Allowed

Union Bank of India v. Ms Shambhu Mahadev Sugar and Allied Industries Ltd.

DRT17 Apr 2026OA/1233/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of dues against the borrower and guarantors who did not appear. The court reduced the claim by removing penal interest and adjusted the future interest rate to 9% per annum before directing payment and enforcement through mortgage.

What did the court decide?

Order allowed; Defendants to pay Rs.11,69,80,501/- plus future interest @9% p.a.; Mortgage properties confirmed as security; Recovery Certificate issued.

Union Bank of India versus Ms Shambhu Mahadev Sugar and Allied… — Banking and Recovery | DRT (2026)

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Presented on .. 07.08.2021 Registered on .. 15.09.2023 Decided on .. 17.04.2026 Duration .. Y—M—D 04--08--10

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1233/2023.

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Union Bank of India, (Erstwhile Andhra Bank),

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A Government of India Undertaking constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its head office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai – 400 021 and Branch Office at – Sachpir Street, Camp, Pune 411 001.

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… Applicant

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Versus

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1 M/s. Shambhu Mahadev Sugar and Allied Industries Ltd., Through Directors –

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1.1 Mr. Dilip Shankarrao Apet,

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1.2 Mrs. Shalini Dilip Apet,

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1.3 Mr. Abhijit Dilip Apet,

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1.4 Mr. Vijay Dilip Apet, Address – Havargaon, Taluka Kallam, District Osmanabad 413 507.

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2 M/s Pingle Sugar and Agro Products Pvt. Ltd., through director –

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Sanap ( OA No. 1233/2023 ) 1 of 7

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Mr. Dilip Shankarrao Apet, Address Post Jategaon, Taluka Gevrai, District Beed 411 127.

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3 Mrs. Shalini Dilip Apet, Address – 173, Padmavati Galli, Parali (V), District Beed 431 515.

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4 Mr. Dilip Shankarrao Apet, Address – 173, Padmavati Galli, Parali (V), District Beed 431 515.

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5 Mr. Abhijit Dilip Apet, Address – 173, Padmavati Galli, Parali (V), District Beed 431 515.

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6 Mr. Vijay Dilip Apet, Address – 173, Padmavati Galli, Parali (V), District Beed 431 515.

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… Defendants

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Appearances :-

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For Applicant Adv Gauri Deshmukh i/b M.V. Kini & Co. For Defendants Ex parte.

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Total Claim Amount – Rs.12,27,46,582/-

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JUDGMENT

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(Delivered on 17^th April, 2026)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.12,27,46,582/- together with future interest @11.45% per annum from the date of Application till realization of the entire dues from the defendants.

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Brief facts of the application are as under :-

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Sanap ( OA No. 1233/2023 ) 2 of 7

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Defendant No.1 is the borrower, defendant No. 2 is the corporate guarantor and defendant Nos. 3 to 6 are personal guarantors for the said WCDL – H & T (Fresh) facility.

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As per the request of defendant No.1 through its Directors-defendant Nos.3 to 6, the applicant Bank sanctioned the WCDL – H & T (Fresh) facility of Rs.10,00,00,000/- to defendant No.1 for the purpose of payment of advance to the sugarcane harvesting and transport contractors of defendant No.1 vide Sanction Letter dated 11.09.2017. Defendant No.1 by Board Resolution dated 15.09.2017 resolved to execute necessary loan documents in favour of the applicant Bank by the Directors of defendant No.1 .

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In order to secure the aforesaid loan facility, the defendants have executed necessary loan and security documents in favour of the applicant Bank. Defendant Nos. 2 to 4 have also executed registered deed of mortgage dated 29.09.2017 in favour of the applicant Bank in respect of (A) all that piece and parcel of agricultural land bearing Gat No. 54 and 55 admeasuring 2.05 H and 2.80 H respectively and Gat No. 56 and 57 area admeasuring 12.53 H and 11.09 H respectively including Non-agricultural are/land 68700 Sq. Mtrs. out of larger area 12.53 H and

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Sanap ( OA No. 1233/2023 ) 3 of 7

