Union Bank of India versus M/S Shaliesh Traders

Presented on: 20.06.2022 Registered on: 22.08.2022 Decided on: 07.10.2025 Duration: Y M D 03 03 17

IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 355/2022

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TOTAL CLAIM AMOUNT – Rs. 6,43,86,182/-

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Union Bank of India,

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A body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act V, 1970 having its Head Office at 239, Backbay Reclamation Bombay 40021 and one of its Branch at Latur, Narayan Darshan, Plot No. 2, Near Usha Kiran Takies, Barshi Road, Latur, Tauka and District Latur – 413 512 and acting through its officer and one of its Chief Manager Mr. Rohit Shyamsukha, Age: 39years, Occupation: Service as Chief Manager, Union Bank of India, Latur Branch and having authority to file the application which includes the authority to sign and verify the application.

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… Applicant

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Versus

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1. M/s. Shailesh Traders,

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Proprietor Sanjay Harischandra Ghar, Age: 43 years, Occu.: Business, Shop No. 40, Market Yard, Latur 413 512.

[AMBADAS]

(OA No.355/2022)

Page 1 of 16

AND M/s. Shailesh Traders, Proprietor Sanjay Harischandra Ghar, Age: 43 years, Occu.: Business, Plot No. 1 and 2, Gut No. 195, Village Khandapur, Latur 413 531. AND M/s. Shailesh Traders, Proprietor Sanjay Harischandra Ghar, Age: 43 years, Occu.: Business, New G. P. No. 496, Gut No. 8/1 Khandapur, Latur 413 531. AND Sanjay Harischandra Ghar, Proprietor of M/s. Shailesh Traders, Age: 43 years, Occu.: Business, Flat No. 302, Kaivaylyam Hights, Kava Road, Basweshwar Chowk, Latur 413 512.

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2. Harsichandra Nivrutti Ghar

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Age: 76 years, Occu.: Business, Khandapur, Gangapur, Latur 413 531. AND Harsichandra Nivrutti Ghar Age: 76 years, Occu.: Business, House No. 345, Plot No. 3, Gut No. 8/1, Khandapur, Latur.

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3. Mohan Rangrao Makane

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Age: 60 years, Occu.: Business, Mataji Nagar, Latur 413 512.

AND

(OA No.355/2022)

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[AMBADAS]

Mohan Rangrao Makane Age: 60 years, Occu.: Business, Plot No. 76, S. No. 178, Municipal No. R9-609/5 (old), 95067452 (New) Mataji Nagar, Kava Road, Latur.

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4. Sumanbai Mohan Makane

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Age: 55 years, Occu.: Business, Mataji Nagar, Latur 413 512. AND Sumanbai Mohan Makane Age: 55 years, Occu.: Business, Plot No.86, (Western Part)Survey No. 178, Municipal No. R9-609/5 (old), 95067452 (New) Mataji Nagar, Karva Road, Latur.

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5. Kavita Balasaheb Darvade

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Age: 45 years, Occu.: Business, Khandapur, Gangapur, Latur 413 531. AND Kavita Balasaheb Darvade

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Age: 45 years, Occu.: Business, Plot No. 79, G. P. No. 477, Gut No. 8/1, Khandapur, Taluka and District Latur.

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6. Gopal Harischandra Ghar

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Age: 38 years, Occu.: Business, Khandapur, Gangapur, Latur 413 531. AND

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Gopal Harischandra Ghar Age: 65 years, Occu.: Business, Plot No. 106 (Northern Part), Gut No. 8, Khandapur, Chincholi road, Latur.

…Defendants

(OA No.355/2022)

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[AMBADAS]

APPEARANCES

For the Applicant For Defendants

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Mr. Kulkarni Vivek B -Advocate Ex-parte

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JUDGMENT

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Delivered on 07.10.2025

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 6,43,86,182/- ( Rupees Six Crore, Forty Three Lacs, Eighty Six Thousand, One Hundred and Eighty Two only), along with future interest from the date of filing of the Original Application, i.e., 20.06.2022, 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 Defendant No. 1, M/s. Shailesh Traders, is a proprietary concern, and Mr. Sanjay Haischandra Ghar is its sole proprietor. The said Defendant initially approached the Applicant Bank seeking an Open Cash Credit (OCC) facility, and upon due consideration of the request and

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financial requirements, the Bank sanctioned an OCC facility of Rs.

