Allowed

Union Bank of India v. Avinash Ramkisan Vidhate

DRT11 Jul 2025OA/955/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of home and personal loan dues totaling approximately Rs. 23.60 lakhs. The tribunal directed respondents to pay the principal sum with future interest at a reduced rate of 9% per annum. Recovery was secured via a mortgage of a flat and hypothecation of movable properties.

What did the court decide?

Respondents directed to pay Rs. 23,60,508.68 with future interest @ 9% p.a. (simple) from 22.11.2024; recovery secured by mortgaged flat and hypothecated movable properties; Recovery Certificate to be

Union Bank of India versus Avinash Ramkisan Vidhate — Contract and Commercial Disputes | DRT (2025)

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Presented on: 22.11.2024 Registered on: 22.11.2024 Decided on: 11.07.2025 Duration: Y M D - 06 19

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

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TOTAL CLAIM AMOUNT – Rs.23,60,508.68 PS.

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ORIGINAL APPLICATION No.955/2024

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Union Bank of India ,

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a body corporate constituted under the Banking Companies (Acquisition & Transfer of undertakings) Act, 1970 having it's Registered Office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021 & having branches amongst the other places at Darga Road, Chh. Sambhajinagar and having it’s Asset Recovery Branch (ARB), at Plot No. 3, 1^st Floor, Sahakar Colony, Shahnoorwadi, Aurangabad, through it's Power of Attorney, Mr. Abhaykumar Dattatray Baviskar, (Chief Manager), Age: 38 yrs., Occu: Service, R/o. Plot No. 3, 1^st Floor, Sahakar Colony, Shahnoorwadi, Chh. Sambhajinagar 431005

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… Applicant

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Versus

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[DAK] (OA No.955/2024) Page 1 of 8

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M 1. Avinash Ramkisan Vidhate

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Age: Major, Occu: Service, R/o: At Flat No. 1, Shri Ganesh Pride, Arunoday Colony, Satara Parisar, Beed Bypass, Chh. Sambhajinagar 431001

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AND / OR

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Mr. Avinash Ramkisan Vidhate Age: Major, Occu: Service, R/o: At B-28, Arihant Nagar, Behind Sindhi Colony, Chh. Sambhajinagar 431001

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2. Mrs. Savita Avinash Vidhate

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Age: Major, Occu: Homemaker, R/o: At Flat No. 1, Shri Ganesh Pride, Arunoday Colony, Satara Parisar, Beed Bypass, Chh. Sambhajinagar 431001

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AND / OR

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Mrs. Savita Avinash Vidhate Age: Major, Occu: Homemaker, R/o: At B-28, Arihant Nagar, Behind Sindhi Colony, Chh. Sambhajinagar 431001.

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… Defendants

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APPEARANCES

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For the Applicant Mr. K. D. Pande - Advocate For Defendants Exparte

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JUDGMENT

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(Delivered on 11^th July, 2025)

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The Applicant Bank has filed the present application for

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[DAK] (OA No.955/2024) Page 2 of 8

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recovery of the sum of Rs.23,60,508.68 PS (Rs. Twenty Three Lacs Sixty Thousand Five Hundred Eight & Sixty Eight Ps Only) together with interest 10.50% per annum with monthly rests upon home loan from 01.10.2024 till the full realization of the entire dues and costs from the defendants.

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Brief facts of the application are as under :

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That, the Defendant No. 1 & 2 had approached to the Applicant Bank and requested to sanction a Home Loan facility. Upon considering the representations, requests and need of the defendants, the Applicant Bank sanctioned Home Loan of Rs. 19,50,000/- vide sanction letter dated 31.07.2021 on certain terms & conditions. The agreed rate of interest was @ 6.85 % per annum with monthly rests. 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 loan documents in favour of the applicant bank namely loan application dated 29.06.2021, letter of sanction dated 31.07.2021, letter of continuity dated

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[DAK] (OA No.955/2024) Page 3 of 8

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10.08.2021, demand promissory note dated 10.08.2021, housing loan agreement dated 10.08.2021, simple mortgage deed dated 20.08.2021 vide list of documents Exh.5.

