Allowed

Bank of Maharashtra v. Matoshri Shetkari Gut

DRT25 Aug 2025OA/709/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of dues totaling over Rs. 26 million lent to a registered society and individual guarantors who defaulted on a term facility. The defendants were held jointly and severally liable to pay the principal and interest.

What did the court decide?

Order 709/2024 allowed; defendants to pay Rs.26,79,951.60 with future interest at 9% p.a.; recovery certificate issued; bank entitled to sell hypothecated and mortgaged properties.

Bank of Maharashtra versus Matoshri Shetkari Gut — DRT (2025) — LawSathi Research

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Presented on: 09.07.2024 Registered on: 09.09.2024 Decided on: 25.08.2025 Duration: Y M D 01 01 17

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

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TOTAL CLAIM AMOUNT – Rs.26,79,951.60/- ORIGINAL APPLICATION No.709/2024

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Bank of Maharashtra , A body corporate constituted under the provisions of Banking Companies (Acquisition s and Transfer of Undertaking) Act V OF 1970, 1501, Lokmangal, Shivaji Nagar, Pune and one of its branch Assets Recovery Branch, At Second Floor, Administrative Building, Town Centre, CIDCO, Ch. Sambhajinagar, Dist. Aurangabad – 431 003, Through its authorized signatory, Shri. Somnath Bajrang Sasane, Chief Manager & Branch Manager, Asset Recovery Branch, Ch. Sambhajinagar, (Formerly Known as Aurangabad)

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… Applicant

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Versus

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Matoshri Shetkari Gut Registered under Agricultural Technology a Management Agency (ATMA) registered society registered under Societies Registration Act of 1860 through Mr. Ramesh Mallikarjun

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[SBJ] (OA No. 709/2024) Page 1 of 12

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Ghote (President) & Mr. Rohit Balaji Ghote (Secretary), At Gat No. 351, Post Savargaon Rokda, Tal: Ahmedpur, Dist. Latur- 413515

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Mr. Ramesh Mallikarjun Ghote (President) of Matoshri Shetkari Gut Age: Major Occu: Business R/o. Post Savargaon Rokda, Tal: Ahmedpur, Dist. Latur- 413515

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Mr. Rohit Balaji Ghote (Secretary) of Matoshri Shetkari Gut Age: Major Occu: Business R/o. Post Savargaon Rokda, Tal: Ahmedpur, Dist. Latur413515

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Mr. Ajit Balaji Ghote Age: Major Occu: Business R/o. Post Savargaon Rokda, Tal: Ahmedpur, Dist. Latur- 413515

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Mrs. Jayashree Balaji Ghote Age: Major Occu: Business R/o. Post Savargaon Rokda, Tal: Ahmedpur, Dist. Latur- 413515 … Defendants

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APPEARANCES For the Applicant Smt. Archana B. Karadkhedkar - Advocate For Defendant Nos.1 to 5 Ex-parte

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JUDGMENT

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(Delivered on 25^th August, 2025)

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The Applicant Bank has filed the present application for

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[SBJ] (OA No. 709/2024) Page 2 of 12

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recovery of the sum of Rs.26,79,951.60 Paisa (Rupees Twenty-Six Lacs, Seventy-Nine Thousand, Nine Hundred Fifty-One and Paisa Sixty only) as on 30.05.2024 with future interest @9.85% per annum with monthly rests from 31.05.2024 till realization of entire dues and cost of the application from the defendants jointly and severally.

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Brief facts of the application are as under :

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The Bank of Maharashtra is having its Head Office at 1501, Lokmangal, Shivaji Nagar, Pune 411005 and has its various branches, centers and Regional Business offices at various places providing Banking services. The Bank of Maharashtra, Ausa Road Branch, District Latur sanctioned Term loan facility to the defendants. After the loan accounts categorized NPA, for initiating further legal action and recovery of the dues, the loan accounts migrated from Bank of Maharashtra, Ausa Road Branch, District Latur to Asset Recovery Branch, Aurangabad.

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This Original Application is filed by Mr. Somnath Bajrang Sasane, working as Chief Manager & Branch Manager in Asset Recovery Branch, Aurangabad. The Zonal Manager, Deputy Zonal Manager and all Branch Heads irrespective

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[SBJ] (OA No. 709/2024) Page 3 of 12

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of grade, are designated as Principal Officer under order 29 of Code of Civil Procedure 1908 and officer authorized to initiate and prosecute litigation for and on behalf of bank they are authorized to sign and verify the original application, pleadings, adduce evidence and to represent the applicant in all proceedings as per the resolution No. 30 LS01 dated 22.03.2022 passed by the Board of Directors in its meeting held at New Delhi on 22.03.2022.

