Allowed

Union Bank of India v. Sanjay Namdev Gaikwad

DRT9 Sept 2025OA/750/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of a term loan default. The court reduced future interest from 11.25% to 9% p.a. The claim is secured by a mortgage on agricultural land and hypothecation of movables.

What did the court decide?

Defendants shall pay Rs. 24,84,588.46/- with future interest @ 9% p.a. simple from 07.09.2024; claim secured by mortgage; Recovery Certificate issued to Applicant.

Union Bank of India versus Sanjay Namdev Gaikwad — Contract and Commercial Disputes | DRT (2025)

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Presented on: 07.09.2024 Registered on: 17.09.2024 Decided on: 09.09.2025 Duration: Y M D 01 00 02

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 750/2024

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TOTAL CLAIM AMOUNT – Rs. 24,84,588.46/-

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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 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 Main Branch, Dhule through its Authorized Person, Mr. Bhatusing Shamsing Thakur (Branch Head), Age: 40 yrs., Occ.: Service, R/o. Station Road, Dhule

… Applicant

(OA No.750/2024)

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[AMBADAS]

Versus

1. Mr. Sanjay Namdev Gaikwad Age: Major, Occu.: Agriculture, R/o.: At Kulthe Post Dhadre Tq. & Dist. Dhule, 424302

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2. Mr. Ananda Namdev Gaikwad

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Age: Major, Occu.: Agriculture, R/o.: At Kulthe Post Dhadre Tq. & Dist. Dhule, 424302

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3. Mr. Kishor Parashram Wagh

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Age: Major, Occu.: Agriculture, R/o.: At Post S. T. Colony, Shivaji Nagar, Kalwad Dist. Nashik 423501.

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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 09.09.2025

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 24,84,588.46/- ( Rupees Twenty Four Lacs, Eighty Four Thousand, Five Hundred Eighty Eight and Forty Six Paisa only), along with future interest from the date of filing

(OA No.750/2024)

Page 2 of 8

[AMBADAS]

of the Original Application, i.e., 07.09.2024, 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 & 2 approached and requested the Applicant Bank for a Term loan facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned a Term loan facility of Rs. 15,00,000/- vide sanction letter dated 23.04.2019 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @11.25% p.a. 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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In order to secure the aforesaid loan facility, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letter, registered mortgage deed bearing daybook no. 2942 dated 26.06.2018, letter of

(OA No.750/2024)

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[AMBADAS]

undertaking, demand promissory note, letter of continuity &

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hypothecation agreement. Additionally defendant No. 3 stood as

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guarantor for defendant No. 1 & 2 and executed deed of

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guarantee on 23.04.2019 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 Defendant No. 1 to 3 created first charge over their immovable property under daybook no. 2942 dated 26.06.2018 in favour of the Applicant Bank. The mortgage

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was created in respect of the following property-

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All that piece and parcel of Agricultural land admeasuring 2H 72 R out of Gut No. 183, situated at Village Kulthe, Tq. & Dist. Dhule., which is bounded as under:

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East: Land of Ahsok Baburao Marathe West: Land of Samadhan Dayaram South: Gavathan North: Land of Tarachand Maharu Jat.

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The applicant bank further states that in order to secure the aforesaid loan facility, the defendant No. 1 & 2 also executed hypothecation agreement thereby hypothecating crops including standing crops grown on agricultural land, tools, equipments,

(OA No.750/2024)

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[AMBADAS]

fixtures, boats, machineries, tractors, power tiller, tube well, electric motor, diesel engine and other movable connected with farming, 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 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 20.03.2023. Therefore, on 29.08.2024 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

(OA No.750/2024)

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[AMBADAS]

served through court commissioner. Hence, the defendants were proceeded ex-parte as per Order dated 27.01.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Bhatusingh s/o Shamsing Thakur, Branch Head of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-17 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 immovable property of the borrowers which is mortgaged in favour of the applicant bank.

(OA No.750/2024)

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[AMBADAS]

The applicant Bank has claimed future interest @11.25 p. a. on term loan from the date of filing i.e. 07.09.2024 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), it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 750/2024 is allowed with

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costs.

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(B) The defendants shall jointly and severally pay to the applicant Bank a sum of Rs. 24,84,588.46/- ( Rupees Twenty Four Lacs, Eighty Four Thousand, Five Hundred Eighty Eight and Forty Six Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 07.09.2024 till full payment/realization of the amount mentioned in this operative order.

(OA No.750/2024)

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[AMBADAS]

mortgage of the following immovable property bearing daybook no. 2942 vide registered simple mortgage deed dated 26.06.2018 at Exh. A-11 in list of documents Exh. 5.

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All that piece and parcel of Agricultural land admeasuring 2H 72 R out of Gut No. 183, situated at Village Kulthe, Tq. & Dist. Dhule., which is bounded as under:

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East: Land of Ahsok Baburao Marathe West: Land of Samadhan Dayaram South: Gavathan North: Land of Tarachand Maharu Jat.

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

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(E) Issue Recovery Certificate accordingly.

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(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)

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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. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.09.09.2025 Debts Recovery Tribunal, Aurangabad

(OA No.750/2024)

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[AMBADAS]

[AMBADAS] (OA No.750/2024) Page 9 of 8

Union Bank of India v. Sanjay Namdev Gaikwad

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sanjay Namdev Gaikwad

Case brief

What is this about?

What did the court decide?

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