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The applicant bank contended that to secure the home loan facility, the defendants have mortgaged their immovable property and created charge and security interest by executing registered simple mortgage deed bearing daybook no.6228 dated 20.08.2021 in favour of the applicant bank in respect of following property.

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All that piece and parcel of Flat no.1 admeasuring built up area 56.63 sq. mtrs on stilt first floor of Shri Ganesh Pride constructed on plot no.94 out of gut no.130/P, situated at Arunoday Colony, Satara, Tq. And Dist. Aurangabad which is bounded as under-

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East - Common space of building plot no.95. West - Common space of building plot no.93. South - Common space of building plot no.99. North - Flat No.2 & 3 then 6.00 mtr wide road.

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The applicant bank contended that the defendants again approached to the applicant bank and represented that they are in need of financial assistance and requested to sanction

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[DAK] (OA No.955/2024) Page 4 of 8

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a personal loan. Considering the requests and need of the defendants, the applicant bank sanctioned personal loan of Rs. 5,00,000/- vide sanction letter dated 11.08.2021 on certain terms & conditions. The rate of interest was agreed @ 9.30% per annum with monthly rests.

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The applicant bank contended that the defendants have failed to keep their promises and commitments agreed by them with regard to due repayment of the loan amount. The defendants failed to operate the loan account properly within a year 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 nonperforming asset on 19.06.2024. Therefore on 10.10.2024, the applicant Bank issued legal notice to the defendants through their Advocate. Despite service of Notice, the defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is

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[DAK] (OA No.955/2024) Page 5 of 8

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filed.

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The defendants failed to appear in the matter though they served with service of summons, hence the defendants proceeded exparte as per Order dated 24.03.2025.

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The applicant Bank has filed Claim Affidavit of Evidence (Exhibit-4) of Abhaykumar Dattatraya Baviskar Chief Manager the applicant Bank and has produced on record the original loan transaction documents as Exh. A-1 to A-23, 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 reliefs as claimed.

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The applicant Bank has claimed future interest @ 10.50% per annum with monthly rests from 01.10.2024 till the full realization of the entire dues and costs from the defendants. However, considering the facts and

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[DAK] (OA No.955/2024) Page 6 of 8

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circumstances 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.955/2024 is allowed with costs.

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(B) Defendants are ordered and directed to pay jointly and severally to the applicant the aggregate sum of Rs.23,60,508.68 PS (Rs. Twenty Three Lacs Sixty Thousand Five Hundred Eight & Sixty Eight Ps Only) alongwith future interest @ 9% per annum (simple) from the date of institution of this application i.e. 22.11.2024 till full payment/realization of the amount.

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(C) The aforesaid adjudicated amount is secured by the Hypothecation of movable properties vide Hypothecation-cum-Loan Agreement Exh. A-7 dated 10.08.2021 as per list of documents Exh.5.

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(D) The aforesaid adjudicated amount is secured by the mortgage of the following immovable properties-

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[DAK] (OA No.955/2024) Page 7 of 8

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East - Common space of building plot no.95. West - Common space of building plot no.93. South - Common space of building plot no.99. North - Flat No.2 & 3 then 6.00 mtr wide road.

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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.

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(G) The Registrar 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. Sd/-

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Place : Aurangabad. (Dr. J. R. Chauhan) Date : 11.07.2025. Presiding Officer Debts Recovery Tribunal, Aurangabad

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[DAK] (OA No.955/2024) Page 8 of 8

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[DAK] (OA No.955/2024) Page 9 of 8

Union Bank of India v. Avinash Ramkisan Vidhate

Case brief

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Union Bank of India v. Avinash Ramkisan Vidhate

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