Allowed

Central Bank of India v. Bharti Santosh Pawar

DRT16 Jul 2025OA/746/2024

Case brief

AI extract

What is this about?

The Aurangabad DRT allowed the Central Bank of India's original application for recovery. An ex-parte order directed respondents to pay the principal sum with future interest and authorized the sale of hypothecated and mortgaged assets.

What did the court decide?

Directing payment of Rs.34,69,141.76 with 9% annual simple future interest; authorizing sale of hypothecated and mortgaged properties; issuing Recovery Certificate.

Central Bank of India versus Bharti Santosh Pawar — Execution and Attachment | DRT (2025)

¶1

Presented on: 20.08.2024 Registered on: 17.09.2024 Decided on: 16.07.2025 Duration: Y M D 00 10 27

¶2

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

¶3

TOTAL CLAIM AMOUNT – Rs.34,69,141.76/- ORIGINAL APPLICATION No.746/2024

¶4

Central Bank of India , A body corporate constituted under the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970, having its Central Office at “Chandermukhi”, Nariman Point, Mumbai 400021 and one of its branch at Samsherpur, Taluka Akole, District Ahmednagar 422601 Through its authorized signatory, Shri. Sundar Rakhamaji Yeole, Age: Major, Occupation: Service as Branch Manager Samsherpur Branch.

¶5

… Applicant

¶6

Versus

¶7

Mrs. Bharati Santosh Pawar, Age: Major, Occu: Agriculturist, R/o: Sawargaon Pat, Taluka Akole, District Ahmednagar, Maharashtra 422601

¶8

[SBJ] (OA No. 746/2024) Page 1 of 12

¶9

Mr. Santosh Rakhama Pawar, Age: Major, Occu: Agriculturist, R/o: Sawargaon Pat, Taluka Akole, District Ahmednagar, Maharashtra 422601

¶10

Mr. Pramod Punja Nehe, Age: Major, Occu: Agriculturist R/o: Sawargaon Pat, Tal. Akole, Dist. Ahmednagar, Maharashtra 422601 … Defendants

¶11

APPEARANCES

¶12

For the Applicant

¶13

For Defendant Nos.1 to 3

¶14

Smt. Archana B. Karadkhedkar - Advocate Ex-parte

¶15

JUDGMENT (Delivered on 16^th July, 2025)

¶16

The Applicant Bank has filed the present application for recovery of the sum of Rs. 34,69,141.76 Paisa (Rupees Thirty-Four Lacs, Sixty-Nine Thousand, One Hundred Forty-One and Seventy-Six Paisa only) as on 22.07.2024 together with future interest @11.35% per annum with half yearly rests from 23.07.2024 till the date of realization of the entire dues, and costs from the defendants jointly and severally.

¶17

Brief facts of the application are as under :

¶18

[SBJ] (OA No. 746/2024) Page 2 of 12

¶19

The Applicant Central Bank of India is having its Central Office at “Chandermukhi”, Nariman Point, Mumbai 400021 and has its various branches, centers and Regional Business offices at various places providing Banking services. The Central Bank of India Samsherpur Branch, Taluka Akole, District Ahmednagar, sanctioned Term Loan Facility to the defendant No. 1.

¶20

The Original Application is filed by Mr. Sundar R. Yeole, working as Branch Manager in Samsherpur Branch, Dist. Ahmednagar, who is having valid Authority Letter dated 27.06.2024 and authorized to sign and verify the Original Application, pleadings, adduce evidence and to represent the Applicant Bank in all proceedings.

¶21

The defendant No. 1 was in need of financial assistance and hence she approached to the applicant bank and requested for granting her credit facility. Considering the request of Defendant No. 1, the applicant bank sanctioned and granted the Term Loan Facility of Rs. 33,03,000/- (Rupees ThirtyThree Lakhs Three Thousand only) for construction of cow shed and purchasing machinery to the defendant No. 1 vide Sanction Letter dated 01.02.2023. The defendant No. 2 and 3 stood as guarantors for the loan facility availed by the

¶22

[SBJ] (OA No. 746/2024) Page 3 of 12

¶23

defendant No. 1 in their individual and personal capacity.

¶24

The defendant No.1 agreed to repay the Term Loan of Rs. 33,03,000/- (Rupees Thirty Three Lakhs Three Thousand only), in 84 equated monthly installments of Rs.59,012/(Rupees Fifty-Nine Thousand and Twelve only) after the 3 months of moratorium period. The defendants also agreed to pay interest rate at the time of sanction was MCLR + 3.20% (floating ROI). The MCLR at the time of sanction was @8.15% p.a. The effective rate at the time of sanction was @11.35% p.a. with yearly rests.

