Allowed

Union Bank of India v. Rehan Enterprises

DRT3 Oct 2025OA/19/2022

Case brief

AI extract

What is this about?

In an Original Application before the Debts Recovery Tribunal, Aurangabad, the Tribunal allowed the claim of Union Bank of India for recovery of Rs. 54,39,590.94 along with future interest at 9% p.a., secured by mortgaged immovable properties, after finding no reason to disbelieve the bank's unrebutted evidence.

What did the court decide?

Recovery of Rs. 54,39,590.94 with future interest @ 9% p.a. and right to sell mortgaged immovable properties.

Union Bank of India versus Rehan Enterprises — Execution and Attachment | DRT (2025)

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Presented on: 29.10.2021 Registered on: 01.03.2022 Decided on: 03.10.2025 Duration: Y M D 03 11 04

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 19/2022

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TOTAL CLAIM AMOUNT – Rs. 54,39,590.94/-

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Union Bank of India,

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(A Government of India Undertaking) having its Central Office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Mumbai-400021 And amongst other branches, one of the branch at CTS No. 3292, Sukh Niketan, Timber, Market, Opp. Sarvodaya Chatralaya, Bhusawal, Tq. Bhusawal District Jalgaon. Through its Authorized Officer, Jitendra Kumar Sahu, Age: 36 years, Occ.: Service, Authorized Officer of Union Bank of India, Branch at CTS No. 3292, Sukh Niketan, Timber, Market, Opp. Sarvodaya Chatralaya, … Applicant Bhusawal, Tq. Bhusawal District Jalgaon.

Versus

(OA No.19/2022)

Page 1 of 10

[AMBADAS]

1. Rehan Enterprises, Through its Proprietor, Abdul Jalil Abdul Raheman Qureshi, Age: 59 years, Occu.: Business R/o.: 841, Nisarwanji File, Bismillah Pahelwan Building, Shivaji Nagar, Bhusawal, Tq. Bhusawal, Dist. Jalgaon.

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2. Rehan Jalil Qureshi

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Age: 26 years, Occu.: Business, R/o.: 841, Nisarwanji File, Bismillah Pahelwan Building, Shivaji Nagar, Bhusawal, Tq. Bhusawal, Dist. Jalgaon.

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3. Shaikh Ahemad Abdul Rehman Qureshi,

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Age: 59 years, Occu.: Business R/o.: 841, Nisarwanji File, Bismillah Pahelwan Building, Shivaji Nagar, …Defendants Bhusawal, Tq. Bhusawal, Dist. Jalgaon.

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APPEARANCES For the Applicant Mr. Atul A. Mishra -Advocate For Defendants Ex-parte

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JUDGMENT Delivered on 03.10.2025

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 54,39,590.94/- ( Rupees Fifty Four Lacs,

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Thirty Nine Thousand, Five Hundred Ninety and Ninety Four Paisa

(OA No.19/2022)

Page 2 of 10

[AMBADAS]

only), along with future interest from the date of filing of the Original Application, i.e., 29.10.2021, 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 & working capital limit. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned a Term loan facility of Rs. 34,00,000/- & working capital limit of Rs. 15,00,000/- vide sanction letter dated 14.01.2020 on certain terms and conditions. The agreed rate of interest for the Term loan was @10.75% p.a. & for working capital limit was @ 10.25% p.a. with monthly rests. The Defendant also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

(OA No.19/2022)

Page 3 of 10

[AMBADAS]

Thereafter, the defendant No. 1 again approached the applicant Bank seeking further financial assistance for the purpose of business in form of term loan under UGECL scheme, the Applicant bank pleased to sanction term loan of Rs. 6,00,000/- under UGECL scheme vide its sanction letter dated 11.06.2020 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @10.75% p.a. with monthly rests. The Defendant also agreed to pay additional interest 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 Bank. These included sanction letters, registered mortgage deeds bearing daybook nos. 237 & 1851 dated 16.01.2020 & 03.07.2020, letters of undertaking, demand promissory notes, letters of continuity & hypothecation agreements. Additionally defendant No. 2 & 3 stood as guarantors for defendant No. 1 and

(OA No.19/2022)

Page 4 of 10

[AMBADAS]

executed deeds of guarantee on 18.01.2020 & 16.06.2021 in

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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 created first charge over their immovable property under daybook nos. 237 & 1851 dated 16.01.2020 & 03.07.2020 in favour of the Applicant Bank. The

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mortgage was created in respect of the following property-

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All that piece and parcel of CTS No. 2884/B/3, admeasuring 689.3 sq. mtrs., thereon building, Municipal House No. 3/3160 Old, 3/768 New and 3/1999 Old and New 3/767 within the limits of Municipal Council, Bhusawal, Tq. Bhusawal, District Jalgaon, owned by defendant Nos. 1 to 3 which is bounded as under:

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Bounded as Home No. 3/767,

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East: Lane, West: Municipal Home No. 3160, North: Mutton Market South: Pahari Nala.

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Bounded as Home No. 3/768, East: Home No. 1999 West: Lane, North: Mutton Market South: Pahari Nala.

(OA No.19/2022)

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 29.07.2021. Therefore, on 30.07.2021 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 appeared in matter but failed to submit written statement. Hence, the right of defendants to file written statement stand closed as per Order dated 12.09.2023.

(OA No.19/2022)

Page 6 of 10

[AMBADAS]

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Jitendra Kumar Sahu, Manager of the applicant Bank, and has produced on record the original loan transaction documents as Annexure A-1 to A-35 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 property of the borrowers which is mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @10.75 p. a. from the date of filing i.e. 29.10.2021 of this application till realization of the claim amount. However, considering the facts of the case, I

(OA No.19/2022)

Page 7 of 10

[AMBADAS]

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. 19/2022 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 54,39,590.94/- ( Rupees Fifty Four Lacs, Thirty Nine Thousand, Five Hundred Ninety and Ninety Four Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the O. A. i.e. 29.10.2021 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 bearing daybook nos. 237 & 1851 vide registered mortgage deeds dated 16.01.2020 & 03.07.2020 at annexure A-21 & A-33 respectively in list of documents Exh. 5.

(OA No.19/2022)

Page 8 of 10

[AMBADAS]

Bounded as Home No. 3/767, East: Lane, West: Municipal Home No. 3160, North: Mutton Market South: Pahari Nala.

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Bounded as Home No. 3/768, East: Home No. 1999 West: Lane, North: Mutton Market South: Pahari Nala.

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(D) The applicant Bank is entitled to sell the mortgaged immovable property and hypothecated articles/goods etc., to recover its dues.

(OA No.19/2022)

Page 9 of 10

[AMBADAS]

(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:.03.10.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.19/2022)

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Page 10 of 10

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[AMBADAS]

Union Bank of India v. Rehan Enterprises

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Rehan Enterprises

Case brief

What is this about?

What did the court decide?

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