Allowed

Union Bank of India (Corporation Bank) v. Suryakant

DRT7 Apr 2025OA/39/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Uttar request for recovery of agricultural loan dues of Rs.26.18 lakhs plus future interest. Court reduced future interest rate to 9% p.a. and directed sale of mortgaged land for recovery, dismissing the ex-parte respondents.

What did the court decide?

Order allowed; Defendants to pay Rs.26,18,539 plus 9% p.a. simple future interest from filing; power to sell mortgaged land granted.

Union Bank of India (Corporation Bank) versus… — Contract and Commercial Disputes | DRT (2025)

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Presented on: 28.08.2021 Registered on: 08.12.2021 Decided on: 07.04.2025 Duration: Y M D 03 07 09

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.39/2022.

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Union Bank of India , Having its Head office at – Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai - 400 021 and Having Branch office at – Office No.2, D Wing, 1^st Floor, Javkar Plaza, Main Road, Ratnagiri – 415 612.

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… Applicant

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Versus

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1. Mr. Suryakant Dattatray Rode Age adult, Occ.:- Agri.& Business R/at 224, Narshinge, Narshinge Rai, Taluka & District Ratnagiri- 415 612.

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2. Mr. Shriniwas Shashikant Gunye Age Adult, Occ.-Agri. & Business, R/at – H.No.409, NH 66, At Post Kadugaon, Tal.Linja, District – Ratnagiri- 416 712.

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…Defendants

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APPEARANCES For the Applicant Advocate Mr. Srinivas Y. For the Defendants Ex-parte

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TOTAL CLAIM AMOUNT –Rs.26,18,539.30Ps.

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JUDGMENT

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(Delivered on 7^th April, 2025)

(OA No.39/2022)

Page 1 of 5

[ANIL]

The Applicant Bank has filed present application for recovery of aggregate sum of Rs.26,18,539.30Ps. (i.e.Rs.9,99,255/- towards Kisan Credit Card Facility and Rs.16,19,284.30Ps. towards Agricultural Term Loan Facility) with future interest @11.40% p.a. and @11.50% p.a. respectively with monthly rests from the date of filing of this Application till repayment/realization of the entire dues from defendant No.1 and 2.

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Brief facts of the application are as under:

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Applicant Bank states that Defendants No.1 & 2 approached to the Applicant Bank and requested for Term Loan Facility and Cash Credit Facilities, which were sanctioned by the Applicant, as under:-

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Sr. No.	Loan Facility	Sanction Amount	Sanction Date
1	Kisan Credit Card Facility	Rs.9,55,000/-	24.10.2016
2	Agricultural Term Loan Facility	Rs.10,00,000/-	22.11.2016

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In order to secure the aforesaid Loan facilities, the defendants have executed loan and security documents as set out in Para Nos.5.6, 5.7 and 5.12, 5.13 of the Original Application, in favor of the Applicant Bank.

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The Applicant Bank states that Defendant No.1 has executed the Simple Mortgage at Sub Registrar at Sr.No.5256/2016 dated 20.10.2016 in respect of the property as under –

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All that piece and parcel of the agricultural land bearing Gat No.211/A/1/2 admeasuring 00H 56.16 Aar and Pot Kharaba

(OA No.39/2022)

Page 2 of 5

[ANIL]

admeasuring 01H 46.70 Aar lying and situated at village Narshinge, Taluka and District Ratnagiri, more particularly described in the Original Application.

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The Applicant Bank contended that after availing the aforesaid loan facilities Defendant No.1 adhere to the terms and conditions of the sanction and failed to pay the installments in the Kisan Credit Card Facility and Agricultural Term Loan Account and committed breach of the sanction terms and hence, the said accounts of the Defendants with the Applicant Bank became Non-Performing Asset on 27.10.2019 as per the Reserve Bank of India norms. Thereafter, the Applicant Bank through its Advocate Srinivas B. Yerely issued Notice dated 11.08.2021 to the Defendants calling upon them to pay the outstanding due loan amount together with interest, costs, charges and expenses, but failed to pay the due amount.

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Hence, this application is filed.

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Defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per order dated 13.02.2024 passed below Application (Exhibit-1).

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The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Veeresh, Branch Manager has produced on record the Original Loan Transaction documents at Exhibit Nos. AW-1 to AW-21, which corroborates case of the Applicant Bank.

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

(OA No.39/2022)

Page 3 of 5

[ANIL]

Since the defendants failed to appear and contest the application, I find no reason to disbelieve the evidence of the Applicant Bank. Therefore, the Applicant Bank is entitled for the reliefs claimed.

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Applicant Bank has claimed future interest @11.40% p.a. on Kisan Credit Card Facility and @11.50% p.a. on Agricultural Term Loan Facility. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple) for both the loan facilities, it would be just and reasonable rate of interest.

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10 Hence, I pass the following order:-

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ORDER

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(A) Original Application No.39/2022 is allowed with costs.

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(B) Defendants No. 1 and 2 either jointly or severally shall pay an aggregate sum of Rs.26,18,539/- ( Rupees Twenty Six Lakhs Eighteen Thousand Five Hundred Thirty Nine Only ( i.e.Rs.9,99,255/- towards Kisan Credit Card Facility & Rs.16,19,284/towards Agricultural Term Loan facility ) with future interest @ 9% p.a. (Simple) from the date of filing of the Original Application i.e.28.08.2021 till payment / realization of the amount mentioned in this operative order, to the Applicant Bank.

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(C) The aforesaid adjudicated amount is secured by executing Deed of Simple Mortgage at Sub Registrar Ratnagiri at Sr.No.5256/2016 dated 20.10.2016 of the following immovable property i.e. - all that piece and parcel of the agricultural land bearing Gat No.211/A/1/2 admeasuring 00H 56.16 Aar and Pot Kharaba admeasuring 01H 46.70 Aar lying and situated at village Narshinge, Taluka and District Ratnagiri, more particularly described in the Original Application.

(OA No.39/2022)

Page 4 of 5

[ANIL]

(D) The Applicant Bank is entitled to sell the mortgaged property to recover the 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 Bank and the defendants.

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Sd/Place : Pune (Dilip G. Murumkar) Date: 07.04.2025 Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.39/2022)

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Page 5 of 5

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[ANIL]

Union Bank of India (Corporation Bank) v. Suryakant

Case brief

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Union Bank of India (Corporation Bank) v. Suryakant

Case brief

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