Allowed

Bank of Maharashtra v. M/s Monarch Geotex

DRT19 Sept 2025OA/771/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by the Bank of Maharashtra for recovery of outstanding dues aggregating Rs. 2.35 crores from a borrower and guarantor. The court determined that a future interest rate of 10% per annum was just and reasonable.

What did the court decide?

Defendants to pay Rs. 2,35,14,910/- with future interest at 10% p.a. from 04.07.2024; mortgage of specified properties recognized; Recovery Certificate issued.

Bank of Maharashtra versus M/s Monarch Geotex — Contract and Commercial Disputes | DRT (2025)

¶1

Presented on: 04.07.2024 Registered on: 25.09.2024 Decided on: 19.09.2025 Duration: Y M D 01 02 15

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 771/2024

¶3

TOTAL CLAIM AMOUNT – Rs. 2,35,14,910/-

¶4

Bank of Maharashtra , A Body Corporate constituted

¶5

under the Banking Companies (Acquisition of Undertaking) Act, 5 of 1970, carrying on business & Having its Head Office at “Lokmangal”, 1501, Shivaji

¶6

Nagar, Pune-411 005 and Zonal Office at “Mahabank

¶7

Bhawan”, C-3, N-1, Town Centre, CIDCO, Aurangabad-431003. Branch at Jalgaon Road, Branch, Near New Bus Stand, Jalgaon-425001. Through its Authorized Officer, Shri. Somnath Bajrang Sasane, Age: Major, Occ.: Service, Working as Chief Manager, Asset Recovery Branch, Bank of

¶8

Maharashtra, at Town Centre, CIDCO, Aurangabad.

… Applicant

(OA No.771/2024)

Page 1 of 10

[AMBADAS]

Versus

M/s. Monarch Geotex, Through its Prop. Sangita Anil Jadhav, Age: Major, Occupation: Business R/o.: Plot No. D-103, New MIDC, Near Kindhi-Khadka, Bhusawal Vill, Khadake, Tal-Bhusawal, District Jalgaon. AND

¶15

Address: Plot No. 101, Gat No. 295, Bhoite Nagar, Near Pimprala Railway Gate, Tal & District Jalgaon.

¶16

Shivaji Ramesh Jadhav, Age: Major, Occupation: Business R/o.: Plot No. 101, Gat No. 295, Bhoite Nagar, …Defendants Near Pimprala Railway Gate, Tal & District Jalgaon.

¶17

APPEARANCES For the Applicant For Defendants

¶18

Mr. Atul A. Mishra -Advocate Ex-parte

¶19

JUDGMENT

¶20

Delivered on 19.09.2025

¶21

The Applicant Bank has filed the present application for the recovery of a sum of Rs. 2,35,14,910/- (Rupees Two Crore, Thirty Five Lacs, Fourteen Thousand, Nine Hundred and Ten only), along

(OA No.771/2024)

Page 2 of 10

[AMBADAS]

with future interest from the date of filing of the Original Application, i.e., 04.07.2024, until the date of realization of the entire outstanding dues from the Defendants.

¶26

Brief facts of the application are as under:

¶27

The Applicant Bank states that the Defendant No. 1 had approached and requested the Applicant Bank to sanction Working Capital (Cash Credit Facility) for the purpose of business & Term Loan Facility for purchasing the machineries & construction/improvement of factory building. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned Working Capital (Cash Credit Facility) of Rs. 30,00,000/- & Term Loan Facility of Rs. 1,40,00,000/- vide, sanction letter dated 31.12.2020 on certain terms and conditions. The agreed rate of interest for aforesaid loan facilities was @10.05% p.a. with monthly rests. The Defendants also agreed to

(OA No.771/2024)

Page 3 of 10

[AMBADAS]

pay additional interest @2% by way of liquidated damages in the

¶32

event of any default in repayment.

¶33

The applicant bank further states that the defendant No. 1 again approached bank requesting to restructure of the loan facility. Upon considering the needs of the defendant the applicant bank sanctioned FITL facility of Rs. 8,41,536/- vide sanction letter dated 06.08.2021 on certain terms and conditions. The defendant had continued the Working Capital (Cash Credit Facility) in the tune of Rs. 30,00,000/- on 06.08.2021 The agreed rate of interest for the FITL facility was @7.30% p.a. & for Working Capital (Cash Credit Facility) was @ 10.15% p.a. with monthly rests. The Defendants also agreed to pay additional interest @ 2% by way of liquidated damages in the event of any default in repayment.

¶34

¶35

In order to secure the aforesaid loan facilities, the Defendant executed various loan documents in favour of the Applicant Bank. These included sanction letters, demand promissory notes, sale

(OA No.771/2024)

Page 4 of 10

[AMBADAS]

deed bearing daybook no. 374 dated 30.01.2003 & final lease

¶40

deed bearing daybook no. 4026 dated 11.11.2020 and hypothecation agreement etc. Additionally, defendant No. 2 stood as guarantor for defendant no. 1 and executed deed of guarantee on 03.02.2021 in favour of the Applicant Bank.