¶25

In order to secure the aforesaid Term Loan Facility of Rs. 33,03,000/- (Rupees Thirty-Three Lakhs Three Thousand only), availed by the defendant No.1, the defendant No.1 signed, executed and acknowledged various necessary loan and security documents in favour of the applicant bank i.e. Sanction Letter dated 01.02.2023, Term Loan Agreement dated 28.03.2023, Supplementary Agreement dated 28.03.2023, Articles of Agreement dated 28.03.2023 executed by defendant No.1 mentioned in Paragraph No.5.3 (A to C), of the Original Application. The defendant No.1 executed Hypothecation Agreement dated 28.03.2023 & Letter of Hypothecation dated 28.03.2023, thereby

¶26

[SBJ] (OA No. 746/2024) Page 4 of 12

¶27

hypothecating all the movable assets at Gut no. 715 situated at Sawargaon Pat, Taluka Akole, District Ahmednagar owned by defendant no. 1 i.e. Plant/machinery/ installation/electric motors existing and proposed to be financed and livestock and crops mentioned in Paragraph No. 3A and Paragraph No.5.3 (D & E) of the Original Application and more particularly at List of Documents (Exhibit-5) marked as Exhibit-A-7 and A-8, and the Letter of Waiver dated 28.03.2023.

¶28

In order to secure the aforesaid Term Loan Facility of Rs.33,03,000/- (Rupees Thirty-Three Lakhs Three Thousand only), availed by the defendant No.1, the defendant No.1 executed Registered Mortgage Deed registered in the Office of Sub-Registrar, Akole, bearing document No.AKL844/2023, dated 27.03.2023 in respect of the immovable property i.e. All the piece and parcel of agricultural land at Gut No. 715, Admeasuring 1 Hector situated at Sawargaon Pat Taluka Akole, District Ahmednagar as mentioned in Paragraph No.3-A and 5.11of the O.A. and in the List of Document (Exhibit-5) marked at Exhibit-A-10 which is bounded as under:

¶29

East	West	South	North
Forest	Bhimashankar Pawar	Santu Rambhau Pawar	Ravaji Gavande

¶30

[SBJ] (OA No. 746/2024) Page 5 of 12

¶31

The Defendant No. 2 and 3 executed Form of Guarantee dated 28.03.2023 for Term Loan Facility of Rs.33,03,000/- (Rupees Thirty-Three Lakhs Three Thousand only), availed by the defendant No.1 in favour of the applicant bank.

¶32

The applicant bank further submitted that after availment of the Term Loan facility, the defendants failed to repay the dues as agreed and assured and as such the loan account of the defendant No.1 became irregular / doubtful and the entire outstanding amount in the loan account become overdue. The defendants failed and neglected to repay the legal dues despite repeated demands by personal requests. The entire outstanding in the account has become due and payable by all the defendants jointly and severally to the bank in lump sum.

¶33

9. The particulars of the claim are as under:

¶34

Sr. No.	Particulars	Amount in Rs.
a)	Principal amount due on 22.07.2024 inclusive of interest debited to the loan account up to 30.04.2024.	Rs. 33,08,919.76
b)	Interest applied from 30.04.2024 to 22.07.2024 but not debited to the loan account.	Rs. 1,60,222.00.00
	Total	Rs. 34,69,141.76

¶35

[SBJ] (OA No. 746/2024) Page 6 of 12

¶36

The applicant bank has maintained the Term Loan Facility Account of the defendants regularly and has taken entries of all the transactions in the account of the defendants. The Statement of Account is duly certified as per Section 4 of the Banker’s Books Evidence Act 1891 stating the rate of interest and compounding interest. It is further certified that, the interest charged is at such a rate and capitalized at such a periodical rests as permitted by Reserve Bank of India.

¶37

The applicant bank further submitted that the defendants committed defaults in repayment of the loan amount, and as such the loan account of defendants classified as NonPerforming Asset on 30.04.2024 as per the guidelines of the Reserve Bank of India. However, the defendants only extended false promises for repayment of dues of the applicant bank. The cause of action arose for filing the OA on 30.04.2024 when the account of defendants has been classified as NPA. Therefore the applicant bank issued Legal Notice on 31.07.2024 to the defendants through its Panel Advocate thereby calling upon the defendants to pay its dues of Rs. 34,69,141.76 Paisa as on 22.07.2024 and future interest, costs, expenses etc. from 23.07.2024 onwards until realization of entire dues.

¶38

[SBJ] (OA No. 746/2024) Page 7 of 12

¶39

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.

¶40

In this matter the defendant Nos.1 and 2 were served by hand on 11^th October, 2024 and defendant no. 3 was served by hand on 14^th October 2024 but failed to appear despite of service and as such, as per Order dated 27.03.2025, the defendant Nos.1 to 3 proceeded ex-parte.

