Allowed

Federal Bank v. Gundappa Rupnar

DRT28 Apr 2025OA/65/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Pune, allowed an ex-parte application filed by Federal Bank Limited for recovery of loan dues. The court reduced the claimed amount of Rs. 27,23,419/- by disallowing penal interest and lowered the future interest rate to 9% per annum, directing the debtors to pay the adjusted sum with interest from the filing date.

What did the court decide?

The respondents are ordered to pay Rs. 24,97,254/- with future interest @9% p.a. from 19.08.2022.

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

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Presented on .. 19.08.2022 Registered on .. 21.01.2023 Decided on .. 28.04.2025 Duration .. Y—M—D 02--08--09

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 65/2023.

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The Federal Bank Limited,

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A banking company within meaning of Indian 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. Gundappa Annu Rupnar, Age 81 years, Occ – Agri. & Business, R/o – Ward No.1, Dhangar Galli, A/P Khanderajuri, Taluka Miraj, District Sangli 416 410.

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2 Mr. Mursidh Gundappa Rupnar, Age 44 years, Occ – Agri. & Business, R/o – Ward No.1, Dhangar Galli, A/P Khanderajuri, Taluka Miraj, District Sangli 416 410.

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… Defendants

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Sanap ( OA No. 65/2023 ) 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.27,23,419/-

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JUDGEMNT

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(Delivered on 28^th April, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.27,23,419/- together with future interest @11.63% 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 ad 2 are father and son and owners of Agricultural land Gat Nos. 31 and 32 at village Khanderajuri. As per the loan application of defendant Nos.1 and 2, the applicant Bank sanctioned the following loan facilities to them.

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Name of facility Amount Rs. Date of Sanction

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1 AMTL 6,50,000/24.09.2014 2 FKCC 5,50,000/24.09.2014

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In order to secure the aforesaid loan facilities, the defendants executed loan and necessary security documents in favour of the applicant Bank along with deed of mortgage of Agricultural land Gat Nos. 31 and 32

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Sanap ( OA No. 65/2023 ) 2 of 5

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at village Khanderajuri, Taluka Miraj, District Sangli, in favour of the applicant Bank. The defendants have also executed Balance Confirmation Letter on 14.07.2017, 15.07.2017, 07.07.2020 and 08.07.2020 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 24.09.2017, 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 25.02.2019, 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. 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 21.03.2025 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 of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos.

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Sanap ( OA No. 65/2023 ) 3 of 5

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AW1-1 to AW1-20 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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The applicant Bank has claimed Penal Interest of Rs.2,26,165/- (Rs.1,26,645/- for AMTL and Rs.99,520/- for FKCC), which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.27,23,419/- is reduced to Rs.24,97,254/-.

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The applicant Bank has claimed future interest @11.63% 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. 65/2023 is allowed with proportionate costs.

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B} Defendant Nos.1 and 2 either jointly or severally shall pay

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Sanap ( OA No. 65/2023 ) 4 of 5

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to the applicant Bank the sum of Rs.24,97,254/- (Rupees Twenty Four Lakhs Ninety Seven Thousand Two Hundred Fifty Four 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 of Agricultural land Gat No. 31 area 72R out of total area 1H 45R and Gat No. 32 area 91R out of total area 3H 20R at village 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 : 28.04.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 65/2023 ) 5 of 5

Federal Bank v. Gundappa Rupnar

Case brief

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Federal Bank v. Gundappa Rupnar

Case brief

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