Allowed

Union Bank of India v. Arun Shantiswarup Jain

DRT17 Jul 2025OA/719/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's claim for recovery of Rs. 37,46,236.90 plus future interest. The court directed defendants to pay jointly and severally and ordered enforcement through sale of mortgaged properties.

What did the court decide?

Defendants ordered to pay Rs. 37,46,236.90 plus future interest at 8.90% p.a. (simple); mortgaged properties to be sold to recover dues; Recovery Certificate issued.

Union Bank of India versus Arun Shantiswarup Jain — Execution and Attachment | DRT (2025)

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Presented on: 29.08.2024 Registered on: 09.09.2024 Decided on: 17.07.2025 Duration: Y M D 00 10 18

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

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TOTAL CLAIM AMOUNT – Rs.37,46,236.90 PS.

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ORIGINAL APPLICATION No.719/2024

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Union Bank of India ,

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a body corporate constituted under the Banking

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Companies (Acquisition & Transfer of

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undertakings) Act, 1970 having it's Registered Office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021 & having branches amongst the other places at Main Branch, Dhule through it’s Authorized Person, Mr. Bhatusing Shamsing Thakur (Branch Manager), Age: 40 yrs, Occu:

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… Applicant Service, R/o. Station Road, Dhule.

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Versus

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[DAK] (OA No.719/2024) Page 1 of 9

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1. Arun s/o Shantiswarup Jain Age: Major, Occu.: Business, R/o: At House No. 2599, Lane No. 5, Cheni Road, Near Mirchya Maroti Mandir, Dhule, Dist. Dhule 424001

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. 2 . Mrs. Samiksha w/o Arun Jain Age: Major, Occu.: Business, R/o: At House No. 2599, Lane No. 5, Cheni Road, Near Mirchya Maroti Mandir, Dhule, Dist. Dhule 424001

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3. Mr Pravin Devidas Gawali Age: Major, Occu.: Business, R/o: At 556, Agra Road, Behind Manohar Talkies, Amar Nagar, Dhule 424001

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Defendants

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APPEARANCES

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For the Applicant Mr. K. D. Pande - Advocate For Defendants Exparte

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JUDGMENT (Delivered on 17^th July, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs. 37,46,236.90 PS (Rs. Thirty Seven Lacs Forty Six Thousand Two Hundred Thirty Six & Ninety

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[DAK] (OA No.719/2024) Page 2 of 9

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Ps Only) together with future interest @ 8.90% per annum with monthly rests compoundable upon Housing loan from 01.07.2024 till the full realization of the entire dues and costs from the defendants.

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Brief facts of the application are as under :

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The Defendant Nos. 1 & 2 had approached to the Applicant Bank and requested to sanction a Housing Loan facility. Upon considering the representations/requests and need of the defendants, the Applicant Bank sanctioned Housing Loan of Rs. 34,00,000/- vide sanction letter dated 04.01.2019 on certain terms & conditions. The agreed rate of interest was @ 8.80 % per annum with monthly rests. The defendants also agreed to pay an additional interest by way of liquidated damages @ 2% p.a. in case of default in repayment.

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In order to secure the aforesaid loan facilities, the defendants executed loan documents in favour of the applicant bank namely sanction letter, letter of continuity, demand promissory note for Rs.34 lacs, interest agreement, letter of undertaking, housing loan agreement dated 04.01.2019. The defendant no.3 executed deed of guarantee

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[DAK] (OA No.719/2024) Page 3 of 9

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dated 04.01.2019. The defendants executed equitable mortgage dated 18.01.2019 and registered sale deed bearing daybook no.79 dated 06.01.2005, vide list of documents Exh.5.

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The applicant bank contended that to secure the Housing loan facility, the defendants have mortgaged their immovable properties by creating equitable mortgage by way of title deeds on 18.01.2019 in favour of the applicant bank in respect of following properties.

