Allowed

Union Bank of India (Corporation Bank) v. Pandurang Jagtap

DRT23 Feb 2026OA/120/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by Union Bank of India for recovery of agricultural term loan dues. The court reduced the claimed future interest rate from 12.95% to 9% per annum and directed the defendants to pay the adjudicated amount secured by mortgaged properties.

What did the court decide?

Payment of Rs. 23,83,635/- with future interest at 9% p.a. (simple); Security via mortgage deed; Recovery Certificate issued.

Union Bank of India (Corporation Bank) versus Pandurang Jagtap — Banking and Recovery | DRT (2026)

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Presented on: 04.03.2020 Registered on: 27.01.2023 Decided on: 23.02.2026 Duration: Y M D 05 11 19

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.120/2023.

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Union Bank of India ,

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( Erstwhile known as Corporation Bank )

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A Bank constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act 1980 having its Head Office at Mangalore, Karnataka State and branch at Ratna Kalyan, 286/5/6, Budhwar Peth, Station Road, Karad, Taluka Karad, District Satara – 415 110.

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… Applicant

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Versus

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Mr. Pandurang Dnyanu Jagtap Age adult, Occ.:- Agriculture ,

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Mr. Dhanaji Dnyanu Jagtap Age adult, Occ.:- Agriculture,

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Mrs. Chandrabhaga Bhagwat Jagtap Age adult, Occ.:- Agriculture, All R/at Vaidyeraybag, Taluka Kadegaon, Dist. Sangli-415 305.

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…Defendants

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APPEARANCES

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For the Applicant Mr. R. B. Ganbote For the Defendants Ex-parte.

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TOTAL CLAIM AMOUNT –Rs.25,83,635/-.

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JUDGMENT

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(Delivered on 23^rd February, 2026)

(OA No.120/2023)

Page 1 of 5

[ANIL]

The Applicant Bank has filed present application for recovery of Rs.25,83,635/- towards Agricultural Term Loan with future interest thereon @12.95% p.a. with monthly rests from the date of filing this Application till repayment/ realization of the entire dues from defendant Nos.1 to 3.

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Brief facts of the application are as under:

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The Applicant Bank states that Defendant No.1,2 & Late Bhagwat Dnyanu Jagtap approached the applicant bank and requested for Agricultural Term Loan of Rs.20,00,000/- to them for Polyhouse.

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Applicant bank considered the request of Defendant Nos.1,2 & Late Bhagwat Dnyanu Jagtap and sanctioned Agriculture Term Loan of Rs.20,00,000/- to them for Polyhouse on 27.04.2017 on certain terms and conditions.

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Defendant Nos.1, 2 & Late Bhagwat Dnyanu Jagtap have executed Mortgage Deed which was duly registered with Sub Registrar Office Kadegaon at Sr.No.628/2017 dated 29.04.2017 for Agriculture Loans and mortgaged below mentioned property in favour of the applicant bank as a security for the said credit facility.

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Mortgaged Property : -

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All that piece and parcel of Gat No.775 admeasuring 00 Hector 69.8R, Gat No.793 admeasuring 00H 31R and Gat No.1389 admeasuring 47R at Vaidyeraybag, Taluka Kadegaon, within the limits of Registration District Sangli, Sub Registration District Kadegaon, District – Sangli, more particularly described in Para No.5.6 of the Original Application.

(OA No.120/2023)

Page 2 of 5

[ANIL]

Mortgagor, Bhagwat Dnyanu Jagtap died on 23.05.2017 leaving behind present Defendant No.3.

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Further, on 26.09.2017, Defendant Nos.1 to 3 have made an application to applicant bank requesting Agriculture Term Loan of Rs.20,00,000/- for erection of Polyhouse.

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Applicant bank considered the request of Defendant Nos.1 to 3 and sanctioned Agriculture Term Loan of Rs.20,00,000/- to them for Polyhouse on 26.09.2017 for securing Agriculture Term Loan of Rs.20 Lakhs, on certain terms and conditions.

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Defendant Nos.1 to 3 have also executed Hypothecation Agreement on 26.09.2017 in favour of the applicant bank for securing Agriculture Term Loan of Rs.20 lakhs.

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After creating of Registered Mortgage, Defendant No.3 being legal heir has accepted the execution of registered Mortgage by her husband and execution of security documents in favour of the applicant bank and agreed to repay the said Agriculture Term Loan as agreed subject to change as per Reserve Bank of India directives and the Applicant Bank’s norms.

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Defendant Nos. 1 to 3 have failed to adhere terms and conditions of the sanction and committed breach of the sanction terms and hence, the account become Non-Performing Asset as per Reserve Bank of India norms. However, Defendant Nos.1 to 3 have failed to pay the interest in the Agriculture Term Loan Account and failed to regularize the account. Hence, the applicant bank is constrained to file this application for recovery of its dues.

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Hence, this application.

(OA No.120/2023)

Page 3 of 5

[ANIL]

Defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per order dated 26.05.2025 passed below Application (Exhibit-1).

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The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Pawan Kumar, Sr. Manager and Principal Officer has produced on record the Original Loan Transaction documents at Exhibit Nos.1 to 8, 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 evidence of the Applicant Bank. Therefore, the Applicant Bank is entitled for the reliefs claimed.

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The Applicant Bank has claimed future interest @12.95% per annum towards said Loan Facility. However, considering the facts of the case, I am of the opinion that if future interest is granted @9.00% p.a. (simple) for the House Loan facility, 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.120/2023 is allowed with costs.

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(B) Defendant Nos. 1 to 3 either jointly or severally shall pay an amount of Rs.23,83,635/- (Rupees Twenty-Three Lakhs Eighty-Three Thousand Six Hundred ThirtyFive only) towards Agriculture Term Loan Account

(OA No.120/2023)

Page 4 of 5

[ANIL]

No.560931000550734 with future interest @9.00% per annum (Simple) from the date of filing of the Original Application i.e.04.03.2020 till payment/realization of the amount mentioned in this operative order, to the Applicant Bank.

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(C) The aforesaid adjudicated amount is secured by executing Mortgage Deed of the immovable properties i.e. All that piece and parcel of Gat No.775 admeasuring 00 Hector 69.8R, Gat No.793 admeasuring 00H 31R and Gat No.1389 admeasuring 47R at Vaidyeraybag, Taluka Kadegaon, within the limits of Registration District Sangli, Sub Registration District Kadegaon, District – Sangli, more particularly described in Para No.5.6 of the Original Application

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(D) The Applicant Bank is entitled to sell the mortgaged /hypothecated immovable properties to recover its dues.

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(E) Issue Recovery Certificate.

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(F) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the Applicant Bank and the defendants.

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Sd/Place : Pune (Dilip G. Murumkar) Date: 23.02.2026 Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.120/2023)

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Page 5 of 5

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[ANIL]

Union Bank of India (Corporation Bank) v. Pandurang Jagtap

Case brief

What is this about?

What did the court decide?

Union Bank of India (Corporation Bank) v. Pandurang Jagtap

Case brief

What is this about?

What did the court decide?

What the court decided

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