Allowed

Union Bank of India v. Dattatray Laxman Nalage

DRT21 Aug 2025OA/712/2024

Case brief

AI extract

What is this about?

Allowed an original application filed by Union Bank of India against borrowers and guarantor for recovery of outstanding loan dues. The Defendants failed to appear. Court sanctioned the claim amount reduced future interest rate to 11% and secured it against mortgaged agricultural lands.

What did the court decide?

Order to pay Rs. 20,68,764.65 plus future interest at 11% p.a.; security over mortgaged properties; direction to issue Recovery Certificate.

Union Bank of India versus Dattatray Laxman Nalage — Execution and Attachment | DRT (2025)

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Presented on: 29.08.2024 Registered on: 10.09.2024 Decided on: 20.08.2025 Duration: Y M D 00 11 21

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No.712/2024

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TOTAL CLAIM AMOUNT – Rs. 20,68,764.65/-

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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-40021 & having branches amongst other places at Rahuri, Tq through its Power of Attorney holder, Mr. Prashant Shantaram Kalhapure (Branch Manager), Age: 40 yrs, Occu: Service, R/o.: Rahuri, Tq. Rahuri, Dist. Ahmednagar 413710.

… Applicant

(OA No.712/2024)

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[AMBADAS]

Versus

Mr. Dattaray Laxman Nalage, Age: Major, Occu.: Agriculture, R/o.: At Post Chincholi, Tq. Rahuri, Dist. Ahmednagar 413710

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Mrs. Thakubai Laxman Nalage, Age: Major, Occu.: Agriculture, R/o.: At Post Chincholi, Tq. Rahuri, Dist. Ahmednagar 413710

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Mrs. Ushabai Dattaray Nalage, Age: Major, Occu.: Agriculture, R/o.: At Post Chincholi, Tq. Rahuri, Dist. Ahmednagar 413710

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Mr. Kailash Bhimraj Dhamak, Age: Major, Occu.: Agriculture, R/o.: At Post Chincholi, Tq. Rahuri, Dist. Ahmednagar 413710

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…Defendants

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APPEARANCES For the Applicant Mr. K. D. Pande -Advocate For Defendants Ex-parte

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JUDGMENT

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Delivered on 20.08.2025

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The Applicant Bank has filed the present application for the

(OA No.712/2024)

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[AMBADAS]

recovery of a sum of Rs. 20,68,764.65/- ( Rupees Twenty Lacs Sixty Eight Thousand Seven Hundred Sixty Four and Sixty Five Paisa only), along with further interest from the date of filing of the Original Application, i.e., 29.08.2024, 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:

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The Applicant Bank states that the Defendants No. 1 to 3 had approached and requested the Applicant Bank for a Agri Term loan facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned a Term loan (CKFM) facility of Rs. 10,00,000/- vide sanction letters dated 12.09.2012 on certain terms and conditions. The agreed rate of interest for the aforesaid loans was @12.60% p.a. with half yearly rests applicable. The Defendants also agreed to pay additional interest of @2% 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 Defendants

(OA No.712/2024)

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[AMBADAS]

executed various loan documents in favour of the Applicant

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Bank. These included sanction letter, deed of Hypothecation,

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demand promissory note, request letter, letter of undertaking registered mortgage deed bearing daybook no. 2365 dated 29.09.2012. Additionally defendant No. 4 stood as guarantor for defendant Nos. 1 to 3 and executed deed of guarantee on 12.10.2012 in favour of the Applicant Bank

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The Applicant Bank further contends that, in order to secure the aforesaid loan facilities sanctioned to them, the Defendants created first charge over their immovable property under mortgage deed bearing daybook no. 2365 dated 29.09.2012. in

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favour of the Applicant Bank. The mortgage was created in respect of the following properties –

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i) All that piece and parcel of agricultural land admeasuring 1 H 58 R out of Gut No. 64 situated at Village Chincholi, Tq. Rahuri, Dist. Ahmednagar which is bounded as under: East: Gut No. 60 & 63 West: Gut No. 369, 370, 371 & 373 North: Gut No. 51 South: Gut No. 66

(OA No.712/2024)

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[AMBADAS]

ii) All that piece and parcel of agricultural land admeasuring 0 H 50 R out of Gut No. 305/1 (part), situated at Village Chincholi, Tq. Rahuri, Dist. Ahmednagar which is bounded as under:

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East: Road West: Road North: Gut No. 310 South: Char & Gut No. 301

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iii) All that piece and parcel of agricultural land admeasuring 0 H 50 R, P.K. 0 H 01 R out of Gut No. 305/1 (part), situated at Village Chincholi, Tq. Rahuri, Dist. Ahmednagar which is bounded as under:

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East: Road West: Road North: Gut No. 310 South: Char & Gut No. 301

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The applicant bank further states that in order to secure the loan, the defendant also executed deed of Hypothecation, thereby hypothecating crops including standing crops i.e. pomegranate etc.

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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

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agreed rate of interest as per terms and conditions of the

(OA No.712/2024)

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[AMBADAS]

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 20.12.2022. Therefore, on 03.08.2024 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.

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The defendants failed to appear in matter though they were served through RPAD. Hence, the defendants were proceeded ex-parte as per Order dated 02.04.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Prashant Shantaram Kalhapur, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-18 alongwith list of documents Exh.5 which corroborates the case of the applicant

(OA No.712/2024)

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[AMBADAS]

Bank.

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.

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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 @12.60 p. a. on the term loan from the date of filing i.e. 29.08.2024 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 @ 11 % per annum (simple), it would be just and reasonable rate of interest.

(OA No.712/2024)

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[AMBADAS]

ORDER

(A) Original Application No.712/2024 is allowed with costs.

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(B) The defendants shall jointly and severally shall pay to the applicant Bank a sum of Rs. 20,68,764.65/- ( Rupees Twenty Lacs Sixty Eight Thousand Seven Hundred Sixty Four and Sixty Five Paisa only), along with future interest @ 11 % per annum (simple) from the date of filing of the Original Application i.e. 29.08.2024 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 bearing daybook no. 2365 vide simple mortgage deed dated 29.09.2012 at Exh A-9 in list of documents Exh. 5

(OA No.712/2024)

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[AMBADAS]

North: Gut No. 51 South: Gut No. 66

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ii) All that piece and parcel of agricultural land admeasuring 0 H 50 R out of Gut No. 305/1 (part), situated at Village Chincholi, Tq. Rahuri, Dist. Ahmednagar which is bounded as under:

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East: Road West: Road North: Gut No. 310 South: Char & Gut No. 301

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East: Road West: Road North: Gut No. 310 South: Char & Gut No. 301

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

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(E) Issue Recovery Certificate accordingly.

(OA No.712/2024)

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[AMBADAS]

(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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Pronounced in open court. Place: Aurangabad Date:. 20.08.2025

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

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(OA No.712/2024)

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Page 10 of 10

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[AMBADAS]

Union Bank of India v. Dattatray Laxman Nalage

Case brief

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Union Bank of India v. Dattatray Laxman Nalage

Case brief

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