(OA No.355/2022)

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[AMBADAS]

2,50,00,000/- vide sanction letter dated 01.02.2016, at an interest rate of 12.25% per annum with monthly rests, along with an obligation to pay additional interest by way of liquidated damages in the event of default. Subsequently, Defendant No. 1 sought an enhancement, and the facility was increased to Rs. 3,25,00,000/by sanction letter dated 20.07.2017 at a reduced interest rate of 11.20% per annum, also with monthly rests and similar default conditions. The said facility was later renewed vide sanction letter dated 30.01.2019, maintaining the limit of Rs. 3,25,00,000/, at a revised interest rate of 11.95% per annum with monthly rests. Thereafter, Defendant No. 1 again approached the Applicant Bank for further enhancement, and the facility was enhanced to Rs. 5,00,00,000/- vide sanction letter dated 04.11.2019 at an interest rate of 11.05% per annum with monthly rests, with the same terms regarding liquidated damages for default. Further, during the COVID-19 pandemic, Defendant No. 1 requested relief under the applicable regulatory package, and the Applicant Bank,

(OA No.355/2022)

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[AMBADAS]

considering the request and financial necessity, sanctioned a Funded Interest Term Loan (FITL) of Rs. 25,48,922/- vide sanction letter dated 22.09.2020 at an interest rate of 12.25% per annum with monthly rests, also subject to additional interest by way of liquidated damages in case of default.

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In order to secure the aforesaid loan facilites, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letters, mortgage deeds, letters of undertaking, and letters of continuity, demand promissory notes, & hypothecation agreements. Additionally defendant No. 2 to 6 stood as guarantors for defendant No. 1 and executed deeds of guarantee on 11.02.2016, 30.08.2017, 02.02.2019, 06.11.2019 &

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28.09.2020 in 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 by mortgage deeds dated 10.02.2016,

(OA No.355/2022)

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[AMBADAS]

19.08.2017, 30.07.2019 & 07.11.2019 in favour of the Applicant

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Bank. The mortgage was created in respect of the following

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properties-

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i) All that piece and parcel of residential house at plot no. 29 admeasuring 1600 sq. feet, G. P. House No. 429 out of Gut No. 8/1, village Khandapur, Taluka and district Latur, owned by the defendant No. 1, which is bounded as under: East: Plot of Mrs. Sushiladevi Nagorao Chavle, West: 15 ft. Wide Road, South: Plot of Mr. Baban Kaile, North: Plot of Mrs. Kavit Babu Darode,

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ii) All that piece and parcel of non-agricultural land consist plot no 1 and 2 admeasuring 1 Hector 36 R, situated at Gut No. 195, situated at village, khandapur, Taluka and district latur, owned by defendant No. 1, which is bounded as under: East: Land of Ram Visswanath Salunke, West: Land of Prakash Walse, South: Land of Harischandra Ghar, North: Land of Ramakant Patil.

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iii) All that piece and parcel of residential house bearing plot no. 3 admeasuring 2000.00 sq. feet, G. P. House No. 345 situated at Gut No. 8/1, village Khandapur, Taluka and district Latur, owned by the defendant No. 2, which is bounded as under: East: Factory Road, West: Plot/ Land of Vijaykumar Kulkarni, South: Plot of Mr. Mr. Ram Vishwanath Salunke North: 5 ft. wide road

(OA No.355/2022)

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[AMBADAS]

iv) All that piece and parcel of Plot No. 86 (Western Part) bearing M. H. No. R-9/609/3 (Old) B-6/448 (New) admeasuring 46.46 sq. mtrs., out of Survey No. 178, situated at western side of Latur to Kavya Road, Latur, owned and possessed by defendant No. 4, which is bounded as under: East: Plot No. 86 Eastern Part, West: Plot No. 87, South: Plot of Mr. Ganpatrao Gondhali, North: 20 ft. Wide Road,

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v) All that piece and parcel of Plot No. 76 (Western Part) bearing M. H. No. R-9/609/5 (Old), B-6/452 (New) admeasuring 92.93 sq. mtrs., out of Survey No. 178, situated at western side of Latur to Kavya Road, Latur, owned and possessed by defendant No. 3, which is bounded as under:

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East: Plot No. 76 Eastern Part owned by Mrs. Mangalbai, West: Plot of Jankabai Giri out of Sy. No. 179, South: 20 ft. wide road, North: Plot No. 65.

