Debts Recovery Tribunal allowed an original application by Union Bank of India for recovery of Rs. 22 lakhs and future interest. The court modified the interest rate to 9% per annum simple due to lack of specific asset description for hypothecation relief.
Defendants to pay Rs. 22,28,225/- with future interest @9% p.a. (simple) and Issue Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Presented on: 28.08.2022 Registered on: 30.12.2023 Decided on: 25.11.2025 Duration: Y M D 03 02 27
IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1612/2023.
Union Bank of India
A Banking company constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act 1980 having its Central Office at Union Bank Bhavan, 239 Vidhan Bhavan Marg, Mumbai – 400 021 and branch amongst other places at – Solapur Main Branch, Kumbhar Ves, Solapur-413 002.
… Applicant
Versus
1. Mr. Parsaram Bajarang Rathod
Age – adult, Occ.:-Agri. & Business, R/at Post 219, Rattnattanda Jiraga, Tal. Mukhed, District Nanded-431 715.
2. M/s Matoshri Laxmi Sugar Co-Generation Industries Ltd ., having its address at – Satling Nagar, Ruddhewadi, Post Dudhani, Taluka – Akkalkot, District – Solapur – 413 220.
(OA No.1612/2023)
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[ANIL]
3. 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.
4. Mrs. Kusum Ganpati Shinde Age adult, Occ: Agri. & Business, R/at Post Dahitane, Tal. Akkalkot, District Solapur – 413 226.
5. Mrs. Shobhabai Balabhim Shinde Age adult, Occ: Agri. & Business, R/at House No.3, Dahitane, Tal. Akkalkot, Dist. Solapur–413 226.
6. Mr. Gokul Dattatraya Shinde
Age adult, Occ: Agri. & Business, R/at 3, Khandare Galli, Dahitane, Tal. Akkalkot, Dist. Solapur-413 226
7. Ms. Ganapati Datamay Shinde Age adult, Occ: Agri. & Business, At Post House No.194, Dahitane, Tal.Akkalkot, Dist. Solapur-413 226.
8. Ms. Balbhim Dattatray Shinde , Age adult, Occ: Agri. & Business, At Post Dahitane, Tal.Akkalkot, Dist. Solapur-413 226.
(OA No.1612/2023)
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[ANIL]
9. Ms. Dattatraya Balbhim Shinde ,
Age adult, Occ: Agri. & Business, At Post Dahitane, Tal.Akkalkot, Dist. Solapur-413 226.
10. Ms. Kapil Balbhim Shinde
Age adult, Occ: Agri. & Business, At Post Dahitane, Tal.Akkalkot, Dist. Solapur-413 226.
11 Ms. Bhagwan Dattatraya Shinde Age Adult, Occ: Agri.& Business, Residing at Post 157 Lucky Chowk, Nandini Complex, Gokul Lottery … Defendants Market, Muraji Peth, Solapur-413 001.
APPEARANCES
For the Applicant Mrs. Bhakti Rokade i/b Mr. Srinivas Y - Advocate For the Defendants Ex-parte.
TOTAL CLAIM AMOUNT –Rs.22,28,225/-
JUDGMENT
(Delivered on 25th November, 2025)
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[ANIL]
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 in their personal capacity as well as Mortgagor, to Defendant No.1.
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.
The applicant bank sanctioned Term Loan limit of Rs.30 Crores on 16.11.2017 for the purpose of contractors need the advance for making payment for hiring Labour Tolis/ Gang for harvesting of the sugarcane and transportation of harvested cane to the Sugar Factory.
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[ANIL]
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 in the name of Defendant No.2 for cumulative Term Loan limit of Rs.30 Crores.
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.
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.
The applicant bank states that Defendant No.1 has secured the said loan facility by way of Hypothecation of Movable Assets i.e. TATA Truck having its Registration No.MH-27-3032 and Truck having its Registration No. MH-26-B-3430.
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.
The term loan facility sanctioned and disbursed to Defendant No.1 was not operated in a disciplined manner and it was irregular
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[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.
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.
Hence, this application is filed.
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[ANIL]
ORDER
(OA No.1612/2023)
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[ANIL]
Sd/Place : Pune (Dilip G Murumkar) Date : 25.11.2025 Presiding Officer, Debts Recovery Tribunal, Pune.
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[ANIL]
2 issues framed by the court
Whether the relief regarding hypothecated assets can be granted in the absence of specific description in the agreement.
Whether future interest should be granted at the claimed rate or a reduced rate to be just and reasonable.
Union Bank of India
Mr. Parsaram Bajarang Rathod
M/s Matoshri Laxmi Sugar Co-Generation Industries Ltd
Mr. Shivraj Siddharam Mhetre
Mrs. Kusum Ganpati Shinde
Mrs. Shobhabai Balabhim Shinde
Dilip G Murumkar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
