Allowed

Union Bank of India v. Janardhan Laxmanrao Khotkar

DRT4 Dec 2025OA/685/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank’s original application for recovery of Rs. 81.64 lakhs along with future interest at 9% per annum. The court secured the decree by a charge on mortgaged agricultural lands and directed the issuance of a recovery certificate.

What did the court decide?

Respondents to pay Rs. 81,64,341.90 with future interest at 9% p.a.; decree secured by charge on mortgaged properties; Recovery Certificate issued.

Union Bank of India versus Janardhan Laxmanrao Khotkar — Banking and Recovery | DRT (2025)

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Presented on: 11.06.2024 Registered on: 28.08.2024 Decided on: 04.12.2025 Duration: Y M D 01 05 23

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 685/2024

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TOTAL CLAIM AMOUNT – Rs. 81,64,341.90/-

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Union Bank of India,

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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.685/2024)

Page 1 of 10

[AMBADAS]

1. Mr. Janardhan Laxmanrao Khotkar, Age: Major, Occ.: Business, R/o.: At Post Gadhesawargon, Tq. Ghansawangi, Dist. Jalna 431209.

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2. Mr. Anirudha Laxmanrao Khotkar, Age: Major, Occ.: Business, R/o.: At Post Gadhesawargon, Tq. Ghansawangi, Dist. Jalna 431209.

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…Defendants

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APPEARANCES

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For the Applicant For Defendants

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Mr. K. D. Pande -Advocate Mr. A. S. Jadhav - Advocate

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JUDGMENT Delivered on 04.12.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 81,64,341.90/- (Rupees Eighty One Lacs, Sixty Four Thousand, Three Hundred Forty One and Ninety Paisa only), along with future interest from the date of filing of the Original Application, i.e., 11.06.2024, 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:

(OA No.685/2024)

Page 2 of 10

[AMBADAS]

The Applicant Bank states that the Defendant No. 1 approached and requested the Applicant Bank for Agri. Term loan facility & Crop Loan Facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Agri. Term loan facility of Rs. 34,96,000/- & Crop Loan Facility of Rs. 3,00,000/- vide sanction letter dated 12.09.2015 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facilities was @12.75% p.a. respectively with half yearly 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 Crop Loan Facility and upon considering his request, the Applicant Bank pleased to renew the said Crop Loan Facility of Rs. 3,00,000/- on

dt. 08.01.2020.

(OA No.685/2024)

Page 3 of 10

[AMBADAS]

That, as the loan facilities were granted to the defendant under National Horticulture scheme of Government of India in which a subsidy of Rs. 13,49,000/- was received and accordingly the applicant bank credited the said subsidy to the agri. Term loan facility on dated 09.02.2021. The defendant failed to maintain loan account as per the terms and conditions, as such the applicant bank have opened a subsidy loan account of Rs. 13,49,000/- on dt. 10.12.2023 as per the guidelines of Government of India.

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In order to secure the aforesaid loan facilities, the Defendant No. 1 executed various loan documents in favour of the Applicant Bank. These included sanction letters, letters of undertaking, hypothecation agreements, demand promissory notes, registered mortgage deed bearing day book no. 2721 dated 14.10.2015 etc., in favour of the applicant bank. Additionally defendant No. 2 stood as guarantor for defendant No. 1 and executed deeds of

(OA No.685/2024)

Page 4 of 10

[AMBADAS]

guarantee dated 15.10.2015 & 08.01.2020 in favour of the

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applicant bank.

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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. 2721 dated 14.10.2015 in favour of the Applicant Bank.

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The mortgage was created in respect of the following properties-

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i) All that piece and parcel of agricultural land admeasuring 6 H 91 R, out of Gut No. 70, situated at Village Gadhesawargon, Tq. Ghansawangi, Dist. Jalna, which is bounded as under: East: Land of Anirudha Khotkar (Gut No. 69), West: Land of Asaram Khotkar, South: Shiv of Talegaon, North: Land of Dadabhau Khotkar.

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ii) All that piece and parcel of agricultural land admeasuring 1 H 00 R, out of Gut No. 30, situated at Village Gadhesawargon, Tq. Ghansawangi, Dist. Jalna, which is bounded as under:

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East: Land of Somesh Eknath Khotkar, West: Land of Krishna Shrimant Kurdhane, South: Land of Anirudha Khotkar, North: Govt. Road.

(OA No.685/2024)

Page 5 of 10

[AMBADAS]

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 17.01.2023. Therefore, on 21.12.2023 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 appeared in matter but failed to file written statement. Hence, the right of defendants to file written statement stands close as per Order dated 08.05.2025.

(OA No.685/2024)

Page 6 of 10

[AMBADAS]

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-35 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 as well as the learned counsel for the defendants.

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Since the defendants failed to contest the application, as they did not file any written statement in this case. 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 the applicant bank.

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The applicant Bank has claimed future interest @ 12 % p. a. from the date of filing i.e. 11.06.2024 of this application till realization

(OA No.685/2024)

Page 7 of 10

[AMBADAS]

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. 685/2024 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 81,64,341.90/- (Rupees Eighty One Lacs, Sixty Four Thousand, Three Hundred Forty One and Ninety Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e. 11.06.2024 till full payment/realization of the amount mentioned in this operative order.

(OA No.685/2024)

Page 8 of 10

[AMBADAS]

simple mortgage deed bearing daybook no. 2721 dated 14.10.2015 at Exh. A-11 in the list of documents Exh. 5.

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ii) All that piece and parcel of agricultural land admeasuring 1 H 00 R, out of Gut No. 30, situated at Village Gadhesawargon, Tq. Ghansawangi, Dist. Jalna, which is bounded as under: East: Land of Somesh Eknath Khotkar, West: Land of Krishna Shrimant Kurdhane, South: Land of Anirudha Khotkar, North: Govt. Road.

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

(OA No.685/2024)

Page 9 of 10

[AMBADAS]

(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:.04.12.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.685/2024)

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Page 10 of 10

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[AMBADAS]

Union Bank of India v. Janardhan Laxmanrao Khotkar

Case brief

What is this about?

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Union Bank of India v. Janardhan Laxmanrao Khotkar

Case brief

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