Allowed

Union Bank of India v. Mr. Kishor Shriram Patil

DRT7 Apr 2025OA/459/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Union Bank of India to recover a term loan of Rs.27,51,709.58plus interest from four defendants. The defendants did not appear, and the court relied on un-rebutted bank evidence. The court directed payment of the principal with future simple interest at 9% per annum and authorized the sale of hypothecated assets.

What did the court decide?

Directed defendants to pay Rs.27,51,709.58plus future interest @9% p.a. (simple); authorized sale of hypothecated assets; issued Recovery Certificate.

Union Bank of India versus Mr. Kishor Shriram Patil — Contract and Commercial Disputes | DRT (2025)

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Presented on: 30.01.2024 Registered on: 18.06.2024 Decided on: 07.04.2025 Duration: Y M D 01 02 08

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J.R. Chauhan Presiding officer)

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TOTAL CLAIM AMOUNT – Rs.27,51,709.58Ps.

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ORIGINAL APPLICATION No.459/2024

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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, 1970 having it’s Registered Office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai – 400002 and having branches amongst the other places at Main branch, Dhule through its Authorized Person, Mr. Bhatusing Shamsing Thakur (Branch Head), Age : 40 yrs., Occu : Service, R/o : Station Road, Dhule..

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… Applicant

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Versus

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Mr. Kishor Shriram Patil, Age : Major, Occu : Agri, R/o : At Dalwel, Post Mondhale, Tq. Parola, Dist. Jalgaon 425111.

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Smt. Kavita Dinesh Patil, Age : Major, Occu : Agri, R/o : At Dalwel, Post Mondhale, Tq. Parola, Dist. Jalgaon 425111.

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[SBJ] (OA No.459/2024) Page 1 of 10

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Smt. Manisha Sunil Mahale, Age : Major, Occu : Agri, R/o : At Post Sherul, Sherual, Tq. & Dist. Nashik 423105.

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Mr. Ananda Ganpat Patil, Age : Major, Occu : Agri, R/o : At Dalwel, Post Mondhale, Tq. Parola, Dist. Jalgaon 425111.

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… Defendants

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APPEARANCES

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Mr. K.D. Pande - Advocate Ex-parte

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For the Applicant

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For Defendant Nos.1 to 4

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JUDGMENT (Delivered on 07^th April, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.27,51,709.58Ps. (Rupees TwentySeven Lacs Fifty-One Thousand Seven Hundred Nine and Paise Fifty-Eight only) as on 31^st December, 2023 alongwith future interest at the rate 12.65% with half yearly rests compoundable from dated 01.01.2024 contractual rate with incidental expenses, and charges from the date of filing of this Original Application till realization of the entire amount and costs of the application from the defendants jointly and severally.

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[SBJ] (OA No.459/2024) Page 2 of 10

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Brief facts of the application are as under :

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As per the loan Application dated 13^th March, 2020 of the defendant Nos. 1 to 3, the applicant Bank sanctioned the Term Loan facility of Rs.19,60,000/- (Rupees Nineteen Lacs Sixty Thousand only) vide Sanction Letter dated 13^th March, 2020.

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The Defendants agreed and accepted the terms and conditions in the Sanction Letter. The said loan facility was to be repayable with interest @12.65% per annum with half yearly rests. The defendants were to pay interest applied on daily outstanding in the loan account computed on daily balances basis, duly compounded and debited to the loan account at half yearly rests on last working day of every month in accordance with accounting practice. The defendants also agreed to pay an additional interest by way of liquidated damages @2% p.a. in default of repayment.

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In order to secure the aforesaid Term Loan facility, on 13.03.2020, the defendants have executed necessary loan and security documents in favour of the applicant bank. The defendants executed various loan documents i.e. Sanction letter, Letter of Continuity, Demand Promissory Note,

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[SBJ] (OA No.459/2024) Page 3 of 10

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Letter of General Lien & Set-Off (AD-02A) as is mentioned in Paragraph No.5.2 and 5.3 of the Original Application. The defendant No.4 also assured his personal guarantee for the repayment of the above Term Loan facility advanced to the Defendant No.1 to 3 and accordingly executed Deed of Guarantee on 13.03.2020 in favour of the applicant bank.

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The defendants have executed Hypothecation Agreement on 13.03.2020 of the (i) Crop whatsoever and wherever raised or to be raised including standing crops on the land described in the Second Schedule hereto or cut or stocked or stored or in the course of transit or delivery. (ii) Herd / fish / flocks / silkworms and cocoons including those described in the Third Schedule hereto wherever they may be. (iii) Tools / equipments / fixtures / boats / machines / tractor / power tiller / tube well / electric motor / diesel engine and / or other movables connected with and or relating farming / rearing of cattle and / or flock / fishing / sericulture including those described in the Third Schedule of the Hypothecation Agreement for Agriculture Advances in favour of the applicant bank.

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The applicant bank contended that after availment of the Term Loan facility, the defendants have acknowledged their

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[SBJ] (OA No.459/2024) Page 4 of 10

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liability and confirmed the due balance and security documents by executing Composite Debit Balance Confirmation Letter on 28.09.2022. After availment of the Term Loan facility, the applicant bank has maintained the loan account of the defendants regularly and has taken entries of all the transactions entered by the defendant from time to time.

