Allowed

Federal Bank v. Jagannath

DRT2 May 2025OA/42/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed a recovery application filed by Federal Bank Limited against six aggregate respondents. The Court reduced the penal interest and awarded total recovery of Rs. 51,05,910 with future simple interest at 9% p.a., secured by agricultural land mortgage.

What did the court decide?

Recovery of Rs. 51,05,910/- with future interest @9% p.a. directed; mortgage on agricultural land enforced; Recovery Certificate issued.

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

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Presented on .. 01.02.2023 Registered on .. 09.01.2024 Decided on .. 02.05.2025 Duration .. Y—M—D 02--03--01

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 42/2024.

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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, Alwaye, 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. Jagannath Pandurang Babar, Age 78 years, Occ. Agriculturist, R/o – House No. 514, Babar Mala Bhag, at post Khanderajuri, Taluka Miraj, District Sangli 416 426.

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2 Mr. Rajaram Dattu Chavan, Age 63 years, Occ. Agriculturist, R/o – House No. 562 A, Malabhag, at post Khanderajuri, Taluka Miraj, District Sangli 416 426.

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3 Mr. Pandharinath Jagannath Babar, Age 49 years, Occ. Agriculturist,

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Sanap ( OA No. 42/2024 ) 1 of 6

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R/o – House No. 514, Babar Mala Bhag, at post Khanderajuri, Taluka Miraj, District Sangli 416 426.

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4 Mr. Tanaji Rajaram Chavan, Age 43 years, Occ. Agriculturist, R/o – 562 A, Malabhag, at post Khanderajuri, Taluka Miraj, District Sangli 416 426.

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5 Mr. Sanjay Rajaram Chavan, Age 41 years, Occ. Agriculturist, R/o – House No. 562 A, Malabhag, at post Khanderajuri, Taluka Miraj, District Sangli 416 426.

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6 Mr. Vitthal Dattu Chavan, Age 57 years, Occ. Agriculturist, R/o – House No. 562 A, Malabhag, at post Khanderajuri, Taluka Miraj, District Sangli 416 426. … Defendants

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:- Appearances

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

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Total Claim Amount – Rs.57,33,231/-

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JUDGMENT

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(Delivered on 02^nd May, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.57,33,231/- together with future interest @13.13% per annum from the date of

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Sanap ( OA No. 42/2024 ) 2 of 6

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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 the defendants, the applicant Bank sanctioned the FKCC loan facility of Rs.16,00,000/- to the defendants for crop cultivation vide Sanction Letter dated 21.03.2013.

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In order to secure the aforesaid loan facility, the defendants executed necessary loan and security documents in favour of the applicant Bank along with deed of mortgage of Agricultural land bearing Gat Nos. 484, 510, 498/1, 482, 495, 497, 499 and 755 at village Khanderajuri, Taluka Miraj, District Sangli, in favour of the applicant Bank. The defendants have also executed Balance Confirmation Letters on 26.02.2016 and 13.02.2019 and thereby confirmed the balance outstanding in loan account.

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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 19.03.2018, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore,

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Sanap ( OA No. 42/2024 ) 3 of 6

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on 31.01.2019, 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 01.04.2025 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, Senior Manager and Authorizzed Signatory of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-13 along with list (Exhibit 7), 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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Sanap ( OA No. 42/2024 ) 4 of 6

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The applicant Bank has claimed Penal Interest of Rs.6,27,321/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.57,33,231/- is reduced to Rs.51,05,910/-.

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The applicant Bank has claimed future interest @13.13% 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. 42/2024 is allowed with proportionate costs.

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B} Defendant Nos.1 to 6 either jointly or severally shall pay to the applicant Bank the sum of Rs.51,05,910/(Rupees Fifty One Lakhs Five Thousand Nine Hundred Ten 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.

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Sanap ( OA No. 42/2024 ) 5 of 6

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C} The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of Agricultural land bearing Gat Nos. 484, 510, 498/1, 482, 495, 497, 499 and 755 at village Khanderajuri, Taluka Miraj, District Sangli, more particularly described in the Para Nos. 5.6 and 5.22 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 : 02.05.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 42/2024 ) 6 of 6

Federal Bank v. Jagannath

Case brief

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What did the court decide?

Federal Bank v. Jagannath

Case brief

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