Allowed

Canara Bank v. Laxman Shankar Sangale

DRT19 Nov 2025OA/153/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Canara Bank for recovery of Rs. 20,02,006.57 along with future interest from Laxman Shankar Sangale and Nandu Sopan Ladkat, who failed to repay sanctioned term loans secured by mortgage and hypothecation.

What did the court decide?

Recovery of Rs. 20,02,006.57 plus future interest at 9% p.a.; charge over mortgaged properties; entitlement to sale of mortgaged properties; issuance of Recovery Certificate.

Canara Bank versus Laxman Shankar Sangale — Banking and Recovery | DRT (2025)

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Presented on: 10.06.2023 Registered on: 07.03.2024 Decided on: 19.11.2025 Duration: Y M D 02 05 09

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 153/2024

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TOTAL CLAIM AMOUNT – Rs. 20,02,006.57/-

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CANARA BANK,

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A Body Corporate constituted under the Banking

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companies (Acquisition and Transfer of

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Undertaking) Act, 1970 & Having its Head Office at S

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P & D Wing, Head Office, 112 J C Road, Bengaluru, and

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having branches amongst the other places at Shrigonda, Tq. Shrigonda, Dist. Ahmednagar, through

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its Authorized Person, Mr. Vivek s/o Bhagwat Pawar (Senior Manager), Age: 37 yrs., Occ.; Service, R/o. Shrigonda, Tq. Shrigonda, Dist. Ahmednagar.

… Applicant

(OA No.153/2024)

Page 1 of 10

[AMBADAS]

Versus

1. Mr. Laxman Shankar Sangale Age: Major, Occ.: Agri., R/o.: At Gut No. 68, Khetmaliswadi, Post Pargaon Sudrik, Tq. Shrigonda, Dist. Ahmednagar-413702. AND/OR Mr. Laxman Shankar Sangale Age: Major, Occ.: Agri., R/o.: At Gut No. 31/1, Khetmaliswadi, Post Pargaon Sudrik, Tq. Shrigonda, Dist. Ahmednagar-413702. AND/OR Mr. Laxman Shankar Sangale Age: Major, Occ.: Agri., R/o.: At Gut No. 55/1, Khetmaliswadi, Post Pargaon Sudrik, Tq. Shrigonda, Dist. Ahmednagar-413702.

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2. Mr. Nandu Sopan Ladkat, Age: Major, Occ.: Agri., R/o.: At, Khetmaliswadi, Post Pargaon Sudrik, …Defendants Tq. Shrigonda, Dist. Ahmednagar-413702. APPEARANCES For the Applicant Mr. K. D. Pande -Advocate For Defendants Ex-parte

…Defendants

(OA No.153/2024)

Page 2 of 10

[AMBADAS]

JUDGMENT

Delivered on 19.11.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 20,02,006.57/- (Rupees Twenty Lacs, Two Thousand, Six and Fifty Seven Pasia only), along with future interest from the date of filing of the Original Application, i.e., 10.06.2023, 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 No. 1 approached and requested the Applicant Bank for a Term loan facility for Grape Cultivation & Term loan facility for construction of Farm Pond. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Rs. 6,00,000/-, for Term loan facility for Grape Cultivation, Rs. 6,00,000/- for construction of Farm Pond vide sanction letter dated 28.09.2017

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on certain terms and conditions. The agreed rate of interest for

(OA No.153/2024)

Page 3 of 10

[AMBADAS]

the aforesaid loan facilities was @10.60% p.a. with monthly rests.

