Allowed

Union Bank of India v. Kailash Kisan Bhutekar

DRT10 Sept 2025OA/111/2022

Case brief

AI extract

What is this about?

In an ex-parte recovery application, the Debt Recovery Tribunal awarded Rs. 21,21,200.33 plus future interest to Union Bank of India due to failed loan repayments by defendants, including mortgage of agricultural land.

What did the court decide?

Defendants to pay Rs. 21,21,200.33 with 10% annual simple interest; applicant entitled to sell mortgaged property; Recovery Certificate issued.

Union Bank of India versus Kailash Kisan Bhutekar — Banking and Recovery | DRT (2025)

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Presented on: 01.03.2022 Registered on: 04.05.2022 Decided on: 10.09.2025 Duration: Y M D 03 06 09

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD

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(Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 111/2022

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TOTAL CLAIM AMOUNT – Rs. 21,21,200.33/-

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Union Bank of India,

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A Body Corporate and constituted under the

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Banking companies (Acquisition of Undertaking) Act

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1970, Having its Central office at Union Bank

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Bhavan 239, Vidhan Bhavan Marg, Mumbai-400021

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& amongst other branches, one of the Branch Office at PITTI Complex, Neharu Road, Sarafa Bazar, Jalna

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Tq. And Dist. Jalna. Through its Authorized officer,

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Shri. Yogesh Sitaram Girhe, Age: 41 yrs., Occ.:

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Service, Working as Manager, Union Bank of India, Jalna

… Applicant

Versus

(OA No.111-2022)

Page 1 of 10

[AMBADAS]

Kailash Kisan Bhutekar, Age: Major, Occupation: Agriculture, At Post At Post 138, Navha (Varud), Ji Pa Shale Javalacha Parisar, Nandapur, Tq. And Dist. Jalna 431203.

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Kadubai Kisan Bhutekar, Age: Major, Occupation: Agriculture, At Post At Post 138, Navha (Varud), Ji Pa Shale Javalacha Parisar, Nandapur, Tq. And Dist. Jalna 431203.

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Babasaheb Kisan Bhutekar, Age: Major, Occupation: Agriculture, At Post At Post 138, Navha (Varud), Ji Pa Shale Javalacha Parisar, Nandapur, Tq. And Dist. Jalna 431203.

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Dnyaneshwar Kisan Bhutekar, Age: Major, Occupation: Agriculture, At Post At Post 138, Navha (Varud), Ji Pa Shale Javalacha Parisar, Nandapur, Tq. And Dist. Jalna 431203

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Bhagwan Dadarao Bhutekar, Age: Major, Occupation: Agriculture, At Post At Post 138, Navha (Varud), Ji Pa Shale Javalacha Parisar, Nandapur, Tq. And Dist. Jalna 431203

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…Defendants

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APPEARANCES

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For the Applicant For Defendants

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Mr. Atul A. Mishra -Advocate Ex-parte

(OA No.111-2022)

Page 2 of 10

[AMBADAS]

JUDGMENT

Delivered on 10.09.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 21,21,200.33/- ( Rupees Twenty One Lacs, Twenty One Thousand, Two Hundred and Thirty Three Paisa only), along with future interest from the date of filing of the Original Application, i.e., 01.03.2022, until the date of realization of the entire outstanding dues from the Defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that the Defendant Nos. 1 to 4 had approached and requested the Applicant Bank for Mahathe purpose of purchase of agricultural land, Crop Cultivation & Irrigation work. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned Loan Facility of Rs. 3,45,000/- vide sanction letter dated 18.03.2016 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facility was @11.40% p.a. with half yearly

(OA No.111-2022)

Page 3 of 10

[AMBADAS]

rests. The Defendants also agreed to pay additional interest by

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way of liquidated damages in the event of any default in repayment.

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The applicant bank further states that the defendants approached bank seeking financial assistance for the purpose of crop cultivation. Upon considering the needs of the defendants, the applicant bank sanctioned loan facility of Rs. 3,00,000/- vide sanction letter dated 11.07.2016 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facility was @11.35% p.a. with half yearly rests. The Defendants also agreed to pay additional interest @ 2%by way of liquidated damages in the event of any default in repayment.

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The applicant bank further states that the defendants approached bank for enhancement of loan facility. Upon considering the needs of the defendants, the applicant bank enhanced loan facility from Rs. 3,00,000/- to Rs. 5,00,000/- vide

(OA No.111-2022)

Page 4 of 10

[AMBADAS]

sanction letter dated 14.06.2017 on certain terms and

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conditions. The agreed rate of interest for the aforesaid loan facility was @10.30% p.a. with half yearly rests. The Defendants also agreed to pay additional interest @ 2%by way of liquidated damages in the event of any default in repayment.

