Allowed

Bank of Maharashtra v. Madhave Trimbak Magar

DRT25 Aug 2025OA/531/2024

Case brief

AI extract

What is this about?

In Debts Recovery Tribunal, Aurangabad, Bank of Maharashtra sought recovery of Rs. 32,67,574/- via Original Application No. 531/2024. Defendants appeared ex-parte. The Tribunal allowed the application, adjusted future interest rates to 11% and 6%, and secured the amount via mortgage on agricultural lands.

What did the court decide?

Defendants ordered to jointly and severally pay the principal sum along with future interest at 11% per annum on term loan and 6% per annum on MKCC facility.

Bank of Maharashtra versus Madhave Trimbak Magar — Banking and Recovery | DRT (2025)

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Presented on: 27.01.2024 Registered on: 29.07.2024 Decided on: 25.08.2025 Duration: Y M D 01 06 28

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INTHEDEBTSRECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 531/2024

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TOTAL CLAIM AMOUNT – Rs.32,67,574/-

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Bank of Maharashtra,

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A body corporate and constituted under the Banking Companies (Acquisition of Undertaking) Act, 5 of 1970, carrying on banking business and hiving its Head Office at “Lokmangal”, 1501, Shivaji Nagar, Pune- 411 005 and Zonal Office at “Mahabank Bhawan” C-3, N-1, Town Centre, CIDCO Aurangabad431003 and Branch at Kannad, Taluka Kannad, District Aurangabad. Through its Authorized Officer, Shri. Sachin Balasaheb Kapse, Age: Major, Occu.:

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Service, Working as Senior Branch Branch at Kannad, Taluka Kannad, District Aurangabad.

… Applicant

(OA No.531-2024)

Page 1 of 10

[AMBADAS]

Versus

1.Madhava Trimbak Magar, Age: Major, Occu.: Agriculture, R/o.: At Post Hiearkheda (Nand), Taluka Kannad, District Aurangabad, AND Gut No. 10, situated at Hiearkheda (Nand), Taluka Kannad District Aurangabad. AND

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Gut No. 14, situated at Hiearkheda (Nand), Taluka Kannad District Aurangabad.

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Gokul Madhava Magar, Age: Major, Occu.: Farmer, R/o.: At Post Hiearkheda (Nand), Taluka Kannad, District Aurangabad, AND Gut No. 43, situated at Hiearkheda (Nand), Taluka Kannad District Aurangabad. AND Gut No. 66, situated at Hiearkheda (Nand), Taluka Kannad District Aurangabad.

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3.Vikas Madhava Magar, Age: Major, Occu.: Farmer, R/o.: At Post Hiearkheda (Nand), Taluka Kannad, District Aurangabad, AND Gut No. 43, situated at Hiearkheda (Nand), Taluka Kannad District Aurangabad. AND Gut No. 66, situated at Hiearkheda (Nand), Taluka Kannad District Aurangabad.

…Defendants

(OA No.531-2024)

Page 2 of 10

[AMBADAS]

4.Manohar Sheshrao Magar, Age: Major, Occu.: Farmer, R/o.: At Post Hiearkheda (Nand), Taluka Kannad, District Aurangabad

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5.Janardhan Sheshrao Magar, Age: Major, Occu.: Farmer, R/o.: At Post Hiearkheda (Nand), Taluka Kannad, District Aurangabad

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APPEARANCES

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Mr. Atul A. Mishra -Advocate Ex-parte

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For the Applicant For Defendants

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JUDGMENT

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Delivered on 25.08.2025

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 32,67,574/- (Rupees Thirty Two Lacs Sixty Seven Thousand Five Hundred and Seventy Four Only), along with further interest from the date of filing of the Original Application, i.e., 27.01.2024, 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 Nos. 1 to 3 approached

(OA No.531-2024)

Page 3 of 10

[AMBADAS]

the applicant bank seeking financial assistance in the form of a

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term loan for purchase of drip irrigation and pipeline and Mahabank Kisan Credit Card (MKCC) facility for purpose of Agri Crop. Upon scrutiny of the submitted documents, the applicant bank sanctioned a Term loan of Rs. 6,90,000/-, Mahabank Kisan Credit Card (MKCC) facility of Rs. 3,00,000/- vide sanction letters dated 12.02.2013 & 16.08.2013. The agreed rate of interest was @12.75% p.a. for term loan with quarterly rests and @ 7% for MKCC facility with quarterly rests. The defendants also agreed to pay an additional interest by way of liquidated damages in case of default in repayment.

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In order to secure the aforesaid loan facilities, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letters, hypothecation agreement, demand promissory notes, etc. Additionally, Defendant Nos. 4 and 5 stood as guarantors for Defendant No. 1 to 3 and executed

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a Deed of Guarantee dated 16.08.2013 in favour of the Applicant

(OA No.531-2024)

Page 4 of 10

[AMBADAS]

Bank.

