Allowed

Union Bank of India ( Andhra Bank ) v. Mosin Munir Shaikh

DRT10 Jul 2025OA/667/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of housing loan dues. The court directed respondents to pay the principal sum plus future interest at 9% simple interest. The recovery was secured by mortgaged immovable properties and hypothecated movable properties.

What did the court decide?

Ordered respondents to pay Rs. 26,89,093.58 plus future interest at 9% simple per annum; directed sale of mortgaged/hypothecated properties to recover dues; issued Recovery Certificate.

Union Bank of India ( Andhra Bank ) versus Mosin… — Contract and Commercial Disputes | DRT (2025)

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Presented on: 12.06.2024 Registered on: 12.06.2024 Decided on: 10.07.2025 Duration: Y M D 1 -- 28

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

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TOTAL CLAIM AMOUNT – Rs.26,89,093.58 PS.

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ORIGINAL APPLICATION No.667/2024

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Union Bank of India , (Erstwhile “Andhra Bank)

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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-400021 & having branches amongst the other places at Darga Road, Aurangabad and having it’s Asset Recovery Branch(ARB), at Plot No.3, 1^st Floor, Sahakar Colony, Shahanoorwadi, Aurangabad, through it’s Power of Attorney, Mr. Kapil s/o. Vijaysingh Bilwal (Law Officer), Age: 37 yrs, OPccu: Service, R/o. Shahanoorwadi, Aurnagabad.

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… Applicant

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Versus

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[DAK] (OA No.667/2024) Page 1 of 9

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1. Mosin Munir Shaikh, Age: Major, Occu.: Business, R/o: Flat No. 23, Sardar Residency, Deolai Road, Satara, Tq. & Dist. Aurangabad 431001 AND / OR Mr. Mosin Munir Shaikh Age: Major, Occu.: Business, R/o: Flat No. 6, Prince Heritage, Plot No. 74, Gut No. 191, Satara, Aurangabad, Tq. & Dist. Aurangabad 431001 2. Asama Shaikh Sadek Age: Major, Occu.: Business, R/o: Flat No. 23, Sardar Residency, Deolai Road, Satara, Tq. & Dist. Aurangabad 431001 AND / OR Mrs. Asama Shaikh Sadek Age: Major, Occu.: Business, R/o: Flat No. 6, Prince Heritage, Plot No. 74, Gut No. 191, Satara, Aurangabad, Tq. & Dist. Aurangabad 431001

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Defendants

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APPEARANCES

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For the Applicant Mr. K. D. Pande - Advocate For Defendants Exparte

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[DAK] (OA No.667/2024) Page 2 of 9

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JUDGMENT (Delivered on 10^th July, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.26,89,093.58 PS (Rs. Twenty Six Lacs Eighty Nine Thousand Ninety Three & Fifty Eight Ps Only) together with interest 9.35% per annum with monthly rests upon Housing loan from 17.05.2024 till the full realization of the entire dues and costs from the defendants.

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Brief facts of the application are as under :

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That, the Applicant Bank contended that, the Government of India issued a Notification Part II, Section 3, Sub-Section (i) and Order No. G.S.R.154 (E) dated 04/03/2020 as per which the Andhra Bank has been acquired by the Union Bank of India with effect from 01/04/2020. That, the Defendant No. 1 & 2 (hereinafter referred as the “defendants”) had approached to the Erstwhile “Andhra Bank” now “Union Bank of India” (hereinafter referred as the “Applicant Bank”) and represented that they are in need of financial assistance and requested to sanction a Housing Loan facility.

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[DAK] (OA No.667/2024) Page 3 of 9

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That, the Defendant Nos. 1 & 2 had approached to the Applicant Bank and requested to sanction a Housing Loan facility. Upon considering the representations/requests and need of the defendants, the Applicant Bank sanctioned Housing Loan of Rs. 25,00,000/- vide sanction letter dated 12.06.2019 on certain terms & conditions. The agreed rate of interest was @ 8.85 % per annum with monthly rests. The defendants also agreed to pay an additional interest by way of liquidated damages @ 2% p.a. in case of default in repayment.

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In order to secure the aforesaid loan facilities, the defendants executed loan documents in favour of the applicant bank namely loan application dated 24.05.2019, sanction letter dated 12.06.2019, composite agreement dated 12.06.2019, registered sale deed dated 12.06.2019, vide list of documents Exh.5.

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The applicant bank contended that to secure the Housing loan facility, the defendants have mortgaged their immovable property and created charge and security interest by creating equitable mortgage by deposit of the title deeds i.e. registered sale deed bearing daybook no.3103

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[DAK] (OA No.667/2024) Page 4 of 9

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dated 12.06.2019 in favour of the applicant bank in respect of following property.

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All that piece and parcel of Flat no.6 admeasuring built up area 64.90 sq. mtrs, carpet area 51.92 sq. mtrs on third floor in “Prince Heritage” constructed on plot no.74 out of gut no.161, situated at Satara, Tq. And Dist. Aurangabad which is bounded as under-

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East : Flat No. 7

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West : 6.00 mtr. wide Road

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South : Plot No. 75

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North : Plot No. 73

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The applicant bank contended that the defendants have failed to keep their promises and commitments agreed by them with regard to due repayment of the loan amount. The defendants failed to operate the loan account properly within a year 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

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[DAK] (OA No.667/2024) Page 5 of 9

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and neglected to pay the same. The loan account of the defendants became irregular and classified as nonperforming asset on 11.02.2024. Therefore on 24.05.2024, the applicant Bank issued legal notice to the defendants through their Advocate. Despite service of Notice, 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 the matter though they served through paper publication, hence the defendants proceeded exparte as per Order dated 20.03.2025.

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The applicant Bank has filed Claim Affidavit of Evidence (Exhibit-4) of Kapil s/o. 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-14, 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

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[DAK] (OA No.667/2024) Page 6 of 9

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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 @ 9.35% per annum with monthly rests from 17.05.2024 till the full realization of the entire dues and costs from the defendants. However, considering the facts and circumstances 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.667/2024 is allowed with costs.

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(B) Defendants are ordered and directed to pay jointly and severally to the applicant the aggregate sum of Rs.26,89,093.58 PS (Rs. Twenty Six Lacs Eighty Nine Thousand Ninety Three & Fifty Eight Ps Only) alongwith future interest @ 9% per annum (simple) from 12.06.2024 till full payment/realization of the amount.

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[DAK] (OA No.667/2024) Page 7 of 9

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Hypothecation of movable properties vide Hypothecation-cum-Loan Agreement Exh. A-4 dated 12.06.2019 as per list of documents Exh.5.

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(D) The aforesaid adjudicated amount is secured by the mortgage of the following immovable properties-

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East : Flat No. 7

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West : 6.00 mtr. wide Road

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South : Plot No. 75

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North : Plot No. 73

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(E) The applicant bank is entitled to sell the mortgaged immovable properties and hypothecated articles/goods to recover its dues.

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[DAK] (OA No.667/2024) Page 8 of 9

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(F) Issue Recovery Certificate.

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

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(H) File be consigned to the record room after due compliance.

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Place : Aurangabad. Date : 10.07.2025.

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

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[DAK] (OA No.667/2024) Page 9 of 9

Union Bank of India ( Andhra Bank ) v. Mosin Munir Shaikh

Case brief

What is this about?

What did the court decide?

Union Bank of India ( Andhra Bank ) v. Mosin Munir Shaikh

Case brief

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What did the court decide?

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