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The applicant bank further states that the defendants again approached bank seeking financial assistance. Upon considering the needs of the defendants, the applicant bank sanctioned loan Facility of Rs.7,00,000/- vide sanction letter dated 14.06.2017 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facility was @11.55% p.a. with half yearly rests. The Defendants also agreed to pay additional interest @ 2% by way of liquidated damages in the event of any default in repayment.

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In order to secure the aforesaid loan facilities, the Defendants executed various loan documents in favour of the Applicant

(OA No.111-2022)

Page 5 of 10

[AMBADAS]

Bank. These included sanction letters, demand promissory

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notes, deeds of declaration & hypothecation agreement, letters of continuity, mortgage deed bearing daybook No. 1468/2017 etc. Additionally, defendant No. 5 stood as guarantor for defendant no. 1 to 4 and executed deeds of guarantee on 18.03.2016, 11.07.2016 & 14.06.2017 in favour of the Applicant Bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facilities, the Defendants executed Deeds of Declaration dated 02.07.2016, 16.06.2017, and 11.04.2014. Furthermore, to secure the loan facility of Rs. 7,00,000/-, the Defendants executed a Mortgage Deed, bearing Day Book No. 1495/2017, in respect of the following properties:

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All that piece and parcel of agricultural land, bearing Gut No. 165, admeasuring 1 H 3 R, situated at village Nandapu, Tq and Dist. Jalna which is bounded as under: East: Land of Kaduba Suruse Gut No. 166 South: Land of Sadashiv Bhutekar Gut No. 179 West: Land of Narayan Bhutekar Gut No. 185 & 164 North: Land of Narayan Suruse Gut No. 179.

(OA No.111-2022)

Page 6 of 10

[AMBADAS]

The applicant bank contended that the defendants have failed to keep their promise and commitments agreed by them with regard to due repayment of the loan amount. The defendants failed to operate the loan account properly and failed to pay the agreed rate of interest as per terms and conditions of the sanction letter. Thereafter, the applicant bank repeatedly made demand of loan amount and called upon the defendants to pay with the agreed rate of interest thereon, but the defendants failed and neglected to pay the same. The loan account of the defendants became irregular and classified as NPA on 31.03.2021. Therefore on 20.04.2021 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, the defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendants failed to appear in matter though they were served through court commissioner. Hence, the defendants were proceeded ex-parte as per Order dated 10.01.2024.

(OA No.111-2022)

Page 7 of 10

[AMBADAS]

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Yogesh Sitaram Girhe, Manager of the applicant Bank, and has produced on record the original loan transaction documents as Annexure A-1 to A-46 along with list of documents Exh.5 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 the unrebutted evidence of the applicant Bank. Therefore, the applicant Bank is entitled for the reliefs as claimed.

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The applicant Bank has claimed charge over immovable properties of the borrowers which are mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @11.40% p.a. on the outstanding amount from the date of filing i.e. 01.03.2022 of this application till realization of the claim amount. However,

(OA No.111-2022)

Page 8 of 10

[AMBADAS]

considering the facts of the case, I am of the opinion that if future interest is granted @ 10% per annum (simple), it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 111/2022 is allowed with costs.

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(B) The defendants shall jointly and severally pay to the applicant Bank a sum of 21,21,200.33/- ( Rupees Twenty One Lacs, Twenty One Thousand, Two Hundred and Thirty Three Paisa only),along with future interest @ 10% per annum (simple) from the date of filing of the O.A. i.e. 01.03.2022 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 mortgage of the following immovable property. Vide deed of decration under section 5 (1) of MPFAC Bank’sAct Act, 1974 on 02.07.2016, 16.06.2017 and Mortgage Deed, bearing Day Book No. 1495/2017

(OA No.111-2022)

Page 9 of 10

[AMBADAS]

dated 15.06.2017 at annexure A-18, A-31 & A-40

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respectively in the list of documents Exh. 5.

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All that piece and parcel of agricultural land, bearing Gut No. 165, admeasuring 1 H 3 R, situated at village Nandapu, Tq and Dist. Jalna which is bounded as under:

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East: Land of Kaduba Suruse Gut No. 166 South: Land of Sadashiv Bhutekar Gut No. 179 West: Land of Narayan Bhutekar Gut No. 185 & 164 North: Land of Narayan Suruse Gut No. 179.

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(D) The applicant Bank is entitled to sell the mortgaged immovable properties and hypothecated

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articles/goods etc., to recover its dues.

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(E) Issue Recovery Certificate accordingly.

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(F) The Registrar is directed to send the copy of the Judgment and Recovery Certificate to the applicant and defendants.

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(G)

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(G) File be consigned to the record room.

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Sd/-

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Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.10.09.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.111-2022)

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Page 10 of 10

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[AMBADAS]

Union Bank of India v. Kailash Kisan Bhutekar

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Kailash Kisan Bhutekar

Case brief

What is this about?

What did the court decide?

What the court decided

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