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The Defendant also agreed to pay additional interest @2% by way

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

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In order to secure the aforesaid loan facilities, the Defendant executed various loan documents in favour of the Applicant Bank. These included sanction letter, registered mortgage deed bearing daybook nos. 3443, 3444 & 3617 dated 29.09.2017 & 17.10.2017, & hypothecation agreement etc. Additionally defendant no. 2 stood as guarantor for defendant no. 1 and executed deed of guarantee on 31.10.2017 in favour of the Applicant Bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendant created first charge over his immovable properties under daybook no. 3443, 3444 & 3617 dated 29.09.2017 & 17.10.2017 in favour of the Applicant Bank. The mortgage was created in respect of the following properties-

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i) All that piece and parcel of agricultural land admeasuring 1 H 06 R, P.K. 09 R totally admeasuring 1 H 15 R, out of Gut No. 68,

(OA No.153/2024)

Page 4 of 10

[AMBADAS]

situated at Village Khetmaliswadi, Tq. Shrigonda, Dist. Ahmednagar, which is bounded as under:

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East: Gut No. 67, West: Gut No. 59, South: Gut No. 61, North: Canal.

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ii) All that piece and parcel of agricultural land admeasuring 08 R, out of Gut No. 31/1, situated at Village Khetmaliswadi, Tq. Shrigonda, Dist. Ahmednagar, which is bounded as under:

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East: Road, West: Gut No. 57/1, 57/2, South: Gut No. 58, 57/2, North: Gut No. 33,31/2.

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iii)All that piece and parcel of agricultural land admeasuring 65 R, P.K. 35 R totally admeasuring 1 H, out of Gut No. 55/1, situated at Village Khetmaliswadi, Tq. Shrigonda, Dist. Ahmednagar, which is bounded as under:

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East: Gut No. 56, West: Gut No. 54, South: Gut No. 57/1, North: Gut No. 55/2.

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The applicant bank further states that in order to secure the aforesaid loan facility, the defendants also executed hypothecation agreement thereby hypothecating all borrowers’ present and future crop whatsoever and wherever raised or to be raised including standing crops on the land.

(OA No.153/2024)

Page 5 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 31.10.2020. Therefore, on 17.12.2022 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 duly served. Hence, the defendants were proceeded ex-parte as per Order dated 31.01.2025.

(OA No.153/2024)

Page 6 of 10

[AMBADAS]

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Vivek s/o Bhagwat Pawar, Senior Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-26 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 @10.20% p.a., with monthly rests from the date of filing i.e. 10.06.2023 of this

(OA No.153/2024)

Page 7 of 10

[AMBADAS]

application till realization of the claim amount. However, considering the facts of the case, I am of the opinion that if future interest is granted @ 9% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 153/2024 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 20,02,006.57/- (Rupees Twenty Lacs, Two Thousand, Six and Fifty Seven Pasia only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 10.06.2023 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 mortgage of the following immovable properties vide documents at Exh. A-11 to A-13 in list of documents Exh. 5.

(OA No.153/2024)

Page 8 of 10

[AMBADAS]

i) All that piece and parcel of agricultural land admeasuring 1 H 06 R, P.K. 09 R totally admeasuring 1 H 15 R, out of Gut No. 68, situated at Village Khetmaliswadi, Tq. Shrigonda, Dist. Ahmednagar, which is bounded as under:

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East: Gut No. 67, West: Gut No. 59, South: Gut No. 61, North: Canal.

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ii) All that piece and parcel of agricultural land admeasuring 08 R, out of Gut No. 31/1, situated at Village Khetmaliswadi, Tq. Shrigonda, Dist. Ahmednagar, which is bounded as under:

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East: Road, West: Gut No. 57/1, 57/2, South: Gut No. 58, 57/2, North: Gut No. 33,31/2. iii)All that piece and parcel of agricultural land admeasuring 65 R, P.K. 35 R totally admeasuring 1 H, out of Gut No. 55/1, situated at Village Khetmaliswadi, Tq. Shrigonda, Dist. Ahmednagar, which is bounded as under:

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East: Gut No. 56, West: Gut No. 54, South: Gut No. 57/1, North: Gut No. 55/2.

(OA No.153/2024)

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[AMBADAS]

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

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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) 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:.19.11.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.153/2024)

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Page 10 of 10

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[AMBADAS]

Canara Bank v. Laxman Shankar Sangale

Case brief

What is this about?

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Canara Bank v. Laxman Shankar Sangale

Case brief

What is this about?

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