Allowed

Bank of Maharashtra v. Sukhdev Laxman Waghchore

DRT20 Mar 2025OA/111/2023

Case brief

AI extract

What is this about?

In the absence of the defendants, the Tribunal allowed the bank's application and directed them to jointly and severally pay the outstanding principal of Rs.26,75,796/- along with reduced future interest and costs, securing the recovery against the mortgaged and hypothecated properties.

What did the court decide?

Directed defendants to pay Rs.26,75,796/- plus future interest at 9% on term loan and 7% on KCC (jointly and severally) and to sell hypothecated/mortgaged properties for recovery.

Bank of Maharashtra versus Sukhdev Laxman Waghchore — Contract and Commercial Disputes | DRT (2025)

¶1

Presented on: 22.12.2022 Registered on: 28.09.2023 Decided on: 20.03.2025 Duration: Y M D 02 03 25

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J.R. Chauhan, Presiding officer)

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TOTAL CLAIM AMOUNT – Rs.26,75,796/-

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ORIGINAL APPLICATION No.111/2023

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Bank of Maharashtra, a body corporate constituted under The provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act V OF 1970, 1501, Lokmangal, Shivaji Nagar, Pune and one of its branch Kannad, Dist. Aurangabad, At Karedi Vikri Sangh, Kannad, Dist. Aurangabad -431103 Through its authorized signatory, Shri Sachin Balasaheb Kapse, Branch Manager, Kannad Branch, Aurangabad.

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… Applicant

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Versus

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Mr. Sukhdev Laxman Waghchore , Age : Major, Occ : Agriculture, R/o : 20, Dhangarwadi, Kannad, Dist. Aurangabad 431103.

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Mrs. Vitthabai Sukhdev Waghchore, Age: Major, Occ : Agriculture, R/o : 20, Dhangarwadi, Kannad, Dist. Aurangabad

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[SBJ] (OA No.111/2023) Page 1 of 16

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Suresh Nana Pawar, Age : Major, Occ : Agriculture, R/o : 51, Aorali, Dhangarwadi, Kannad, Dist. Aurangabad 431103.

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Valmik Karbhari Gayakwad, Age : Major, Occ : Agriculture, R/o : Aorali, Dhangarwadi, Kannad, Dist. Aurangabad 431103. … Defendants

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APPEARANCES

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For the Applicant Mrs. Archana B. Karadkhedkar - Advocate

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For Defendant Nos.1 to 4 Ex-parte

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JUDGMENT (Delivered on 20^th March, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.26,75,796/- (Rupees Twenty-Six Lacs Seventy-Five Thousand Seven Hundred and NinetySix only) as on 27.09.2022 together with further interest @11.15% per annum with monthly rests from 28.09.2022 in the Term Loan facility and @7% per annum with monthly rests from 28.09.2022 in the MKCC Loan facility till the date of realization of the entire dues and costs of the Original

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[SBJ] (OA No.111/2023) Page 2 of 16

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Application from the defendant Nos.1 to 4 jointly and severally.

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Brief facts of the application are as under :

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As per the Request Loan application dated 18^th April, 2014 of defendant Nos.1 and 2, the applicant Bank sanctioned the Term Loan facility of Rs.6,96,000/- (Rupees Six Lacs Ninety-Six Thousand only) to defendant Nos.1 and 2 vide Sanction Letter dated 18^th April, 2014.

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In order to secure the aforesaid loan facility, the defendant Nos.1 and 2 have executed necessary loan and security documents mentioned at Paragraph No. 5.2 and 5.3-A to 5.3-D of the O.A. The defendant Nos.3 and 4 are the guarantors to the loan availed by the defendant no.1 and 2 in their individual and personal capacity. The defendant Nos.1 and 2 have executed Composite Deed of Hypothecation on 18.02.2014 and thereby the applicant bank sanctioned the loan facility on the primary security of hypothecation of movables, crops, machines, Equipments, Machinery, furniture & fixtures, Fixed & Current Assets (present & future) etc. in favour of the applicant bank. The defendant No.1 created first charge on all the crops

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[SBJ] (OA No.111/2023) Page 3 of 16

