Allowed

Federal Bank v. Kallappa Hajare

DRT19 Dec 2025OA/236/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed original application filed by Federal Bank Limited against defendants who failed to appear. Court reduced the claim by penal interest and adjusted future interest to 9% per annum, directing recovery from mortgaged property.

What did the court decide?

Defendants to pay Rs.22,87,626/- with future interest @9% p.a., secured by mortgage on specific land, enabling sale of property for recovery.

Federal Bank versus Kallappa Hajare — Money Laundering | DRT (2025)

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Presented on .. 19.08.2022 Registered on .. 18.02.2023 Decided on .. 19.12.2025 Duration .. Y—M—D 03--04--00

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 236/2023.

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The Federal Bank Limited,

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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 – 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. Kallappa Mangyaba Hajare, Age 52 years, Occ. Agri. & Business, R/o :– Ward No. 2, Siddhewadi Road, Madhav Mala, Khanderajuri, Sangli 416 410.

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2 Mr. Rahul Kallappa Hajare, Age 31 years, Occ. Agri. & Business, R/o :– Ward No. 2, Siddhewadi Road, Madhav Mala, Khanderajuri, Sangli 416 410.

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… Defendants

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Sanap ( OA No. 236/2023 ) 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.24,97,188.52

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JUDGMENT (Delivered on 19^th December, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.24,97,188=52, by rounding Rs.24,97,189/- together with future interest @12.98% 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 father and son and were in need of financial assistance for land development. As per the loan application of the defendants, the applicant Bank sanctioned the AMTL facility of Rs.5,00,000/- and FKCC facility of Rs.4,90,000/- to the defendants vide Sanction Letter dated 09.07.2014.

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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 registered deed of mortgage in favour of the applicant Bank in respect of land Gat Nos. 48 and 51/1/1A situated at Khanderajuri, Taluka Miraj, District Sangli.

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Sanap ( OA No. 236/2023 ) 2 of 5

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The defendants have also executed Balance Confirmation on 03.07.2017 and 25.06.2020 in favour of the applicant Bank and thereby 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 07.07.2014, the applicant Bank has classified the account of the defendants as Non-Performing Asset in accordance with guidelines of Reserve Bank of India. Thereafter, 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.

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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 03.11.2025 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 and POA on behalf of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-19 along with list

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Sanap ( OA No. 236/2023 ) 3 of 5

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(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.2,09,563/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.24,97,189/- is reduced to Rs.22,87,626/-.

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The applicant Bank has claimed future interest @12.98% 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. 236/2023 is allowed with costs. B} Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.22,87,626/- (Rupees

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Sanap ( OA No. 236/2023 ) 4 of 5

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Twenty Two Lakh Eighty Seven Thousand Six Hundred Twenty Six 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 land Gat Nos. 48 and 51/1/1A situated at Khanderajuri, Taluka Miraj, 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 : 19.12.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 236/2023 ) 5 of 5

Federal Bank v. Kallappa Hajare

Case brief

What is this about?

What did the court decide?

Federal Bank v. Kallappa Hajare

Case brief

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What did the court decide?

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