Allowed

Union Bank of India v. Ms Bafna Motors (India) Pvt. Ltd.

DRT1 Oct 2025OA/385/2022

Case brief

AI extract

What is this about?

In this Original Application, Union Bank of India sought recovery of Rs. 28.62 Crore along with future interest from the defendants, who were the borrowers and guarantors. As the defendants appeared ex-parte, the tribunal accepted the bank's evidence, allowed the application, and secured the dues against mortgaged properties.

What did the court decide?

Recovery of Rs. 28.62 Crore plus future interest at 10% p.a.; declaration of security over mortgaged properties; direction to sell properties if necessary; issuance of Recovery Certificate.

Union Bank of India versus Ms Bafna Motors (India)… — Contract and Commercial Disputes | DRT (2025)

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Presented on: 14.07.2022 Registered on: 16.09.2022 Decided on: 01.10.2025 Duration: Y M D 03 02 17

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 385/2022

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TOTAL CLAIM AMOUNT – Rs. 28,62,40,095.37/-

¶4

Union Bank of India,

¶5

(A body corporate consitituted under the Banking Companies (Acquisition of Undertakings) Act, 1970, Having its Central office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Mumbai-400021. And amongst other branches, one of the Branch Office at Plot No. 11, Krupa Jijamata Colony, Paithan Gate, Main Branch, Aurangabad, Through its Authorized Officer, Shri Santoshkumar Thakur, Age 44 years, Occu.: Service, Working as Chief Manager, Union Bank of India, at post Main Branch, Paithan Gate, Aurangabad.

… Applicant

Versus

(OA No.385-2022)

Page 1 of 15

[AMBADAS]

1. M/s. Bafna Motors (India) Pvt. Ltd.., Unit No. 712, 7^th Floor, Centre one World Trade Centre Cuff Parade, Mumbai – 400005.

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2. Samatiprasad Mishrilal Bafna,

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Age: Major, Occu.: Business, R/o.: c/o. Bafna Motors Pvt. Ltd., Unit No. 712, 7^th Floor, Centre one World Trade Centre Cuff Parade, Mumbai – 400005.

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3. Mr. Arjun SDumatiprasad Bafna,

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Age: Major, Occu.: Business, R/o.: c/o. Bafna Motors Pvt. Ltd., Unit No. 712, 7^th Floor, Centre one World Trade Centre Cuff Parade, Mumbai – 400005.

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4. Mr. Sanjeev Mishrilal Bafna,

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Age: Major, Occu.: Business, R/o.: c/o. Bafna Motors Pvt. Ltd., Unit No. 712, 7^th Floor, Centre one World Trade Centre Cuff Parade, Mumbai – 400005.

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5. M/s. Bafna Motors (Mumbai) Pvt. Ltd.,

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Unit No. 712, 7^th Floor, Centre one World Trade Centre Cuff Parade, Mumbai – 400005.

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6. M/s. Bafna Motors Pvt. Ltd.,

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Aurangabad-Nagar Road, Opp. Bajaj Auto Material Gate Waluj, Aurangabad – 431001.

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…Defendants

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APPEARANCES

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For the Applicant Mr. Atul A. Mishra -Advocate For Defendants Ex-parte

(OA No.385-2022)

Page 2 of 15

[AMBADAS]

JUDGMENT

Delivered on 01.10.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 28,62,40,095.37/- (Rupees Twenty Eight Crore, Sixty Two Lacs, Forty Thousand, Ninety Five and Thirty Seven Paisa only), along with future interest from the date of filing of the Original Application, i.e., 14.07.2022, 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 approached the Bank seeking financial assistance for its business operations, specifically as a dealer for Tata Motors commercial vehicles, spare parts, and associated servicing activities. Upon evaluating the request, the Bank sanctioned a Cash Credit Hypothecation Facility of ₹12,00,00,000/- with interest at 11.65% per annum with monthly rests, and a Bank Guarantee of ₹1,00,00,000/- vide sanction letter dated 20.10.2015. Subsequently, Defendant No. 1

