Allowed

Karnataka Bank Limited v. Siddhram Mhetre

DRT29 Apr 2026OA/314/2023

Case brief

AI extract

What is this about?

The Applicant Bank filed an application for recovery of dues totaling Rs. 91,57,401/- plus future interest against four respondents who defaulted on a priority sector loan. The Tribunal allowed the application, reduced the principal by disallowing penal interest, and awarded the reduced sum with 9% simple future interest, secured by the mortgaged properties.

What did the court decide?

The respondents to pay Rs. 84,99,224/- with future interest at 9% p.a. from the date of application, secured by the mortgaged agricultural lands.

Karnataka Bank Limited versus Siddhram Mhetre — Execution and Attachment | DRT (2026)

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Presented on .. 04.02.2022 Registered on .. 22.02.2023 Decided on .. 29.04.2026 Duration .. Y—M—D 04--02--25

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 314/2023.

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Karnataka Bank Limited,

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A Company incorporated under the Indian Companies Act, 1913, having its registered and head office at P.B. No. 599, Mahaveera Circle, Kankanady, Mangaluru 575 002, having its Regional Office at Mumbai and having its Branch Office at No.3, Near Bhagwat Petrol Pump, Murarji Path, Solapur 413 001.

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… Applicant

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Versus

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1 Mr. Siddhram Satlingappa Mhetre, R/at – House No. 178/11A, Jodhbhavi Peth, Solapur 413 001. At Post Chincholi, Taluka Akkalkot, Solapur.

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2 Mrs. Suvarna Siddhram Mhetre, R/at – House No. 178/11A, Jodhbhavi Peth, Solapur 413 001.

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Sanap ( OA No. 314/2023 ) 1 of 7

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3 Mr. Suraj @ Shivraj Siddhram Mhetre, R/at – House No. 178/11A, Jodhbhavi Peth, Solapur 413 001.

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4 Mr. Gokul Dattatryeya Shinde, R/at – D-6/7, Vidyavihar Aprt., Near Pankha Vihar, Railways Lines, Solapur. … Defendants

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Appearances :- For Applicant Advocate I.C. Shetty. For Defendants Ex parte.

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Total Claim Amount – Rs.91,57,401/-

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JUDGMENT

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(Delivered on 29^th April, 2026)

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The Applicant Bank has filed the present application for

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recovery of the sum of Rs.91,57,401/- together with future interest @10% 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 to 3 approached the applicant Bank with application dated 11.05.2011 to avail priority Sector Term Loan for pomegranate and mango development under NHB Scheme and accordingly, the applicant Bank sanctioned and disbursed the said loan

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Sanap ( OA No. 314/2023 ) 2 of 7

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facility of Rs.76,60,000/- to them vide Sanction Letter dated 27.05.2011. Defendant No. 4 is the coobligant/guarantor stood as surety to the loan availed by defendant Nos.1 to 3.

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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 deed of registered mortgage dated 08.07.2011 in favour of the applicant Bank in respect of all that piece and parcel of agricultural land (1) Gat No. 131/5, admeasuring 2H 84R; (2) Gat No. 131/3, admeasuring 2H 84R; (3) Gat No. 130/A/2, admeasuring 10H 96; (4) Gat No. 131/4, admeasuring 2H 84R; (5) Gat No. 130/B/2, admeasuring 5H 54R situated at village Valsang, Taluka South Solapur, District Solapur; (6) Gat No. 42/1, admeasuring 6H 93R and (7) Gat No. 42/3, admeasuring 8H 55R situated at village Karjal, Taluka Akkalkot, District Solapur.

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The defendants have also executed Letter of Acknowledgment of Debt on 21.03.2020 in favour of the

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Sanap ( OA No. 314/2023 ) 3 of 7

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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 01.12.2020, 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 21.05.2021, 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 23.02.2026 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Kiran Mahavir Gumaje, Branch Manager/Legal Representative of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-9

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Sanap ( OA No. 314/2023 ) 4 of 7

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along with list (Exhibit 10), 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.6,58,177/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.91,57,401/- is reduced to Rs.84,99,224/-.

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The applicant Bank has claimed future interest @10% 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. 314/2023 is allowed with

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Sanap ( OA No. 314/2023 ) 5 of 7

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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.84,99,224/(Rupees Eighty Four Lakh Ninety Nine Thousand Two Hundred Twenty Four only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 04.02.2022 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 all that piece and parcel of agricultural land (1) Gat No. 131/5, admeasuring 2H 84R; (2) Gat No. 131/3, admeasuring 2H 84R; (3) Gat No. 130/A/2, admeasuring 10H 96; (4) Gat No. 131/4, admeasuring 2H 84R; (5) Gat No. 130/B/2, admeasuring 5H 54R situated at village Valsang, Taluka South Solapur, District Solapur; (6) Gat No. 42/1, admeasuring 6H 93R and (7) Gat No. 42/3, admeasuring 8H 55R situated at village Karjal, Taluka Akkalkot, District Solapur, more particularly described in the Schedule of the Original Application. D} The applicant Bank is entitled to sell the mortgaged property to recover its dues.

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Sanap ( OA No. 314/2023 ) 6 of 7

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E} Issue Recovery Certificate. 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 : 29.04.2026 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 314/2023 ) 7 of 7

Karnataka Bank Limited v. Siddhram Mhetre

Case brief

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Karnataka Bank Limited v. Siddhram Mhetre

Case brief

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