Allowed

Canara Bank v. Mr. Sharad Appasaheb Labde

DRT9 Jun 2026OA/178/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Bank's application for recovery of a loan of Rs. 30,02,082.60 owed by five defendants. The court ordered repayment of principal, a reduced future interest rate of 7% per annum, and sanctioned the sale of mortgaged properties to recover dues, issuing a Recovery Certificate.

What did the court decide?

Payment of sum of Rs. 30,02,082.60/− along with future interest @ 7% p.a. (simple). Permission to sell mortgaged properties. Recovery Certificate issued.

Canara Bank versus Mr. Sharad Appasaheb Labde — Contract and Commercial Disputes | DRT (2026)

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Presented on: 10.06.2023 Registered on: 20.11.2023 Decided on: 09.06.2026 Duration: Y M D 02 11 29

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 178/2023

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TOTAL CLAIM AMOUNT – Rs. 30,02,082.60/-

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CANARA BANK,

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A Body Corporate constituted under the Banking companies (Acquisition and Transfer of Undertaking) Act, 1970 & Having its Head Office at S P & D Wing, Head Office, 112 J C Road, Bengaluru, and having branches amongst the other places at Shrigonda, Tq. Shrigonda, Dist. Ahmednagar, through its Authorized Person, Mr. Vivek s/o Bhagwat Pawar (Senior Manager), Age: 35 yrs., Occ.; Service, R/o. Shrigonda, Tq. Shrigonda, Dist. Ahmednagar.

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… Applicant

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Versus

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1. Mr. Sharad Appasaheb Labde Age: Major, Occ.: Agriculture, R/o.: At Gut No. 469 & 471, Post Pargaon Sudrik Tq. Shrigonda, Dist. Ahmednagar-413702.

(OA No.178/2023)

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[AMBADAS]

2. Mr. Ravindra Appasaheb Labde Age: Major, Occ.: Agriculture, R/o.: At Gut No. 469 & 471, Post Pargaon Sudrik Tq. Shrigonda, Dist. Ahmednagar-413702.

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3. Smt. Nandabai Appasaheb Labde

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Age: Major, Occ.: Agriculture, R/o.: At Gut No. 469 & 471, Post Pargaon Sudrik Tq. Shrigonda, Dist. Ahmednagar-413702.

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4. Smt. Surekha Prashant Purane

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Age: Major, Occ.: Agriculture, R/o.: At Gut No. 469 & 471, Post Pargaon Sudrik Tq. Shrigonda, Dist. Ahmednagar-413702.

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5. Mr. Namdeo Babu Auti

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Age: Major, Occ.: Agriculture, R/o.: A/p Autewadi, Tq. Shrigonda, Dist. Ahmednagar-413702.

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…Defendants

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

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JUDGMENT Delivered on 09.06.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 30,02,082.60/- (Rupees Thirty Lacs, Two

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Thousand, Eighty Two and Sixty Paisa only), along with future

(OA No.178/2023)

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[AMBADAS]

interest from the date of filing of the Original Application, i.e., 10.06.2023, until the date of realization of the entire outstanding dues from the Defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that the Defendant No. 1 to 4 approached and requested the Applicant Bank for a Term loan facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank Sanctioned Term loan facility of Rs. 10,50,000/- for agriculture purpose vide sanction letter dated 28.02.2014 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facility was @12.70% p.a. with half yearly rests. The Defendants 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 facilities, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letter, registered mortgage deed bearing

(OA No.178/2023)

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[AMBADAS]

daybook no. 808 dated 03.03.2014, & hypothecation agreement

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etc. Additionally, defendant No. 5 stood as guarantor for

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defendant No. 1 to 4 and executed deed of guarantee dated

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10.03.2014 in favour of the Applicant Bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendants created first charge over their immovable properties under daybook no. 808 dated 03.03.2014 in favour of the Applicant Bank. The mortgage was

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created in respect of the following properties-

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i) All that piece and parcel of agricultural land admeasuring 2 H 30 R out of Gut No. 469, out of which 0 H 43 R belongs to Nandabai Labde, 0 H 22 R belongs to Ravindra Labde & 0 H 21 R belongs to Surekha Purane situated at Pargaon Sudrik, Tq. Shrigonda, Dist. Ahmednagar, which is bounded as under:

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East: Gut No. 460, West: Gut No. 471, South: Gut No. 470, North: Gut No. 467.

(OA No.178/2023)

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[AMBADAS]

& 0 H 31 R belongs to Sharad Labde, situated at Pargaon Sudrik, Tq. Shrigonda, Dist. Ahmednagar, which is bounded as under:

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East: Gut No. 469, 470, West: Gut No. River, South: Gut No. 449, North: Gut No. 472.

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The applicant bank further states that in order to secure the aforesaid loan facility, the defendants also executed hypothecation agreement thereby hypothecating all borrowers’ present and future crop whatsoever and wherever raised or to be raised including standing crops on the land.

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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 defendants became

(OA No.178/2023)

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[AMBADAS]

irregular and classified as NPA on 09.03.2018. Therefore, on 17.12.2022 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.

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The defendants failed to appear in matter though they were served through RPAD and paper publication. Hence, the defendants were proceeded ex-parte as per Order dated 08.05.2026.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Vivek s/o Bhagwat Pawar, Senior Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exhibit A-1 to A-15 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.

(OA No.178/2023)

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[AMBADAS]

Since the defendants failed to appear and did not 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.

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

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The applicant Bank has claimed future interest @11.85 % p.a. from the date of filing i.e. 10.06.2023 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 @ 7% 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. 178/2023 is allowed with costs.

(OA No.178/2023)

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[AMBADAS]

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 30,02,082.60/- (Rupees Thirty Lacs, Two Thousand, Eighty Two and Sixty Paisa only), along with future interest @ 7% per annum (simple) from the date of filing of the Original Application i.e. 10.06.2023 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 mortgage of the following immovable properties bearing daybook no. 808 vide registered mortgage deed dated 03.03.2014 at Exhibit A-6 in list of documents Exh.

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East: Gut No. 460, West: Gut No. 471, South: Gut No. 470, North: Gut No. 467.

(OA No.178/2023)

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[AMBADAS]

ii) All that piece and parcel of agricultural land admeasuring 2 H 49 R P.K. 02 R totally admeasuring 2 H 51 R out of Gut No. 471, out of which 0 H 31 R belongs to Nandabai Labde, 0 H 31 R belongs to Ravindra Labde & 0 H 31 R belongs to Surekha Purane & 0 H 31 R belongs to Sharad Labde, situated at Pargaon Sudrik, Tq. Shrigonda, Dist. Ahmednagar, which is bounded as under: East: Gut No. 469, 470, West: Gut No. River, South: Gut No. 449, North: Gut No. 472.

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(D) The applicant Bank is entitled to sell the mortgaged immovable properties and 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 defendants.

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(G)

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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:. 09.06.2026. Debts Recovery Tribunal, Aurangabad

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(OA No.178/2023)

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[AMBADAS]

Canara Bank v. Mr. Sharad Appasaheb Labde

Case brief

What is this about?

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Canara Bank v. Mr. Sharad Appasaheb Labde

Case brief

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