Allowed

Federal Bank v. Kiran

DRT25 Sept 2025OA/46/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by The Federal Bank Ltd. for recovery of dues from two borrower-defendants who were absent. The court reduced the claimed penal interest and set a future interest rate of 9% per annum, while granting a mortgage decree over specified agricultural properties.

What did the court decide?

Recovery of Rs. 34,85,052/- with future interest at 9% p.a.; mortgage decree over three agricultural lands; recovery certificate issued.

Federal Bank versus Kiran — Company and Corporate | DRT (2025)

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Presented on: 28.01.2023 Registered on: 09.01.2024 Decided on: 25.09.2025 Duration: Y M D 02 07 27

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.46/2024.

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The Federal Bank Ltd.

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A Company incorporated and registered under Indian Companies Act,1956 having its registered office at Federal Towers, Bank Junction, Alwaye, Ernakulam District, Kerala and having one of its branches amongst other places at 15/3, Malhar Plaza, Radhika Road, Satara-415 002.

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… Applicant

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Versus

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1. Mr. Kiran Ravindra Nalawade Age-42 years, Occupation-Service,

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2. Mrs. Savita Kiran Nalawade Age-39 years, Occ.--Agri.& Housewife, Both R/at Near Post Office at Wadhe, Taluka & District Satara - 415 011. ... Defendants

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APPEARANCES

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For the Applicant Mr. G. H. Bet i/b Mr. N. D. Barsode - Advocate For the Defendants Ex-parte.

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TOTAL CLAIM AMOUNT –Rs.37,35,663/-.

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JUDGMENT

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(Delivered on 25^th September, 2025)

(OA No.46/2024)

(ANIL)

Page 1 of 7

The Applicant Bank has filed present application for recovery of aggregate sum of Rs.37,35,663/- [i.e. Rs.4,89,158/- towards FKCC Account No.15845500000766 and Rs.32,46,505/- towards AMTL Account No.15846600000474 ] with future interest @9.90% p.a. & @9.70% p.a. and penal interest 4% monthly rests, respectively till repayment /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 & 2, approached to the applicant Bank on 10.07.2013 and requested for FKCC loan. The applicant bank on sanctioned FKCC loan of Rs.3,00,000/- to the defendants. Defendant No.2 supplemented to the request for loan as Co-obligant.

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The defendants have executed loan transaction and security documents for KFCC loan in favour of the applicant bank as set out in paragraph No.5.4 of the Original Application.

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Defendant No.1 executed Registered Mortgage Deed which was duly registered in the Office of SRO Satara-2 at Sr.No.3265/2013 dated 09.07.2016 in favour of the applicant bank in respect of their absolute immovable properties i.e. Gat No.241/3 area 37 Ares, Gat No.566 area 31 Ares at village Vadhe, Taluka and District Satara as continuing security for loan FKCC of Rs.3 lakhs having agreed to repay with interest @10.45% p.a. yearly rests.

(OA No.46/2024)

(ANIL)

Page 2 of 7

Defendant Nos. 1 and 2 approached the applicant bank on 19.07.2016 for continuing Cash Credit Facility availed in 2013. Defendants confirmed the description of security offered and continued to secure the loan. Defendants have executed certain documents in favour of the applicant bank to secure the said cash credit facility.

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On 21.06.2016 defendants again approached the applicant bank for financial assistance to purchase Agri Land Gat No.673 area admeasuring 29 Ares. The applicant bank sanctioned AMTL (Direct Agri) Loan for Rs.20,00,000/- to the defendants on 20.07.2016.

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The defendants have executed loan transaction and security documents for AMTL loan in favour of the applicant bank as set out in paragraph No.5.12 of the Original Application.

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Defendant No.1 executed Registered Mortgage Deed dated 26.07.2016 which was duly registered in the Office of SRO Satara-2 at Sr.No.3760/2016 in favour of the applicant bank in respect of their absolute immovable properties i.e. Agri Land bearing Gat No.673 area 29 Ares and additional charge on Gat No.241/3 area 37 Ares and Gat No.566 area 31 Ares situated at village Vadhe, Taluka and District Satara, as continuing security for loan AMTL of Rs.20 lakhs having agreed to repay with interest @10.92% p.a. half yearly rests.