The Applicant Bank further contends that, in order to secure the loan facilities sanctioned to them, the Defendant Nos. 1 to 3 created charges over their immovable property by executing the declaration on 11.02.2013 in favour of the applicant bank. The mortgage was created in respect of the following properties –

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All that piece and parcel of agricultural land bearing Gut No. 10, admeasuring 24 R, situated at Hiearkheda (Nand) Taluka Kannad District. Aurangabad.

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All that piece and parcel of agricultural land bearing Gut No. 14, admeasuring 1 H 10 R, situated at Hiearkheda (Nand) Taluka Kannad District. Aurangabad.

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All that piece and parcel of agricultural land bearing Gut No. 43, admeasuring 41 R, situated at Hiearkheda (Nand) Taluka Kannad District. Aurangabad.

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All that piece and parcel of agricultural land bearing Gut No. 66, admeasuring 78 R, situated at Hiearkheda (Nand) Taluka Kannad District. Aurangabad.

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All that piece and parcel of agricultural land bearing Gut No. 43, admeasuring 40 R, situated at Hiearkheda (Nand) Taluka

(OA No.531-2024)

Page 5 of 10

[AMBADAS]

Kannad District. Aurangabad.

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All that piece and parcel of agricultural land bearing Gut No. 66, admeasuring 79 R, situated at Hiearkheda (Nand) Taluka Kannad District. Aurangabad.

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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 to pay the same. The loan account of the defendants became irregular and classified as NPA on 24.04.2018. Therefore, on 05.12.2022 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.

(OA No.531-2024)

Page 6 of 10

[AMBADAS]

The defendant failed to appear in matter though they were served through paper publication. Hence, the defendants were proceeded ex-parte as per Order dated 05.05.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-04 of Shri. Sachin Balasaheb Kapse, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. AW-1(1) to AW-1(17) along with list of documents Exh.05 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

(OA No.531-2024)

Page 7 of 10

[AMBADAS]

the applicant bank.

The applicant Bank has claimed future interest @12.75%per annum on Term loan and @ 7 % p.a. on MKCC Facility from the date of filing i.e. 27.01.2024 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 @11% per annum (simple), on Term loan and @ 6% per annum (simple) on MKCC Loan it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No.531/2024 is allowed with costs.

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(B) The defendants shall jointly and severally pay to the applicant Bank a sum of Rs. 32,67,574/- (Rupees Thirty Two Lacs Sixty Seven Thousand Five Hundred and Seventy Four Only), along with future interest @ 11% per annum (simple) on Term Loan and @ 6% per annum (simple) on MKCC Loan from the date of filing of the Original Application i.e. 27.01.2024 till full

(OA No.531-2024)

Page 8 of 10

[AMBADAS]

payment/realization of the amount mentioned in this operative order.

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mortgage of the following immovable properties. Vide declaration U/sec. 5 (1) of the Maharashtra State Agriculture Credit Act, 1974 executed by the defendant Nos. 1 to 3 on 11.02.2013 at Exh. AW-1 (14) (page 93 to 102) in the list of documents Exh. 5

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All that piece and parcel of agricultural land bearing Gut No. 10, admeasuring 24 R, situated at Hiearkheda (Nand) Taluka Kannad, District. Aurangabad.

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All that piece and parcel of agricultural land bearing Gut No. 14, admeasuring 1 H 10 R, situated at Hiearkheda (Nand) Taluka Kannad, District. Aurangabad. 3. All that piece and parcel of agricultural land bearing Gut No. 43, admeasuring 41 R, situated at Hiearkheda (Nand) Taluka Kannad District. Aurangabad.

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All that piece and parcel of agricultural land bearing Gut No. 66, admeasuring 78 R, situated at Hiearkheda

(OA No.531-2024)

Page 9 of 10

[AMBADAS]

(Nand) Taluka Kannad, District. Aurangabad.

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All that piece and parcel of agricultural land bearing Gut No. 43, admeasuring 40 R, situated at Hiearkheda (Nand) Taluka Kannad, District. Aurangabad.

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All that piece and parcel of agricultural land bearing Gut No. 66, admeasuring 79 R, situated at Hiearkheda (Nand) Taluka Kannad, District. Aurangabad.

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(D) The applicant Bank is entitled to sell the mortgaged immovable properties and hypothecated articles/goods, 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:.25.08.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.531-2024)

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Page 10 of 10

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[AMBADAS]

Bank of Maharashtra v. Madhave Trimbak Magar

Case brief

What is this about?

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Bank of Maharashtra v. Madhave Trimbak Magar

Case brief

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