Allowed

Union Bank of India v. Daulatrao Khanderao Shinde

DRT6 Oct 2025OA/692/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Union Bank of India to recover a sum of Rs. 35,72,362/- from two defendants who defaulted on an agricultural term loan secured by a mortgage of agricultural lands. The court granted the claim with future interest at 9% per annum.

What did the court decide?

Recovery of Rs. 35,72,362/- plus future interest at 9% p.a. and enforcement of rights over mortgaged agricultural properties including sale thereof.

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

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Presented on: 11.06.2024 Registered on: 30.08.2024 Decided on: 06.10.2025 Duration: Y M D 01 03 25

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 692/2024

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TOTAL CLAIM AMOUNT – Rs. 35,72,362/-

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Union Bank of India,

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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-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.692/2024)

Page 1 of 9

[AMBADAS]

1. Mr. Daulatrao Khanderao Shinde, Age: Major, Occu.: Agri., R/o.: At Post Ranjangaon, Tq. Parner, Dist. Ahmednagar 413703.

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2. Mr. Rahul Prakashrao Shinde, Age: Major, Occu.: Agri., R/o.: At Post Ranjangaon, Tq. Parner, Dist. Ahmednagar 413703.

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…Defendants

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APPEARANCES

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

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For the Applicant For Defendants

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JUDGMENT

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Delivered on 06.10.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 35,72,362/- ( Rupees Thirty Five Lacs, Seventy Two Thousand, Three Hundred and Sixty two 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.692/2024)

Page 2 of 9

[AMBADAS]

The Applicant Bank states that the Defendant No. 1 approached and requested the Applicant Bank for Agri. Term loan facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank Sanctioned Agri. Term loan facility of Rs. 20,00,000/- vide sanction letter dated 04.07.2014 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @11.50% p.a. with half yearly rests. The Defendants also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

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In order to secure the aforesaid loan facility, the Defendant No. 1 executed various loan documents in favour of the Applicant Bank. These included sanction letter, letter of undertaking, hypothecation agreement, demand promissory note, registered mortgage deed bearing day book no. 4213 dated 19.08.2014 etc., in favour of the applicant bank. Additionally defendant No. 2

(OA No.692/2024)

Page 3 of 9

[AMBADAS]

stood as guarantor for defendant No. 1 and executed deed of

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guarantee dated 25.08.2014 in favour of the 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

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book no. 4213 dated 19.08.2014 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 totally admeasuring 7 H 38 R, to the extent of land admeasuring 2 H 27 R out of Gut No. 140/1, situated at Village Ranjangoan Mashid, Tq. Parner, Dist. Ahmednagar.

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ii) All that piece and parcel of agricultural land totally admeasuring 0 H 99 R, to the extent of land admeasuring 0 H 20 R out of Gut No. 316, situated at Village Ranjangoan Mashid, Tq. Parner, Dist. Ahmednagar.

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iii) All that piece and parcel of agricultural land totally admeasuring 2 H 92 R, to the extent of land admeasuring 0 H 57 R out of Gut No. 457, situated at Village Ranjangoan Mashid, Tq. Parner, Dist. Ahmednagar.

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iv) All that piece and parcel of agricultural land totally admeasuring 13 H 77 R, to the extent of land admeasuring 3 H 31 R out of Gut No. 519, situated at Village Ranjangoan Mashid, Tq. Parner, Dist. Ahmednagar.

(OA No.692/2024)

Page 4 of 9

[AMBADAS]

v) All that piece and parcel of agricultural land totally admeasuring 9 H 21 R, to the extent of land admeasuring 4 H 49 R out of Gut No. 520, situated at Village Ranjangoan Mashid, Tq. Parner, Dist. Ahmednagar.

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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 30.09.2019. Therefore, on 22.02.2024 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.

(OA No.692/2024)

Page 5 of 9

[AMBADAS]

The defendants failed to appear in matter though they were served through RPAD. Hence, the defendants were proceeded exparte as per Order dated 05.03.2025.

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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-18 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.

(OA No.692/2024)

Page 6 of 9

[AMBADAS]

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 @12.50 p. a. on term loan from the date of filing i.e. 11.06.2024 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. 692/2024 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 35,72,362/- ( Rupees Thirty Five Lacs, Seventy Two Thousand, Three Hundred and Sixty two only), along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e.

(OA No.692/2024)

Page 7 of 9

[AMBADAS]

11.06.2024 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. 4213 dated 19.08.2014 at Exh. A-8 in the list of documents Exh. 5.

v) All that piece and parcel of agricultural land totally admeasuring 9 H 21 R, to the extent of land admeasuring

(OA No.692/2024)

Page 8 of 9

[AMBADAS]

4 H 49 R out of Gut No. 520, situated at Village Ranjangoan Mashid, Tq. Parner, Dist. Ahmednagar.

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(D) The applicant Bank is entitled to sell the mortgaged immovable properties and hypothecated articles/goods

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etc., 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/Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.06.10.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.692/2024)

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Page 9 of 9

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[AMBADAS]

Union Bank of India v. Daulatrao Khanderao Shinde

Case brief

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Union Bank of India v. Daulatrao Khanderao Shinde

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