Allowed

Union Bank of India v. Shivaji Narayan Nirmal

DRT20 Aug 2025OA/902/2024

Case brief

AI extract

What is this about?

In an ex-parte original application filed by Union Bank of India against four agriculturists, the Debts Recovery Tribunal allowed the claim for recovery of Rs. 34,71,072/- representing defaulted term and crop loans, adjusting the requested future interest rate to 9% per annum simple. The decree was secured by mortgage over two agricultural properties.

What did the court decide?

Directing respondents to jointly and severally pay Rs. 34,71,072/- plus future simple interest at 9% per annum; declaring immovable properties as security and issuing recovery certificate.

Union Bank of India versus Shivaji Narayan Nirmal — Banking and Recovery | DRT (2025)

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Presented on: 16.11.2024 Registered on: 30.11.2024 Decided on: 20.08.2025 Duration: Y M D 00 09 04

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No.902/2024

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TOTAL CLAIM AMOUNT – Rs. 34,71,072/-

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Union Bank of India

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(Erstwhile “Corporation Bank”) A Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 Having its Registered Office at 239 Vidhan Bhavan Marg, NarimanPoint,Mumbai-40021 & having branches amongst the other places at Shirdi Tq. Rahata. Dist. Ahmednagar through its Authorized Officer, Mr. Sandip Annasaheb Dhapatkar (Branch Manager), Age: 38 years. Occu. Service, R/o. Shirdi, Tq. Rahata, Dist. Ahemdnagar

… Applicant

(OA No.902/2024)

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[AMBADAS]

Versus

Mr. Shivaji Narayan Nirmal Age: Major, Occu.: Agriculture, R/o.: At Post Pimpri Nirmanl, Tq. Rahata, Dist. Ahmednagar-413713

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Mr. Sandip Shivaji Nirmal Age: Major, Occu.: Agriculture, R/o.: At Post Pimpri Nirmanl, Tq. Rahata, Dist. Ahmednagar-413713

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Mr. Rahul Shivaji Nirmal Age: Major, Occu.: Agriculture, R/o.: At Post Pimpri Nirmanl, Tq. Rahata, Dist. Ahmednagar-413713

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Mr. Vijay Laxman Nirmal Age: Major, Occu.: Agriculture, R/o.: At Post Pimpri Nirmanl, Tq. Rahata, Dist. Ahmednagar-413713

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…Defendants

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APPEARANCES For the Applicant For Defendants

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Mr. K. D. Pande -Advocate Ex-parte

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JUDGMENT

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Delivered on 20.08.2025

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The Applicant Bank has filed the present application for the

(OA No.902/2024)

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[AMBADAS]

recovery of a sum of Rs. 34,71,072/- (Rupees Thirty Four Lacs Seventy One Thousand Seventy Two only), along with further interest from the date of filing of the Original Application, i.e., 16.11.2024, 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 Nos. 1 to 3 had approached and requested the Applicant Bank for a Term loan facility and Crop loan facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned a Term loan facility of Rs. 10,00,000/- and Crop loan Facility of Rs. 7,00,000/- Lacs, vide sanction letter dated 05.02.2016 on certain terms and conditions. The agreed rate of interest for Term loan facility was @ 11.50% per annum with monthly rests and for Cash Credit Facility was @11% p.a. with half yearly rests. The Defendants also agreed to pay additional interest by way of liquidated damages in the event of any default in repayment.

(OA No.902/2024)

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[AMBADAS]

In order to secure the aforesaid loan facilities, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letter, deed of hypothecation, demand promissory notes, letter of continuity, letter of undertaking, simple mortgage deed bearing day book no 557 dated 06.02.2016 etc. Additionally defendant Nos. 4 stood as guarantors for defendant No. 1 to 3 and executed a deed of guarantee dated 05.03.2016 in favour of the applicant bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facilities sanctioned to them, the Defendants created charge over their immovable property bearing daybook No. 557 dated 06.02.2016 in favour of the applicant bank. The

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mortgage was created in respect of the following properties –

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i) All that piece & parcel of agricultural land admeasuring 0 H 03 R out of Gut No. 541 situated at Village Pimpri Nirmal. Tq. Rahata, Dist. Ahmednagar which is bounded as under:

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East :- Gut No. 540 West :- Gut No. 527 North:- Gut No. 538

(OA No.902/2024)

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[AMBADAS]

South :- Gut No. 542

ii) All that piece & parcel of agricultural land admeasuring 2 H 49 R out of Gut No. 530 (part) situated at Village Pimpri Nirmal. Tq. Rahata, Dist. Ahmednagar which is bounded as under:

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East :- Gut No. 537 & 538 West :- Shiv North:- Gut No. 531 South :- 529,527 & 528

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The applicant bank further states that in order to secure the loan, the defendant also executed deed of Hypothecation, thereby hypothecating crops including standing crops i.e. pomegranate 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

(OA No.902/2024)

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[AMBADAS]

31.03.2019. Therefore on 19.10.2024 the applicant bank issued legal Notice to the defendants. 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 served through RPAD. Hence, the defendants were proceeded ex-parte as per Order dated 19.02.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Sandip Annasaheb Dhapatkar, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-28 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 to file the written statement and did not contest the application, I find no reason to

(OA No.902/2024)

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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 properties of the borrowers which are mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @ 12.25 % with monthly rests on both the loans from the date of filing i.e. 16.11.2024 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 @ 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.902/2024 is allowed with costs.

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(B) The defendants shall jointly and severally pay to the applicant Bank a sum of Rs. 34,71,072/- (Rupees Thirty

(OA No.902/2024)

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[AMBADAS]

Four Lacs Seventy One Thousand Seventy Two only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 16.11.2024 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 properties bearing day book No. 551 vide mortgage deed dated 06.02.2016 at Exh. A-17 in the list of documents at Exh.

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i) All that piece & parcel of agricultural land admeasuring 0 H 03 R out of Gut No. 541 situated at Village Pimpri Nirmal. Tq. Rahata, Dist. Ahmednagar which is bounded as under:

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East :- Gut No. 540 West :- Gut No. 527 North:- Gut No. 538 South :- Gut No. 542

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ii) All that piece & parcel of agricultural land admeasuring 2 H 49 R out of Gut No. 530 (part) situated at Village Pimpri Nirmal. Tq. Rahata, Dist. Ahmednagar which is bounded as under:

(OA No.902/2024)

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[AMBADAS]

East :- Gut No. 537 & 538 West :- Shiv North:- Gut No. 531 South :- Gut No. 529,527 & 528

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

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

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(OA No.902/2024)

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[AMBADAS]

Union Bank of India v. Shivaji Narayan Nirmal

Case brief

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Union Bank of India v. Shivaji Narayan Nirmal

Case brief

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