The Debt Recovery Tribunal allowed a recovery application filed by Union Bank of India against two defendants for loan defaults. The bank sought recovery of Rs. 44.90 lakhs plus interest.
Recovery of Rs. 44,90,720.69 with future interest @ 9% simple per annum from 19.03.2022; right to sell mortgaged properties for realization.
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: 19.03.2022 Registered on: 02.08.2022 Decided on: 03.09.2025 Duration: Y M D 03 05 14
IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 267/2022
TOTAL CLAIM AMOUNT – Rs. 44,90,720.69/Union Bank of India, (A Government of India Undertaking) Having its Central office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, 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, Bhusawal, Tq.
Bhusawal, District Jalgaon
… Applicant
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Versus
…Defendants
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APPEARANCES For the Applicant For Defendants
Mr. Atul A. Mishra - Advocate Ex-parte
JUDGMENT
Delivered on 03.09.2025
Brief facts of the application are as under:
under Union Home Scheme of Rs. 25 lacs vide sanction letter
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dated 08.12.2014 on certain terms and conditions. The agreed rate of interest for the Term loan Facility was 10.25% p.a. with monthly rests. The Defendants also agreed to pay additional interest of 2% by way of liquidated damages in the event of any default in repayment.
Subsequently, the Defendant No. 1 again approached the Applicant Bank seeking further financial assistance for Business needs of Jai Bhadar Motors. After examining the necessary documents, the Bank sanctioned a Term loan Facility under Union Mortgage Scheme of Rs. 20,00,000/- vide sanction letter dated 26.05.2016. The agreed rate of interest for this facility was 12.40% per annum with monthly rests, and the Defendant agreed to pay additional interest at the rate of 2% per annum by way of liquidated damages in the event of default.
Thereafter, the Defendant No. 1 again approached the Bank for financial assistance during COVID-19. Upon verification of the
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submitted documents, the Bank sanctioned a Union Covid-19
Personal Loan of Rs. 5,00,000/- vide sanction letter dated 05.06.2020. The agreed rate of interest for loan Facility was @8% per annum with monthly rests. As with the previous loans, the Defendant agreed to pay additional interest at the rate of 2% per annum as liquidated damages in case of default in repayment.
In order to secure the aforesaid loan facilities, the Defendant No. 1 & 2 executed various loan documents in favour of the Applicant Bank. These included sanction letters, deed of Hypothecations, housing loan agreement, letters of undertaking, letters of continuity, simple mortgage deeds bearing daybook nos. BSL-7493-2014 & BSL-2633-2016. Additionally defendant No. 2 stood as guarantor for defendant No. 1 and executed deeds of guarantee on 30.05.2016 & 05.06.2020 in favour of the Applicant Bank.
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Home loan & Term loan facility sanctioned to them, the Defendant No. 1 & 2 created first charge over their immovable properties bearing daybook nos. BSL-7493-2014 & BSL-26332016 dated 15.12.2014 & 27.05.2016 in favour of the Applicant Bank. The mortgage was created in respect of the following
properties –
All that piece and parcel of land situated at Bhusawal S.No.228/1A+1B+1C+1D+1E out of Plot No. 31, admeasuring 243.75 sq.mtr. out of which Half East side admeasuring 121.875 sq.mtr. and thereon all construction. At bhusawal within Bhusawal Municipal Council limit, Bhusawal Dist-Jalgoan, which is bounded as under:
East: Plot No. 12 West: Remaining Portion of same Plot South: 9mtr Road North: Plot No. 40
All that piece and parcel of land situated at Bhusawal S.No.228/1A+1B+1C+1D+1E out of Plot No. 31, admeasuring 243.75 sq.mtr. out of which Half East side admeasuring 121.875 sq.mtr. and thereon all construction. At bhusawal within Bhusawal Municipal Council limit, Bhusawal Dist-Jalgoan, which is bounded as under:
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East: Plot No. 32 West: Remaining Portion of same Plot South: 9mtr Road North: Plot No. 40
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served through court commissioner. Hence, the defendants were proceeded ex-parte as per Order dated 03.10.2023.
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from the date of filing i.e. 19.03.2022 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% (simple), it would be just and reasonable rate of interest.
ORDER
(C) The aforesaid adjudicated amount is secured by the mortgage deed bearing BSL-7493-2014 & BSL-26332016 dated 15.12.2014 & 27.05.2016 respectively executed by the defendants on 15.12.2014 &
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27.05.2016 at Annexure A-7 & A-15 in the list of
documents Exh. 5
All that piece and parcel of land situated at Bhusawal S.No.228/1A+1B+1C+1D+1E out of Plot No. 31, admeasuring 243.75 sq.mtr. out of which Half East side admeasuring 121.875 sq.mtr. and thereon all construction. At bhusawal within Bhusawal Municipal Council limit, Bhusawal Dist-Jalgoan, which is bounded as under:
East: Plot No. 12 West: Remaining Portion of same Plot South: 9mtr Road North: Plot No. 40
All that piece and parcel of land situated at Bhusawal S.No.228/1A+1B+1C+1D+1E out of Plot No. 31, admeasuring 243.75 sq.mtr. out of which Half East side admeasuring 121.875 sq.mtr. and thereon all construction. At bhusawal within Bhusawal Municipal Council limit, Bhusawal Dist-Jalgoan, which is bounded as under:
East: Plot No. 32 West: Remaining Portion of same Plot South: 9mtr Road North: Plot No. 40
(D) The applicant Bank is entitled to sell the mortgaged immovable properties and hypothecated
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articles/goods etc., to recover its dues.
(G) File be consigned to the record room.
Sd/-
Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.03.09.2025 Debts Recovery Tribunal, Aurangabad
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2 issues framed by the court
Whether the bank is entitled to the claimed recovery amount along with future interest.
Whether the mortgaged properties serve as valid security for the adjudicated dues.
Union Bank of India
Pravin Nivrutti Warke
Arvind Nivrutti Warke
J. R. Chauhan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
