Allowed

Canara Bank v. Akash Balasaheb Sonawane

DRT22 Dec 2025OA/4/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Canara Bank for recovery of a secured loan of approx. Rs. 29.44 lakhs. The court reduced the claimed interest rate to 9% p.a. and directed payment by the defaulters, secured by the existing mortgage on agricultural properties.

What did the court decide?

Defendants to pay Rs. 29,44,233.72/- plus future interest at 9% p.a. simple; secured by specific mortgaged agricultural lands; recovery certificate issued.

Canara Bank versus Akash Balasaheb Sonawane — Banking and Recovery | DRT (2025)

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Presented on: 14.09.2022 Registered on: 09.02.2023 Decided on: 22.12.2025 Duration: Y M D 03 03 08

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 4/2023

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TOTAL CLAIM AMOUNT – Rs. 29,44,233.72/-

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Canara Bank,

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(Erstwhile Syndicate Bank having been amalgamated in Canara Bank vide notification G.S.R. 155 [E] issued by Central Government and Published in the Gazette of India on 04/03/2020. A Body Corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, No. V of 1970 having its Head office at No. 112, J.C. Road, : BANGALORE – 560002, INDIA, India and its Branch office inter alia at Shevgaon Branch, Tq. Shevgaon, Dist. Ahmednagar, Maharashtra through its Branch Manager/Authorized officer Mr. Satish S/o. Panditrao Irole R/o. at Shevgaon, Tq. Shevgaon, Dist. Ahmednagar – 414502.

… Applicant

Versus

(OA No.4/2023)

Page 1 of 9

[AMBADAS]

1. Akash Balasaheb Sonawane Age: 45 yrs., Occ.: Farmer, R/o.: At Post Akhatwade Tq. Shevgaon, Dist. Ahmednagar

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2. Annasaheb Sadashiv Nikam

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Age: 45 yrs., Occ.: Farmer, R/o.: At Post Malegaon Tq. Shevgaon, Dist. Ahmednagar

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3. Sudhakar Gangadhar Nikam Age: 45 yrs., Occ.: Farmer, R/o.: At Post Malegaon Tq. Shevgaon, Dist. Ahmednagar

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…Defendants

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APPEARANCES

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For the Applicant For Defendants

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Mr. Eshwar K. Mohite -Advocate Ex-parte

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JUDGMENT

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Delivered on 22.12.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 29,44,233.72/- (Rupees Twenty Nine Lacs, Forty Four Thousand, Two Hundred Thirty Three and Seventy Two Paisa only), along with future interest from the date of filing of the Original Application, i.e., 14.09.2022, until the date of realization of the entire outstanding dues from the Defendants.

(OA No.4/2023)

Page 2 of 9

[AMBADAS]

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 Term Loan Facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Term Loan Facility of Rs. 20,00,000/vide sanction letter dated 11.02.2016 on certain terms and conditions. The agreed rate of interest was @10.70% 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.

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In order to secure the aforesaid loan facilities, the Defendant No. 1 executed various loan documents in favour of the Applicant Bank. These included sanction letter, letter of undertaking, hypothecation agreement, demand promissory notes, registered mortgage deed bearing day book no. 949/2016 etc., in favour of the applicant bank. Additionally defendant No. 2 & 3 stood as

(OA No.4/2023)

Page 3 of 9

[AMBADAS]

guarantor for defendant No. 1 and executed deeds of guarantee 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

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aforesaid loan facilities, the Defendants executed registered mortgage deed bearing day book no. 949/2016 dated 15.02.2016

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in favour of the Applicant Bank. The mortgage was created in

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respect of the following properties-

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i) All that piece and parcel of the Agriculture Land of Gut No. 28/1 to the extent of admeasuring 0 Hector 54 R, situated at Village Nagapur within the limits of Ahmednagar Corporation Ahmednagar in the name of defendant.

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ii) All that piece and parcel of the Agriculture Land of Gut No. 107/1/2 to the extent of admeasuring 61 R, situated at Village Akhatwade Tal. Shevgaon, Dist. Ahmednagar in the name of defendant.

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iii) All that piece and parcel of the Agriculture Land of Gut No. 150/5B2 to the extent of admeasuring 0 H 40 R, situated at Village Akhatwade Tal. Shevgaon, Dist. Ahmednagar in the name of defendant.

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iv) All that piece and parcel of the Agriculture Land of Gut No. 163/1 to the extent of admeasuring 1 H 19 R, situated at Village Akhatwade Tal. Shevgaon, Dist. Ahmednagar in the name of defendant.

(OA No.4/2023)

Page 4 of 9

[AMBADAS]

The applicant bank contended that the defendants have failed to

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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 31.03.2019. Therefore, on 24.03.2022 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 despite service. Hence, the defendants were proceeded ex-party as per Order dated 03.06.2023.

(OA No.4/2023)

Page 5 of 9

[AMBADAS]

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Satish S/o. Panditrao Irole, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A to I 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 of @ 10.70% from the date of filing i.e. 14.09.2022 of this application till realization of the claim amount. However, considering the facts of the case, I

(OA No.4/2023)

Page 6 of 9

[AMBADAS]

am of the opinion that if future interest is granted @ 9% per annum (simple), it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 4/2023 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 29,44,233.72/- (Rupees Twenty Nine Lacs, Forty Four Thousand, Two Hundred Thirty Three and Seventy Two Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 14.09.2022 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 registered mortgage deed bearing daybook No. 949/2016 dated 15.02.2016 at Exh. D in the list of documents Exh. 5.

(OA No.4/2023)

Page 7 of 9

[AMBADAS]

i) All that piece and parcel of the Agriculture Land land of Gut No. 28/1 to the extent of admeasuring 0 Hector 54 R, situated at Village Nagapur within the limits of Ahmednagar Corporation Ahmednagar in the name of defendant.

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ii) All that piece and parcel of the Agriculture Land of Gut No. 107/1/2 to the extent of admeasuring 61 R, situated at Village Akhatwade Tal. Shevgaon, Dist. Ahmednagar in the name of defendant.

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iii) All that piece and parcel of the Agriculture Land of Gut No. 150/5B2 to the extent of admeasuring 0 H 40 R, situated at Village Akhatwade Tal. Shevgaon, Dist. Ahmednagar in the name of defendant.

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iv) All that piece and parcel of the Agriculture Land of Gut No. 163/1 to the extent of admeasuring 1 H 19 R, situated at Village Akhatwade Tal. Shevgaon, Dist. Ahmednagar in the name of defendant.

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

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(E)

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(E) Issue Recovery Certificate accordingly.

(OA No.4/2023)

Page 8 of 9

[AMBADAS]

(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. Place: Aurangabad Date:.22.12.2025

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

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(OA No.4/2023)

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Page 9 of 9

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[AMBADAS]

Canara Bank v. Akash Balasaheb Sonawane

Case brief

What is this about?

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Canara Bank v. Akash Balasaheb Sonawane

Case brief

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