Allowed

Bank of Maharashtra v. Smt.Shailabai Machindra Gayke

DRT1 Jul 2026OA/140/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by Bank of Maharashtra against borrowers and guarantors for recovery of outstanding loan dues. Being an exparte procedure due to defendants' default, the Tribunal validated the unrebutted bank evidence and granted recovery along with a 7% per annum simple interest rate. Security charges were confirmed over mortgaged and hypothecated propert

What did the court decide?

Recovery of Rs.48,84,098/- with 7% p.a. simple interest, issuance of Recovery Certificate, and direction to sell mortgaged/hypothecated properties for dues recovery.

Bank of Maharashtra versus Smt.Shailabai Machindra… — Contract and Commercial Disputes | DRT (2026)

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Presented on : 26.12.2022 Registered on : 07.11.2023 Decided on : 01.07.2026 Duration : Y M D 03.06.05

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (BEFORE DR. J.R. CHAUHAN, PRESIDING OFFICER)

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ORIGINAL APPLICATION NO.140 OF 2023

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TOTAL CLAIM AMOUNT : Rs.48,84.098 /-

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Bank of Maharashtra, A Body Corporate, constituted under the Provisions of Banking Companies (Acquisition and Transfer of Undertaking) Act V of 1970, having its Head Office At 1501, Lokmangal, Shivaji Nagar, Pune and one of its Branch at Kannad, District Aurangabad, at Kharedi Vikri Sangh, Kannad, Dist. Aurangabad through its Authorized Signatory Shri Sachin Balasaheb Kapse, Branch Manager, Kannad Branch, District Aurangabad Applicant

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Versus

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Smt. Shailabai Machindra Gayke, Age : Major, Occu. Agriculture, R/o Khamgaon, Tq. Kannad, District Aurangabad – 431 103

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[N. Jahagirdar] [O.A. No.140/2023] Page 1 of 17

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Smt. Aarti Amol Nikam, Age : Major, Occu. Agriculture, R/o Gavhali, Tq. Kannad, District Aurangabad – 431 103

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Smt. Namrata Prashant Nikam, Age : Major, Occu. Agriculture, R/o Gavhali, Tq. Kannad, District Aurangabad – 431 103 Defendants

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APPEARANCE :

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Applicant : Ms. Archana B. Karadkhedkar, Advocate Defendants : Ex-parte

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CORAM: DR. J.R. CHAUHAN, PRESIDING OFFICER

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JUDGMENT

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(Pronounced on : 01.07.2026)

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The Applicant Bank has filed the present application against the defendants for the recovery of a sum of Rs.48,84,098/- (Rupees

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Forty Eight Lakh, Eighty Four Thousand and Ninety Eight only), together with future interest @ 12.15% per annum with monthly rests from 28.09.2022 till the realization of the entire dues with all

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[N. Jahagirdar] [O.A. No.140/2023] Page 2 of 17

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costs, charges and accordingly, Recovery Certificate may be issued against the defendants.

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The facts of this application, in brief, are as under.

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According to the applicant, the defendant No.1 is a borrower and defendant Nos.2 and 3 are the guarantors to the loan of defendant No.1 in their individual and personal capacity. The applicant bank, vide its sanction letter dated 18.04.2014, sanctioned Term Agriculture Loan facility of Rs.14.00 Lakh to defendant No.1 on various terms and conditions. The said term loan is sanctioned on primary security of hypothecation of movables, crops, machines, equipments, machinery, furniture and fixtures, fixed and current assets (present and future), etc., more particularly mentioned in the Composite Deed of Hypothecation dated 18.02.2014 and on the collateral security of agricultural land admeasuing 1 H 23 R, situated at Gut No.177, Khamgaon, Tq. Kannad, Dist. Aurangabad, agricultural land admeasuring 1 H 22 R, situated at Gut No.178, Khamgaon, Tq. Kannad, Dist. Aurangabad, agricultural land

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[N. Jahagirdar] [O.A. No.140/2023] Page 3 of 17

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admeasuring 1 H 11 R, situated at Gut No.179, Khamgaon, Tq. Kannad, Dist. Aurangabad, agricultural land admeasuring 0 H 24 R situated at Gut No.221, Khamgaon, Tq. Kannad, Dist. Aurangabad

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and agricultural land admeasuring 1 H 72 R, situated at Gut No.123, Khamgaon, Tq. Kannad, Dist. Aurangabad, all owned by defendant No.1. Defendant Nos.2 and 3 are guarantors for the above mentioned facility. The Term Agriculture Loan Facility was repayable along with interest as would be prevailing from time to time. The applicable interest rate at the time of sanction was @ 13.25%. The said Term Loan facility was available for nine years.

