Allowed

Bank of Maharashtra v. M/S B T Ghuge

DRT20 Aug 2025OA/785/2024

Case brief

AI extract

What is this about?

In an ex-parte hearing where defendants failed to appear, the Debts Recovery Tribunal allowed the bank's application for recovery of bank loans. The court directed payment of the principal sum along with future interest at 9% per annum and directed the sale of hypothecated assets.

What did the court decide?

Defendants directed to pay Rs.32,95,906.85 with future interest at 9% p.a. from filing date; Applicant entitled to sell hypothecated properties to recover dues.

Bank of Maharashtra versus M/S B T Ghuge — Banking and Recovery | DRT (2025)

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Presented on: 31.08.2024 Registered on: 25.09.2024 Decided on: 20.08.2025 Duration: Y M D 00 11 20

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

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TOTAL CLAIM AMOUNT – Rs.32,95,906.85/- ORIGINAL APPLICATION No.785/2024

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Bank of Maharashtra , A body corporate constituted under the provisions of Banking Companies (Acquisitions and Transfer of Undertaking) Act V of 1970, 1501, Lokmangal, Shivaji Nagar, Pune and one of its branch Assets Recovery Branch, Aurangabad, At Second Floor, Administrative Building, Town Centre, CIDCO, Ch. Sambhajinagar – 431003 (Formerly known as Aurangabad), Through its authorized signatory, Shri. Somnath B. Sasane, Chief Manager & Branch Manager, Asset Recovery Branch, Aurangabad.

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… Applicant

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Versus

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M/s. B T Gughe, Through its Proprietor Mr. Babasaheb Taterao Ghuge (Deceased) Through his Legal Heirs

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[SBJ] (OA No. 785/2024) Page 1 of 16

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(a) Mrs. Suvarna Babasaheb Ghuge Age: Major Occu: …At: 1547, Saanj Taj, Gut No. 12, Pisadevi Palshi Road, Pisadevi, District Aurangabad-431008. (b) Miss. Saanj Babasaheb Gughe Through her legal Guardian, Mrs. Suvarna Babasaheb Gughe

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All R/o: Plot No. F 4/1, Flat No. A2 505, Flamingo Building, Golden Dreams, MIDC, Chikalthana, Ch. Sambhajinagar, (Formerly known as Aurangabad) Maharashtra – 431006

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& Plot No.5, Utkarsh Niwas, Chandra Nagar Housing Society, Behind Gurde Hospital, Chandra Nagar, N-9 CIDCO, Ch. Sambhajinagar, (Formerly known as Aurangabad)

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Mr. Babasaheb Taterao Ghuge (Deceased) Proprietor of M/s. B T Gughe, Through his Legal Heirs

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(a) Mrs. Suvarna Babasaheb Ghuge Age: Major Occu: At: 1547, Saanj Taj, Gut No. 12, Pisadevi Palshi Road, Pisadevi, District Aurangabad-431008.

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(b) Miss. Saanj Babasaheb Gughe Through her legal Guardian, Mrs. Suvarna Babasaheb Gughe

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[SBJ] (OA No. 785/2024) Page 2 of 16

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Through his legal Guardian, Mrs. Suvarna Babasaheb Gughe

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All R/o: Plot No. F 4/1, Flat No. A2 505, Flamingo Building, Golden Dreams, MIDC, Chikalthana, Ch. Sambhajinagar, (Formerly known as Aurangabad) Maharashtra – 431006

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& Plot No.5, Utkarsh Niwas, Chandra Nagar Housing Society, Behind Gurde Hospital, Chandra Nagar, N-9 CIDCO, Ch. Sambhajinagar, (Formerly known … Defendants as Aurangabad)

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APPEARANCES

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For the Applicant Smt. Archana B. Karadkhedkar - Advocate For Defendant Nos.1 & 2 Ex-parte

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JUDGMENT (Delivered on 20^th August, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.32,95,906.85 Paisa (Rupees Thirty-Two Lacs, Ninety-Five Thousand, Nine Hundred Six and Paisa Eighty-Five only) as on 19.07.2024 in the Cash Credit Loan Account with future interest @10.75% per annum with monthly rests and as on 19.07.2024 in the Term Loan Account with future interest @11.75% per annum with monthly rests and in the GECL Loan Account with future

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[SBJ] (OA No. 785/2024) Page 3 of 16

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interest @9.25% per annum with monthly rests from 20.07.2024 till realization of entire dues and costs of the application from the defendants jointly and severally.

