Allowed

Bank of Maharashtra v. Walmik Madhukar Dongare

DRT1 Aug 2025OA/895/2024

Case brief

AI extract

What is this about?

The Appellate Debits Recovery Tribunal, Aurangabad, allowed an original application filed by Bank of Maharashtra for recovery of Rs. 29,17,858. The court adjudicated the dues against three defendants (borrower and guarantors) who were absent, granting a reduced future interest rate of 11% p.a. and securing recovery over mortgaged immovable and hypothecated movable assets.

What did the court decide?

Defendants directed to pay Rs. 29,17,858 with simple interest @ 11% p.a. from filing date; recovery secured over hypothecated movable assets and mortgaged immovable properties; Recovery Certificate is

Bank of Maharashtra versus Walmik Madhukar Dongare — Contract and Commercial Disputes | DRT (2025)

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Presented on: 18.11.2024 Registered on: 28.11.2024 Decided on: 01.08.2025 Duration: Y M D 00 08 12

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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.29,17,858/-

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ORIGINAL APPLICATION No.895/2024

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Bank of Maharashtra ,

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A body corporate constituted under the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970, having its Head Office at 1501, Lokmangal, Shivaji Nagar, Pune and branch amongst other places at Tamalwadi Branch, Taluka Tuljapur, District Osmanabad Through its Branch Manager Mr. Bojja Krishna s/o Subbulu Age : 38 Years, Occu : Service as Branch Manager with Bank of Maharashtra, Tamalwadi Branch, Taluka Tuljapur, District Osmanabad, Maharashtra - 413623

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… Applicant

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[Ambadas] (OA No. 895/2024) Page 1 of 8

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Versus

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Walmik Madhukar Dongare Age : Major, Occu.: Agirculture R/o: Gut No. 427 Pangarwadi, Taluka Tuljapur District Osmanabad And Post Sangavikati, Taluka Tuljapur District Osmanabad

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Nagnath Prakash Chavan Age: Major, Occu: Agirculture

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R/o: Pangardharwadi, Taluka Tuljapur District Osmanabad

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Dhanaji Mahadev Kadam Age: Major, Occu: Agriculture R/o: Pangardharwadi, Taluka Tuljapur District Osmanabad … Defendants

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APPEARANCES For the Applicant Mr. P. N. Kapadia - Advocate For Defendant Nos.1 to 3 Ex-parte

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JUDGMENT

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(Delivered on 01^st August, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs. 29,17,858/- (Rupees Twenty

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[Ambadas] (OA No. 895/2024) Page 2 of 8

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Nine Lacs Seventeen Thousand Eight Hundred and Fifty Eight only) as on 18.11.2024 together with future interest

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Brief facts of the application are as under :

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The defendant No. 1 was in need of financial assistance and hence he approached to the applicant bank and requested for granting him credit facility. Considering the request of Defendant No. 1, the applicant bank sanctioned and granted the Term Loan Facility of Rs. 23,00,000/- Lacs (Rupees Twenty Three Lacs only) vide sanction letter dated 28.01.2019. The agreed rate of interest was 11.75% p.a. with monthly rest. The defendants also agreed to pay an additional interest by way of liquidated damages @2% p.a. in case of default in repayment.

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In order to secure the aforesaid loan facilities, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letter, request letter, a deed of hypothecation, a demand promissory note, and deed of declaration bearing no. 421/2019 on 15.01.2019 Additionally, defendant nos. 2 & 3 stood as guarantors for defendant nos. 1 and thereby executed a deed of guarantee dated 28.01.2019 in favour of the applicant bank.

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[Ambadas] (OA No. 895/2024) Page 3 of 8

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The Applicant Bank further contends that, in order to secure the Term loan Facility sanctioned to them, the Defendant No. 1 & 2 created an equitable mortgage over their immovable property by executing a sale deeds recorded under Day Book No. 421/2019 on 15.01.2019 in favour of the Applicant Bank. The mortgage was created in respect of the following property –

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1] Property bearing land bearing Gut No. 427, 428, 437, 438 and 504 admeasuring 6H 77R situated at Pangarwadi Taluka Tuljapur, District Osmanabad, which is bounded as under:

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East: Shankar Dongare West: Balaji Dongare North: Satywan Shinde South: Alka Dongare

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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

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[Ambadas] (OA No. 895/2024) Page 4 of 8

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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 defendant became irregular and classified as NPA on 05.08.2023. Therefore on 03.01.2023 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 Court Comissioner. Hence, the defendants were proceeded ex-parte as per Order dated 28.03.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Bojja Krishna s/o. Subbalu, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-11 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

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[Ambadas] (OA No. 895/2024) Page 5 of 8

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application, I find no reason to disbelieve the un-rebutted 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 of the applicant bank over immovable properties of the borrowers which are mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @ 13.75% per annum with monthly rests from the date of filing i.e. 18.11.2024 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 @ 11% 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.895/2024 is allowed with costs.

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(B) Defendant Nos.1 to 3 are hereby ordered and directed to pay jointly and severally to the applicant the aggregate sum of Rs. 29,17,858/(Rupees Twenty Nine Lacs Seventeen Thousand Eight Hundred and Fifty Eight only) alongwith

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[Ambadas] (OA No. 895/2024) Page 6 of 8

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interest @ 11% per annum (simple) from the date of filing of the original application i.e. 18^th November 2024 till full payment/realization of the amount.

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(C) The aforesaid adjudicated amount is secured by the Hypothecation Agreement and Letter of Hypothecation dated 28.01.2019, thereby hypothecating movable assets owned by defendant no. 1 mentioned in Paragraph No. 3A Paragraph No.5.3 (C) and 5.6 of the Original Application.

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(D) The aforesaid adjudicated amount is secured by creating first charge of the immovable properties under deed of declaration dated 15-01-2019 (Exh. A-6) in list of documents Exh. 5 which was duly registered with sub Registrar, Tuljapur bearing No. 421/2019 and details of immovable property are as under :-

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1] Property bearing land bearing Gut No. 427, 428, 437, 438 and 504 admeasuring 6H 77R situated at Pangarwadi Taluka Tuljapur, District

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[Ambadas] (OA No. 895/2024) Page 7 of 8

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Osmanabad, which is bounded as under:

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East: Shankar Dongare West: Balaji Dongare North: Satywan Shinde South: Alka Dongare

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

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(F) Issue Recovery Certificate accordingly.

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

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

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Pronounced in open Court. Date :01.08.2025.

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

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[Ambadas] (OA No. 895/2024) Page 8 of 8

Bank of Maharashtra v. Walmik Madhukar Dongare

Case brief

What is this about?

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Bank of Maharashtra v. Walmik Madhukar Dongare

Case brief

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What did the court decide?

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