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The Defendant No.1 to 5 are the resident of Post Savargaon Rokda, Taluka Ahmedpur District Latur. The defendant no. 1 is registered society under Agricultural Technology Management Agency (ATMA) a society registered under Societies Registration Act of 1860. Defendant No.2 is President and Defendant No.3 is Secretary of the defendant No.1. Defendant No.1 is the principle borrower. Defendant No. 4 & 5 stood as guarantors for the loan facility availed by the defendant No.1 in their individual and personal capacity. The defendant No.1 was in need of financial assistance and hence, the defendant No.1 to 3 approached the applicant bank and requested for Term Loan Facility. Considering the request of the defendant No.1 to 3, the applicant bank sanctioned and granted the Term Loan of

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[SBJ] (OA No. 709/2024) Page 4 of 12

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Rs.23,88,000/- (Rupees Twenty-Three Lacs Eighty-Eight Thousand only) to the defendant No.1 to 3 vide Sanction Letter dated 01.02.2022 for establishment of Jaggary production unit.

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It was agreed by the defendants to repay the Term Loan Facility of Rs.23,88,000/- (Rupees Twenty-Three Lacs Eighty-Eight Thousand only) @9.85% per annum. The moratorium period was 12 months and also agreed various terms and conditions as stipulated in the Sanction letter dated 01.02.2022.

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The defendant No.1 agreed to repay the Term Loan of Rs.23,88,000/- (Rupees Twenty-Three Lacs Eighty-Eight Thousand only) in 5 annual installments of Rs.5,24,882/- plus interest starting from January 2023 and interest during moratorium period would be capitalised.

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In order to secure the aforesaid Term Loan of Rs.23,88,000/- (Rupees Twenty-Three Lacs Eighty-Eight Thousand only), availed by the defendant No.1 to 3, the defendant No.1 to 5 signed, executed and acknowledged various necessary loan and security documents in favour of the applicant bank i.e. Sanction Latter dated 01.02.2022 and

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[SBJ] (OA No. 709/2024) Page 5 of 12

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Hypothecation Agreement dated 02.02.2022 executed by defendant No.1 thereby hypothecating Crop Whatsoever and wherever raised or to be raised including standing crops and/or herd/ fish/flock/ silkworm/and cocoons and or tools/equipment’s/fixtures/boats/ machines, tractor / power tiller/tube well/electric motor/diesel engine and/or other movable connected with and relating to farming/rearing of cattle and/or flock/fishing/security and/or any investment, Securities, Assets etc. created as part of startup unit commenced, receivable and investment, Movable assets and valuables mentioned in Paragraph No. 5.4 (A) of the Original Application. The defendant No.4 and 5 executed Deed of Guarantee dated 02.02.2022 for Term Loan Facility in favour of the applicant bank mentioned in Paragraph No. 5.4 (B) of the Original Application.

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In order to secure the aforesaid Term Loan of Rs.23,88,000/(Rupees Twenty-Three Lacs Eighty-Eight Thousand only), availed by the defendant No.1 to 3, the defendant Nos.1 to 3 executed Registered Mortgage Deed dated 04.02.2022 registered in the Office of Joint Registrar, Ahmedpur, bearing document No. AMP-384-2022, dated 08.02.2022 in respect of all the piece and parcel of Land admeasuring 0 H

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[SBJ] (OA No. 709/2024) Page 6 of 12

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50 R, at Gat No.351, situated at Village Savargaon Rokda, Taluka Ahmedpur, District Latur, owned by the defendant Nos.1 to 3 as mentioned in Paragraph No.3-A and 5.5 of the Original Application and the List of Document (Exhibit-5) marked at Exhibit A-6, which is bounded as under:

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East West South	North
Road Savargaon Rokda to Umarga Land of Sudhir Sanjay Bellale Road Savargaon Rokda to Bhutekarwadi. After availment of loan amount, the defenda efaults in repayment, due to which loan	Remaining part of Land of Balaji Ghote nts committed account of the
efendants became NPA. he particulars of the claim are as under: Term Loan Account No. 60407209 Sr. No. PARTICULARS A	120 mount(Rs.)
A Amount outstanding as on 30.05.2024	23,85,387.60
B Accrued interest	2,94,564.00
Total	26,79,951.60

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After availment of loan amount, the defendants committed defaults in repayment, due to which loan account of the defendants became NPA.

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The particulars of the claim are as under:

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The applicant bank further submitted that the defendants committed defaults in repayment of the loan amounts and as such the loan accounts of the defendants classified as Non-Performing Asset on 29.08.2023. However, the defendants failed and neglected to pay the outstanding dues of the applicant bank. Therefore, the applicant bank

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[SBJ] (OA No. 709/2024) Page 7 of 12

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issued legal notice on 10.06.2024 to the defendants through its Advocate thereby calling upon the defendants to pay its dues of Rs.26,79,951.60Ps. as on 30.05.2024 and future interest, costs, expenses etc. from 31.05.2024 onwards till realization of entire dues.

