Allowed

Union Bank of India v. Mr. Baban Shivdas Nagrale

DRT7 Jan 2026OA/162/2025

Case brief

AI extract

What is this about?

In a recovery application filed by Union Bank of India against borrowers and a guarantor, the Debts Recovery Tribunal allowed the claim for loan repayment including future interest at 9% p.a., relying on unrebutted documents due to the respondents' absence.

What did the court decide?

Allowed recovery of Rs. 20,70,506.99 with future interest @ 9% p.a. secured by mortgaged property; Recovery Certificate issued.

Union Bank of India versus Mr. Baban Shivdas Nagrale — Banking and Recovery | DRT (2026)

¶1

Presented on: 25.02.2025 Registered on: 12.03.2025 Decided on: 07.01.2026 Duration: Y M D 00 10 12

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 162/2025

¶3

TOTAL CLAIM AMOUNT – Rs. 20,70,506.99/-

¶4

Union Bank of India, A Body Corporate constituted 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.: Service, R/o. Station Road, Dhule.

… Applicant

(OA No.162/2025)

Page 1 of 8

[AMBADAS]

Versus

1. Mr. Baban Shivdas Nagrale, Age: Major, Occ.: Agri. R/o.: At Chitoad Road, Annabhau Sathe Nagar, Near Fashi Pool Chowk, Dhule, Dist. Dhule 424001.

¶11

2. Mr. Rakesh Baban Nagrale,

¶12

Age: Major, Occ.: Agri. R/o.: At Chitoad Road, Annabhau Sathe Nagar, Near Fashi Pool Chowk, Dhule, Dist. Dhule 424001.

¶13

…Defendants

¶14

APPEARANCES

¶15

For the Applicant For Defendants

¶16

Mr. K. D. Pande -Advocate Ex-parte

¶17

JUDGMENT Delivered on 07.01.2026

¶18

The Applicant Bank has filed the present application for the recovery of a sum of Rs. 20,70,506.99/- (Rupees Twenty Lacs, Seventy Thousand, Five Hundred Six and Ninety 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 Defendants.

(OA No.162/2025)

Page 2 of 8

[AMBADAS]

Brief facts of the application are as under:

¶23

The Applicant Bank states that the Defendant No. 1 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. 19,60,000/vide sanction letter dated 31.12.2019 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @11.75% p.a. with half yearly rests. The Defendant also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

¶24

In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank. These included sanction letter, simple mortgage deed bearing daybook no. 971 dated 19.12.2019, letter of undertaking, demand promissory note, & hypothecation agreement. Additionally defendant No. 2 stood as guarantor for defendant No. 1 and

(OA No.162/2025)

Page 3 of 8

[AMBADAS]

executed deed of guarantee on 31.12.2019 in favour of the

¶29

Applicant Bank.

¶30

The Applicant Bank further contends that, in order to secure the

¶31

aforesaid loan facility, the Defendant No. 1 created first charge over his immovable property under daybook no. 971 dated 19.12.2019 in favour of the Applicant Bank. The mortgage was

¶32

created in respect of the following property-

¶33

All that piece and parcel of Agricultural land admeasuring 0 Hector 54 R, out of total area admeasuring 1 H 38 R forming part of Gut No. 94, situated at Village Shridhane, Tq. and Dist. Dhule, which is bounded as under. East: Land of Bapu Bhatu Patil, West: Land of Nimba Bhika Patil, South: Land of Yashwant Bhika Patil, North: Land of Rakesh Baban Nagarale.

¶34

The applicant bank contended that the defendants have failed to keep their promise and commitments agreed by them with regard to due repayment of the loan amount. The defendants failed to operate the loan account properly and failed to pay the agreed

¶35

rate of interest as per terms and conditions of the sanction letter.

(OA No.162/2025)

Page 4 of 8

[AMBADAS]

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 NPA on 24.04.2024. Therefore, on 12.02.2025 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, the defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

¶40

The defendants failed to appear in matter though they were served through RPAD. Hence, the defendants were proceeded exparte as per Order dated 17.09.2025.

¶41

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Bhatusingh Shamsing Thakur, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-13 along with list of documents Exh.5 which corroborates the case of the applicant Bank.

(OA No.162/2025)

Page 5 of 8

[AMBADAS]

I have heard arguments of the learned Advocate for the applicant Bank.

¶46

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 the reliefs as claimed.

¶47

The applicant Bank has claimed charge over immovable property of the borrower which is mortgaged in favour of the applicant bank.

¶48

The applicant Bank has claimed future interest @11.75% 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.

(OA No.162/2025)

Page 6 of 8

[AMBADAS]

ORDER

(A) Original Application No. 162/2025 is allowed with

¶54

costs.

¶55

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 20,70,506.99/- (Rupees Twenty Lacs, Seventy Thousand, Five Hundred Six and Ninety 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 payment/realization of the amount mentioned in this operative order.

¶56

(C) The aforesaid adjudicated amount is secured by the mortgage of the following immovable property bearing daybook no. 971 vide registered simple mortgage deed dated 19.12.2019 at Exh. A-7 in list of documents Exh. 5.

¶57

¶58

East: Land of Bapu Bhatu Patil, West: Land of Nimba Bhika Patil, South: Land of Yashwant Bhika Patil,

(OA No.162/2025)

Page 7 of 8

[AMBADAS]

North: Land of Rakesh Baban Nagarale.

¶63

(D) The applicant Bank is entitled to sell the mortgaged immovable property and hypothecated articles/goods

¶64

etc., to recover its dues.

¶65

(E) Issue Recovery Certificate accordingly.

¶66

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

¶67

(G) File be consigned to the record room.

¶68

Sd/-

¶69

Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.07.01.2026 Debts Recovery Tribunal, Aurangabad

¶70

(OA No.162/2025)

¶71

Page 8 of 8

¶72

[AMBADAS]

Union Bank of India v. Mr. Baban Shivdas Nagrale

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Mr. Baban Shivdas Nagrale

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Parties & counsel

Coram

Case details

Similar cases

Canara Bank versus M/S Mauli Agriclinic and Business Centre

Bank of Maharashtra versus M/S Satyam Trading Company

Union Bank of India versus Mr. Chandulal Naval Patil

Bank of Maharashtra versus Sunita Sharad Bhadane

Bank of Maharashtra versus Mrs. Vidya Santosh Zalte

Union Bank of India versus Sundarrao Madhavrao Kadam (Deceased)