(OA No.385-2022)

Page 3 of 15

[AMBADAS]

applied for renewal of the said facility at the same amount but with a revised interest rate of 13.60% p.a., along with a request for an additional Adhoc CC limit of ₹3,00,00,000/- on 07.09.2016. Further, on 07.10.2016, Defendant No. 1 sought enhancement of the CC Hypothecation Facility from ₹12,00,00,000/- to ₹18,00,00,000/- with interest at 11.45% p.a., along with a Composite Term Loan of ₹13,50,00,000/- at 11.70% p.a., and continuation of the Bank Guarantee of ₹1,00,00,000/-. On 27.09.2017, the facility was again renewed at ₹18,00,00,000/with interest at 11.45% p.a., Composite Term Loan continued at ₹13,50,00,000/- with 11.70% interest, and an additional Adhoc CC limit of ₹4,50,00,000/- was sanctioned at the same rate. Thereafter, Defendant No. 1 again requested renewal and enhancement of the facilities for business expansion, and the Bank, after due scrutiny, renewed/enhanced the Cash Credit Hypothecation Facility to ₹18,00,00,000/- with interest at EBLR + 4.25% p.a., while the existing Composite Term Loan of

(OA No.385-2022)

Page 4 of 15

[AMBADAS]

₹9,71,00,000/- was reduced to ₹7,95,00,000/- with interest at

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EBLR + 4.75% p.a. Additionally, a UCECL Term Loan of ₹5,19,00,000/- at 7.50% interest and a FITL of ₹1,35,00,000/- at 12.90% interest were availed under the COVID-19 regulatory package. The previously sanctioned Bank Guarantee of ₹1,00,00,000/- was closed.

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In order to secure the aforesaid loan facility, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letters, registered deeds bearing daybook nos. 679-2016, 1410-2016, 377-2017, 4630-2021 & 4615-2021 dated 01.02.2016, 04.03.2016, 21.01.2017 & 26.07.2021, letters of undertaking, demand promissory notes, letters of continuity etc. Additionally defendant no. 2 to 6 stood as guarantor for defendant no. 1 and executed deeds of guarantee on 31.12.2015, 07.09.2016, 20.01.2017, 06.10.2017 & 24.11.2020 in

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favour of the Applicant Bank.

(OA No.385-2022)

Page 5 of 15

[AMBADAS]

The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendant No. 1 created first charge over his immovable properties vide executing registered deeds

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bearing daybook nos. 679-2016, 1410-2016, 377-2017, 46302021 & 4615-2021 dated 01.02.2016, 04.03.2016, 21.01.2017 & 26.07.2021, in favour of the Applicant Bank. The mortgage was

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created in respect of the following properties-

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Three Plots Plot No. 1 to 3 from Gut No. 44 total adm. 9719.06 sq. mt having constructed area 2441.61 sq. mt. purchased by M/s Bafna Motors (India) Pvt. Ltd. From gut No. 44 at village Naygaon Tq. Gangapur Dist. Aurangabad.

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Plot No. 1

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All that part and parcel of the land Plot No. 1 from Gut No. 44 adm. 1074.68 sq. mt. situated at village naygaon, Tq. Gangapur, Dist. Aurangabad, which is bounded as under:

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East: Plot No. 3 from Gut No. 44,

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West: 15.00 M wide service road then green belt & then Aurangabad – Ahmednagar road North: 15.00 M wide Shiv Road, South: Plot No. 2 from Gut No. 44.

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Plot No. 2

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All that part and parcel of the land Plot No. 2 from Gut No. 44 adm. 1254.90 sq. mt. situated at village naygaon, Tq. Gangapur, Dist. Aurangabad, which is bounded as under: East: Plot No. 3 from Gut No. 44,

(OA No.385-2022)

Page 6 of 15

[AMBADAS]

West: 15.00 M wide service road then green belt & then Aurangabad – Ahmednagar road North: Plot No. 1

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South: 9.00 M wide road from Gut No. 44.