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11.09 H of Gat No. 56 and 57 situated at Village Sailu, Taluka Georai, District Beed; (B) all that piece and parcel of the Flat bearing No. D-1803, 18^th floor, admeasuring about 107.79 Sq. Mtrs. i.e. 1157 Sq. Fts., carpet plus sit out admeasuring area 7.52 Sq. Mtr. i.e. 81 Sq. Ft. carpet and one semi covered car parking on the ground floor in the building D Shubhkalyan in the scheme known as Nanded City within the limits of Grampanchayat samiti Nanded, Taluka Haveli, District Pune and (C) all that piece and parcel of the Flat bearing No. F-2004, 20th floor, admeasuring carpet area 998 Sq. Fts., carpet plus sit out admeasuring area 7.80 Sq. Mtr. i.e. 84 Sq. Ft. carpet and one covered car parking on the ground floor in the building F- Aasawari in the scheme known as Nanded City within the limits of Grampanchayat samiti Nanded, Taluka Haveli, District Pune.

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 30.09.2018, the applicant Bank has classified the account of the defendants as Non-Performing Asset in accordance with guidelines of Reserve Bank of India. Thereafter, on 01.10.2018, the applicant Bank issued Recall Notice to the defendants. Despite service of Notice, the defendants failed and

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Sanap ( OA No. 1233/2023 ) 4 of 7

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neglected to pay the outstanding dues of the applicant Bank.

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Hence, this application is filed.

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte against the defendants as per Order dated 02.03.2026 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Tella Subrahmanyam, Regional Manager and Authorized Signatory of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-26 along with list (Exhibit 7), which corroborates the case of the applicant.

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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 evidence of the applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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The applicant Bank has claimed Penal Interest of Rs.57,66,081/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.12,17,46,582/- is reduced to Rs.11,69,80,501/-.

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Sanap ( OA No. 1233/2023 ) 5 of 7

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The applicant Bank has claimed future interest @11.45% per annum. 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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Hence, I pass the following order.

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O R D E R

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A} Original Application No. 1233/2023 is allowed with costs. B} Defendant Nos.1 to 6 either jointly or severally shall pay to the applicant Bank the sum of Rs.11,69,80,501/(Rupees Eleven Crore Sixty Nine Lakh Eighty Thousand Five Hundred One only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 07.08.2021 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 valid and subsisting mortgage in respect of (A) all that piece and parcel of agricultural land bearing Gat No. 54 and 55 admeasuring 2.05 H and 2.80 H respectively and Gat No. 56 and 57 area admeasuring 12.53 H and 11.09 H respectively including Non-agricultural are/land 68700 Sq. Mtrs. out of larger area 12.53 H and 11.09 H of Gat No. 56 and 57 situated at Village Sailu, Taluka Georai, District Beed; (B) all that piece and parcel of the Flat bearing No.

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Sanap ( OA No. 1233/2023 ) 6 of 7

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D-1803, 18^th floor, admeasuring about 107.79 Sq. Mtrs. i.e. 1157 Sq. Fts., carpet plus sit out admeasuring area 7.52 Sq. Mtr. i.e. 81 Sq. Ft. carpet and one semi covered car parking on the ground floor in the building D Shubhkalyan in the scheme known as Nanded City within the limits of Grampanchayat samiti Nanded, Taluka Haveli, District Pune and (C) all that piece and parcel of the Flat bearing No. F-2004, 20th floor, admeasuring carpet area 998 Sq. Fts., carpet plus sit out admeasuring area 7.80 Sq. Mtr. i.e. 84 Sq. Ft. carpet and one covered car parking on the ground floor in the building F- Aasawari in the scheme known as Nanded City within the limits of Grampanchayat samiti Nanded, Taluka Haveli, District Pune, more particularly described in the Schedule B of the Original Application.

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D} The applicant Bank is entitled to sell the mortgaged property 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 and defendants.

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Sd/( Dilip G. Murumkar ) Place : Pune Presiding Officer Date : 17.04.2026 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1233/2023 ) 7 of 7

Union Bank of India v. Ms Shambhu Mahadev Sugar and Allied Industries Ltd.

Case brief

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Union Bank of India v. Ms Shambhu Mahadev Sugar and Allied Industries Ltd.

Case brief

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