Allowed

The South Indian Bank Ltd. v. Mohan

DRT22 Sept 2025OA/983/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs.1.77 crore from a borrower and three guarantors. Following an ex-parte hearing, the Tribunal validated the bank's evidence and granted judgment debt plus future interest at 9% per annum, secured by mortgage and hypothecation. Recovery certificate issued.

What did the court decide?

Recovery of Rs.1,77,85,583/- plus future interest @9% per annum. Order to sell mortgaged/hypothecated property. Issuance of Recovery Certificate.

The South Indian Bank Ltd. versus Mohan — Company and Corporate | DRT (2025)

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Presented on .. 28.10.2022 Registered on .. 03.04.2023 Decided on .. 22.09.2025 Duration .. Y—M—D 02--10--24

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 983/2023.

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The South Indian Bank Limited, A Banking Company within the meaning of Banking Regulation Act, constituted under the Companies Act, 1913 and having its registered office at SIB House, T.B. Road, Mission Quarters, Thrissur, Kerala State 680001 and having branch at Shop Nos. 1, 2, 3, Infinity Plaza, Siddhivinayak Nagar, Shivajinagar P.O. Ratnagiri 415 612.

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… Applicant

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Versus

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1 Mr. Mohan Vasant Shinde, Age 61 years, Occ. Business, Residing at – 322, Magrat Wadi, Ori, Ratnagiri 415 620.

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2 Mr. Sandip Madhukar Yelonde, Age 43 years, Occ. Business, Residing at – 571, Matoshri Nivas, Madhaliwadi, Ori, Ratnagiri 415 620.

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3 Mrs. Manasi Mohan Shinde, Age 55 years, Occ. Business, Residing at – Magrat Wadi, Ori, Ratnagiri 415 620.

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Sanap ( OA No. 983/2023 ) 1 of 7

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4 Mr. Bhushan Madhukar Ramagade, Age 41 years, Occ. Business, Residing at – 552, Jakadevi, Khalgaon, Ratnagiri 415 612. … Defendants

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Appearances :- For Applicant Advocate Yogesh Hirve. For Defendants Ex parte.

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Total Claim Amount – Rs.1,77,85,583/-

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JUDGMENT

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(Delivered on 22^nd September, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.1,77,85,583/- together with future interest @9.20% 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 dated 02.01.2017 of defendant No.1, the applicant Bank sanctioned the KCC loan facility of Rs.1,30,00,000/- to defendant No.1 vide Sanction Letter dated 30.01.2017. Defendant Nos. 2 to 4 stood guarantors for the repayment of loan availed by defendant No.1.

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In order to secure the aforesaid loan facility, the defendants have executed necessary loan and security

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Sanap ( OA No. 983/2023 ) 2 of 7

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documents in favour of the applicant Bank. Defendant No.1 has also created security interest in favour the applicant Bank by way of mortgage by deposit of title deed on 31.01.2017 i.e. Equitable Mortgage of Agricultural land admeasuring 10H 66R, bearing Survey Nos. 200/4 and 139/5, Village Ori, Taluka and District Ratnagiri, together with buildings existing or to be constructed in future.

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Defendant No.1 has also created security interest in favour the applicant Bank by way of agreement of hypothecation dated 30.01.2017 in respect of 250 Mango trees in Survey/Gat Nos. 200/4 and 139/5 situated at Ori, Ratnagiri and 4168 Mango trees in Survey/Gat Nos. 199/13, 199/2, 170/14, 166/4, 172/5, 157/15, 173/4, 112/19, 172/4, 172/6, 170/11, 199/9, 199/8, 199/6, 170/5, 172/16, 200/8, 112/16, 199/4, 112/5, 112/4, 200/12A, 170/1, 112/17B, 112/12, 112/3, 112/1, 112/13, 170/3, 199/9, 170/7, 200/5, 199/19, 199/10, 170/2, 200/12B, 199/16, 199/21, 199/11, 170/10, 199/18, 200/10, 112/6, 157/11 situated at Khalgaon, Ratnagiri. Defendant No.1 has also executed Acknowledgment of Debt on 5.11.2019 acknowledging outstanding balance in loan account.

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Sanap ( OA No. 983/2023 ) 3 of 7

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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 28.01.2022, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Thereafter, on 08.02.2022, the applicant Bank issued Recall 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 25.06.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Ankit Dixit, Branch Manager and Power of Attorney holder on behalf of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-15 along with list (Exhibit 7), which corroborates the case of the applicant Bank.

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Sanap ( OA No. 983/2023 ) 4 of 7

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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 future interest @9.20% 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. 983/2023 is allowed with costs.

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B} Defendant Nos.1 to 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.1,77,85,583/(Rupees One Crore Seventy Seven Lakhs Eighty Five Thousand Five Hundred Eighty Three only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 28.10.2022 till full payment/realization of the amount mentioned in this

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Sanap ( OA No. 983/2023 ) 5 of 7

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operative order.

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C} The aforesaid adjudicated amount is secured by the Equitable Mortgage in respect of Agricultural land admeasuring 10H 66R, bearing Survey Nos. 200/4 and 139/5, Village Ori, Taluka and District Ratnagiri, together with buildings existing or to be constructed in future and agreement of hypothecation in respect of 250 Mango trees in Survey/Gat Nos. 200/4 and 139/5 situated at Ori, Ratnagiri and 4168 Mango trees in Survey/Gat Nos. 199/13, 199/2, 170/14, 166/4, 172/5, 157/15, 173/4, 112/19, 172/4, 172/6, 170/11, 199/9, 199/8, 199/6, 170/5, 172/16, 200/8, 112/16, 199/4, 112/5, 112/4, 200/12A, 170/1, 112/17B, 112/12, 112/3, 112/1, 112/13, 170/3, 199/9, 170/7, 200/5, 199/19, 199/10, 170/2, 200/12B, 199/16, 199/21, 199/11, 170/10, 199/18, 200/10, 112/6, 157/11 situated at Khalgaon, Ratnagiri, more particularly described in the Schedule I and II of the Original Application.

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D} The applicant Bank is entitled to sell the mortgaged and hypothecated property to recover its dues. E} Issue Recovery Certificate.

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Sanap ( OA No. 983/2023 ) 6 of 7

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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 : 22.09.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 983/2023 ) 7 of 7

The South Indian Bank Ltd. v. Mohan

Case brief

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The South Indian Bank Ltd. v. Mohan

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