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Brief facts of the application are as under :

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The Bank of Maharashtra, is having its Head Office at 1501, Lokmangal, Shivaji Nagar, Pune 411005 and has its various branches, centers and Regional Business offices at various places providing Banking services. The Bank of Maharashtra, Town Center Branch, District Aurangabad sanctioned various loan facilities to the defendants. After the loan accounts categorized NPA, for initiating further legal action and recovery of the dues, the loan accounts migrated from Bank of Maharashtra, Town Centre Branch to Asset Recovery Branch Aurangabad.

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This Original Application is filed by Mr. Somnath Bajrang Sasane, working as Chief Manager & Branch Manager in Asset Recovery Branch, Aurangabad. The Zonal Managers, Deputy Zonal Manager and all Branch Heads irrespective of grade, are designated as Principal Officer under order 29 of Code of Civil Procedure 1908 and officer authorized to initiate and prosecute litigation for and on behalf of bank

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[SBJ] (OA No. 785/2024) Page 4 of 16

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they are authorized to sign and verify the original application, pleadings, adduce evidence and to represent the applicant in all proceedings as per the resolution No.30 LS01 dated 22.03.2022 passed by the Board of Directors in its meeting held at New Delhi on 22.03.2022.

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The Defendant Nos. 1 & 2 are the resident of Aurangabad. The defendant No.1 M/s. B.T. Ghuge is a proprietary firm and the defendant No.2 Mr. Babasaheb Taterao Ghuge (Deceased) was the Proprietor of the said firm and the principal borrower. The wife of defendant No.2 Mrs. Suverna Babasaheb Ghuge has informed that defendant No.2 died on 18.10.2022. Hence legal heirs of defendant No.2 are arrayed as a party to this claim. The defendant No.1 through its Proprietor Mr. Babasaheb Taterao Ghuge (Deceased) who was in need of financial assistance, approached the applicant bank and requested for Cash Credit Loan Facility vide its application dated 01.12.2018. Considering the request of the defendant No.1, the applicant bank sanctioned and granted the Cash Credit Loan facility of Rs.10,00,000/- (Rupees Ten Lacs only) to the defendant No.1 vide Sanction Letter dated 01.12.2018.

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[SBJ] (OA No. 785/2024) Page 5 of 16

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In order to secure the aforesaid Cash Credit Loan of Rs.10,00,000/- (Rupees Ten Lacs only), availed by the defendant No.1, the defendant No.1 & 2 signed, executed and acknowledged various necessary loan and security documents in favour of the applicant bank i.e. Sanction Latter dated 01.12.2018, Request Letter for making credit facility available dated 01.12.2018 mentioned in Paragraph No. 5.4 (A) of the Original Application and Hypothecation Agreement dated 01.12.2018 executed by defendant No.1 thereby hypothecating to the defendants, present and future movables plants, machineries, goods, stocks of raw materials, items, inventories, stock in process, semi-finished and finished goods, stores and spares (consumable stores and spares), stock in trade goods in process, movables in transit, and present and future tangible and intangible assets, vehicles, goodwill, trademark, copy right, patent and all the right title interest and benefit of the borrower in upon or over all contracts and agreements and amounts and right to collect receive and recover the same together with all movables, situated or located at any place and now lying, being, affixed or installed at any place at any time and all outstanding monies, Claim, bills, receivables, Book Debts

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[SBJ] (OA No. 785/2024) Page 6 of 16

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due or to become due to the defendant at any time or from time to time, and all of the defendant’s rights, titles or interest therein Hydraulic Excavator and Hypothecation of stock of building material mentioned in Paragraph No. 5.4 (B) of the Original Application. The defendant No.2 executed Power of Attorney dated 01.12.2018 for Cash Credit Loan Facility in favour of applicant bank mentioned in Paragraph No.5.4 (C) of the Original Application. The defendant No.1 executed Demand Promissory Note dated 01.12.2018 for Cash Credit Loan Facility in favour of applicant bank mentioned in Paragraph No. 5.4 (D) of the Original Application.

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The defendant No.1 agreed to repay the Cash Credit Loan of Rs.10,00,000/- (Rupees Ten Lacs only) @10.75% per annum with monthly rests.

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Again, the defendant No.1 through its Proprietor approached and requested the applicant bank to grant financial assistance by way of Term Loan of Rs.40,00,000/(Rupees Forty Lacs only). Considering the request of the defendant No.1, the applicant bank sanctioned and granted the Term Loan facility of Rs.40,00,000/- (Rupees Forty Lacs only) to the defendant No. 1 vide Sanction Letter dated

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[SBJ] (OA No. 785/2024) Page 7 of 16

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07.02.2019.