(OA No.46/2024)

(ANIL)

Page 3 of 7

The applicant Bank contended that the loan operations in both the loan accounts were never satisfactory. Defendants committed defaults in repayment of loans. Consequently, loan accounts became overdue and went in arrears.

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Time and again the defendants were requested to regularize the loan accounts, but all the requests went futile attempts. The applicant has issued Loan Recall letter dated 14.05.2019 to the defendants calling upon them to liquidate entire dues; still the dues were not liquidated. Therefore, the loan accounts dwindled to NPA and have been classified as NPA on 01.10.2018.

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However, despite of sending recall notices to the defendants, they have not paid any amount. Sufficient time and adequate opportunities were given for the repayment but all attempts were futile and the loan accounts continued in default.

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Hence, this application is filed.

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Defendants No.1 & 2 failed to appear despite service of summons. Hence, the application proceeded ex-parte against them vide Order dated 21.07.2025 passed below the Application (Exhibit-1).

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The applicant bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Pravin Pandurang Savalajkar, Branch Head & Authorized Signatory, which supports the case of the applicant Bank elucidated

(OA No.46/2024)

(ANIL)

Page 4 of 7

in the application. The applicant Bank has produced on record the original loan transaction documents (Sr.Nos.AW-1/1 to AW-1/24) which corroborate 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 the evidence of the applicant Bank. Therefore, the applicant bank is entitled for reliefs as claimed for.

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The applicant bank has claimed relief in respect of hypothecated assets. However, there is no detailed description with respect to the hypothecated assets. Therefore, the relief in terms of the hypothecated assets cannot be granted.

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The applicant Bank has claimed Rs.2,50,611 towards penal interest for AMTL account, which cannot be granted. Hence, the said amount shall be deducted from total claim amount. Thus, the total claim amount shall be reduced from Rs.37,35,663/- to Rs.34,85,052/-.

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The applicant has claimed future interest @9.90% p.a. for FKCC Account and @9.70% p.a. for AMTL Account, and penal interest 4% monthly rest respectively. However, in my opinion, rate of interest claimed by applicant Bank is exorbitant. Having regard to the facts of the case, I am of the opinion that if future interest is granted @9% p.a.

(OA No.46/2024)

(ANIL)

Page 5 of 7

(Simple) for both the loan facilities, it would be just and reasonable rate of interest and the same is granted.

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.46/2024 is allowed with costs.

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(B) Defendants No.1 & 2 either jointly or severally shall pay to the applicant bank an aggregate sum of Rs . 34,85,052/- (Rupees Thirty Four Lakhs Eighty Five Thousand Fifty Two only) [i.e. Rs.4,89,158 /- towards FKCC Account No. 15845500000766 and Rs.29,95,894 /- towards AMTL Loan Account No.15846600000474] with future interest @9% p.a. (Simple) from the date of filing of the Original Application i.e.28.01.2023 till full payment/ realization of the amount mentioned in this operative order.

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(i)- All that piece and parcel of Agricultural land bearing Gat No.241/3 area 00 H 37 Ares of Defendant No.1 Mr. Kiran Ravindra Nalawade, situated at village Wadhe, Taluka and District Satara (Mortgaged for both the loans);

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(ii)- All that piece and parcel of Agricultural land bearing Gat No.566 area admeasuring 00 H 31 Ares of Defendant No.1 Mr. Kiran Ravindra Nalawade, situated at village Wadhe, Taluka and District Satara (Mortgaged for both the loans); and

(OA No.46/2024)

(ANIL)

Page 6 of 7

(iii)- All that piece and parcel of Agricultural land bearing Gat No.673 area admeasuring 00 H 29 Ares of Defendant No.1 Mr. Kiran Ravindra Nalawade, situated at village Vadhe, Taluka and District Satara (Mortgaged for AMTL loan), more particularly described in Schedule-I of the Original Application.

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(D) The applicant is entitled to sell the above mentioned mortgaged immovable properties 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 the defendants.

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Sd/Place : Pune (Dilip G. Murumkar) Date : 25.09.2025 Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.46/2024)

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(ANIL)

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Page 7 of 7

Federal Bank v. Kiran

Case brief

What is this about?

What did the court decide?

Federal Bank v. Kiran

Case brief

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