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The defendants agreed for various other terms and conditions as stipulated in Sanction Letter dated 18.02.2014.

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Further it is stated that the defendants, in consideration of applicant bank having sanctioned the Term Loan facility of Rs.14.00 Lakh and agreeing to make available the said loan facility, to secure the repayment of loan facility of Rs.14.00 lakh along with interest and expenses, have executed following documents :

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[N. Jahagirdar] [O.A. No.140/2023] Page 4 of 17

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(i) Request Letter submitted by defendant No.1 to the applicant bank dated 18.02.2014 for making term loan facility of Rs.14.00 lakh available;

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(ii) Hypothecation Agreement dated 18.02.2014, executed by defendant No.1 with the applicant bank, thereby securing term loan facility of Rs.14.00 lakh, whereby defendant No.1 created first charge on all the crops whatsoever and wherever raised or to be raised including standing crops on the land described in the second schedule in the hypothecation agreement and other movables, described in third schedule of the hypothecation agreement and in the said agreement itself.

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(iii) Demand Promissory Note dated 18.02.2014, executed by defendant No.1, thereby promising to pay to the applicant bank a sum of Rs.14.00 lakh as and by way of term loan facility together with compound interest thereon @ 13.25% p.a.;

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(iv) Deed of Guarantee dated 18.02.2014, executed by defendant Nos.2 and 3, thereby guaranteeing the due repayment to the applicant bank together with interest and all costs, charges and expenses in case of default committed by defendant No.1 in making payment of due installments of term loan account.

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[N. Jahagirdar] [O.A. No.140/2023] Page 5 of 17

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Further it is stated that the defendants approached the applicant bank and by submitting an application, requested for grant of the MKCC (Mahabank Kisan Credit Card) Loan Facility. Considering all the facts and genuine request of defendants, the applicant bank, vide Sanction Letter dated 18.02.2014, sanctioned MKCC Loan Facility of Rs.3.00 lakhs to the defendants on various terms and conditions. The said loan facility is sanctioned on the primary security of hypothecation of movables, crops, machines, equipments, machinery, furniture and fixtures, fixed and current assets (present and future), etc. more particularly mentioned in the Composite Deed of Hypothecation dated 18.02.2014 and on the collateral security of agricultural lands, details of which have been mentioned in para 5.4 of the application. The defendant Nos.2 and 3 are guarantors for the above mentioned facility. The said MKCC

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loan facility was repayable along with interest at the rate of 7%. The defendants agreed for various other terms and conditions as stipulated in Sanction Letter dated 18.02.2014. The defendants

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[N. Jahagirdar] [O.A. No.140/2023] Page 6 of 17

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while availing the said MKCC loan facility, have executed following documents:

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(i) Request Letter submitted by defendant No.1 to the applicant bank dated 18.02.2014 for making term loan facility of Rs.3.00 lakh available;

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(ii) Hypothecation Agreement dated 18.02.2014, executed by defendant No.1 with the applicant bank, thereby securing term loan facility of Rs.3.00 lakh, whereby defendant No.1 created first charge on all the crops whatsoever and wherever raised or to be raised including standing crops on the land described in the second schedule in the hypothecation agreement and other movables, described in third schedule of the hypothecation agreement and in the said agreement itself.

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(iii) Demand Promissory Note dated 18.02.2014, executed by defendant No.1, thereby promising to pay to the applicant bank a sum of Rs.3.00 lakh as and by way of MKCC loan facility together with compound interest thereon @ 75% p.a.;

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(iv) Deed of Guarantee dated 18.02.2014, executed by defendant

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Nos.2 and 3, thereby guaranteeing the due repayment to the applicant bank together with interest and all costs, charges and

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[N. Jahagirdar] [O.A. No.140/2023] Page 7 of 17

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expenses in case of default committed by defendant No.1 in making payment of due installments of MKCC loan account.

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(v) Agreement of Mahabank Kisan Credit Card ated 18.02.2014 executed by defendant No.1 for Rs.3.00 lakh, thereby agreeing to the terms and conditions stipulated in the agreement.