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The defendant No.1 agreed to repay the Term Loan facility of Rs.40,00,000/- (Rupees Forty Lacs only) with interest @ @11.75% per annum with monthly rests in 60 monthly installments of Rs.66,700/- (Rupees Sixty-Six Thousand Seven Hundred only) plus interest as and when applied. The repayment period is 63 months including moratorium of 3 months.

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In order to secure the aforesaid Term Loan facility of Rs.40,00,000/- (Rupees Forty Lacs only), availed by the defendant No.1, the defendant No.1 & 2 signed, executed and acknowledged various necessary loan and security documents in favour of the applicant bank i.e. Sanction Letter dated 07.02.2019, Request Letter for making credit facility available dated 11.02.2019, Receipt for amount of loan dated 11.02.2019, Hypothecation Agreement dated 11.02.2019, and Demand Promissory Note dated 11.02.2019 mentioned in Paragraph No.5.6 (A) to (D) of the Original Application.

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Again, the defendant No.1 through its Proprietor approached and requested the applicant bank to grant Term

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[SBJ] (OA No. 785/2024) Page 8 of 16

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Loan Facility (GECL) of Rs.9,33,000/- (Rupees Nine Lacs Thirty-Three Thousand only). Considering the request of the defendant No.1, the applicant bank sanctioned and granted the Term Loan (GECL) of Rs.9,33,000/- (Rupees Nine Lacs Thirty-Three Thousand only) to the defendant No.1 vide Sanction Letter dated 22.06.2020.

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The defendant No.1 agreed to repay the Term Loan of (GECL) of Rs.9,33,000/- (Rupees Nine Lacs Thirty Three Thousand only) in 36 equal monthly principal installments of Rs.26,000/- after moratorium. Interest to be serviced as and when applied. The moratorium period is 12 months in principal repayment and no moratorium for interest repayment.

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In order to secure the aforesaid Term Loan of (GECL) of Rs.9,33,000/- (Rupees Nine Lacs Thirty-Three Thousand only), availed by the defendant No.1, the defendant No.1 & 2 signed, executed and acknowledged various necessary loan and security documents in favour of the applicant bank i.e. Sanction Letter dated 22.06.2020, Request Letter for making credit facility available dated 23.06.2020, Receipt for amount of loan dated 11.02.2019, Hypothecation Agreement dated 23.06.2020, Demand Promissory Note dated

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[SBJ] (OA No. 785/2024) Page 9 of 16

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23.06.2020, mentioned in Paragraph No. 5.8 (A) to (D) of the Original Application.

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The defendant No.1 has also executed Balance and Security Confirmation Letter dated 15.11.2021 and 01.02.2022 and thereby acknowledged and confirmed the balance in Cash Credit Loan Account, Term Loan Account and GECL Loan Account.

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The particulars of the claim are as under :

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A. Cash Credit Loan Account No.60319375359

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Sr. No.	PARTICULARS	Amount (Rs.)
a	Amount outstanding as on 19.07.2024	8,86,257.80
b	Unapplied interest from 30.11.2022 to 19.07.2024	2,67,130.00
	Total	11,53,387.80

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	B. Term Loan Account No.	60324657097
Sr. No.	PARTICULARS	Amount (Rs.)
a	Amount outstanding as on 19.07.2024	13,66,859.38
b	Unapplied interest from 30.11.2022 to 19.07.2024	3,25,770.00
	Total	16,92,629.38

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[SBJ] (OA No. 785/2024) Page 10 of 16

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C. GECL Loan Account No.60358517785

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Sr. No.	PARTICULARS	Amount (Rs.)
a	Amount outstanding as on 20.07.2024	3,89,783.67
b	Unapplied interest from	60,106.00
	30.11.2022 to 20.07.2024
	Total	4,49,889.67

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Total Claim : A + B + C= Rs.32,95,906.85 Ps.

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The applicant bank further submitted that the defendants committed defaults in repayment of the loan amounts and as such the loan accounts of the defendants classified as Non-Performing Asset on 30.11.2022. However, the defendants failed and neglected to pay the outstanding dues of the applicant bank of Rs.32,95,906.85 as on 19.07.2024. The cause of action arose for filing the OA on 30.11.2022 when the accounts of defendants have been classified as NPA. Therefore, the applicant bank issued legal notice on 25.07.2024 to the legal heirs of the defendant No.2 through its panel Advocate thereby calling upon the defendants to pay its dues of Rs.32,95,906.85/- as on 19.07.2024 and future interest, costs, expenses etc. from 20.07.2024 onwards till realization of entire dues.

