Allowed

Union Bank of India v. Suryabhan Ramkrishna Shinde

DRT6 Oct 2025OA/722/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's application for recovery of dues. The bank claimed Rs. 33,77,167.03 plus interest from borrowers who defaulted on term and cash credit facilities secured by hypothecation of movable and immovable properties.

What did the court decide?

Payment of Rs. 33,77,167.03, future interest at 9%, and rights to sell hypothecated properties to recover dues.

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

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Presented on: 29.08.2024 Registered on: 10.09.2024 Decided on: 06.10.2025 Duration: Y M D 01 01 07

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 722/2024

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TOTAL CLAIM AMOUNT – Rs. 33,77,167.03/-

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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 Rahuri, Tq. Rahuri, Dist. Ahmednagar, through its Power of Attorney holder, Mr. Prashant Shantaram Kalhapure (Branch Manager), Age 40 yrs., Occ.: Service, R/o. Rahuri, Tq. Rahuri, Dist. Ahmednagar 413710.

… Applicant

Versus

(OA No.722/2024)

Page 1 of 9

[AMBADAS]

1. Mr. Suryabhan Ramkrishna Shinde, Age: Major, Occu.: Agri., R/o.: At Post Nau Gavthan, Tq. Shrirampur, Dist. Ahmednagar 413707.

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2Mr. Pratap Suryabhan Shinde, Age: Major, Occu.: Agri., R/o.: At Post Nau Gavthan, Tq. Shrirampur, Dist. Ahmednagar 413707.

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3. Mr. Annasaheb Vishwanath Gagare,

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Age: Major, Occu.: Agri., R/o.: At Post Chincholi, Tq. Rahuri, …Defendants Dist. Ahmednagar 413710.

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APPEARANCES

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For the Applicant For Defendants

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

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JUDGMENT 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. 33,77,167.03/- ( Rupees Thirty Three Lacs, Seventy Seven Thousand, One Hundred Sixty Seven and Three Paisa Only), along with future 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.

(OA No.722/2024)

Page 2 of 9

[AMBADAS]

Brief facts of the application are as under:

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The Applicant Bank states that the Defendant No. 1 & 2 approached and requested the Applicant Bank for Term loan facility & Cash Credit Facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned Term loan facility of Rs. 5,00,000/- & Cash Credit Facility of Rs. 9,60,000/- vide sanction letter dated 04.08.2015 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facilities was @11.50% p.a. & @11% respectively 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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That, thereafter, the defendants approached to the applicant bank and requested to rephrase/restructure the above referred loan facilities and upon considering their request, the applicant bank

(OA No.722/2024)

Page 3 of 9

[AMBADAS]

pleased to rephrase/restructure the said loan facilities on dated

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20.09.2019 on certain terms and conditions.

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In order to secure the aforesaid loan facility, the Defendant No. 1 & 2 executed various loan documents in favour of the Applicant Bank. These included sanction letter, letter of undertaking, hypothecation agreement, demand promissory note, etc., in favour of the applicant bank. Additionally defendant No. 3 stood as guarantor for defendant No. 1 & 2 and executed deed of guarantee dated 04.08.2015 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 Defendants executed deed of hypothecation dated 04.08.2015 in favour of the Applicant Bank. Thereby hypothecating pumpsets, pipelines and other movables purchased out of bank’s finance along with crops including standing crops grown on the following Land: -

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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.

(OA No.722/2024)

Page 4 of 9

[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.

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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.

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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 30.03.2020. 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.

(OA No.722/2024)

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 06.03.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Prashant Shantaram Kalhapure, Power of Attorney Holder of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-25 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.

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The applicant Bank has claimed charge over hypothecated properties of the borrowers.

(OA No.722/2024)

Page 6 of 9

[AMBADAS]

The applicant Bank has claimed future interest @11.50% p. a. & @11% p.a. 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 @ 9% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 722/2024 is allowed with

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costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 33,77,167.03/- ( Rupees Thirty Three Lacs, Seventy Seven Thousand, One Hundred Sixty Seven and Three Paisa Only), along with future interest @ 9% per annum (simple) on outstanding amount from the date of filing of the O.A. i.e. 29.08.2024 till full payment/realization of the amount mentioned in this operative order.

(OA No.722/2024)

Page 7 of 9

[AMBADAS]

(C) The aforesaid adjudicated amount is secured by the hypothecation agreement dated 04.08.2015 at Exh. A-9 in the list of documents Exh. 5 thereby pump sets, pipelines and other movables purchased out of bank’s finance along with crops including standing crops grown on the following land: -

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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.

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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.

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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.

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(D) The applicant Bank is entitled to sell the hypothecated pump sets/pipelins/crops/goods etc., to recover its dues.

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(E) Issue Recovery Certificate accordingly.

(OA No.722/2024)

Page 8 of 9

[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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Sd/-

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Pronounced in open court. Place: Aurangabad Date:.06.10.2025

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

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(OA No.722/2024)

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Page 9 of 9

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[AMBADAS]

Union Bank of India v. Suryabhan Ramkrishna Shinde

Case brief

What is this about?

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Union Bank of India v. Suryabhan Ramkrishna Shinde

Case brief

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