Allowed

Union Bank of India v. Madhav

DRT23 Dec 2025OA/14/2024

Case brief

AI extract

What is this about?

In an ex-parte recovery application, the Debts Recovery Tribunal, Pune, allowed the Union Bank of India to recover Rs. 22,28,225 along with future interest at 9% simple per annum from a borrower and various corporate and personal guarantors who defaulted on a term loan. The bank produced loan documents; defendants did not appear.

What did the court decide?

Defendant Nos. 1 to 7 to jointly or severally pay Rs. 22,28,225 with future interest at 9% p.a. and issue Recovery Certificate.

Union Bank of India versus Madhav — Banking and Recovery | DRT (2025)

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Presented on: 27.08.2022 Registered on: 08.12.2023 Decided on: 23.12.2025 Duration: Y M D 03 03 26

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.14/2024

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Union Bank of India ,

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a Banking company constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 having its Central Office at Union Bank Bhavan, 239 Vidhan Bhavan Marg, Mumbai – 400 021 and branch amongst other places at – Shopping Centre, Plot No. 172/A, Lane No. 19, Kumbhar Ves, Solapur, known as ‘Solapur Main Branch’, Solapur.

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… Applicant

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Versus

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1. Mr. Madhav Govind Jadhav

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Age – adult, Occ.:-Agri. & Business, R/at Post Lamcha Tanda Rui, Tal.Kandhar, District Nanded-431 815.

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M/s Matoshri Laxmi Sugar Co-Generation Industries Ltd ., having its address at – Satling Nagar, Ruddhewadi, Post Dudhni, Taluka – Akkalkot, District – Solapur – 413 220.

¶10

Mr. Shivraj Siddharam Mhetre Age - Adult, Occ: Agri. & Business, R/at Post 21, Near Maruti Mandir, Grampanchayat Office, Chincholi Mai Chincholi (Najik), Solapur-413 220.

(OA No.14/2024)

Page 1 of 8

[ANIL]

Mrs. Kusum Ganpati Shinde Age adult, Occ: Agri. & Business, R/at Post Dahitane, Tal. Akkalkot, District Solapur – 413 226.

¶15

Mrs. Shobhabai Balabhim Shinde Age adult, Occ: Agri. & Business, R/at House No.3, Dahitane, Tal. Akkalkot, Dist. Solapur–413 226.

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Mr. Gokul Dattatraya Shinde

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Age adult, Occ: Agri. & Business, R/at 3, Khandare Galli, Dahitane, Tal. Akkalkot, Dist. Solapur-413 226

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Ms. Ganapati Datamay Shinde Age adult, Occ: Agri. & Business, At Post House No.194, Dahitane, Tal.Akkalkot, Dist. Solapur-413 226.

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Ms. Balbhim Dattatray Shinde , Age adult, Occ: Agri. & Business, At Post Dahitane, Tal.Akkalkot, Dist. Solapur-413 226.

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Ms. Dattatraya Balbhim Shinde , Age adult, Occ: Agri. & Business, At Post Dahitane, Tal.Akkalkot, Dist. Solapur-413 226.

(OA No.14/2024)

Page 2 of 8

[ANIL]

Ms. Kapil Balbhim Shinde Age adult, Occ: Agri. & Business, At Post Dahitane, Tal.Akkalkot, Dist. Solapur-413 226.

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11 Ms. Bhagwan Dattatraya Shinde ,

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Age Adult, Occ: Agri.& Business, Residing at Post 157 Lucky Chowk, Nandini Complex, Gokul Lottery Market, … Defendants Muraji Peth, Solapur-413 001.

APPEARANCES

For the Applicant

For the Defendants

Mrs. Bhakti i/b Mr. Srinivas Y - Advocate Ex-parte.

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TOTAL CLAIM AMOUNT –Rs.22,28,225/JUDGMENT

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(Delivered on 23^rd December, 2025)

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The Applicant Bank has filed present application for recovery of Rs.22,28,225/- in respect of Term Loan account together with future interest @11.50% per annum with monthly rests thereon from the date of filing of suit till repayment/realization of entire dues from defendant Nos.1 to 7.

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Brief facts of the application are as under:

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Defendant No.1 is a borrower and Defendant No.2 is Private Limited Company and Corporate Guarantor to the facilities granted to Defendant No.1 and other members who availed the loan facility under H & T Contractors. Defendant Nos.3 to 11 stands as guarantor

(OA No.14/2024)

Page 3 of 8

[ANIL]

in their personal capacity as well as Mortgagor, to Defendant No.1.