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whatsoever and wherever raised or to be raised including standing crops on the land described in the second schedule in the hypothecation agreement or cut or stocked or stored or in course of transit or delivery, Herd, fish catch, flocks, silk worms, cocoons including those described in the third schedule of the hypothecation agreement wherever they may be, tools, equipments, fixtures, boats, machines, tractor, power tiller, tube well, electric motor, diesel engine and other movables connected with and related to farming / raring of cattle’s and / or flocks/fishing/sericulture, receivables, and investments, movables assets and valuables, more particularly mentioned in the Composite Deed of Hypothecation. The defendant Nos.1 and 2 have executed the Registered Mortgage Deed on 13.02.2014 in favour of the applicant bank. The defendant Nos.3 and 4 have also executed Deed of Guarantee on 18.02.2014 for the loan facility availed by the defendant Nos.1 and 2. The applicable interest rate at the time of sanction was @12.25% p.a.. The Term Loan facility was available for 7 years. The defendants have agreed for various terms and conditions as stipulated in the Sanction Letter dated 18.02.2014.

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[SBJ] (OA No.111/2023) Page 4 of 16

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To secure the Term Loan facility of Rs.6,96,000/- (Rupees Six Lacs Ninety-Six Thousand only), the defendant No.1 and 2 executed Registered Mortgage Deed of their immovable properties, which are as under :

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All the piece and parcel of Agricultural Land admeasuring 1 H. 65 R situated at Gut No.24, Dhangarwadi, Taluka Kannad, District Aurangabad, owned by defendant No.1, which is bounded as under:

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East	West	South	North
Road	Sanjay Sukhdev	Ganesh Bajirao	Machindra Patilba

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All the piece and parcel of Agricultural Land admeasuring 0 H. 26 R situated at Gut No.350, Dhangarwadi, Taluka Kannad, District Aurangabad, owned by defendant No.1, which is bounded as under:

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East	West	South	North
Road	Ashok Shyamrao	River	Vilas Sarjerao

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All the piece and parcel of Agricultural Land admeasuring 0 H. 96 R situated at Gut No.27, Dhangarwadi, Taluka Kannad, District Aurangabad, owned by defendant No.2, which is bounded as under:

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East	West	South	North
Sukhdev Laxman	Road	Sanjay Sukhdev	Devrao Raghunath

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All the piece and parcel of Agricultural Land admeasuring 0 H. 85 R situated at Gut No.36,

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[SBJ] (OA No.111/2023) Page 5 of 16

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Dhangarwadi, Taluka Kannad, District Aurangabad, owned by defendant No.2, which is bounded as under:

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East	West	South	North
Jagannath Deorao	Bhanudas Waman	Madhav Pandurang	Vilas Sarjerao

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as is mentioned in Paragraph No.3-A and Para No.5.2 of the Original Application.

¶39

The applicant bank further submitted that the defendants again approached the applicant bank vide their Request Loan Application dated 26.04.2014 and requested for the Mahabank Kisan Credit Card loan facility of Rs.3,00,000/(Rupees Three Lacs only). The applicant Bank sanctioned the Mahabank Kisan Credit Card loan facility of Rs.3,00,000/- (Rupees Three Lacs only) to defendants vide Sanction Letter dated 26^th April, 2014.

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In order to secure the aforesaid loan facility, the defendant Nos.1 and 2 have executed necessary loan and security documents as mentioned in Paragraph No. 5.4 and 5.5-A to 5.5-E of the O.A. The defendant Nos.3 and 4 stood guarantors for the MKCC Loan facility of Rs.3 Lacs (Rupees Three Lacs only) availed by the defendant Nos.1 and 2 in their individual and personal capacity. The defendant

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[SBJ] (OA No.111/2023) Page 6 of 16

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Nos.1 and 2 have executed Composite Deed of Hypothecation on 26.04.2014 and thereby the applicant bank sanctioned the loan facility on the primary security of hypothecation of movables, crops, machines, Equipments, Machinery, furniture & fixtures, Fixed & Current Assets (present & future) etc. in favour of the applicant bank. The defendant No.1 created first charge on all the crops whatsoever and wherever raised or to be raised including standing crops on the land described in the second schedule in the hypothecation agreement or cut or stocked or stored or in course of transit or delivery, Herd, fish catch, flocks, silk worms, cocoons including those described in the third schedule of the hypothecation agreement wherever they may be, tools, equipments, fixtures, boats, machines, tractor, power tiller, tube well, electric motor, diesel engine and other movables connected with and related to farming / raring of cattle’s and / or flocks/fishing/sericulture, receivables, and investments, movables assets and valuables, more particularly mentioned in the Composite Deed of Hypothecation. The defendant Nos.1 and 2 have executed the Registered Mortgage Deed on 13.02.2014 in

