Allowed

Federal Bank v. Bharat Shedbale

DRT6 Feb 2025OA/1575/2023

Case brief

AI extract

What is this about?

In an ex-parte application, the DRT allowed the Federal Bank's recovery claim against two agriculturist defendants who failed to pay loan installments. The tribunal reduced penal interest and granted future interest at 9% p.a., directing defendants to pay the principal with secured mortgage.

What did the court decide?

Defendants directed to pay Rs. 25.32 lakhs plus future interest at 9% p.a. from the date of filing.

Federal Bank versus Bharat Shedbale — Banking and Recovery | DRT (2025)

¶1

Presented on : 01.02.2023 Registered on : 18.11.2023 Decided on : 06.02.2025 Duration : Y M D 02 00 05

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1575/2023.

¶3

The Federal Bank Limited, A Banking Company within the meaning of Companies Act, 2013 (18/2013) having its registered office at Federal Towers, Alwaye, Kerala and branch at – S.T. Colony (Sangli), Keshar Bhavan, 100 Ft. Road, Nr. Ganesh Mandir, Vishrambag, Sangli 416415, Taluka Miraj, District Sangli. Versus 1 Mr. Bharat Bandu Shedbale, Age 49 years, Occ. Agriculturist, R/o : House No. 904, Ram Nagar, A/p Malgaon, Taluka Miraj, District Sangli 416 407.

¶4

2 Mr. Vidya Bharat Shedbale, Age 35 years, Occ. Agriculturist, R/o : House No. 904, Ram Nagar, A/p Malgaon, Taluka Miraj, District Sangli 416 407.

.. Applicant

.. Defendants

(OA No. 1575/2023)

Page 1 of 6

Sanap

APPEARANCES

For Applicant	Advocate Nikhil Barsode.
For Defendants	Exparte.

¶12

TOTAL CLAIM AMOUNT –Rs.27,65,977/-

¶13

JUDGMENT

¶14

(Delivered on 06^th February, 2025)

¶15

The Applicant Bank has filed the present application for recovery of the sum of Rs.27,65,977/- together with future interest @12.73% per annum from the date of Application till realization of the entire dues from the defendants.

¶16

Brief facts of the application are as under:

¶17

Defendant Nos.1 and 2 are the farmers and owner of agricultural land Gat No.1294. As per the loan application of the defendants, the applicant Bank sanctioned the FKCC of Rs.5,50,000/- for crop cultivation and AMTL of Rs.6,50,000/for agricultural land development to the defendants vide Sanction Letter dated 04.06.2015.

¶18

In order to secure the aforesaid loan facilities, the defendants executed necessary loan and security documents along with deed of mortgage of land Gat No. 1294 (1H 60R) at village Malgaon, Taluka Miraj, District Sangli, in favour of the

(OA No. 1575/2023)

Page 2 of 6

Sanap

applicant Bank. Further, the defendants have also executed confirmation of balance letter dated 07.04.2018.

¶23

The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 30.06.2017, 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 02.01.2017 and 13.04.2017, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, defendants failed and neglected to pay the outstanding dues of the applicant Bank. Hence, this application is filed.

¶24

The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per Order dated 03.02.2025 passed below Application (Exhibit-1).

¶25

The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Gangadhar Raghunath Joshi, Senior Manager and authorized signatory of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1-1 to AW-1-19 along with list (Exhibit 7), which corroborates the case of the applicant Bank.

¶26

I have heard arguments of the learned Advocate for the

(OA No. 1575/2023)

Page 3 of 6

Sanap

applicant Bank.

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.

¶32

The applicant Bank has claimed Penal Interest of Rs.1,02,278/for FKCC and Rs.1,31,471/- for Term Loan, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the claim amount of Rs.13,57,646/for FKCC is reduced to Rs.12,55,368/- and the claim amount of Rs.14,08,331/- for Term Loan is reduced to Rs.12,76,860/-. Thus, the applicant Bank is entitled to recover total of Rs.25,32,228/- from the defendants.

¶33

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. Hence, I pass the following order :-

¶34

ORDER

¶35

(A) Original Application No. 1575/2023 is allowed with proportionate costs.

(OA No. 1575/2023)

Page 4 of 6

Sanap

(B) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.25,32,228/(Rupees Twenty Five Lakhs Thirty Two Thousand Two Hundred Twenty Eight 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.

¶40

(C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of the land Gat No. 1294 (1H 60R) at village Malgaon, Taluka Miraj, District Sangli, more particularly described in the Para No. 5.7 of the Original Application.

¶41

(D) The applicant Bank is entitled to sell the mortgaged property to recover its dues.

¶42

(E) Issue Recovery Certificate.

¶43

(F) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

¶44

Sd/(Dilip G Murumkar) Place : Pune Presiding Officer Date : 06.02.2025 Debts Recovery Tribunal, Pune.

(OA No. 1575/2023)

Page 5 of 6

Sanap

Note : Correction in the name of defendant No.2 is carried out vide order dated 23.09.2025 in speaking to the minutes with the approval of Hon’ble Presiding Officer, DRT, Pune.

¶49

(OA No. 1575/2023)

¶50

Page 6 of 6

¶51

Sanap

Federal Bank v. Bharat Shedbale

Case brief

What is this about?

What did the court decide?

Federal Bank v. Bharat Shedbale

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Indian Overseas Bank versus Nilesh Ransingh

Bank of Maharashtra versus Pushpa Bansode

Union Bank of India versus Navnath

Union Bank of India versus M/S Dalvi Soaps

Hdfc Bank versus Mr. Bapurav Pandurang Chandagude

Canara Bank versus Kamlesh Patankar