Allowed

Union Bank of India v. Bhausaheb Karbhari Vadak

DRT3 Oct 2025OA/511/2024

Case brief

AI extract

What is this about?

Union Bank of India filed an original application in the DRT seeking recovery of ₹28.55 lakhs with future interest against borrowers and a guarantor. The respondents appeared ex-parte. The tribunal allowed the application, capped future interest at 9% p.a., and confirmed the charge over mortgaged agricultural land.

What did the court decide?

Respondents to pay ₹28,55,084 with future interest at 9% p.a.; recovery secured by specific mortgaged agricultural land; issue of Recovery Certificate.

Union Bank of India versus Bhausaheb Karbhari Vadak — Contract and Commercial Disputes | DRT (2025)

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Presented on: 28.02.2024 Registered on: 09.07.2024 Decided on: 03.10.2025 Duration: Y M D 01 07 05

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 511/2024

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TOTAL CLAIM AMOUNT – Rs. 28,55,084/-

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Union Bank of India,

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(Erstwhile “Corporation Bank”) 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 Station Road, Dist. Ahmednagar and having it’s Asset Recovery Branch (ARB), at Plot No. 3, 1^st Floor, Sahakar Colony, Shahanoorwadi, Aurangabad, through its Power of Attorney, Mr. Abhaykumar Dattatray Baviskar, (Chief Manager), Age: 38 years, Occ.: Service, R/o. Plot No. 3, 1^st Floor, Sahakar Colony, Shahnoorwadi, Aurangabad 431005.

… Applicant

Versus

(OA No.511/2024)

Page 1 of 9

[AMBADAS]

1. Mr. Bhausaheb Karbhari Vadak, Age: Major, Occu.: Business, R/o.: At 577/1, Nimgaon Jali, Tq. Sangamner, Dist. Ahmednagar 413719.

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AND/OR

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Mr. Bhausaheb Karbhari Vadak, Age: Major, Occu.: Business, R/o.: At Gut No. 799/4 (Part), Nimgaon Jali, Tq. Sangamner, Dist. Ahmednagar 413719.

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2. Mr. Vasant Shankar Chopade,

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Age: Major, Occu.: Business, R/o.: At 577/1, Nimgaon Jali, Tq. Sangamner, Dist. Ahmednagar 413719.

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…Defendants

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APPEARANCES

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

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JUDGMENT Delivered on 03.10.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 28,55,084/- (Rupees Twenty Eight Lacs, Fifty Five Thousand, Eighty Four only), along with future interest from the date of filing of the Original Application, i.e., 28.02.2024, until the date of realization of the entire outstanding dues from the Defendants.

(OA No.511/2024)

Page 2 of 9

[AMBADAS]

Brief facts of the application are as under:

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The Applicant Bank states that the Defendant No. 1 approached and requested the Applicant Bank for CKLS (Agri. Term loan facility) & CCCK (Crop Loan Facility). Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned CKLS (Agri. Term loan facility) of Rs. 11,29,000/- & CCCK (Crop Loan Facility) of Rs. 2,51,000/- vide sanction letter dated 17.12.2015 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facilities was @12% p.a. & @ 10.40% p.a. respectively with monthly rests. The Defendant also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

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Thereafter, the defendant No. 1 approached the applicant bank and requested for renewal of the above referred CCCK Facility and upon considering his request, the Applicant Bank pleased to

(OA No.511/2024)

Page 3 of 9

[AMBADAS]

renew the said CCCK facility (Crop Loan) facility of Rs. 2,51,000/-

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on dt. 30.11.2016.

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Subsequently the defendant No. 1 approached to the applicant bank and requested to rephrase/ restructure the above referred

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credit facilities advanced to him and upon considering his request, the Applicant Bank pleased to rephrase/restructure the

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above referred credit facilities on dt. 20.12.2018 on certain terms

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& conditions.

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In order to secure the aforesaid loan facility, the Defendant No. 1 & 2 executed various loan documents in favour of the Applicant Bank. These included sanction letter, letters of undertaking, hypothecation agreement, demand promissory notes, registered mortgage deed bearing day book no. 1822 dated 21.12.2015 etc., in favour of the applicant bank. Additionally defendant No. 2 stood as guarantor for defendant No. 1 and executed deed of guarantee dated 31.12.2015 in favour of the applicant bank.

(OA No.511/2024)

Page 4 of 9

[AMBADAS]

The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendant created first charge over his immovable property under registered mortgage deed bearing day book no. 1822 dated 21.12.2015 in favour of the Applicant Bank.

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The mortgage was created in respect of the following property-

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All that piece and parcel of agricultural land admeasuring 1 H 49 R, potkharab 0 H 6.50 R out of Gut No. 799/4 (Part), situated at Village Nimgaonjali, Tq. Sangamner, Dist. Ahmednagar, which is bounded as under: East: Road, West: Gut No. 800, North: Gut No. 814, 817 & 818, South: Gut No. 799/3.

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

(OA No.511/2024)

Page 5 of 9

[AMBADAS]

to pay the same. The loan account of the defendants became irregular and classified as NPA on 01.04.2022. Therefore, on 06.02.2024 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 03.03.2025.

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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-39 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.511/2024)

Page 6 of 9

[AMBADAS]

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 property of the borrowers which is mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @12.00 p. a. from the date of filing i.e. 28.02.2024 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% 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. 511/2024 is allowed with

costs.

(OA No.511/2024)

Page 7 of 9

[AMBADAS]

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 28,55,084/- (Rupees Twenty Eight Lacs, Fifty Five Thousand, Eighty Four only),along with future interest @ 9% per annum (simple) on outstanding amount from the date of filing of the O.A. i.e. 28.02.2024 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 simple mortgage deed bearing daybook no. 1822 dated 21.12.2015 at Exh. A-16 in the list of documents Exh. 5.

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East: Road, West: Gut No. 800, North: Gut No. 814, 817 & 818, South: Gut No. 799/3.

(OA No.511/2024)

Page 8 of 9

[AMBADAS]

(D) The applicant Bank is entitled to sell the mortgaged immovable property and hypothecated articles/goods etc., to recover its dues.

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(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:.03.10.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.511/2024)

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Page 9 of 9

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[AMBADAS]

Union Bank of India v. Bhausaheb Karbhari Vadak

Case brief

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Union Bank of India v. Bhausaheb Karbhari Vadak

Case brief

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