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All that piece & parcel of Vacant Land bearing CTS No. 2600/C 1 admeasuring 48.80 sq.mtrs., situated at Dhule,

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Dist. Dhule which is bounded as under:

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East : CTS No. 2600/C 2

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West : Road & Access South : CTS No. 2599/A 1 North : CTS No. 2600/B

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ii) All that piece & parcel of Vacant Land bearing CTS No.

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[DAK] (OA No.719/2024) Page 4 of 9

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2600/C 2-1 admeasuring 48.80 sq.mtrs., situated at Dhule, Dist. Dhule which is bounded as under:

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East : Part of CTS No. 2600/C 2

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West : CTS No. 2600/C 1 South : CTS No. 2599/A 1 North : CTS No. 2600/B.

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The applicant bank contended that the defendant no.3 stood as guarantor in his personal and individual capacity in respect of the entire loan of the defendants no.1 & 2 and further agreed to repay jointly and severally the debt including all interest costs and charges etc.

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The applicant bank contended that the defendants have failed to keep their promises and commitments agreed by them with regard to due repayment of the loan amount. The defendants failed to operate the loan account properly within a year 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

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[DAK] (OA No.719/2024) Page 5 of 9

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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 nonperforming asset on 29.08.2023. Therefore on 24.07.2024, the applicant Bank issued legal notice to the defendants through their Advocate. Despite service of Notice, 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 the matter though they were duly served, hence the defendants proceeded exparte as per order dated 01.04.2025.

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The applicant Bank has filed Claim Affidavit of Evidence (Exhibit-4) of Bhatusingh s/o. Shamsing Thakur, Branch Manager of the applicant Bank and has produced on record the original loan transaction documents as Exh. A-1 to A-20, 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

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[DAK] (OA No.719/2024) Page 6 of 9

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application, I find no reason to disbelieve the unrebutted evidence of the applicant bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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The applicant Bank has claimed future interest @ 8.90% per annum with monthly rests compoundable from 01.07.2024 till the full realization of the entire dues and costs from the defendants. However, considering the facts and circumstances of the case, I am of the opinion that if future interest is granted @ 8.90% per annum (simple), it would be just and reasonable rate of interest.

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Hence, I pass the following order.

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ORDER

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(A) Original Application No.719/2024 is allowed with costs.

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(B) Defendants are ordered and directed to pay jointly and severally to the applicant the aggregate sum of Rs. 37,46,236.90 PS (Rs. Thirty Seven Lacs Forty Six Thousand Two Hundred Thirty Six & Ninety Ps Only) alongwith future interest @ 8.90% per annum (simple) from 29.08.2024 till full payment/realization of the

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[DAK] (OA No.719/2024) Page 7 of 9

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amount.

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(C) The aforesaid adjudicated amount is secured by the mortgage of the following immovable properties as per list of document Exh.5 marked as Exh.A-10.

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All that piece & parcel of Vacant Land bearing CTS No. 2600/C 1 admeasuring 48.80 sq.mtrs., situated at Dhule, Dist. Dhule which is bounded as under:

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East : CTS No. 2600/C 2 West : Road & Access South : CTS No. 2599/A 1 North : CTS No. 2600/B

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ii) All that piece & parcel of Vacant Land bearing CTS No. 2600/C 2-1 admeasuring 48.80 sq.mtrs., situated at Dhule, Dist. Dhule which is bounded as under:

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East : Part of CTS No. 2600/C 2

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[DAK] (OA No.719/2024) Page 8 of 9

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West : CTS No. 2600/C 1

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South : CTS No. 2599/A 1

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North : CTS No. 2600/B.

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(D) The applicant bank is entitled to sell the mortgaged immovable properties, to recover its dues.

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(E) Issue Recovery Certificate.

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

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(G) File be consigned to the record room after due compliance.

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Place : Aurangabad. Sd/Date : 17.07.2025. (Dr. J. R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad

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[DAK] (OA No.719/2024) Page 9 of 9

Union Bank of India v. Arun Shantiswarup Jain

Case brief

What is this about?

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Union Bank of India v. Arun Shantiswarup Jain

Case brief

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