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It is stated that the aggregate loan facility of Rs.17.00 lakh was disbursed to defendant No.1, who has availed the said amount and confirms the same by duly signing on the Concurrence Letter dated 18.02.2014. In pursuance of terms and conditions of sanction, the defendant No.1 had signed and executed, on 13.02.2014, simple mortgage to secure loan (registered mortgage) for creating security interest over her property with applicant bank to secure the debt, whereby defendant No.1 mortgaged agricultural land admeasuring 1 H 23 R situated at Gut No.177, Khamgaon, Tq. Kannad, Dist. Aurangabad, agricultural land admeasuring 1 H 22 R, situated at Gut No.178, Khamgaon, Tq. Kannad, Dist. Aurangabad,

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[N. Jahagirdar] [O.A. No.140/2023] Page 8 of 17

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agricultural land admeasuring 1 H 11 R, situated at gut No.179, Khamgaon, Tq. Kannad, Dist. Aurangabad, agricultural land admeasuring 0 H 24 R, situated at Gut No.221, Khamgaon, Tq. Kannad, Dist. Aurangabad and agricultural land admeasuring 1 H 72 R, situated at Gut No.123, Khamgaon, Tq. Kannad, Dist. Aurangabad, owned by her and created first charge of applicant bank on the mortgaged properties. The defendants availed the loan facilities as per their requirement from applicant bank and received consideration. The applicant bank is maintaining Term Loan Account and MKCC Loan Account of the defendants regularly and has taken entries of all the transactions entered by defendants.

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Further it is stated that defendant Nos.1 to 3, on 17.02.2017, executed Balance and Security Confirmation Letter in favour of the applicant bank. The defendant Nos.1 to 3 acknowledged and confirmed that they have executed the Demand Promissory Note, Deed of Hypothecation, Deed of Guarantee and Registered Mortgage, etc. The defendant Nos.1 to 3 again executed Balance

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[N. Jahagirdar] [O.A. No.140/2023] Page 9 of 17

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and Security Confirmation Letter in favour of applicant bank on 20.01.2017 and 15.02.2020. The defendants committed defaults in

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repayment, due to which loan accounts of defendants became NonPerforming Assets (NPAs) on 31.05.2018. The officials of applicant bank demanded dues of applicant bank from time to time from the defendants. The defendants, however, only extended false promises of repayment. The applicant bank, on 03.10.2022, issued legal notice through Advocate to the defendants, calling upon them to pay its dues of Rs.48,84,098.00 in respect of both the loan accounts due as on 27.09.2022 and future interest, costs, expenses etc. As the defendants have failed to repay the outstanding loan amount in both loan accounts, the applicant bank is approaching this Tribunal for its recovery and various other reliefs as prayed in para No.6 of the Original Application. The claim details of the applicant bank against the defendants are given in the application as under:

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[N. Jahagirdar] [O.A. No.140/2023] Page 10 of 17

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Term Agriculture Loan Account No.60162396363 :

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Sr.No.	Particulars	Amount(Rs.)
a	Amount outstanding as on 27.09.2022	15,93,296.00
b	Unapplied interest from 19.10.2019 to27.09.2022	25,12,431.00
	Total :	41,05,727.00

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MKCC Loan Account No.60162515587 :

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Sr.No.	Particulars	Amount(Rs.)
a	Amount outstanding as on 27.09.2022	3,01,045.00
b	Unapplied interest from 19.10.2019 to27.09.2022	4,77,326.00
	Total :	7,78,371.00

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Total Dues :

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Sr.No.	Total Dues in Loan Accounts	Amount(Rs.)
A	Term Agriculture Loan Account No.60162396363	41,05,727.00
B	MKCC Loan Account No. 60162515587	7,78,371.00
	Total :	48,84,098.00

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[N. Jahagirdar] [O.A. No.140/2023] Page 11 of 17

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On the basis of above averments, the applicant bank has prayed for directions to the defendants to pay to the applicant a sum

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of Rs.48,84,098.00 (Rupees Forty Eight Lakhs, Eighty Four Thousand and Ninety Eight only) together with future interest at the rate of 12.15% p.a. on Term Loan of Rs.41,05,727.00 and at the rate of 7% on MKCC loan of Rs.7,78,371.00, both from 27.09.2022 till realization of entire amount, with monthly rests, along with all costs, charges and accordingly, Recovery Certificate may be issued.

