Allowed

Federal Bank v. Ganesh Saswade

DRT24 Mar 2026OA/732/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Federal Bank Limited for recovery of Rs.40,91,865/- plus future interest at 9% p.a. against two borrowers who defaulted on commercial and GECL loans. The court reduced the claimed penal interest and dismissed punishments to the rate requested by the bank.

What did the court decide?

The respondents shall pay Rs.40,91,865/- with future interest at 9% p.a., secured by hypothecation of the vehicle.

Federal Bank versus Ganesh Saswade — Company and Corporate | DRT (2026)

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Presented on .. 05.10.2023 Registered on .. 05.12.2024 Decided on .. 24.03.2026 Duration .. Y—M—D 02--05--19

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 732/2024.

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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, Bank Junction, Alwaye, Ernakulum District, Kerala and branch at – Shop Nos. 4 to 6, Funtime, Sinhgad Road, Vadgaon Budruk, Pune 411 051.

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… Applicant

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Versus

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1 Mr. Ganesh Goraksha Saswade, Age 29 years, Occ. Business, R/o – A/P Nivare Road, Devkhal Mala, Shikrapur, Pune 412 203.

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2 Mr. Gorakh Dashrath Saswade, Age 56 years, Occ. Business, R/o – A/P Nivare Road, Devkhal Mala, Shikrapur, Pune 412 203. … 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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Sanap ( OA No. 732/2024 ) 1 of 5

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Total Claim Amount – Rs.41,31,411/-

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JUDGMENT (Delivered on 24^th March, 2026)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.41,31,411/- together with future interest @9.25% 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 03.12.2019 of defendant Nos.1 and 2, the applicant Bank sanctioned the Commercial Vehicle Loan facility of Rs.33,25,000/- to the defendants for purchase of brand new commercial vehicle Tata motors LPK 2523 Tipper vide Sanction Letter dated 18.12.2019.

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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. The hypothecation charge of applicant is duly notified on RC Card and the defendant has also executed deed of hypothecation in favour of the applicant Bank in respect of the said commercial vehicle.

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Thereafter, as per the loan application dated 15.06.2020 of the defendants under the scheme of Guaranteed Emergency Credit Line after Covid 19, the

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Sanap ( OA No. 732/2024 ) 2 of 5

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applicant Bank sanctioned GECL loan of Rs.6,56,000/- to the defendants vide sanction order dated 15.06.2020.

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As per request of the defendants, the loan was restructured on 27.07.2021 and the defendants have also acknowledged balance outstanding as on 27.07.2021.

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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 19.05.2022, 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 30.05.2022, 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 17.03.2026 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Pandurang Chandrakant Bhattagaonkar, working as AVP and Authorized Signatory holding POA on behalf of the applicant Bank, and has produced on

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Sanap ( OA No. 732/2024 ) 3 of 5

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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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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.39,546/- (for commercial vehicle loan of Rs.31,829/- + for GECL TL of Rs.7,717/-), which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.41,31,411/- is reduced to Rs.40,91,865/-.

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The applicant Bank has claimed future interest @9.25% 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. 732/2024 is allowed with costs. B} Defendant Nos.1 and 2 either jointly or severally shall pay

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Sanap ( OA No. 732/2024 ) 4 of 5

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to the applicant Bank the sum of Rs.40,91,865/- (Rupees Forty Lakh Ninety One Thousand Eight Hundred Sixty Five only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 05.10.2023 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 hypothecation in respect of Vehicle Tata Motor LPK 2523 CR HD bearing registration No. MH-12-SF-7072, more particularly described in the Para No. 5.34 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 ) Presiding Officer Place : Pune Debts Recovery Tribunal, Date : 24.03.2026 Pune.

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Sanap ( OA No. 732/2024 ) 5 of 5

Federal Bank v. Ganesh Saswade

Case brief

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What did the court decide?

Federal Bank v. Ganesh Saswade

Case brief

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