Allowed

Union Bank of India v. Harsh Sahebrao Narwade

DRT2 Sept 2025OA/270/2024

Case brief

AI extract

What is this about?

In an original application for recovery of dues, the Debts Recovery Tribunal allowed the claim of Union Bank of India for Rs. 20,74,582.35. The court granted future interest at 7% p.a. (simple) and secured the recovery through charged hypothecated properties.

What did the court decide?

Respondent directed to pay principal amount Rs. 20,74,582.35 plus future interest at 7% p.a. (simple) from filing date; future interest capped at 7% p.a.

Union Bank of India versus Harsh Sahebrao Narwade — Contract and Commercial Disputes | DRT (2025)

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Presented on: 25.11.2023 Registered on: 15.04.2024 Decided on: 02.09.2025 Duration: Y M D 01 09 07

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 270/2024

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TOTAL CLAIM AMOUNT – Rs. 20,74,582.35/Union Bank of India, A Body Corporate constituted under the Banking companies (Acquisition and Transfer of Undertakings) Act 1970, Having its Registered office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021 & having branches amongst the other places at New Osmanpura, Aurangabad and having it’s Asset Recovery Branch (ARB), at Plot No. 3, 1^st Floor, Sahakar Colony, Shahnoorwadi, Aurangabad, through it’s Power of Attorney, Mr. Abhaykumar Dattatray Baviskar, (Chief Manager), Age: 37 years, Occ.: Service, R/o. Plot No. … Applicant 3, 1^st Floor, Sahakar Colony, Aurangabad

(OA No.270/2024)

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[AMBADAS]

Versus

Mr. Harsh Sahebrao Narwade Prop. of M/s Samrat Paper Project Manufacturing Age: Major, Occu.: Business, R/o.: At Plot No. 34, Hotel Shangrila, Nehru Palace, CTS No. 20663/1, Kotwalpura, Aurangabad 431001 AND/OR

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Mr. Harsh Sahebrao Narwade Prop. of M/s Samrat Paper Project Manufacturing Age: Major, Occu.: Business, R/o.: At 6/D, Vaishali Nagar, Jaswantpura, …Defendant Aurangabad 431001

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APPEARANCES For the Applicant Mr. K.D. Pande -Advocate For Defendant Ex-parte

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JUDGMENT Delivered on 02.09.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 20,74,582.35/- (Rupees Twenty Lacs, Seventy Four Thousand, Five Hundred Eighty Two and Thirty Five Paisa only), along with future interest from the date of filing

(OA No.270/2024)

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[AMBADAS]

of the Original Application, i.e., 25.11.2023, until the date of realization of the entire outstanding dues from the Defendant.

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Brief facts of the application are as under:

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The applicant bank states that Defendant approached the applicant bank seeking financial assistance in the form of Term Loan Facility. Upon scrutiny of the submitted documents, the applicant bank sanctioned a Term Loan Facility of Rs. 23,75,000/- vide sanction letter dated 25.03.2021. The agreed rate of interest was @8.55% p.a. with monthly rests. The defendant also agreed to pay an additional interest @ 2% by way of liquidated damages in case of default in repayment.

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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 letter, hypothecation agreement, demand promissory note, letter of undertaking, etc in favour of the Applicant Bank.

(OA No.270/2024)

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[AMBADAS]

The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendant executed a Term loan Agreement dated 26.03.2021, thereby hypothecating in favour of the Applicant Bank all machinery, plant, vehicles, capital goods, and assets purchased or to be purchased by the Borrower, including all existing and future machinery, craft, and other movable properties capable of passing by delivery, and the Borrower’s factory situated at Plot No. 34, Nehru Palace, CTS No. 20663/1, Kotwalpura, Aurangabad.

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The applicant bank contended that the defendant has failed to keep the promise and commitments agreed by him with regard to due repayment of the loan amount. The defendant 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 defendant to pay with the agreed rate of interest thereon, but the defendant failed and neglected to pay the same. The loan account of the defendants became

(OA No.270/2024)

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[AMBADAS]

irregular and classified as NPA on 28.08.2023. Therefore, on 18.11.2023 the applicant bank issued legal notice to the defendant through their advocate. Despite service of Notices, the defendant failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendant failed to appear in matter though he was served through paper publication. Hence, the defendant was proceeded ex-parte as per Order dated 20.05.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Abhaykumar Dattatray Baviskar, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-14 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.

(OA No.270/2024)

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[AMBADAS]

Since the defendant 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 hypothecated properties of the borrower.

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The applicant Bank has claimed future interest @8.55% p.a. on the Term loan Facility from the date of filing i.e. 25.11.2023 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 @ 7% 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. 270/2024 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank a sum of

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Rs. 20,74,582.35/- (Rupees Twenty Lacs, Seventy Four

(OA No.270/2024)

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[AMBADAS]

Thousand, Five Hundred Eighty Two and Thirty Five Paisa only), along with future interest @ 7% per annum (simple) from the date of filing of the Original Application i.e. 25.11.2023 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 all machinery, plant, vehicles, capital goods, and assets purchased or to be purchased by the Borrower, including all existing and future machinery, craft, and other movable properties capable of passing by delivery, and the Borrower’s factory situated at Plot No. 34, Nehru Palace, CTS No. 20663/1, Kotwalpura, Aurangabad, etc. vide Term loan Agreement dated 26.03.2021 at Exhibit A-6 in the list of documents Exh.5

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(D) The applicant Bank is entitled to sell the above referred hypothecated plant and machinery/ articles/goods, movable assets etc., to recover its dues.

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(E) Issue Recovery Certificate accordingly.

(OA No.270/2024)

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[AMBADAS]

(F) The Registrar is directed to send the copy of the

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Judgment and Recovery Certificate to the applicant and defendant.

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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:.02.09.2025

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

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(OA No.270/2024)

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[AMBADAS]

Union Bank of India v. Harsh Sahebrao Narwade

Case brief

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Union Bank of India v. Harsh Sahebrao Narwade

Case brief

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