Allowed

Federal Bank v. Pruthvi Enterprises

DRT7 Jul 2026OA/293/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's original application for recovery of Rs. 53,39,084/- plus future interest. The court directed payment and authorized the sale of the remaining mortgaged property to recover dues, granting a recovery certificate.

What did the court decide?

Recovery of Rs. 53,39,084/- with 9% future interest; authorization to sell mortgaged property; issue of recovery certificate.

Federal Bank versus Pruthvi Enterprises — Execution and Attachment | DRT (2026)

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Presented on .. 05.10.2023 Registered on .. 01.08.2024 Decided on .. 07.07.2026 Duration .. Y—M—D 02--09--02

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 293/2024.

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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 – Ground Floor, Shree Krishna Complex, 1026, Shukrawar Peth, Tilak Road, Pune 411 002.

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… Applicant

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Versus

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1 M/s. Pruthvi Enterprises, A registered partnership firm under provisions of Partnership Act, 1934 and having its registered office at Office No. 4, Lele Sankul, 1255, Sadashiv Peth, Opp. Nimbalkar Talim, Pune 411 030 And at –

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Shop No.2, Anand Apartment, 1422, Shinde Ali, Shukrawar Peth, Pune 411002 represented through partners–

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Mr. Rahul Ashok Shahane,

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1. Raj Shidgonda Patil,

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1. Sandeep Surendra Chaudhari.

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Sanap ( OA No. 293/2024 ) 1 of 7

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2 Mr. Rahul Ashok Shahane, Age 44 years, Occ. Business, R/o – 494/95, Narayan Peth, Gajanan Chitanay, 2^nd floor, near Patrya Maruti, Pune 411 030.

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3 Raj Shidgonda Patil, Age 38 years, Occ. Business, R/o – Flat No. 39, Building B, Kedar Nagari Housing Society, Sinhgad Road, Near Ropkdoba Madir, Hingane Khurd, Anand Nagar, Pune 411 051.

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4 Sandeep Surendra Chaudhari, Age 45 years, Occ. Business, R/o – 2^nd Floor, Anand Apartment, 1422, Near Dnyaneshwar Karyalaya, Shukrawar Peth, Pune 411 002 … 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.53,39,084/-

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JUDGMENT (Delivered on 07^th July, 2026)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.53,39,084/- together with future interest @13.85% 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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Sanap ( OA No. 293/2024 ) 2 of 7

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Defendant No.1 M/s. Pruthvi Enterprises is a registered partnership firm and defendant Nos. 2 to 4 are its partners. Defendant No. 1 through partners approached to the applicant Bank and requested for financial assistance by way of Cash Credit for augmentation of working capital for business purpose. Defendant Nos. 2 to 4 supplemented the request for loan as partners and in individual capacity as co-obligant.

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Upon scrutiny of the loan proposal, the applicant Bank had sanctioned and disbursed the financial assistance by way of CC – SME Parameterised loan facility of Rs.41,00,000/- to defendant No.1 vide Sanction Order dated 01.11.2014.

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In order to secure the aforesaid loan facility, the defendants have executed necessary loan and security documents in favour of the applicant Bank. Defendant Nos.1 to 3 have also executed registered deed of mortgage dated 02.11.2014 in favour of the applicant Bank creating first charge security on the properties - (1) Flat bearing No. 39 on 2^nd floor area admeasuring 542 Sq. ft./50.37 Sq. Mtr. wing No. 2 in the building No. I known as Kedar Nagari Co-operative Housing Society Ltd. standing and situate on S. No. 26/26B/1A/1/1 at Hingne Khurd, Pune; (2) Commercial SHOP bearing No. 2 on Ground Floor area

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Sanap ( OA No. 293/2024 ) 3 of 7

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admeasuring 55 Sq. ft./5.33 Sq. Mtr. along with 2.5% undivided share in entire property in the building known as Anandi Apartment standing and situate on CTS No. 1422 total area 150.30 Sq. Mtr. Shukrawar Peth, Pune and (3) Amenity Space Open Plot admeasuring 617 Sq. Mtr. Located at Gat No. 38 (P), Near Daund Road, Aarangaon, Ahmednagar to secure CC Rs.41,00,000/-. Mortgage is duly registered in the office of SRO at Haveli 21 at Serial No. 6823/2014.

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Thereafter, again as per application dated 29.06.2015 by the defendants for renewal of loan facility, the applicant Bank renewed CC loan for Rs.41,00,000/- vide sanction order dated 04.08.2015 on execution of necessary loan and security documents by the defendants in favour of the applicant Bank.

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Thereafter, defendants have also executed Balance Confirmation Letter on 08.08.2018 and 30.10.2018 in favour of the applicant Bank 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 31.10.2016, the applicant Bank has classified the account of the defendants as Non-Performing Asset in accordance with guidelines of

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Sanap ( OA No. 293/2024 ) 4 of 7

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Reserve Bank of India. Thereafter, on 01.06.2017, 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 applicant Bank took symbolic possession and the learned DM ordered physical possession of secured assets on 08.02.2018 and physical possession was taken as per possession notice dated 03.05.2018. Thereafter, auction sale was conducted and was successful only against two properties i.e. Commercial Shop No.2and Flat No. 39, out of three properties and the sale certificates had been issued and auction sale proceeds of shop and flat were appropriated to loan account in satisfaction of partial recovery.

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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 11.05.2026 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Govind Balasaheb Patil, Senior Manager Branch Head and Authorized Signatory holding Power of Attorney on behalf of the applicant Bank, and has produced on record the original loan transaction

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Sanap ( OA No. 293/2024 ) 5 of 7

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documents at Sr. Nos. AW1-1 to AW1-28 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 future interest @13.85% per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple) from the date of Application till realization of the entire amount, 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. 293/2024 is allowed with costs. B} Defendant Nos.1 to 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.53,39,084/- (Rupees Fifty Three Lakh Thirty Nine Thousand Eight Four only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 05.10.2023 till full

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Sanap ( OA No. 293/2024 ) 6 of 7

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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 Amenity Space Open Plot admeasuring 617 Sq. Mtr. Located at Gat No. 38 (P), Near Daund Road, Aarangaon, Ahmednagar, more particularly described in the Schedule 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 : 07.07.2026 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 293/2024 ) 7 of 7

Federal Bank v. Pruthvi Enterprises

Case brief

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Federal Bank v. Pruthvi Enterprises

Case brief

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