¶41

¶42

The Applicant Bank further contends that, in order to secure the aforesaid loan facilities, the Defendants created equitable mortgage by deposing title deeds/ sale deed bearing daybook no. 374 dated 30.01.2003 & final lease deed bearing daybook no.

¶43

4026 dated 11.11.2020 in respect of following properties:

¶44

i) All that piece and parcel of Plot No. D-103,admeasuring 1000 sq.mtrs., construction area 697.50 sq.mtr., new MIDC, Near KinhiKhadka, Bhusawal, Village, Khadke, Tal Bhusawal and District Jalgaon, (owned by sangita anil jadhav), which is bounded as under:

¶45

East: Plot No. D-76, West: 20.00 mt. MIDC Road, North: Plot No. D-104 and 20 mtr. MIDC road, South: 20 mtr. Wide road.

¶46

ii) All that piece and parcel of Plot No. 101, admeasuring 190.50 sq.mtrs., Gat No. 295, CTS No. 8653/4, situated at Mauje Jalgaon Shahar, within local limits of Jalgaon city Municipal Corporation

(OA No.771/2024)

Page 5 of 10

[AMBADAS]

Tal and District Jalgaon, (owned by Shivaji Ramesh Jadhav), which is bounded as under:

¶51

East: Plot No. 100, West: The area in this plot is sq. m. 116. 20 and beyond that plot no. 102, South: Plot No. 59, North: 6 mtr. Wide road.

¶52

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 03.04.2022. Therefore on 12.04.2022 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, the

(OA No.771/2024)

Page 6 of 10

[AMBADAS]

defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

¶57

The defendants failed to appear in matter though they were served through paper publication. Hence, the defendants were proceeded ex-parte as per Order dated 12.02.2025.

¶58

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Shri. Somnath Bajrang Sasane, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. AW-1(1) to AW-1(21) along with list of documents Exh.5 which corroborates the case of the applicant Bank.

¶59

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

¶60

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.

(OA No.771/2024)

Page 7 of 10

[AMBADAS]

The applicant Bank has claimed charge over immovable properties of the borrowers which are mortgaged in favour of the applicant bank.

¶65

The applicant Bank has claimed future interest @12% p.a. from the date of filing i.e. 04.07.2024 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 @ 10 % per annum (simple), it would be just and reasonable rate of interest.

¶66

ORDER

¶67

(A) Original Application No. 771/2024 is allowed with costs.

¶68

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 2,35,14,910/- (Rupees Two Crore, Thirty Five Lacs, Fourteen Thousand, Nine Hundred and Ten only), along with future interest @ 10 % per annum (simple) on outstanding amount, from the date of filing of the Original Application i.e. 04.07.2024 till full

(OA No.771/2024)

Page 8 of 10

[AMBADAS]

payment/realization of the amount mentioned in this operative order.

¶73

(C) The aforesaid adjudicated amount is secured by the mortgage of the following immovable properties. Vide documents Exh. AW-1(12) to Exh. AW-1(17)in the list of

¶74

documents Exh. 5

¶75

i) All that piece and parcel of Plot No. D- 103,admeasuring 1000 sq.mtrs., construction area 697.50 sq.mtr., new MIDC, Near Kinhi-Khadka, Bhusawal, Village, Khadke, Tal Bhusawal and District Jalgaon, (owned by sangita anil jadhav), which is bounded as under:

¶76

East: Plot No. D-76, West: 20.00 mt. MIDC Road, North: Plot No. D-104 and 20 mtr. MIDC road, South: 20 mtr. Wide road.

¶77

ii) All that piece and parcel of Plot No. 101, admeasuring 190.50 sq.mtrs., Gat No. 295, CTS No. 8653/4, situated at Mauje Jalgaon Shahar, within local limits of Jalgaon city Municipal Corporation Tal and District Jalgaon, (owned by Shivaji Ramesh Jadhav), which is bounded as under:

¶78

East: Plot No. 100,

¶79

West: The area in this plot is sq. m. 116. 20 and beyond that plot no. 102, South: Plot No. 59,

(OA No.771/2024)

Page 9 of 10

[AMBADAS]

North: 6 mtr. Wide road.

¶84

(D) The applicant Bank is entitled to sell the mortgaged immovable properties and hypothecated articles/goods

¶85

etc., to recover its dues.

¶86

(E) Issue Recovery Certificate accordingly.

¶87

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

¶88

(G) File be consigned to the record room.

¶89

Sd/-

¶90

Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.19.09.2025 Debts Recovery Tribunal, Aurangabad

¶91

(OA No.771/2024)

¶92

Page 10 of 10

¶93

[AMBADAS]

Bank of Maharashtra v. M/s Monarch Geotex

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. M/s Monarch Geotex

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

State Bank of India versus Aurangabad Trade Center

Union Bank of India (Andhra Bank) versus Shaikh Jamil Noor Kalam

State Bank of India versus M/S Ovikiran Petroleum

Punjab National Bank versus Dnyaneshwar Mohan Pathare

Punjab National Bank versus Raosaheb Aapaji Kundade

Canara Bank versus Sonyabapu Sitaram Khamkar