Allowed

Union Bank of India v. M/s Shree Laxmi Bangles

DRT11 Sept 2025OA/830/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's recovery application against erstwhile borrowers who failed to repay a term loan and cash credit facility. The court adjudicated the principal sum and modified the future interest rate to 9% p.a.

What did the court decide?

Defendants ordered to pay Rs. 42,46,944.16 with future interest at 9% p.a. from 12.10.2024; recovery certificate issued; rights of sale over mortgaged property confirmed.

Union Bank of India versus M/s Shree Laxmi Bangles — Contract and Commercial Disputes | DRT (2025)

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Presented on: 12.10.2024 Registered on: 21.10.2024 Decided on: 11.09.2025 Duration: Y M D 00 10 29

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD

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(Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 830/2024

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TOTAL CLAIM AMOUNT – Rs. 42,46,944.16/-

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Union Bank of India,

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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 Rashin, Tq. Karjat, Dist. Ahmednagar and having it’s Asset Recovery Branch (ARB), at Plot No. 3, 1^st Floor, Sahakar Colony, Shahanoorwadi, Aurangabad, through its Power of Attorney, Mr. Abhaykumar Dattatray Baviskar, (Chief Manager), Age: 38 years, Occ.: Service, R/o. Plot No. 3, 1^st Floor,

(OA No.830/2024)

Page 1 of 8

[AMBADAS]

Sahakar Colony, Shahnoorwadi, Aurangabad

… Applicant

Versus

1. M/s. Shree Laxmi Bangles Through its Proprietor, Mr. Sanjay Prabhakar Dikekar Age: Major, Occu.: Business, R/o.: At Post Rashin, Tq. Karjat, Dist. Ahmednagar 414402.

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2. Mr. Sagar Sanjay Sul Age: Major, Occu.: Business, R/o.: At Post Rashin, Tq. Karjat, Dist. Ahmednagar 414402.

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3. Mr. Dnyandeo Bhausaheb Lahor Age: Major, Occu.: Business, R/o.: At Post Rashin, Tq. Karjat, Dist. Ahmednagar 414402.

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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 Delivered on 11.09.2025

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The Applicant Bank has filed the present application for the

(OA No.830/2024)

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[AMBADAS]

recovery of a sum of Rs. 42,46,944.16/- ( Rupees Forty Two Lacs,

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Forty Six Thousand, Nine Hundred Forty Four and Sixteen Paisa only), along with future interest from the date of filing of the Original Application, i.e., 12.10.2024, 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 Defendant No. 1 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 a Cash Credit Facility of Rs. 20 lacs & Term loan facility of Rs. 15 lacs vide sanction letter dated 05.11.2018 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @11.15% 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.

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In order to secure the aforesaid loan facility, the Defendant No. 1

(OA No.830/2024)

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[AMBADAS]

executed various loan documents in favour of the Applicant

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Bank. These included sanction letter, registered mortgage deed bearing daybook no. 3690 dated 12.11.2018, hypothecation agreement, letter of undertaking, demand promissory notes, etc., in favour of the applicant bank. Additionally defendant No. 2 & 3 stood as guarantors for defendant No. 1 and executed deed of guarantee dated 12.11.2018 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 created first charge over their immovable property under daybook no. 3690 dated 12.11.2018 in favour of the Applicant Bank. The mortgage was created in respect of the following property-

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All that piece and parcel of property bearing GPM No. 624/1, admeasuring 185.87 sq. mtrs. Out of CTS No. 49 situated at Rashin, Tq. Karjat, Dist. Ahmednagar, which is bounded as under:

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East: Common Passage, West: Part of CTS No. 49 owned by Sagar Sanjay Sul, South: Old Savadi Road, North: Common Passage.

(OA No.830/2024)

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[AMBADAS]

The applicant bank contended that the defendants have failed to

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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 24.09.2024 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 served through RPAD. Hence, the defendants were proceeded

(OA No.830/2024)

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[AMBADAS]

ex-parte as per Order dated 30.01.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Abhaykumar Dattatray Baviskar, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-20 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.

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The applicant Bank has claimed future interest @12.75 p. a. on

(OA No.830/2024)

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[AMBADAS]

term loan from the date of filing i.e. 12.10.2024 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. 830/2024 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 42,46,944.16/- ( Rupees Forty Two Lacs, Forty Six Thousand, Nine Hundred Forty Four and Sixteen Paisa only),along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e. 12.10.2024 till full payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the mortgage of the following immovable property bearing daybook no. 3690 vide registered mortgage deed dated

(OA No.830/2024)

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[AMBADAS]

12.11.2018 at Exh. A-11 in list of documents Exh. 5.

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All that piece and parcel of property bearing GPM No. 624/1, admeasuring 185.87 sq. mtrs. Out of CTS No. 49 situated at Rashin, Tq. Karjat, Dist. Ahmednagar, which is bounded as under:

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East: Common Passage, West: Part of CTS No. 49 owned by Sagar Sanjay Sul, South: Old Savadi Road, North: Common Passage.

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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) File be consigned to the record room.

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(G)

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Sd/-

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Pronounced in open court. Place: Aurangabad Date:.11.09.2025

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

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(OA No.830/2024)

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[AMBADAS]

Union Bank of India v. M/s Shree Laxmi Bangles

Case brief

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Union Bank of India v. M/s Shree Laxmi Bangles

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