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The applicant bank further submitted that the interest has been charged at such rates in capitalized at such rates as permitted by and do not run counter to the directives of the Reserve Bank of India.

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The applicant bank further contended that the defendants have failed and neglected to operate and maintain their account properly and hence the loan account has become irregular. The defendants have failed to pay the dues as committed and agreed. The applicant bank issued letter and reminders but the defendants did not clear up the dues. Therefore, there was no other alternative then to recall the entire advance from the defendants. As such, the loan account of the defendants was classified as Non-Performing Account as per the Guidelines of RBI on 31.03.2023.

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[SBJ] (OA No.459/2024) Page 5 of 10

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The applicant bank further contended that after repeated requests, reminders, demands the defendants did not clear up the dues. Therefore, the applicant bank was constrained to issue legal Notice to the Defendants through their Advocate on 10.01.2024 calling upon them to pay the outstanding balance alongwith further interest at the agreed rate with half yearly rests and also cost of the notice. But the defendants failed to comply with the said notice.

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The applicant bank further submitted that the applicant bank has maintained loan account of the defendants regularly in the daily course of its business and has taken entries of all the transactions entered by the defendants from time to time. The Extract of the Loan Account No.324006040002381 is duly certified u/s 2A (a) & (b) of the Banker’s Books Evidence Act 1891, to be read with amended provisions of Information and Technology Act, 2000.

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The claim of the plaintiff bank in the Defendant A/c No.324006040002381 is as under:-

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Sr.No.	PARTICULARS	AMOUNT (Rs.)
a.	Running Ledger Balance	19,90,314.50
b.	Reversal Interest	5,82,299.50
3.	Dummy interest	1,79,095.58
	TOTAL	27,51,709.58

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[SBJ] (OA No.459/2024) Page 6 of 10

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Hence, the applicant bank has filed this Original Application to recover the dues from the defendants jointly and severally.

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The Defendant Nos.1 to 4 failed to appear despite service of summons through court commissioner by hand. Hence, the Defendant No.1 to 4 were proceeded ex-parte as per Order dated 24^th January, 2025.

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The applicant Bank has filed Affidavit (Exhibit-4) of Mr. Bhatusingh s/o Shamsing Thakur, Branch Head and the Authorized Person of the Union Bank of India i.e. the applicant bank and has produced on record the original loan documents alongwith List (Exhibit-5), which are marked as Sr. Nos.A-1 to A-12, 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 un-rebutted evidence of the applicant bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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The applicant Bank has claimed future interest at the rate

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[SBJ] (OA No.459/2024) Page 7 of 10

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12.65% with half yearly rests compoundable from dated 01.01.2024 contractual rate with incidental expenses, and charges from the date of filing of this Original Application till realization of the entire amount and costs of the application from the defendants jointly and severally. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple), it would be just and reasonable rate of interest.

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Hence, I pass the following order.

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ORDER

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(A) Original Application No.459/2024 is allowed with cost.

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(B) Defendant Nos.1 to 4 are ordered and directed to pay jointly and severally to the applicant the aggregate sum of Rs.27,51,709.58Ps. (Rupees Twenty-Seven Lacs Fifty-One Thousand Seven Hundred Nine and Paise Fifty-Eight only) along with future interest @9% per annum (simple) from the date of filing of the original application i.e. 30^th January, 2024 till full payment/realization of the amount.

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[SBJ] (OA No.459/2024) Page 8 of 10

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secured by the Hypothecation Agreement marked as Exhibit-A-6 in the List of Documents (Exhibit-5) dated 13.03.2020 of the (i) Crop whatsoever and wherever raised or to be raised including standing crops on the land described in the Second Schedule hereto or cut or stocked or stored or in the course of transit or delivery. (ii) Herd / fish / flocks / silkworms and cocoons including those described in the Third Schedule hereto wherever they may be. (iii) Tools / equipments / fixtures / boats / machines / tractor / power tiller / tube well / electric motor / diesel engine and / or other movables connected with and or relating farming / rearing of cattle and / or flock / fishing / sericulture including those described in the Third Schedule of the Hypothecation Agreement for Agriculture Advances in favour of the applicant bank as is mentioned in Paragraph No.3A of the Original Application and more particularly Hypothecation Agreement marked as Exhibit-A-6 in the List of Documents (Exhibit-5) dated 13.03.2020.

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[SBJ] (OA No.459/2024) Page 9 of 10

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(D) The applicant Bank is entitled to sell the hypothecated assets at AW-6 in the List of Documents (Exhibit-5) of the Original Application to recover its dues.

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(E) Issue Recovery Certificate accordingly.

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(F) The Registry is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

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Pronounced in open Court. Date : 07.04.2025.

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

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[SBJ] (OA No.459/2024) Page 10 of 10

Union Bank of India v. Mr. Kishor Shriram Patil

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Mr. Kishor Shriram Patil

Case brief

What is this about?

What did the court decide?

What the court decided

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