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[SBJ] (OA No.111/2023) Page 7 of 16

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favour of the applicant bank. The defendant Nos.3 and 4 have also executed Deed of Guarantee on 26.04.2014 for the MKCC Loan facility of Rs.3 Lacs (Rupees Three Lacs only) availed by the defendant Nos.1 and 2. The agreed rate of interest together with compound interest thereon was @7% p.a.. The Term Loan facility was available for 7 years. The defendants have agreed for various terms and conditions as stipulated in the Sanction Letter dated 26.04.2014. The defendants have also executed Demand Promissory Note, Agreement of Mahabank Kisan Credit Card and The Concurrence Letter dated 26.04.2014 in favour of the applicant bank.

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The particulars of the claim is as under :

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In Term Agriculture Loan Account No.60162400019

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Sr. No.	Particulars	Amount in Rs.
a)	Amount outstandingas on 27.09.2022	7,84,868.00
b)	Unapplied interest from 01.06.2018 to	11,26,315.00
	27.09.2022
	Total	19,11,183.00

¶48

In the MKCC Loan Account No.60168042931

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Sr. No.	Particulars	Amount in Rs.
a)	Amount outstandingas on 27.09.2022	3,00,954.00
b)	Unapplied interest from 01.06.2018 to	4,63,659.00
	27.09.2022
	Total	7,64,613.00

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[SBJ] (OA No.111/2023) Page 8 of 16

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TOTAL DUES

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Sr. No.	Total Dues in Loan Account	Amount in Rs.
A)	Term Loan Agriculture Loan Account No.60162400019	19,11,183.00
B)	MKCC Loan Account No.60168042931	7,64,613.00
	Total	26,75,796.00

¶53

The applicant bank further submitted that it has maintained the Term Loan Account of Rs.06.96 Lacs and MKCC Loan facility of Rs.3.00 Lacs regularly and has taken entries of all transactions entered by the defendants from time to time. The Statement of Accounts are duly certified under the provisions of Bankers Book Evidence Act to be read with amended provisions of Information and Technology Act as the Extract of Accounts are computerized. The Certificate U/s 2A of Bankers Book Evidence Act 1891 is filed alongwith the Statement of Account.

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The applicant bank further submitted that the defendant Nos.1 to 4 have executed the Balance and Security Confirmation letter on 17.02.2017 thereby acknowledged and confirmed the execution of Demand Promissory Note, Deed of Hypothecation, Deed of Guarantee and Registered Mortgage Deed etc. and balance in Term Loan facility and

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[SBJ] (OA No.111/2023) Page 9 of 16

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also in the Mahabank Kisan Credit Card facility.

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The applicant bank further submitted that again the defendant Nos.1 to 4 have executed the Balance and Security Confirmation letter on 16.02.2020 thereby acknowledged and confirmed the execution of Demand Promissory Note, Deed of Hypothecation, Deed of Guarantee and Registered Mortgage Deed etc. and balance in Term Loan facility and also in the Mahabank Kisan Credit Card facility.

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The applicant bank contended that the defendants have committed defaults in repayment of the dues of the applicant bank and failed to regularize the accounts. The account of the defendant classified as NPA on 01.06.2018. Therefore, the applicant Bank issued legal notice on 03.10.2022 through its Panel Advocate to the defendants calling upon them to pay the dues of Rs.26,75,796/- in respect of both the loan accounts as on 27.09.2022 and future interest, costs, expenses etc. of the applicant bank. The defendants have executed Balance and Security Confirmation Letters on 17.02.2017 and 16.02.2020. Despite service of Notice, the defendant failed and neglected to

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[SBJ] (OA No.111/2023) Page 10 of 16

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repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendant Nos.1 to 4 failed to appear despite service of summons through Court Commissioner. Despite service of summons, the defendants did not choose to enter their appearance either personally or through their Advocate. Hence, the defendant Nos.1 to 4 proceeded ex-parte as per Order dated 28^th February, 2024.