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Plot No. 3

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All that part and parcel of the land Plot No. 3 from Gut No. 44 adm. 7389.48 sq. mt. situated at village naygaon, Tq. Gangapur, Dist. Aurangabad, which is bounded as under:

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East: 18.00 M wide DP Road,

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West: Plot No. 1 & 2 & 9 M wide road southern side to plot no. 2. North: 15.00 M wide Shiv Road,

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South: 25% land of cidco from gut No. 44 land Gut No. 46 of village Naigon.

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All that part and parcel of Plot No. C-2/1 admeasuring 7404.00 sq mt. within the village limits of shivar, MIDC Industrial Area Akola Tq. & Dist. Akola.

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Boundaries as per lease deed as under:

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East: Plot No. C-2/2 West: Plot No. C-1, North: MIDC Road, South: Plot No. C-3

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Boundaries as per mortgage deed as under:

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East: MIDC Road, West: Plot No. C03 North: Plot No. C-1 South: Plot No. C-2/2

(OA No.385-2022)

Page 7 of 15

[AMBADAS]

All that part of parcel of land & building at M. No. 1-23-542, S. No. 06 Gut No. 105 (P) admeasuring 35 R Village sangvi (Bk) Taluka & Dist. Nanded, Nanded Maharashtra.

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Boundaries as per sale deed as under: East: Nanded Hingoli Road, West: Land of Shri. Anibhuwa North: Land of Gyanoba Baburao South: Road

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All that part of parcel of land & building at S. No. 06 Gut No. 106 (P) admeasuring 05 R M. No. 1-23-542, Village sangvi (Bk) Taluka & Dist. Nanded, Nanded Maharashtra. Boundaries as per sale deed as under: East: Land of Sumatiprasad M Bafna West: Land of Anebuwa North: Land of Anebuwa South: Land of Anebuwa

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All that part of parcel of land & building at S. No. 06 Gut No. 18 M No. 1/23/543, admeasuring 40 R, Village sangvi (Bk) Taluka & Dist. Nanded, Nanded Maharashtra.

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Boundaries as per sale deed as under: East: Land of Gyanoba Kokate, West: Land of Raoji Deorao & Tulshiram Deorao Kokane North: Remaining Land of Gut No. 18 South: Property of Bafna Motors.

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The applicant bank contended that the defendants have failed to keep their promise and commitments agreed by them with regard

(OA No.385-2022)

Page 8 of 15

[AMBADAS]

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 29.01.2022. Therefore, on 02.02.2022 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 in matter though they were duly served. Hence, the defendants were proceeded ex-parte as per Order dated 21.02.2024.

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

(OA No.385-2022)

Page 9 of 15

[AMBADAS]

transaction documents as Annexure A-1to A-92 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 @11.55% p. a. from the date of filing i.e. 14.07.2022 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 @

(OA No.385-2022)

Page 10 of 15

[AMBADAS]

10% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 385/2022 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. 28,62,40,095.37/- (Rupees Twenty Eight Crore, Sixty Two Lacs, Forty Thousand, Ninety Five and Thirty Seven Paisa only), along with future interest @ 10% per annum (simple) on outstanding amount from the date of filing of the O.A. i.e. 14.07.2022 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 bearing daybook nos. 679-2016, 1410-2016, 377-2017, 4630-2021 & 4615-2021 vide mortgage deed dated 01.02.2016, 04.03.2016, 21.01.2017 & 26.07.2021,at

(OA No.385-2022)

Page 11 of 15

[AMBADAS]

Annexure. A-21, A-22, A-54, A-67, A-85 & A-86 in list of

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documents Exh. 5.