¶41

The applicant Bank has filed Claim Affidavit of Evidence (Exhibit-04) of Mr. Sundar S/o. Rakhamaji Yeole, Branch Manager, Central Bank of India, Samsherpur Branch, Taluka Akole, District Ahmednagar i.e. the applicant Bank, and has produced on record the original loan documents at Sr. Nos.A-1 to A-13 alongwith List (Exhibit-05), which corroborates the case of the applicant Bank.

¶42

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

¶43

Since the defendants failed to appear and contest the application, I find no reason to disbelieve the un-rebutted

¶44

[SBJ] (OA No. 746/2024) Page 8 of 12

¶45

evidence of the applicant bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

¶46

In this matter the applicant bank has claimed the relief for Rs. 34,69,141.76 (Rupees Thirty-Four Lakhs Sixty-Nine Thousand One Hundred Forty-One and Seventy-Six Paisa) together with interest @11.35% per annum with monthly rests from 23.07.2024 till the date of realization of the entire dues, and costs 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.

¶47

Hence, I pass the following order.

¶48

ORDER

¶49

(A) Original Application No.746/2024 is allowed with costs.

¶50

(B) Defendant Nos.1 to 3 are hereby ordered and directed to pay jointly and severally to the applicant the aggregate sum of Rs. 34,69,141.76 (Rupees Thirty-Four Lakhs Sixty-Nine Thousand One Hundred Forty-One and

¶51

[SBJ] (OA No. 746/2024) Page 9 of 12

¶52

Seventy-Six Paisa ) along with future interest @9% per annum (simple) from the date of filing of the original application i.e. 20^th August, 2024 till full payment/realization of the amount.

¶53

(C) The aforesaid adjudicated amount is secured by the Hypothecation Agreement and Letter of Hypothecation dated 28.03.2023, thereby hypothecating all the movable assets at Gut no. 715 situated at Sawargaon Pat, Taluka Akole, District Ahmednagar owned by defendant no. 1 i.e. Plant/machinery/ installation/electric motors existing and proposed to be financed and livestock and crops mentioned in Paragraph No. 3A and Paragraph No.5.3 (D & E) of the Original Application and more particularly at List of Documents (Exhibit-5) marked as Exhibit-A-7 and A-8.

¶54

(D) The applicant Bank is entitled to sell the hypothecated properties as is mentioned in the Paragraph No. 3A and Paragraph No.5.3 (D & E) of the Original Application and more particularly

¶55

[SBJ] (OA No. 746/2024) Page 10 of 12

¶56

at List of Documents (Exhibit-5) marked as Exhibit-A-7 and A-8, to recover its dues.

¶57

(E) The aforesaid adjudicated amount is secured by the Registered Mortgage Deed registered in the Office of Sub-Registrar, Akole, bearing document No.AKL-844/2023, dated 27.03.2023 in respect of the immovable property i.e. All the piece and parcel of agricultural land at Gut No. 715, Admeasuring 1 Hector situated at Sawargaon Pat Taluka Akole, District Ahmednagar as mentioned in Paragraph No.3-A and 5.11of the O.A. and in the List of Document (Exhibit-5) marked at Exhibit-A-10, which is bounded as under:

¶58

East	West	South		North
Forest	Bhimashankar	Santu	Rambhau	Ravaji
	Pawar	Pawar		Gavande

¶59

(F) The applicant bank is also entitled to sell the mortgaged property of the defendant No.1 as mentioned in Paragraph No.3-A and 5.11of the O.A. and in the List of Document (Exhibit-5) marked at Exhibit-A-10, to recover its dues.

¶60

(G) Issue Recovery Certificate accordingly.

¶61

[SBJ] (OA No. 746/2024) Page 11 of 12

¶62

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

¶63

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

¶64

Pronounced in open Sd/Court. (Dr. J.R. Chauhan) Date :16.07.2025. Presiding Officer Debts Recovery Tribunal, Aurangabad

¶65

[SBJ] (OA No. 746/2024) Page 12 of 12

Central Bank of India v. Bharti Santosh Pawar

Case brief

What is this about?

What did the court decide?

Central Bank of India v. Bharti Santosh Pawar

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

Sushama Vijaykumar Patil versus Union Bank of India

Junaid Abdul Razzaque Hamdulay versus Icici Home Finance Company Ltd.

Union Bank of India versus Ms N G Enterprises

Union Bank of India versus Nitin Shivaji Jadhav

State Bank of India versus Tulshiram Abhiman Ajabe

Mrs Surekha Subhash Shelke versus Shubham Housing Development Finance Company Limited