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Defendant No.2 had identified arranged and engaged harvesting and transport contractors for harvesting and transportation of sugarcane to whom it had to pay amount for harvesting and transportation activities. Defendant No.2 passed resolution in the Board Meeting dated 16.11.2017 authorizing Defendant No.3 the Managing Director of Defendant No.2 that he should apply and avail term loan limit of Rs.30 Crores from the applicant bank under Harvesting and Transport Contractors Loan Scheme to individual contractors and to which Defendant No.2 as Company shall stands as Guarantor to provide Corporate Guarantee and defendant Nos. 3 to 11 stand as guarantor in their personal capacity.

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The applicant bank sanctioned Term Loan limit of Rs.30 Crores on 16.11.2017 for the purpose of contractors need advance for making payment for hiring Labour Toly/ Gang for harvesting of the sugarcane and transportation of harvested cane to the Sugar Factory.

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At the instance of Defendant No.2, Defendant No.1 submitted loan application to the applicant bank for Term Loan Facility of Rs.22,10,000/- and applicant bank sanctioned Term Loan Facility of Rs.22,10,000/- to Defendant No.1 as per Consolidated Sanction Letter dated 16.11.2017.

(OA No.14/2024)

Page 4 of 8

[ANIL]

On 23.01.2018, Defendant No.1 signed and executed certain documents in favour of the applicant bank as mentioned in Para No.5.9 of the Original Application.

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Defendant No.2 passed Resolution authorizing Managing Director to execute the default guarantee and loan documents in consideration and in pursuance of said cumulative term loan limit of Rs. 30 Crore granted by the applicant bank and thereby executed Deed of Guarantee on 16.11.2017 for Rs.30 Crores.

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Defendant No.1 has secured the said loan facility by way of Hypothecation of Movable Assets i.e. Vehicle of Tractor and Trailer owned by him, as follows :-

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(i)- Truck having its Registration No.MH-14-AS-7836,

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Engine No.697TC55JTZ144880 &

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Chassis No.373344KTZ751559;

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(ii)- Tata Truck having its Registration No.MH-26 H 8374 Engine No.697TC45AWZ853664 &

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Chassis No.373341AWZ702476.

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Thereafter, Defendant No.1 has confirmed and acknowledged vide Debit Balance Confirmation Letter dated 18.01.2021 that debt borrowed by him from the applicant bank is secured by and under various security documents executed by him in favour of the applicant bank.

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The term loan facility sanctioned and disbursed to Defendant No.1 was not operated in a disciplined manner and it was irregular

(OA No.14/2024)

Page 5 of 8

[ANIL]

and not satisfactory. Thus, Defendant No.1 has not adhered to repay the outstanding amounts of the said account. Hence, the account has classified as Non-Performing Asset on 08.06.2018 as per the Reserve Bank of India norms.

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Therefore, the applicant Bank issued Legal Notice dated 11.07.2022 through its Advocate Srinivas B. Yelery calling upon the defendants to pay the dues. In spite of issuing Notice, defendants failed to repay the amount due under the Term Loan account.

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Hence, this application is filed.

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Defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte against it vide Order dated 16.07.2025 passed below the Application (Exhibit-01).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Vineet Kumar Singh, Branch Manager which supports the case of the applicant Bank elucidated in the application.

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The applicant Bank has produced on record the originals/photocopies of loan transaction documents (Sr.Nos.AW-1 to AW-11) which corroborate the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the applicant Bank.

(OA No.14/2024)

Page 6 of 8

[ANIL]

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 relief in respect of hypothecated assets. However, there is no detailed description with respect to the hypothecated assets in Hypothecation Agreement dated 23.01.2018.

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The applicant Bank has claimed future interest @11.50% p.a. with monthly rests for Term Loan account. However, considering facts of the case, I am of the opinion that if future interest is granted @9% (simple), it would be just and reasonable.

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.14/2024 is allowed with costs.

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(B) Defendant Nos.1 to 7 shall either jointly or severally pay to the applicant Bank towards Term Loan account sum of Rs.22,28,225/- (Rupees Twenty Two Lakhs Twenty Eight Thousand Two Hundred Twenty Five only) with future interest @9%p.a. from the date of filing of Original Application i.e.27.08.2022 till payment/realization of the amount mentioned in this operative order.

(OA No.14/2024)

Page 7 of 8

[ANIL]

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

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Place : Pune Date : 23.12.2025

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Sd/- (Dilip G Murumkar) Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.14/2024)

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Page 8 of 8

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[ANIL]

Union Bank of India v. Madhav

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Madhav

Case brief

What is this about?

What did the court decide?

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