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[SBJ] (OA No. 785/2024) Page 11 of 16

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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 properties to recover the dues of the applicant bank.

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The defendants were served through paper publication on 30.11.2024 but failed to appear despite of service and as such, as per Order dated on 29.01.2025 defendants proceeded ex-parte.

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The applicant bank has filed Claim Affidavit of Evidence (Exhibit-04) of Mr. Somnath S/o Bajrang Sasane, Chief Manager and Branch Manager, Bank of Maharashtra, Asset Recovery Branch, Aurangabad i.e. the applicant bank, and has produced on record the Original loan documents at Sr.No. A-1 to A-25 alongwith List (Exhibit-05), which corroborates the case of the applicant bank.

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I have heard argument 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 un-rebutted evidence of the applicant bank. Therefore, the applicant

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[SBJ] (OA No. 785/2024) Page 12 of 16

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bank is entitled for reliefs as claimed.

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In this matter the applicant bank has claimed the relief for Rs. 32,95,906.85 Paisa (Rupees Thirty-Two Lacs, NinetyFive Thousand, Nine Hundred Six and Paisa Eighty-Five only) as on 19.07.2024 in the Cash Credit Loan Account with future interest @10.75% per annum with monthly rests and as on 19.07.2024 in the Term Loan Account with future interest @11.75% per annum with monthly rests and in the GECL Loan Account with future interest @9.25% per annum with monthly rests from 20.07.2024 till realization of entire dues and costs of the application 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.

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Hence, I pass the following order.

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ORDER

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(A) Original Application No.785/2024 is allowed with costs.

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(B) Defendant No.1 & 2 are hereby ordered and directed to pay jointly and severally to the

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[SBJ] (OA No. 785/2024) Page 13 of 16

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applicant the aggregate sum of Rs.32,95,906.85 (Rupees Thirty-Two Lacs Ninety-Five Thousand Nine Hundred Six and Paisa Eighty-Five only) along with future interest @9% per annum (simple) from the date of filing of the original application i.e. 31^st August, 2024 till full payment/realization of the amount.

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(C) The aforesaid adjudicated amount is secured by the Hypothecation Agreement dated 01.12.2018, 11.02.2019 and 23.06.2020, thereby hypothecating defendants all present and future movables plants, machineries, goods, stocks of raw materials, items, inventories, stock in process, semi-finished and finished goods, stores and spares (consumable stores and spares), stock in trade goods in process, movables in transit, and present and future tangible and intangible assets, vehicles , goodwill, trademark, copy right, patent and all the right title interest and benefit of the borrower in upon or over all contracts and agreements and amounts and right to collect receive and recover the same together with all

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[SBJ] (OA No. 785/2024) Page 14 of 16

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movables, situated or located at any place and now lying, being, affixed or installed at any place at any time and all outstanding monies, Claim, bills, receivables, Book Debts due or to become due to the defendant at any time or from time to time, and all of the defendant’s rights, titles or interest therein and Hydraulic Excavator and Hypothecation of Stock of building Material etc. mentioned in the Paragraph No.5.4 (B) and 5.6 (C) and 5.8(C) of the OA and in the List of Documents (Exhibit-05) marked at Exhibit A-5, A-11, and A- 16 of Second Schedule.

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(D) The applicant Bank is entitled to sell the hypothecated properties as is mentioned in the Paragraph No. 5.4 (B) and 5.6 (C) and 5.8 (C) of the OA and in the List of Documents (Exhibit-05) marked at Exhibit AW-5, AW-11, and AW-16 of Second Schedule, to recover its dues.

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(E) Issue Recovery Certificate accordingly.

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(F) The Registry is directed to send the copy of Judgment and Recovery Certificate to the

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[SBJ] (OA No. 785/2024) Page 15 of 16

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applicant and defendants.

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

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Pronounced in open Court. Sd/Date : 20.08.2025 (Dr. J.R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad.

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[SBJ] (OA No. 785/2024) Page 16 of 16

Bank of Maharashtra v. M/S B T Ghuge

Case brief

What is this about?

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Bank of Maharashtra v. M/S B T Ghuge

Case brief

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