Allowed

Federal Bank v. Shankar

DRT6 Aug 2025OA/69/2023

Case brief

AI extract

What is this about?

In this ex-parte recovery application, the bank sought recovery of a loan of Rs. 8.5 lakhs plus other charges against two defendants. The Tribunal allowed the application, disallowed penal interest, and awarded a reduced claim of Rs. 30.57 lakhs with future interest at 9% p.a., secured by a mortgage.

What did the court decide?

The applicants were granted recovery of Rs.30,57,290/ with future interest at 9% per annum. Recovery certificate was issued, and the registrars was directed to send copies to parties.

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

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Presented on .. 19.08.2022 Registered on .. 21.01.2023 Decided on .. 06.08.2025 Duration .. Y—M—D 02--11--17

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 69/2023.

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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. Shankar Mahadev Nagargoje, Age 52 years, Occ. Agri. & Business, R/o :- House No. 722, Gayran Wadi Road, A/P Narwad, Taluka Miraj, District Sangli 416 409.

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2 Mrs. Rekha Shankar Nagargoje, Age 45 years, Occ. Agri. & Business, R/o :- House No. 722, Gayran Wadi Road, A/P Narwad, Taluka Miraj, District Sangli 416 409.

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… Defendants

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Sanap ( OA No. 69/2023 ) 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.32,87,819/-

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JUDGMENT

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(Delivered on 06^th August, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.32,87,819/- together with future interest @12.73% 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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As per the loan application of defendant Nos.1 and 2, the applicant Bank sanctioned the AMTL of Rs.8,50,000/and FKCC of Rs.6,85,000/- to the defendants for land development and crop cultivation vide Sanction Letter dated 19.08.2015.

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In order to secure the aforesaid loan facilities, the defendants have executed necessary loan and security documents in favour of the applicant Bank. The defendants have also executed registered mortgage dated 20.08.2015 in respect of Gat No. 220 area 1H 95R out of total land area 3H 89R fallow land area 2R and Gat No. 472 area 87R situated at village Narwad, District

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Sanap ( OA No. 69/2023 ) 2 of 5

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Sangli, in favour of the applicant Bank. The defendants have also executed Balance Confirmation on 20.06.2018 and 14.06.2021 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 21.08.2018, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, 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.

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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 30.06.2025 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 Authorized Signatory of the applicant Bank, and has produced on record the original loan

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Sanap ( OA No. 69/2023 ) 3 of 5

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transaction documents at Sr. Nos. AW1-1 to AW1-19 along with list (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.2,30,529/- (Rs.1,34,206/- for AMTL + Rs.96,323/- 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.32,87,819/- is reduced to Rs.30,57,290/-.

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The applicant Bank has claimed future interest @12.73% 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. 69/2023 is allowed with

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Sanap ( OA No. 69/2023 ) 4 of 5

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proportionate costs.

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B} Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.30,57,290/(Rupees Thirty Lakhs Fifty Seven Thousand Two Hundred Ninety 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 Gat No. 220 area 1H 95R out of total land area 3H 89R fallow land area 2R and Gat No. 472 area 87R situated at village Narwad, District Sangli, more particularly described in the Para No. 5.5 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 : 06.08.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 69/2023 ) 5 of 5

Federal Bank v. Shankar

Case brief

What is this about?

What did the court decide?

Federal Bank v. Shankar

Case brief

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What did the court decide?

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