Allowed

Bank of India v. Mr. Santosh Baburao Jivrak

DRT20 Jan 2026OA/164/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant Bank of India's original application for recovery of a term and crop loan defaulting by the borrowers. The respondent-defendants were directed to pay the principal amount along with reduced future interest of 9% simple per annum, secured by three agricultural properties. A recovery certificate was issued.

What did the court decide?

Order allowed with costs; respondents to pay Rs. 72,51,194.11/- plus future interest at 9% simple p.a. secured by mortgaged properties; recovery certificate issued.

Bank of India versus Mr. Santosh Baburao Jivrak — Banking and Recovery | DRT (2026)

¶1

Presented on: 28.02.2025 Registered on: 12.03.2025 Decided on: 20.01.2026 Duration: Y M D 00 10 22

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 164/2025

¶3

TOTAL CLAIM AMOUNT – Rs. 72,51,194.11/-

¶4

Bank of India

¶5

A Body Corporate constituted under the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970, Having its Head Office at Star House, “C-5”, G-Block, Bandra Kurla Comples, Bandra (East), Mumbai and having branches amongst other places at Lassur Station, Tq. gangapur, Dist. Chh. Sambhajinagar, through its Power of Attorney, Mr. Vitthal Onkar Chavan, Age: 38 yrs., Occ.: Service, R/o. Chh. Sambhajinagar.

¶6

… Applicant

¶7

Versus

¶8

1. Mr. Santosh Baburao Jivrak, Age: Major, Occ.: Agri., R/o.: At Post Ghodegaon, Tq. Gangapur, Dist. Chh. Sambhajinagar – 423701.

(OA No.164/2025)

Page 1 of 9

[AMBADAS]

2. Mr. Narayan Baburao Jivrak,

¶13

Age: Major, Occ.: Agri., R/o.: At Post Ghodegaon, Tq. Gangapur, Dist. Chh. Sambhajinagar – 423701.

¶14

…Defendants

¶15

APPEARANCES

¶16

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

¶17

JUDGMENT

¶18

Delivered on 20.01.2026

¶19

The Applicant Bank has filed the present application for the recovery of a sum of Rs. 72,51,194.11/- (Rupees Seventy Two Lacs, Fifty One Thousand, One Hundred Ninety Four and Eleven Paisa only), along with further interest from the date of filing of the Original Application, i.e., 28.02.2025, until the date of realization of the entire outstanding dues from the Defendants.

¶20

Brief facts of the application are as under:

¶21

That, the Defendant No. 1 had approached to the Applicant bank

¶22

and requested to sanction a Term loan facility and Crop Loan facility. Upon considering the request and need of the defendants,

¶23

the Applicant Bank sanctioned a Term loan of Rs. 13,50,000/- &

(OA No.164/2025)

Page 2 of 9

[AMBADAS]

Crop loan facility of Rs. 5,80,000/- vide sanction letter dated 09.04.2012 on certain terms and conditions. The agreed rate of interest was @ 14.75% p.a. and @ 14.25 p.a. respectively with half yearly rests. The defendants also agreed to pay an additional interest by way of liquidated damages @ 2% p.a. in case of default in repayment.

¶28

That, Thereafter, upon the request and demand of the defendants, the above Crop Loan Facility came to be renewed and restructured to the extent of Rs. 7,67,410/- on 30.09.2015 on certain terms and conditions.

¶29

In order to secure the aforesaid loan facilities, the Defendants executed various loan documents in favour of the Applicant Bank, including the sanction letter, demand promissory notes, registered mortgage deed bearing daybook no. 1732 dated 10.04.2012 r/w. registered correction deed bearing daybook No. 3360 dated 28.07.2014. Additionally Defendant No. 2 stood as

(OA No.164/2025)

Page 3 of 9

[AMBADAS]

guarantor for Defendant No.1 and executed a Deed of Guarantee

¶34

dated 09.04.2012 in favour of the Applicant Bank.

¶35

The Applicant Bank further contends that, in order to secure the Loan sanctioned to them, the Defendant No. 1 created first charge over immovable properties by executing registered mortgage deed bearing daybook no. 1732 dated 10.04.2012 r/w. registered correction deed bearing daybook No. 3360 dated 28.07.2014, in favour of the Applicant Bank. The mortgage was created in respect of the following properties –

¶36

i) All that piece and parcel of Agricultural land, admeasuring 8 Acre 18 Guntha out of Gat No. 141, situated at Village Kolghar, Tq. Gangapur, Dist. Aurangabad, which is bounded as under: East :- Land of Latabai, West :- Land of Parsaram, South:- Land of Kalyan Dolsar, North: - Land of Raju.

¶37

ii) All that piece and parcel of Agricultural land, admeasuring 0H 80 R out of Gat No. 188, situated at Village Ghodegaon, Tq. Gangapur, Dist. Aurangabad, which is bounded as under: East :- Land of Vasanth Jagannath, West :- Land of Balasaheb Rangnath, South:- Land of Narayan Baburao, North: - Land of Shriram Salunke.

(OA No.164/2025)

Page 4 of 9

[AMBADAS]

iii) All that piece and parcel of Agricultural land, admeasuring 0H 90 R out of Gat No. 189, situated at Village Ghodegaon, Tq. Gangapur, Dist. Aurangabad, which is bounded as under: East :- Land of Shantabai Pawar, West :- Land of Balasaheb Jivrak, South:- Shiv, North: - Land of Narayan Baburao.

¶42

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 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 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 defendant became irregular and classified as NPA on 31.03.2018. Therefore on 08.02.2025 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, the

(OA No.164/2025)

Page 5 of 9

[AMBADAS]

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

¶47

¶48

The defendants failed to appear in matter though they were served through RPAD. Hence, the defendants were proceeded exparte as per Order dated 07.10.2025.

¶49

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-04 of Mr. Vitthal Onkar Chavan, POA of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-28 as per list of documents Exh.05 which corroborates the case of the applicant Bank.

¶50

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

¶51

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.

(OA No.164/2025)

Page 6 of 9

[AMBADAS]

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

¶56

The applicant Bank has claimed future interest @14.25%per annum from the date of filing i.e. 28.02.2025 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) on outstanding amount, it would be just and reasonable rate of interest.

¶57

ORDER

¶58

(A) Original Application No. 164/2025 is allowed with costs.

¶59

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 72,51,194.11/- (Rupees Seventy Two Lacs, Fifty One Thousand, One Hundred Ninety Four and Eleven Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e. 28.02.2025 till full

(OA No.164/2025)

Page 7 of 9

[AMBADAS]

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

¶64

¶65

following immovable properties vide documents at Exh.

¶66