Allowed

Maharashtra Gramin Bank v. Katneshwar Vividh Karyakari Seva Sahakari Society Ltd.

DRT9 Sept 2025OA/650/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by Maharashtra Gramin Bank against a cooperative society and their guarantors for failure to repay cash credit facilities. The court reduced future interest to 7% p.a. and directed sale of properties for recovery.

What did the court decide?

Defendants to pay Rs. 2,55,56,604 plus future interest at 7% p.a.; property to be sold for recovery; recovery certificate issued.

Maharashtra Gramin Bank versus Katneshwar Vividh Karyakari… — Banking and Recovery | DRT (2025)

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Presented on: 05.08.2024 Registered on: 17.08.2024 Decided on: 09.09.2025 Duration: Y M D 01 01 04

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 650/2024

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TOTAL CLAIM AMOUNT – Rs. 2,55,56,604/-

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Maharashtra Gramin Bank,

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(Erstwhile Marathwada Gramin Bank) a bank constituted under the Regional Rural Banks Act, 1976 having its Head Office at Plot No. 42, Gut No. 33, Near Disha Sanskruti Society, Village Golwadi, Chh. Sambhajinagar & having its branches amongst the other places at Katneshwar, Tq. Purna, Dist. Parbhani, through it’s Authorized Officer, Mr. Amol Pralhad Jawale, (Branch Manager), Age:30 yrs., Occu: Service, R/o. Mategaon, Tq. Purna, Dist. Parbhani.

… Applicant

(OA No.650/2024)

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[AMBADAS]

Versus

1. Katneshwar Vividh Karyakari Seva Sahakari Society Ltd., Tq. Purna, Dist. Parbhani, R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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2. Mr. Pralhad Haribhau Chapke (deceased), Through his legal heirs, i) Mr. Prakash Pralhadrao Chapke (Chairman) Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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ii) Mr. Prasad Pralhadrao Chapke Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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3. Mr. Saheb Bhimrao Chapke,

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Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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4. Mr. Meghshyam Tukaram Chapke, Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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5 . Mr. Narayan Abasaheb Chapke, Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

(OA No.650/2024)

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[AMBADAS]

6. Mr. Panditrao Rambhan Chapke, Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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7. Mr. Sitaram Taterao Chapke, Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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8. Mr. Shyamrao Pandurang Chapke, Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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9. Mr. Sopan Anandrao Chapke, Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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10. Mr. Ganeshrao Babrao Panchal, Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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11. Mr. Khandoji Dnyanoba Chandane, Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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12. Mr. Madhukarrao Gangaram Sabane, Age: Major, Occu.: Agri.,

(OA No.650/2024)

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[AMBADAS]

R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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13. Mrs. Sumanbai Sopanrao Chapke, Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, Dist. Parbhani – 431511.

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14. Mrs. Bhagabai @ Bhagiratibai Sahebrao Chapke (Vice Chairman) Age: Major, Occu.: Agri., R/o. At Katneshwar, Tq. Purna, …Defendants Dist. Parbhani – 431511. APPEARANCES For the Applicant Mr. K. D. Pande - Advocate For Defendants Ex-parte

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

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JUDGMENT Delivered on 09.09.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 2,55,56,604/- (Rupees Two crores, Fifty Five Lacs, Fifty Six Thousand, Six Hundred and Four only), along with further interest from the date of filing of the Original Application, i.e., 05.08.2024, until the date of realization of the entire outstanding dues from the Defendants.

(OA No.650/2024)

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[AMBADAS]

Brief facts of the application are as under:

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The applicant bank states that Defendant No. 1 is a credit Cooperative Society. That, initially the defendant No. 1 through defendant No. 2 being the Chairman had approached the applicant bank seeking financial assistance in the form of Cash Credit Facility. Upon scrutiny of the submitted documents, the applicant bank sanctioned a Cash Credit Facility of Rs. 2,33,00,000/- vide sanction letter dated 02.05.2009. The agreed rate of interest was @ 8% p.a. with half yearly rests. The defendant also agreed to pay an additional interest @ 2% by way of liquidated damages in case of default in repayment.

