Allowed

Union Bank of India v. Bhagvat Laxman Katore

DRT21 Aug 2025OA/639/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Union Bank of India for recovery of dues of Rs. 32,63,484/- along with future interest. The court granted charge over mortgaged immovable properties and directed issuance of a recovery certificate, while abating the proceedings against the deceased guarantor.

What did the court decide?

Order allowed; Defendants 1-3 to pay Rs. 32,63,484/- with interest; Recovery Certificate issued; Charge created over mortgaged properties; Application abated against Defendant 4.

Union Bank of India versus Bhagvat Laxman Katore — Banking and Recovery | DRT (2025)

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Presented on: 22.06.2024 Registered on: 17.08.2024 Decided on: 21.08.2025 Duration: Y M D 01 01 29

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 639/2024

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Union Bank of India

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TOTAL CLAIM AMOUNT – Rs. 32,63,484/-

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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-40021 & having branches amongst the other places at Rahuri Tq. Rahuri, Dist. Ahmednagar & having it’s Asset Recovery Branch (ARB), at Plot No. 3, 1^st Floor, Sahakar Colony, Shahnoorwadi, Aurangabad, through its Power of Attorney, Mr. Kapil s/o Vijaysingh Bilwal (Law Officer), Age: 37 years, Floor,

(OA No.639/2024)

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[AMBADAS]

Sahakar Colony,

Shahnoorwadi, Aurangabad

431005

… Applicant

Versus

Mr. Bhagvat Laxman Katore, Age: Major, Occu.: Agriculture, R/o.: At Post Gangapur, Tq. Rahuri, Dist. Ahmednagar 413705

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Mrs. Shobha Bhagvat Katore, Age: Major, Occu.: Agriculture, R/o.: At Post Ranjangaon, Tq. Parner, Dist. Ahmednagar 413703

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Mr. Ramdas Bhagvat Katore, Age: Major, Occu.: Agriculture, R/o.: At Post Ranjangaon, Tq. Parner, Dist. Ahmednagar 413703

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Mr. Sopanrao Bapu Mhase, Age: Major, Occu.: Agriculture, R/o.: At Post Rahuri, Tq. Parner, …Defendants Dist. Ahmednagar 413705 APPEARANCES For the Applicant Mr. K. D. Pande - Advocate For Defendants Ex-parte defendant No. 1 to 3 For Defendant No. 4 Abated vide order dated 01.05.2025.

(OA No.639/2024)

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[AMBADAS]

JUDGMENT Delivered on 21.08.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 32,63,484/- ( Thirty Two Lacs Sixty Three Thousand Four Hundred and Eighty Four only), along with further interest from the date of filing of the Original Application, i.e., 22.06.2024, 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 the Defendants Nos. 1 to 3 had approached and requested the Applicant Bank for a Term loan facility (CKLS) and Crop loan (CCCK) facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned a Term loan facility of Rs. 8,78,000/- and Crop loan (CCCK) facility of Rs. 5,22,000/- Lacs, vide sanction letter dated 02.05.2014 on certain terms and conditions. The agreed

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rate of interest for the aforesaid loans was 11.35% p.a., and 7%

(OA No.639/2024)

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[AMBADAS]

p.a. respectively, with half yearly rests applicable to aforesaid

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loan facilities. The Defendants also agreed to pay additional interest of @2% way of liquidated damages in the event of any 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 letter, Hypothecation agreement, demand promissory notes, and simple mortgage deed bearing Daybook No. 1233 dated 05.05.2014. Additionally, Defendant No. 4 stood as guarantor for Defendant Nos. 1 to 3 and executed a Deed of Guarantee dated 13.05.2014 in favour of the Applicant

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Bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facilities sanctioned to them, the Defendant No. 1 to 3 created first charge over their immovable property under

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mortgage deed bearing daybook No. 1233 dated 05.05.2014 in

(OA No.639/2024)

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[AMBADAS]

favour of the Applicant Bank. The mortgage was created in

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respect of the following properties –