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The applicant Bank has filed Claim Affidavit of Evidence (Exhibit-16) of Mr. Sachin S/o Balasaheb Kapse, Branch Manager of the applicant Bank, and has produced on record the original loan transactions documents at Sr. Nos.A-1 to A-24 alongwith List of Documents (Exhibit-05), 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 un-rebutted evidence of the applicant bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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[SBJ] (OA No.111/2023) Page 11 of 16

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The applicant Bank has claimed future interest for the Term Loan outstanding amount of Rs.19,11,183.00 together with interest @11.15% per annum with monthly rests from 28.09.2022 and @7% per annum with monthly rests from 28.09.022 for the Mahabank Kisan Credit Card facility outstanding amount of Rs.7,64,613.00 till the date of realization of the entire dues sanctioned and costs of the Original Application from the defendant Nos. 1 to 4 jointly and severally. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum on Term Loan and @7% per annum on Mahabank Kisan Credit Card Loan (simple interest), it would be just and reasonable rate of interest

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Hence, I pass the following order.

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ORDER

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(A) Original Application No.111/2023 is allowed with cost.

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(B) Defendant Nos.1 to 4 are hereby ordered and directed to pay jointly and severally to the applicant the aggregate sum of Rs.26,75,796/(Rupees Twenty-Six Lacs Seventy-Five

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[SBJ] (OA No.111/2023) Page 12 of 16

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Thousand Seven Hundred and Ninety-Six only) along with future interest @9% per annum on Term Loan and @7% per annum on Mahabank Kisan Credit Card Loan (simple interest) from the date of filing of the original application i.e. 26^th December, 2022 till full payment/realization of the amount mentioned in this operative order.

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All the piece and parcel of Agricultural Land admeasuring 1 H. 65 R situated at Gut No.24, Dhangarwadi, Taluka Kannad, District Aurangabad, owned by defendant No.1, which is bounded as under:

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East	West	South	North
Road	Sanjay	Ganesh	Machindra Patilba
	Sukhdev	Bajirao

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All the piece and parcel of Agricultural Land admeasuring 0 H. 26 R situated at Gut No.350, Dhangarwadi, Taluka Kannad, District Aurangabad, owned by defendant No.1, which is bounded as under:

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[SBJ] (OA No.111/2023) Page 13 of 16

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East	West	South	North
Road	Ashok Shyamrao	River	Vilas Sarjerao

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All the piece and parcel of Agricultural Land admeasuring 0 H. 96 R situated at Gut No.27, Dhangarwadi, Taluka Kannad, District Aurangabad, owned by defendant No.2, which is bounded as under:

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East	West	South	North
Sukhdev	Road	Sanjay	Devrao
Laxman		Sukhdev	Raghunath

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All the piece and parcel of Agricultural Land admeasuring 0 H. 85 R situated at Gut No.36, Dhangarwadi, Taluka Kannad, District Aurangabad, owned by defendant No.2, which is bounded as under:

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East	West	South	North
Jagannath	Bhanudas	Madhav	Vilas
Deorao	Waman	Pandurang	Sarjerao

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as mentioned in the Mortgage Deed dated 13.02.2014.

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(D) The aforesaid adjudicated amount is secured by the Composite Deed of Hypothecation for primary

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[SBJ] (OA No.111/2023) Page 14 of 16

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security of hypothecation of movables, crops, machines, Equipments, Machinery, furniture & fixtures, Fixed & Current Assets (present & future) etc. in favour of the applicant bank. The defendant No.1 created first charge on all the crops whatsoever and wherever raised or to be raised including standing crops on the land described in the second schedule in the hypothecation agreement or cut or stocked or stored or in course of transit or delivery, Herd, fish catch, flocks, silk worms, cocoons including those described in the third schedule of the hypothecation agreement wherever they may be, tools, equipments, fixtures, boats, machines, tractor, power tiller, tube well, electric motor, diesel engine and other movables connected with and related to farming / raring of cattle’s and / or flocks/fishing/sericulture, receivables, and investments, movables assets and valuables, more

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[SBJ] (OA No.111/2023) Page 15 of 16

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particularly mentioned in the Composite Deed of Hypothecation dated 18.02.2014 and 26.04.2014.

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(E) The applicant Bank is entitled to sell the mortgage and hypothecated properties to recover its dues.

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(F) Issue Recovery Certificate.

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

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Sd/(Dr. J.R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad

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Pronounced in open Court. Date : 20.03.2025.

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[SBJ] (OA No.111/2023) Page 16 of 16

Bank of Maharashtra v. Sukhdev Laxman Waghchore

Case brief

What is this about?

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Bank of Maharashtra v. Sukhdev Laxman Waghchore

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