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The defendants have failed to appear and did not contest this application, nor they have filed written statement despite sufficient opportunities and hence, vide order dated 15.02.2024, they are proceeded exparte.

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The applicant bank has filed Claim Affidavit of evidence dated 13.12.2022 (Exh-4) of Sachin s/o Balasaheb Kapse, serving as Branch Manager of applicant bank at its Branch at Kannad, District Aurangabad and has produced on record the original loan transaction documents (Annexure-A-1 to Annexure-A-24) in the list

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of documents dated 13.12.2022 (Exh-5), which corroborate the case

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of the applicant bank.

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I have heard the learned counsel for the applicant bank.

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As stated above, since the defendants failed to appear and did not contest this Original Application, nor they have filed written statement, I do not find any reason to disbelieve the unrebutted evidence of the applicant bank, produced on record. Therefore, the applicant bank is entitled for the reliefs claimed.

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The applicant bank has also claimed charge over hypothecated and mortgaged properties/assets of the borrowers.

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The applicant bank has claimed future interest at the rate of 12.15% p.a. on Term Loan and at the rate of 7% on MKCC loan with monthly rests, from 28.09.2022 till realization of entire amount. However, considering the facts of this case, I am of the opinion that rate of interest @ 7% per annum (simple interest) on outstanding amount in both loan accounts from the date of filing of Original Application, would be just and reasonable in this case.

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In the circumstances, in view of non-appearance of the defendants and in absence of submission of written statement by them, the ultimate result is that the Original Application deserves to be allowed. Hence, I pass the following order:

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ORDER

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(A) The Original Application No.140 of 2023 is allowed with

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costs.

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(B) The defendants shall pay jointly and severally to the applicant bank a sum of Rs.48,84,098.00 (Rupees Forty Eight Lakh, Eighty Four Thousand and Ninety Eight only) along with future interest @ 7% per annum (simple interest) from the date of filing of this Original Application i.e. 26.12.2022 till full payment/realization of the amount mentioned in this clause of operative order.

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(C) The aforesaid adjudicated amount is secured by the hypothecated current assets/movable properties vide Hypothecation Agreements both dated 18.02.2014

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[N. Jahagirdar] [O.A. No.140/2023] Page 14 of 17

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(Annexure-A-4 and Annexure-A-9) in list of documents (Exh-5) and mortgaged property as per registered Mortgage Deed dated 13.02.2014 (Annexure-A-14), in respect of the property, description of which as per Schedule to the Mortgage Deed (Annexure-A-14), is as under:-

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“1. All the piece and parcel of agricultural land, admeasuring 1 H 23 R situated at Gut No.177, Khamgaon, Tq. Kannad, Dist. Aurangabad, belonging to Smt. Shailabai Machindra Gayake, defendant No.1, bounded as follows:

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East : Govt. Road West : Appasaheb Gangadhar South : Shriram Kisan North : Shriram Jadhav

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All the piece and parcel of agricultural land admeasuring 1 H 22 R, situated at Gut No.178, Khamgaon, Tq. Kannad, Dist. Aurangabad, belonging to Smt. Shailabai Machindra Gayake, defendant No.1, bounded as follows:

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East : Karbhari Narayan West : Vijay Uttam South : Shriram Kisan North : River

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All the piece and parcel of agricultural land admeasuring 1 H 11 R, situated at gut No.179, Khamgaon, Tq. Kannad, Dist. Aurangabad, belonging to Smt. Shailabai Machindra Gayake, defendant No.1, bounded as follows:

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East : Own West : Shiv Road South : Samadhan Digambar North : Sailabai Machindra

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All the piece and parcel of agricultural land admeasuring 0 H 24 R, situated at Gut No.221, Khamgaon, Tq. Kannad, Dist. Aurangabad, belonging to Smt. Shailabai Machindra Gayake, defendant No.1, bounded as follows:

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East : Popat Sheku West : Kailash Sheku South : Kailash Savaliram North : Ramesh Savaliram

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All the piece and parcel of agricultural land admeasuring 1 H 72 R, situated at Gut No.123, Khamgaon, Tq. Kannad, Dist. Aurangabad, belonging to Smt. Shailabai Machindre Gayake , defendant No.1, bounded as under:

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East : Sudam Laxman West : Manik Shripat South : Ramkrushna Wamani North : Road

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