Allowed

Canara Bank v. Chandrakanth Prabhudas Asodekar

DRT30 Oct 2025OA/208/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Canara Bank against two defendants. The defendant failed to appear. The court decreeed recovery of the principal amount along with future interest at a modified rate of 9% per annum, secured by mortgage charges.

What did the court decide?

Defendants to pay Rs. 27,81,936.66 with future interest at 9% p.a.; property is secured. Recovery Certificate to be issued.

Canara Bank versus Chandrakanth Prabhudas Asodekar — Company and Corporate | DRT (2025)

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Presented on: 06.01.2023 Registered on: 05.12.2023 Decided on: 30.10.2025 Duration: Y M D 02 09 24

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 208/2023

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TOTAL CLAIM AMOUNT – Rs. 27,81.936.66/-

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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 112 JC Road, Bangalore in the State of Karnatak and one

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of its branch offices amongst other places at Jalgaon

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Branch, Jalgaon – 412 005, through its Power of

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Attorney Holder Mr. Kedareshwar Mohapatra

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… Applicant

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Versus

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1. Shri. Chandrakanth Prabhudas Asodekar Age: Major, Occ.: Agriculture, R/o.: Plot No. 2, Jyoti Nagar, Jalgaon 425 001. Also at

(OA No.208/2023)

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[AMBADAS]

Gut No. 425, Village Nigdoli, Tal. Erandol, Dist. Jalgaon, 425001.

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Shri. Sunil Devidas Sonawane Age: Major, Occ.: Business, R/o.: A-1, Vrundavan Apartment, Hareshwar Nagar, Ring Road, Jalgaon 425 001.

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APPEARANCES

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For the Applicant For Defendants

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…Defendants

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Mr. G. A. Rajput -Advocate Ex-parte

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JUDGMENT

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Delivered on 30.10.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 27,81.936.66/- (Rupees Twenty Seven lacs, Eighty One Thousand, Nine Hundred Thirty Six and Sixty Six Paisa only), along with future interest from the date of filing of the Original Application, i.e., 06.01.2023, 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:

(OA No.208/2023)

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[AMBADAS]

The Applicant Bank states that the Defendant No. 1 approached and requested the Applicant Bank for KCC loan facility and Kisan OD Loan Facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned KCC loan facility of Rs. 2,50,000/- & Kisan OD Loan Facility of Rs. 10,00,000/- vide sanction letter dated 11.03.2014 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @13.75% p.a. with half yearly 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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Furthermore, it is submitted that the defendant No. 1 in the year 2016 approached the applicant bank and requested the renewal of the Kisan OD loan facility of Rs. 10,00,000/-. Upon considering the request and financial needs of the Defendant, the Applicant Bank renewed the Kisan OD Loan Facility of Rs. 10,00,000/- vide

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renewal letter dated 22.06.2016 on certain terms and conditions.

(OA No.208/2023)

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[AMBADAS]

The applicant bank further states that the defendant No. 1 has

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again requested the applicant bank to grant the Horticulture Term Loan Facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Horticulture Term Loan of Rs. 14,00,000/- vide sanction letter dated 14.06.2016 on certain terms and conditions.

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Subsequently, the defendant No. 1 has again approached and requested the applicant bank for renewal and reduce the limit of the Kisan OD loan facility. Upon considering the need and request of the defendant, the applicant bank has renewed and reduced the Kisan OD loan facility of Rs. 10,00,000/- to Rs. 5,00,000/- vide sanction letter dated 06.04.2017 on certain terms and conditions.

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In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank. These included sanction letters, registered mortgage deeds bearing daybook nos. 1120/2014 & 1172/2017 dated 28.03.2014

(OA No.208/2023)

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[AMBADAS]

& 23.05.2017, letters of renewal & hypothecation agreement etc.

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Additionally, defendant no. 2 stood as guarantor for defendant no.

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1 and executed deed of guarantee on 29.03.2014 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 property by executing registered mortgage deeds bearing daybook nos. 1120/2014 & 1172/2017 dated 28.03.2014 & 23.05.2017 in favour of the Applicant Bank. The mortgage was created in respect of the following property-

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All that piece and parcel of agriculture land adm. 4 H 02 R, alongwith construction, shed and standing crop thereon situated at Gut No. 425 village, Nagdoli, Tal. Erandol, Dist. Jalgaon, which is bounded as under: North: S H Road, South: Gut No. 430, East: Gut No. 426, West: Gut No. 424 and 429.

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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

(OA No.208/2023)

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[AMBADAS]

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. Therefore, 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 served through court commissioner. Hence, the defendants were proceeded ex-parte as per Order dated 07.02.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Kedareshwar Mohapatra S/o Mohan Sunder Mohapatra, Manager of the applicant Bank, and has produced on record the attested copies of loan transaction documents as Exh. A-1 to A-16 along with list of documents Exh.5 and original

(OA No.208/2023)

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[AMBADAS]

documents as Exh. AW-2 to AW-16 vide marking affidavit Exh. 9 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 borrower which is mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @13.75% p. a. from the date of filing i.e. 06.01.2023 of this 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.

(OA No.208/2023)

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[AMBADAS]

ORDER

(A) Original Application No. 208/2023 is allowed with

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costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 27,81.936.66/- (Rupees Twenty Seven lacs, Eighty One Thousand, Nine Hundred Thirty Six and Sixty Six Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 06.01.2023 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 property by executing registered mortgage deeds bearing daybook nos. 1120/2014 & 1172/2017 dated 28.03.2014 & 23.05.2017 at Exh. A-6 & A-12 in list of documents Exh. 5 and Exh. AW-6 and AW-12 is Mark of documents Exh. 9.

(OA No.208/2023)

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[AMBADAS]

(D) The applicant Bank is entitled to sell the mortgaged immovable property and hypothecated articles/goods 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:.30.10.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.208/2023)

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Page 9 of 9

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[AMBADAS]

Canara Bank v. Chandrakanth Prabhudas Asodekar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Chandrakanth Prabhudas Asodekar

Case brief

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