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i) All that piece and parcel of agricultural land admeasuring 1 H 29 R P.K. 0 H 07 R out of Gut No. 225/2, situated at Village Gangapur, Tq. Rahuri, Dist. Ahmendnagar which is bounded as under:

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East: Gut No. 266 West: Gut No. 224 North: Road South: Gut No. 222

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ii) All that piece and parcel of agricultural land admeasuring 1 H 40 R P.K. 0 H 09 R out of Gut No. 219, situated at Village Gangapur, Tq. Rahuri, Dist. Ahmendnagar which is bounded as under:

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East: Gut No. 53 & 54 West: Chincholi Shiv North: Gut No. 220, 221 South: Gut No. 218

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iii) All that piece and parcel of agricultural land admeasuring 1 H 29 R P.K. 0 H 07 R out of Gut No. 225/1, situated at Village Gangapur, Tq. Rahuri, Dist. Ahmendnagar which is bounded as under:

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East: Gut No. 266 West: Gut No. 224 North: Road South: Gut No. 222

(OA No.639/2024)

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[AMBADAS]

The applicant bank further states that in order to secure the loan, the defendant also executed deed of Hypothecation, thereby hypothecating crops including standing crops i.e. Sugarcrane etc.

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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 31.03.2021. Therefore, on 22.05.2024 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 defendant No. 1 to 3 failed to appear in matter though they

(OA No.639/2024)

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[AMBADAS]

were served through paper publication. Hence, the defendants No. 1 to 3 were proceeded ex-parte as per Order dated

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01.05.2025

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The defendant No. 4 died during pendency of this application and the applicant bank failed to file or bring the L.Rs on record and consequently vide order dated 01.05.2025, original application qua the defendant No. 4 was abated.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Kapil Vijaysingh Bilwal, Power of Attorney Holder of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-28 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

(OA No.639/2024)

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[AMBADAS]

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 borrower which are mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @ 12.50% per annum with half yearly rests compoundable from the date of filing i.e. 22.06.2024 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), it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No.639/2024 is allowed with costs.

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(B) The defendant No. 1 to 3 jointly and severally shall pay to the applicant Bank a sum of Rs. 32,63,484/- ( Thirty

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Two Lacs Sixty Three Thousand Four Hundred and Eighty

(OA No.639/2024)

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[AMBADAS]

Four only), along with future interest @ 9 % per annum (simple) from the date of filing of the Original Application i.e. 22.06.2024 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. 1233 dated 05.05.2014 at Exh A-10 in list of documents Exh. 5

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i) All that piece and parcel of agricultural land admeasuring 1 H 29 R P.K. 0 H 07 R out of Gut No. 225/2, situated at Village Gangapur, Tq. Rahuri, Dist. Ahmendnagar which is bounded as under: East: Gut No. 266 West: Gut No. 224 North: Road South: Gut No. 222

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ii) All that piece and parcel of agricultural land admeasuring 1 H 40 R P.K. 0 H 09 R out of Gut No. 219, situated at Village Gangapur, Tq. Rahuri, Dist. Ahmendnagar which is bounded as under: East: Gut No. 53 & 54 West: Chincholi Shiv North: Gut No. 220, 221 South: Gut No. 218

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iii) All that piece and parcel of agricultural land

(OA No.639/2024)

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[AMBADAS]

admeasuring 1 H 29 R P.K. 0 H 07 R out of Gut No. 225/1, situated at Village Gangapur, Tq. Rahuri, Dist. Ahmendnagar which is bounded as under: East: Gut No. 266 West: Gut No. 224 North: Road South: Gut No. 222

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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) The Original application is abated qua defendant No. 4.

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(F) Issue Recovery Certificate accordingly.

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

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(H) File be consigned to the record room.

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Sd/-

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Pronounced in open court. Place: Aurangabad Date:.21.08.2025

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

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(OA No.639/2024)

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[AMBADAS]

Union Bank of India v. Bhagvat Laxman Katore

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Union Bank of India v. Bhagvat Laxman Katore

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