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Hence, this Original Application filed by the applicant bank to recover the dues from the defendants jointly and severally. The applicant bank further prayed for directions to sell the hypothecated and mortgaged properties to recover the dues of the applicant bank.

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The defendants were served through RPAD on 11.10.2024 but failed to appear despite of service and as such, as per order dated on 05.05.2025 defendants proceeded ex-parte.

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The applicant bank has filed Claim Affidavit of Evidence (Exhibit-04) of Mr. Somnath S/o Bajrang Sasane, Chief Manager and Branch Manager, Bank of Maharashtra, Asset Recovery Branch, Ch. Sambhajinagar, Dist. Aurangabad i.e. the applicant bank, and has produced on record the Original loan documents marked at Exhibit Nos. A-1 to A-10 alongwith List (Exhibit-05), which corroborates the case of the applicant bank.

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[SBJ] (OA No. 709/2024) Page 8 of 12

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I have heard argument of the learned Advocate for the applicant bank.

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Since the defendants filed to appear and contest the application, I find no reason to disbelieve the un-rebutted evidence of the applicant bank. Therefore, the applicant bank is entitled for reliefs as claimed.

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In this matter the applicant bank has claimed the relief for Rs.26,79,951.60 Paisa (Rupees Twenty-Six Lacs, SeventyNine Thousand, Nine Hundred Fifty-One and Paisa Sixty only) as on 30.05.2024 with future interest @9.85% per annum with monthly rests from 31.05.2024 till realization of entire dues and cost of the application from the defendants jointly and severally. 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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Hence, I pass the following order. 18.

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ORDER

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(A) Original Application No.709/2024 is allowed with costs.

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(B) Defendant Nos.1 to 5 are hereby ordered and

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[SBJ] (OA No. 709/2024) Page 9 of 12

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directed to pay jointly and severally to the applicant the aggregate sum of Rs.26,79,951.60 Paisa (Rupees Twenty-Six Lacs, Seventy-Nine Thousand, Nine Hundred Fifty-One and Paisa Sixty only) along with future interest @9% per annum (simple) from the date of filing of the original application i.e. 09^th July, 2024 till full payment/realization of the amount.

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(C) The aforesaid adjudicated amount is secured by the Hypothecation Agreement dated 02.02.2022, thereby hypothecating defendants Crop Whatsoever and wherever raised or to be raised including standing crops and/or herd/ cocoons and or fish/flock/ silkworm/and tools/equipment’s/fixtures/boats/ machines, tractor/power tiller/tube well/electric motor/diesel engine and/or other movable connected with and relating to farming/rearing of cattle and/or flock/fishing/security and/or any investment, Securities ,Assets etc. created as part of startup unit commenced, receivable and investment, Movable assets and valuables

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[SBJ] (OA No. 709/2024) Page 10 of 12

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mentioned in Paragraph No. 5.4 (A) of the Original Application and in the List of Documents (Exhibit-05) marked at Exhibit A-4, of Second Schedule.

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(D) The applicant Bank is entitled to sell the hypothecated properties as is mentioned in the Paragraph No.3-A and 5.4 (A) of the OA and in the List of Documents (Exhibit-05) marked at Exhibit A-4, to recover its dues.

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(E) The aforesaid adjudicated amount is secured by Registered Mortgage Deed registered in the office of Joint Registrar, Ahmedpur, bearing document No. AMP-384-2022, dated 08.02.2022 in respect of all the piece and parcel of Land admeasuring 0 H 50 R, at Gat No. 351, village Savargaon Rokda, Taluka Ahmedpur, District Latur, owned by the defendant Nos.1 to 3 as mentioned in Paragraph No.3-A and 5.5 of the Original Application and the List of Document (Exhibit-5) marked at Exhibit A-6, which are bounded as under:

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East	West	South	North
Road	Land of	Road	Remaining

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[SBJ] (OA No. 709/2024) Page 11 of 12

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Savargaon Rokda to	Sudhir Sanjay Bellale	Savargaon Rokda to	part of of	Land Balaji
Umarga		Bhutekarwadi.	Ghote

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(F) The applicant bank is also entitled to sell the mortgage property of the defendant No. 1 to 3 as mentioned in Paragraph No.3-A and 5.5 of the O. A. and the List of Document (Exhibit-5) marked at Exhibit A-6, to recover its dues

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(G) Issue Recovery Certificate accordingly.

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

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(I) File be consigned to the Record Room after due compliance.

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Pronounced in open Court. Date : 25.08.2025 Sd/(Dr. J.R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad.

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[SBJ] (OA No. 709/2024) Page 12 of 12

Bank of Maharashtra v. Matoshri Shetkari Gut

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. Matoshri Shetkari Gut

Case brief

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What the court decided

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