Allowed

Federal Bank v. Savanta

DRT23 Sept 2025OA/235/2023

Case brief

AI extract

What is this about?

In an ex-parte recovery application, the Debts Recovery Tribunal allowed the claim of The Federal Bank Limited against three defendants for agricultural loans. The court reduced the penal interest and set future interest at 9% per annum, ordering payment secured by the mortgaged property.

What did the court decide?

Defendants shall pay Rs.30,99,617/- along with future interest at 9% per annum, secured by mortgage on agricultural land, with power to sell the property.

Federal Bank versus Savanta — Insolvency and Bankruptcy | DRT (2025)

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Presented on .. 19.08.2022 Registered on .. 18.02.2023 Decided on .. 23.09.2025 Duration .. Y—M—D 03--01--04

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 235/2023.

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The Federal Bank Limited, 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 office 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. Savanta Narasu Danole, Age 78 years, Occ. Agri. & Business, R/o – Danole Mala, Ward No. 5, Rangare Kudi Road, A/P Erandoli, Taluka Miraj, District Sangli 416 410.

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2 Mr. Sukumar Savanta Danole, Age 52 years, Occ. Agri. & Business, R/o – Danole Mala, Ward No. 5, Rangare Kudi Road, A/P Erandoli, Taluka Miraj, District Sangli 416 410.

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3 Smt. Akkatai Savanta Danole, Age 74 years, Occ. Agri. & Business, R/o – Danole Mala, Ward No. 5, Rangare Kudi Road, A/P Erandoli, Taluka Miraj, District Sangli 416 410.

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… Defendants

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Sanap ( OA No. 235/2023 ) 1 of 5

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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.33,19,676/-

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JUDGMENT (Delivered on 23^rd September, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.33,19,676/- together with future interest @12.83% 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 19.12.2015 of defendant Nos.1 to 3, the applicant Bank sanctioned the AMTL loan of Rs.9,00,000/- and FKCC loan of Rs.6,70,000/- to the defendants for land development and agricultural crop cultivation vide Sanction Letter dated 19.12.2015.

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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. The defendants have also executed registered mortgage in respect of agricultural land Gat No. 761 area admeasuring 53 R out of total area 1H 59R; Gat No. 765 area admeasuring 32R out of total 96R; Gat No. 131/1 area admeasuring 14R out of total 42R and Gat No. 216 area

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Sanap ( OA No. 235/2023 ) 2 of 5

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admeasuring 1H out of total 3H 28R situated at village Erandoli, Taluka Miraj, District Sangli, in favour of the applicant Bank. The defendants have also executed Balance Confirmation Letters on 12.12.2018 and 06.12.2021 and confirmed the balance outstanding in loan accounts.

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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 18.12.2018, 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 04.02.2019, the applicant Bank issued Recall 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 22.07.2025 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, Authorized Signatory holding power of attorney on behalf of the applicant Bank, and has produced on record the original

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Sanap ( OA No. 235/2023 ) 3 of 5

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loan transaction documents at Sr. Nos. AW1-1 to AW1-21 along with list (Exhibit 9), 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.2,20,059/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.33,19,676/- is reduced to Rs.30,99,617/-.

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The applicant Bank has claimed future interest @12.83% 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. 235/2023 is allowed with costs. B} Defendant Nos.1 to 3 either jointly or severally shall pay to the applicant Bank the sum of Rs.30,99,617/- (Rupees

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Sanap ( OA No. 235/2023 ) 4 of 5

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Thirty Lakhs Ninety Nine Thousand Six Hundred Seventeen only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 19.08.2022 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 agricultural land Gat No. 761 area admeasuring 53 R out of total area 1H 59R; Gat No. 765 area admeasuring 32R out of total 96R; Gat No. 131/1 area admeasuring 14R out of total 42R and Gat No. 216 area admeasuring 1H out of total 3H 28R situated at village Erandoli, Taluka Miraj, District Sangli, more particularly described in the Para No. 5.23 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 : 23.09.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 235/2023 ) 5 of 5

Federal Bank v. Savanta

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Federal Bank v. Savanta

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