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vi) All that piece and parcel of residential house at plot no. 79 G. P. No. 477, admeasuring 1600 sq. fts. out of Gut No. 8/1, of village Khandapur, Taluka and district Latur, owned by the defendant No. 5

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vii) All that piece and parcel of residential house bearing plot no. 1, G. P. No. 2086 admeasuring 1816.82 sq. mtrs., out of Gut No. 195 of village Khandapur, Taluka and district Latur, owned by the defendant No. 2, which is bounded as under: East: 15 mtrs. wide road, West: Land out of Gat No. 207, South: Amenity Plot, North: 18 mtrs., Wide Road,

(OA No.355/2022)

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[AMBADAS]

viii) All that piece and parcel of industrial N. A. plot bearing plot no. 2 bearing G. P. No. 2087, admeasuring 9704.46 sq. mtrs., out of Gat No. 195 of village Khandapur, Taluka and District Latur owned by defendant No. 2 ,which is bounded as under: East: Land out of Gut No. 197, West: 15 mtrs., Wide Road, South: Land out of Gut No. 192, North: 18 mtrs., wide road,

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ix) All that piece and parcel of private plot No. 106 (Southern Part), admeasuring 139.40 sq. mtrs., G.P. House No. 361 out of Gut No. 8, Village Khandapur, Taluka and district latur owned by defendant No. 1, which is bounded as under: East: Plot of Mr. Harischandra Ghar, West: 20.00 ft. Wide Road, South: Land of Vijaykumar Kulkarni North: Remaining part of plot no. 106, sold to Mr. Gopal Ghar.

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x) All that piece and parcel of private plot No. 106 (Northern Part), admeasuring 157.99 sq. mtrs., G.P. House No. 362 out of Gut No. 8, Village Khandapur, Taluka and district latur owned by defendant No. 6, which is bounded as under: East: Plot of Mr. Harischandra Ghar, West: 20.00 ft. Wide Road,

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South: Remaining part of plot no. 106, sold to Mr. Gopal Ghar, North: 5 ft. wide road,

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The applicant bank contended that the defendants have failed to

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keep their promise and commitments agreed by them with regard

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to due repayment of the loan amount. The defendants failed to

(OA No.355/2022)

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[AMBADAS]

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 31.03.2021. Therefore, on 20.12.2021 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 failed to appear in matter though they were served through summons. Hence, the defendants were proceeded ex-parte as per Order dated 23.11.2023.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Rohit Shyamsukha, Chief Manager of the applicant Bank, and has produced on record the original loan transaction

(OA No.355/2022)

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[AMBADAS]

documents as Annexure A-1 to A-47 along with list of documents Exh.5 which corroborates the case of the applicant Bank.

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1. 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 at contractual rate from the date of filing i.e. 20.06.2022 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 @ 11% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

(OA No.355/2022)

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[AMBADAS]

ORDER

(A) Original Application No. 355/2022 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. 6,43,86,182/- ( Rupees Six Crore, Forty Three Lacs, Eighty Six Thousand, One Hundred and Eighty Two only), along with future interest @ 11% per annum (simple) from the date of filing of the O. A. i.e. 20.06.2022 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 mortgage deeds dated 10.02.2016, 19.08.2017, 30.07.2019 & 07.11.2019 at annexure A-10, A-18, A-35 & A-36 in list of documents Exh. 5.

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i) All that piece and parcel of residential house at plot no. 29 admeasuring 1600 sq. feet, G. P. House No. 429 out of Gut No. 8/1, village Khandapur, Taluka and district Latur, owned by the defendant No. 1, which is bounded as under:

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East: Plot of Mrs. Sushiladevi Nagorao Chavle,

(OA No.355/2022)

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[AMBADAS]

West: 15 ft. Wide Road, South: Plot of Mr. Baban Kaile, North: Plot of Mrs. Kavit Babu Darode,

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ii) All that piece and parcel of non-agricultural land consist plot no 1 and 2 admeasuring 1 Hector 36 R, situated at Gut No. 195, situated at village, khandapur, Taluka and district latur, owned by defendant No. 1, which is bounded as under:

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East: Land of Ram Visswanath Salunke, West: Land of Prakash Walse, South: Land of Harischandra Ghar, North: Land of Ramakant Patil.

