Allowed

Maharastra Gramin Bank v. Mategaon Vividh Karyakari Seva Sahakari Society Ltd.

DRT26 Aug 2025OA/701/2024

Case brief

AI extract

What is this about?

The DRT allowed an ex-parte recovery application filed by Maharashtra Gramin Bank against a credit cooperative society and its members/guarantors. The court held the defendants liable for the principal outstanding amount and awarded future interest at a fixed 7% per annum instead of the claimed rate.

What did the court decide?

Recovery of Rs. 2,14,43,120/- with future interest at 7% p.a. (simple) from filing date via Recovery Certificate.

Maharastra Gramin Bank versus Mategaon Vividh Karyakari Seva… — Specific Performance | DRT (2025)

¶1

Presented on: 05.08.2024 Registered on: 09.09.2024 Decided on: 26.08.2025 Duration: Y M D 01 00 21

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 701/2024

¶3

TOTAL CLAIM AMOUNT – Rs. 2,14,43,120/-

¶4

Maharashtra Gramin Bank,

¶5

(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.701/2024)

Page 1 of 12

[AMBADAS]

Versus

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

¶12

Mr. Tulshiram Yashwantrav Bobade (Chairman), Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511. 3. Mr. Narayan Khushal Parde, Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511.

¶13

Mr. Laxman Tulshiram Bobade, Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511.

¶14

Mr. Datta Baburao Bobade, Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511.

¶15

Mr. Ganpati Gangaram Bobade, Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511.

¶16

Mr. Babu Satvaji Pisal, Age: Major, Occu.: agri.,

(OA No.701/2024)

Page 2 of 12

[AMBADAS]

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

¶21

Mr. Tryambak Vitthalrav Bobade, Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511. 9. Mr. Sopan Naroji Bobade, Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511. 10. Mr. Nana Ganpatrao Bobade, Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511. 11. Mr. Satva Ranba Lingayat, Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511. 12. Mr. Jagannath Devrao Bobade, Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511. 13. Mrs. Devaibai Purbhaji Bobade, Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511.

(OA No.701/2024)

Page 3 of 12

[AMBADAS]

Mrs. Anusayabai Prakash Bobade, Age: Major, Occu.: agri., R/o. At Mategaon, Tq. Purna, Dist. Parbhani – 431511.

¶26

…Defendants

¶27

APPEARANCES For the Applicant For Defendants

¶28

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

¶29

JUDGMENT

¶30

Delivered on 26.08.2025

¶31

The Applicant Bank has filed the present application for the recovery of a sum of Rs. 2,14,43,120/- (Rupees Two crore fourteen lacs forty three thousand one hundred and twenty 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.

¶32

Brief facts of the application are as under:

¶33

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 & defendant No. 3 being the

(OA No.701/2024)

Page 4 of 12

[AMBADAS]

Vice 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. 55 lacs vide sanction letter dated 27.06.2009. The agreed rate of interest was @8% p.a. with monthly rests. The defendant also agreed to pay an additional interest of 2% by way of liquidated damages in case of default in repayment.

¶38

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 66 lacs vide sanction letter dated 04.08.2010. The agreed rate of interest was @6% p.a. with monthly rests. The defendant also agreed to pay an additional interest of 2% by way of liquidated damages in case of default in

(OA No.701/2024)

Page 5 of 12

[AMBADAS]

repayment.

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

¶46

of the said Cash Credit Facility. Upon considering the request of

(OA No.701/2024)

Page 6 of 12

[AMBADAS]

the defendants, the applicant bank was pleased to renew the

¶51

Cash credit facility to 1,70,71,000/- vide sanction letter dated

30.03.2015.

01.11.2018.

In order to secure the aforesaid loan facility, the Defendants

(OA No.701/2024)

Page 7 of 12

[AMBADAS]

executed various loan documents in favour of the Applicant

¶61

Bank. These included sanction letters, demand promissory notes, karjrokha dated 14.07.2009, 08.09.2010, 05.09.2012, 11.07.2016 & 12.11.2018 etc. Additionally defendant No 4 to 14 stood as guarantors for defendant No. 1 to 3 and executed deed of guarantee on 27.07.20019, 08.09.2010, 11.11.2011,

¶62

09.06.2015 & 13.11.2018 in favour of the Applicant Bank

¶63

¶64

The Applicant Bank further contends that, in order to secure the loan facilities sanctioned to them, the Defendant Nos.1 to 3 executed karjarokha dated 14.07.2009, 08.09.2010, 05.09.2012, 11.07.2016 & 12.11.2018 etc in favour of the applicant bank.

¶65

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

(OA No.701/2024)

Page 8 of 12

[AMBADAS]

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 application is filed.

¶70

The defendants failed to appear in matter though they were duly served Hence, the defendants were proceeded ex-parte as per Order dated 06.05.2025.

¶71

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-56 along with list of documents Exh.5 which corroborates the case of the applicant Bank.

(OA No.701/2024)

Page 9 of 12

[AMBADAS]

I have heard arguments of the learned Advocate for the applicant Bank.

¶76

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.

¶77

The applicant Bank has claimed future interest @ 8% p.a. with half yearly rests 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.

¶78

ORDER

¶79

(A) Original Application No. 701/2024 is allowed with costs.

(OA No.701/2024)

Page 10 of 12

[AMBADAS]

(B) The defendants jointly and severally shall pay to the applicant Bank a sum of Rs. 2,14,43,120/- (Rupees Two crore fourteen lacs forty three thousand one hundred and twenty only), along with future interest @7% per annum (simple) from the date of filing of the Original Application i.e. 05.08.2024 till full payment/realization of the amount mentioned in this operative order.

¶84

(C) The aforesaid adjudicated amount is secured by the by execution of karjarokha dated 14.07.2009, 08.09.2010, 05.09.2012, 11.07.2016 & 12.11.2018 vide exh. A-5, A- 12, A-22, A-39 & A-47.

¶85

(D) The applicant Bank is entitled to recover the amount from the defendants as per documents executed by them in favour of the applicant bank.

¶86

(E) Issue Recovery Certificate accordingly.

(OA No.701/2024)

Page 11 of 12

[AMBADAS]

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

¶91

(G) File be consigned to the record room.

¶92

Sd/-

¶93

Pronounced in open court. Place: Aurangabad Date:. 26.08.2025

¶94

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

¶95

(OA No.701/2024)

¶96

Page 12 of 12

¶97

[AMBADAS]

Maharastra Gramin Bank v. Mategaon Vividh Karyakari Seva Sahakari Society Ltd.

Case brief

What is this about?

What did the court decide?

Maharastra Gramin Bank v. Mategaon Vividh Karyakari Seva Sahakari Society Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Bank of baroda versus Subhash Ramchandra Ghadge

Bank of Maharashtra versus Matoshri Shetkari Gut

Prakash Tulshiram Adhav versus Edelweiss Asset Reconstruction Company Limited

Canara Bank versus M/S Shivans Agro Food Products

State Bank of India versus Akhilesh Kumar Upadhyay

Asha Ganpatrao Vedpathak versus Dcb Bank Limited