgaon, 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 15.12.2017, 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 11.02.2019, 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 03.04.2025 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, Branch Manager and Authorized Signatory of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-17 along with list (Exhibit 7), which corroborates the case of applicant Bank.

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I have heard arguments of the learned Advocate for the applicant Bank.

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Sanap ( OA No. 1562/2023 ) 3 of 5

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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.2,66,723/- for AMTL + Rs.1,86,812/- for FKCC = Rs.4,53,535/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.49,69,695/- is reduced to Rs.45,16,160/-.

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The applicant Bank has claimed future interest respectively @12.73 and 11.73% 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. Hence, I pass the following order.

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O R D E R

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A} Original Application No. 1562/2023 is allowed with proportionate costs.

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Sanap ( OA No. 1562/2023 ) 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.45,16,160/- (Rupees Forty Five Lakhs Sixteen Thousand One Hundred Sixty only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 03.03.2023 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 Agricultural land bearing Gat No. 561 area 9.83R out of total area 59R; Gat No.562 area 1H 29R out of total area 3H 9R; Gat No. 585 area 72R out of total area 2H 16R and Gat No. 593 area 34.99R out of total area 1H 5R situated at village Malgaon, 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 : 09.05.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1562/2023 ) 5 of 5

Federal Bank v. Prashant Mali

Case brief

What is this about?

What did the court decide?

Federal Bank v. Prashant Mali

Case brief

What is this about?

What did the court decide?

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