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Three Plots Plot No. 1 to 3 from Gut No. 44 total adm. 9719.06 sq. mt having constructed area 2441.61 sq. mt. purchased by M/s Bafna Motors (India) Pvt. Ltd. From gut No. 44 at village Naygaon Tq. Gangapur Dist. Aurangabad.

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Plot No. 1

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All that part and parcel of the land Plot No. 1 from Gut No. 44 adm. 1074.68 sq. mt. situated at village naygaon, Tq. Gangapur, Dist. Aurangabad, which is bounded as under:

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East: Plot No. 3 from Gut No. 44, West: 15.00 M wide service road then green belt & then Aurangabad – Ahmednagar road North: 15.00 M wide Shiv Road, South: Plot No. 2 from Gut No. 44.

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Plot No. 2

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All that part and parcel of the land Plot No. 2 from Gut No. 44 adm. 1254.90 sq. mt. situated at village naygaon, Tq. Gangapur, Dist. Aurangabad, which is bounded as under:

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East: Plot No. 3 from Gut No. 44, West: 15.00 M wide service road then green belt & then Aurangabad – Ahmednagar road North: Plot No. 1

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South: 9.00 M wide road from Gut No. 44.

Plot No. 3

(OA No.385-2022)

Page 12 of 15

[AMBADAS]

All that part and parcel of the land Plot No. 3 from Gut No. 44 adm. 7389.48 sq. mt. situated at village naygaon, Tq. Gangapur, Dist. Aurangabad, which is bounded as under:

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East: 18.00 M wide DP Road, West: Plot No. 1 & 2 & 9 M wide road southern side to plot no. 2. North: 15.00 M wide Shiv Road, South: 25% land of cidco from gut No. 44 land Gut No. 46 of village Naigon.

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All that part and parcel of Plot No. C-2/1 admeasuring 7404.00 sq mt. within the village limits of shivar, MIDC Industrial Area Akola Tq. & Dist. Akola.

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Boundaries as per lease deed as under: East: Plot No. C-2/2 West: Plot No. C-1, North: MIDC Road, South: Plot No. C-3 Boundaries as per mortgage deed as under: East: MIDC Road, West: Plot No. C03 North: Plot No. C-1 South: Plot No. C-2/2

¶126

All that part of parcel of land & building at M. No. 1- 23-542, S. No. 06 Gut No. 105 (P) admeasuring 35 R Village sangvi (Bk) Taluka & Dist. Nanded, Nanded Maharashtra.

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Boundaries as per sale deed as under:

(OA No.385-2022)

Page 13 of 15

[AMBADAS]

East: Nanded Hingoli Road, West: Land of Shri. Anibhuwa North: Land of Gyanoba Baburao South: Road

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All that part of parcel of land & building at S. No. 06 Gut No. 106 (P) admeasuring 05 R M. No. 1-23-542, Village sangvi (Bk) Taluka & Dist. Nanded, Nanded Maharashtra.

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Boundaries as per sale deed as under: East: Land of Sumatiprasad M Bafna West: Land of Anebuwa North: Land of Anebuwa South: Land of Anebuwa

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All that part of parcel of land & building at S. No. 06 Gut No. 18 M No. 1/23/543, admeasuring 40 R, Village sangvi (Bk) Taluka & Dist. Nanded, Nanded Maharashtra.

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Boundaries as per sale deed as under: East: Land of Gyanoba Kokate, West: Land of Raoji Deorao & Tulshiram Deorao Kokane North: Remaining Land of Gut No. 18 South: Property of Bafna Motors.

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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.

(OA No.385-2022)

Page 14 of 15

[AMBADAS]

(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:.01.10.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.385-2022)

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Page 15 of 15

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[AMBADAS]

Union Bank of India v. Ms Bafna Motors (India) Pvt. Ltd.

Case brief

What is this about?

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Union Bank of India v. Ms Bafna Motors (India) Pvt. Ltd.

Case brief

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