Allowed

Union Bank of India v. Mr. Shubham Sunil Patil

DRT5 Jan 2026OA/161/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Union Bank of India for recovery of a loan amount of Rs. 46,05,436.09 plus interest, following the default of the borrower who failed to appear in the proceedings.

What did the court decide?

Recovery of Rs. 46,05,436.09 plus future interest at 9% p.a. (simple) and entitlement to sell hypothecated goods.

Union Bank of India versus Mr. Shubham Sunil Patil — Contract and Commercial Disputes | DRT (2026)

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Presented on: 25.02.2025 Registered on: 12.03.2025 Decided on: 05.01.2026 Duration: Y M D 00 10 10

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 161/2025

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TOTAL CLAIM AMOUNT – Rs. 46,05,436.09/-

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Union Bank of India, A Body Corporate constituted

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under the Banking companies (Acquisition & Transfer of Undertakings) Act 1970, Having its Registered office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021 & having branches amongst the other places at Main Branch, Dhule through its Authorized Person, Mr. Bhatusing Shamsing Thakur (Branch Head), Age: 40 yrs., Occ.:

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Service, R/o. Station Road, Dhule.

… Applicant

Versus

(OA No.161/2025)

Page 1 of 7

[AMBADAS]

Mr. Shubham Sunil Patil, M/s. Tukai Oil Industries Age: Major, Occ.: Agri. R/o.: At Gut No. 52, Village Dhamani, Tq. and Dist. Dhule 424001.

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AND/ OR

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Mr. Shubham Sunil Patil, M/s. Tukai Oil Industries Age: Major, Occ.: Agri. R/o.: At Ganga Mai House, Nagaon, Tq. and Dist. Dhule 424005.

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…Defendant

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APPEARANCES For the Applicant Mr. K. D. Pande -Advocate For Defendant Ex-parte

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JUDGMENT Delivered on 05.01.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 46,05,436.09/- (Rupees Forty Six Lacs, Five Thousand, Four Hundred Thirty Six and Nine Paisa only), along with future interest from the date of filing of the Original Application, i.e., 25.02.2025, until the date of realization of the entire outstanding dues from the Defendant.

(OA No.161/2025)

Page 2 of 7

[AMBADAS]

Brief facts of the application are as under:

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The Applicant Bank states that the Defendant approached and requested the Applicant Bank for a Term loan facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned a Term loan facility of Rs. 45,00,000/vide sanction letter dated 11.11.2022 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @12.80% p.a. with monthly rests. The Defendant also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

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In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank. These included sanction letter, letter of undertaking, demand promissory note, & hypothecation agreement etc., in favour of the Applicant Bank.

(OA No.161/2025)

Page 3 of 7

[AMBADAS]

The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendant executed hypothecation agreement thereby hypothecating stock of cotton, cotton oil, assets created out of bank’s finance, book-debts, raw materials etc.

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The applicant bank contended that the defendant has failed to keep his promise and commitments agreed by him with regard to due repayment of the loan amount. The defendant 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 defendant to pay with the agreed rate of interest thereon, but the defendant failed and neglected to pay the same. The loan account of the defendant became irregular and classified as NPA on 28.01.2025. Therefore, on 12.02.2025 the applicant bank issued legal notice to the defendant through their advocate. Despite service of Notices, the defendant failed and

(OA No.161/2025)

Page 4 of 7

[AMBADAS]

neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendant failed to appear in matter though defendant was served through RPAD. Hence, the defendant was proceeded exparte as per Order dated 01.10.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Bhatusingh s/o. Shamsing Thakur, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-11 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 defendant 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 the reliefs as claimed.

(OA No.161/2025)

Page 5 of 7

[AMBADAS]

The applicant Bank has claimed charge over hypothecated properties of the borrower.

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The applicant Bank has claimed future interest @12.80% p. a. from the date of filing i.e. 25.02.2025 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. 161/2025 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank a sum of Rs. 46,05,436.09/- (Rupees Forty Six Lacs, Five Thousand, Four Hundred Thirty Six and Nine Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e. 25.02.2025 till full

(OA No.161/2025)

Page 6 of 7

[AMBADAS]

payment/realization of the amount mentioned in this operative order.

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hypothecation of stock of cotton, cotton oil, assets created out of bank’s finance, book-debts, raw materials etc. vide hypothecation agreement dated 11.11.2022 at

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Exh. A-7 in list of documents Exh. 5.

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(D) The applicant Bank is entitled to sell the hypothecated articles/goods etc., 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 defendant.

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(G) File be consigned to the record room.

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Sd/-

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Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.05.01.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.161/2025)

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Page 7 of 7

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[AMBADAS]

Union Bank of India v. Mr. Shubham Sunil Patil

Case brief

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Union Bank of India v. Mr. Shubham Sunil Patil

Case brief

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