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iii) All that piece and parcel of residential house bearing plot no. 3 admeasuring 2000.00 sq. feet, G. P. House No. 345 situated at Gut No. 8/1, village Khandapur, Taluka and district Latur, owned by the defendant No. 2, which is bounded as under:

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East: Factory Road, West: Plot/ Land of Vijaykumar Kulkarni, South: Plot of Mr. Mr. Ram Vishwanath Salunke North: 5 ft. wide road

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iv) All that piece and parcel of Plot No. 86 (Western Part) bearing M. H. No. R-9/609/3 (Old) B-6/448 (New) admeasuring 46.46 sq. mtrs., out of Survey No. 178, situated at western side of Latur to Kavya Road, Latur, owned and possessed by defendant No. 4, which is bounded as under: East: Plot No. 86 Eastern Part, West: Plot No. 87, South: Plot of Mr. Ganpatrao Gondhali, North: 20 ft. Wide Road,

(OA No.355/2022)

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[AMBADAS]

v) All that piece and parcel of Plot No. 76 (Western Part) bearing M. H. No. R-9/609/5 (Old) B-6/452 (New) admeasuring 92.93 sq. mtrs., out of Survey No. 178, situated at western side of Latur to Kavya Road, Latur, owned and possessed by defendant No. 3, which is bounded as under:

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East: Plot No. 76 Eastern Part owned by Mrs. Mangalbai, West: Plot of Jankabai Giri out of Sy. No. 179, South: 20 ft. wide road, North: Plot No. 65,

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vi) All that piece and parcel of residential house at plot no. 79 G. P. No. 477, admeasuring 1600 sq. fts. out of Gut No. 8/1, of village Khandapur, Taluka and district Latur, owned by the defendant No. 5

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vii) All that piece and parcel of residential house bearing plot no. 1, G. P. No. 2086 admeasuring 1816.82 sq. mtrs., out of Gut No. 195 of village Khandapur, Taluka and district Latur, owned by the defendant No. 2, which is bounded as under: East: 15 mtrs. wide road, West: Land out of Gat No. 207, South: Amenity Plot, North: 18 mtrs., Wide Road,

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viii) All that piece and parcel of industrial N. A. plot bearing plot no. 2 bearing G. P. No. 2087, admeasuring 9704.46 sq. mtrs., out of Gat No. 195 of village Khandapur, Taluka and District Latur owned by defendant No. 2 ,which is bounded as under: East: Land out of Gut No. 197, West: 15 mtrs., Wide Road,

(OA No.355/2022)

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[AMBADAS]

South: Land out of Gut No. 192, North: 18 mtrs., wide road,

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ix) All that piece and parcel of private plot No. 106 (Southern Part), admeasuring 139.40 sq. mtrs., G.P. House No. 361 out of Gut No. 8, Village Khandapur, Taluka and district latur owned by defendant No. 1, which is bounded as under:

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East: Plot of Mr. Harischandra Ghar, West: 20.00 ft. Wide Road, South: Land of Vijaykumar Kulkarni North: Remaining part of plot no. 106, sold to Mr. Gopal Ghar.

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x) All that piece and parcel of private plot No. 106 (Northern Part), admeasuring 157.99 sq. mtrs., G.P. House No. 362 out of Gut No. 8, Village Khandapur, Taluka and district latur owned by defendant No. 6, which is bounded as under:

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East: Plot of Mr. Harischandra Ghar, West: 20.00 ft. Wide Road,

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South: Remaining part of plot no. 106, sold to Mr. Gopal Ghar,

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North: 5 ft. wide road,

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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) Issue Recovery Certificate accordingly.

(OA No.355/2022)

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[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:.07.10.2025

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

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(OA No.355/2022)

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[AMBADAS]

Union Bank of India v. M/S Shaliesh Traders

Case brief

What is this about?

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Union Bank of India v. M/S Shaliesh Traders

Case brief

What is this about?

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