(OA No.650/2024)

Page 5 of 12

[AMBADAS]

05.08.2010. The agreed rate of interest was @6% p.a. with half

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yearly rests. The defendant also agreed to pay an additional interest of 2% by way of liquidated damages in case of default in repayment.

11.09.2012

(OA No.650/2024)

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[AMBADAS]

The applicant bank further states that the defendants again approached to the applicant bank & requested for enhancement

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The applicant bank further states that the defendants again approached to the applicant bank & requested for enhancement of the said Cash Credit Facility. Upon considering the request of the defendants, the applicant bank was pleased to renew the Cash credit facility to 4,93,00,000/- vide sanction letter dated 14.08.2018. The agreed rate of interest was @8% p.a. with half yearly rests. The defendant also agreed to pay an additional interest of 2% by way of liquidated damages in case of default in repayment.

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The applicant bank further states that the defendants again

(OA No.650/2024)

Page 7 of 12

[AMBADAS]

approached to the applicant bank & requested for enhancement

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of the said Cash Credit Facility. Upon considering the request of the defendants, the applicant bank was pleased to renew the Cash credit facility to 4,93,00,000/- vide sanction letter dated 22.10.2019 & 30.06.2020. The agreed rate of interest was @ 8% p.a. half yearly rests. The defendant also agreed to pay an additional interest of 2% by way of liquidated damages in case of default in repayment.

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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, demand promissory notes, karjrokha dated 07.08.2010, 11.09.2012, 26.11.2013 & 21.08.2018 etc. Additionally defendant No 2 to 14 stood as guarantors for defendant No. 1 and executed deeds of guarantee on 20.08.2010, 19.09.2012, 26.11.2013, 21.08.2018 & 27.07.2020 in favour of the Applicant Bank.

(OA No.650/2024)

Page 8 of 12

[AMBADAS]

The Applicant Bank further contends that, in order to secure the

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loan facilities sanctioned to them, the Defendant Nos. 1, 2 & 14 executed karjarokha dated 07.08.2010, 11.09.2012, 26.11.2013

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& 21.08.2018 in favour of the applicant bank.

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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 21.04.2023. Therefore, on 15.06.2024 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

(OA No.650/2024)

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[AMBADAS]

application is filed.

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The defendants failed to appear in matter though they were served through hands. Hence, the defendants were proceeded ex-parte as per Order dated 27.01.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Amol Pralhad Jawale, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-44 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 submits that, the amount claimed in the

(OA No.650/2024)

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[AMBADAS]

present suit is huge and the defendants, with the object of depriving the applicant from the fruits of the decree that may be

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passed, are likely to remove, and/or transfer their personal properties.

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The applicant Bank has claimed future interest @ 8% p.a. on the Cash Credit Facility from the date of filing i.e. 05.08.2024 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 @ 7% 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. 650/2024 is allowed with costs.

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(B) The defendants shall jointly and severally pay to the applicant Bank a sum of Rs. . 2,55,56,604/- (Rupees Two crores, Fifty Five Lacs, Fifty Six Thousand, Six Hundred and Four only), along with future interest @ 7% per annum (simple) from the date of filing of the Original

(OA No.650/2024)

Page 11 of 12

[AMBADAS]

Application i.e. 05.08.2024 till full payment/realization

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of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the by execution of karjarokha dated 07.08.2010, 11.09.2012, 26.11.2013 & 21.08.2018 vide exh. A-7, A-14, A-20, &

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A-29 in the list of documents Exh. 5.

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(D) The applicant Bank is entitled to sell the properties as per documents executed by the defendants as well as personal properties of the defendants, 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)

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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:. 09.09.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.650/2024)

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Page 12 of 12

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[AMBADAS]

Maharashtra Gramin Bank v. Katneshwar Vividh Karyakari Seva Sahakari Society Ltd.

Case brief

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Maharashtra Gramin Bank v. Katneshwar Vividh Karyakari Seva Sahakari Society Ltd.

Case brief

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