Allowed

Bank of India v. Gunda Sahir Waghmode

DRT1 Jul 2026OA/183/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Bank of India for recovery of Rs.15,61,633 from a borrower and guarantor. The court awarded future interest at 9% per annum instead of the claimed 13.45%, secured by a mortgage subject to a prior charge.

What did the court decide?

Repayment of Rs.15,61,633 plus future interest at 9% per annum from 27.07.2018; issuance of Recovery Certificate; right to sell mortgaged property.

Bank of India versus Gunda Sahir Waghmode — Banking and Recovery | DRT (2026)

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Presented on .. 27.07.2018 Registered on .. 16.02.2023 Decided on .. 01.07.2026 Duration .. Y—M—D 07--11--05

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 183/2023.

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Bank of India,

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A Bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its head office at Star House, C-5, G Block, Bandra-Kurla Complex, Bandra East, Mumbai – 400 051 and branch at – Kavathe Mahankal, Taluka Kavathe Mahankal, District Sangli 416 405.

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… Applicant

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Versus

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1 Mr. Gunda Shahir Waghmode, Age Adult, Occ. Agriculture, Add. : A/P Kudnur, Taluka Jath, District Sangli 416 404.

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2 Shri Mahankali Sahakari Sakhar Karkhana Limited,

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Incorporated and registered under the provision of the Maharashtra Cooperative Societies Act, 1960 having Regd. Office – At Post Kavathe

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Sanap ( OA No. 183/2023 ) 1 of 7

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Mahankal, Taluka Kavathe Mahankal, District Sangli 416 405.

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3 Sangli District Central Co-op. Bank Ltd.,

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Incorporated and registered under the provision of the Maharashtra Cooperative. Societies Act, 1960 having Regd. Office at – SDCC HO, Pushpraj Chowk, Sangli 416 416. … Defendants

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Appearances :- For Applicant For Defendants

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Advocate Satyen Jagtap. Ex parte.

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Total Claim Amount – Rs.15,61,633/-

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JUDGMENT

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(Delivered on 01^st July, 2026)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.15,61,633/- together with future interest @13.45% per annum from 17.07.2018 till realization of the entire amount from defendant Nos. 1 and 2.

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Brief facts of the application are as under :-

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Defendant No.1 is a borrower and defendant No. 2 is guarantor for discharging of the loan liability of defendant No.1 granted by the applicant Bank to defendant No.1. Defendant No.2 has created first charge by way of mortgaging the properties to defendant No.3,

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Sanap ( OA No. 183/2023 ) 2 of 7

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which are mortgaged to the applicant Bank by way of second charge. Therefore, defendant No.3 is joined in this Application as necessary party and no relief has been claimed against defendant No.3.

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Defendant No. 2 carries on business of manufacturing of sugar and by-products out of sugar and avails services of Harvesting and Transport contractors in every crushing season for Harvesting and Transportation of Sugarcane from the fields of agriculturists to the Sugar Mill. Defendant No. 2 proposed to disburse loans / advances to 282 Truck / Tractors operators / bullock carts operators for crushing season 2013-14.

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As per the loan application of defendant No.2, the applicant Bank sanctioned the aggregate credit/demand loan facility of Rs.2520.00 Lakhs to 282 borrowers vide Sanction Letter dated 19.08.2013. At the instance of defendant No.2, defendant No. 1 requested the applicant Bank for demand loan facility for Harvesting / Transporting of sugarcane to defendant No.2 vide loan application dated 15.09.2013. Accordingly, the applicant Bank sanctioned demand loan of Rs.9,00,000/- to defendant No.1. Defendant No.2 stood guarantor for the repayment of loan availed by defendant No.1.

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Sanap ( OA No. 183/2023 ) 3 of 7

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In order to secure the aforesaid loan facility, defendant Nos. 1 and 2 have executed necessary loan and security documents in favour of the applicant Bank. Defendant No. 2 with the consent of defendant No.3 has created second charge on the properties Gat Nos. 1456 to 1464, 1466, 1468A, 1469 to 1472, 1474 to 1479, 1483 to 1493, 70 and 72 situated at Kavathe Mahankal, District Sangli by executing mortgage deed dated 24.01.2011, in favour of the applicant Bank.

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Thereafter, as per request of defendant Nos.1 and 2, the applicant Bank restructured the said demand loan of Rs.9,00,000/- to Term Loan of Rs.10,95,606/- which was outstanding amount of demand loan facility of Rs.9 Lakh as on 31.07.2015.

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Defendant No. 1 has also executed Acknowledgment of Debts/Securities Letter dated 31.07.2015 and thereby confirmed the balance outstanding in loan account.

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 31.05.2018, the applicant Bank has classified the account of the defendants as Non-Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 02.07.2018, the applicant Bank issued legal Notice to the Sanap ( OA No. 183/2023 ) 4 of 7

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defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank.

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Hence, this application is filed.

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The defendants failed to appear despite service of summons. Therefore, the application proceeded exparte against the defendants as per Order dated 07.11.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Shivajee Bhardwaj, Branch Manager of the applicant Bank, and has produced on record the photocopies/original loan transaction documents at Sr. Nos. AW1-1 to AW1-25 along with list (Exhibit 7), 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 defendants failed to appear and contest the application, I find no reason to disbelieve evidence of the applicant Bank. Therefore, application deserves to be allowed against defendant Nos.1 and 2. No relief is claimed against defendant No.3, therefore, no order against defendant No.3.

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The applicant Bank has claimed future interest @13.45% per annum from 17.07.2018 till payment of entire dues.

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Sanap ( OA No. 183/2023 ) 5 of 7

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However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple) from the date of filing of the Original Application i.e. 27.07.2018 till full payment/realization of the amount, it would be just and reasonable rate of interest.

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Hence, I pass the following order.

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O R D E R

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A} Original Application No. 183/2023 is allowed with costs against defendant Nos.1 and 2.

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B} Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.15,61,633/(Rupees Fifteen Lakh Sixty One Thousand Six Hundred Thirty Three only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 27.07.2018 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 valid and subsisting mortgage of properties Gat Nos. 1456 to 1464, 1466, 1468A, 1469 to 1472, 1474 to 1479, 1483 to 1493, 70 and 72 situated at Kavathe Mahankal, Taluka Kavathe Mahankal, District Sangli, more particularly described in the Para No. 5.11 of the

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Original Application, subject to first charge of defendant No.3.

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D} The applicant Bank is entitled to sell the mortgaged property to recover its dues, subject to first charge of defendant No.3.

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E} No order in respect of defendant No.3 as no relief has been claimed against defendant No.3.

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F} Issue Recovery Certificate. G} The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

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Sd/( Dilip G. Murumkar ) Presiding Officer Place : Pune Debts Recovery Tribunal, Date : 01.07.2026 Pune.

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Sanap ( OA No. 183/2023 ) 7 of 7

Bank of India v. Gunda Sahir Waghmode

Case brief

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Bank of India v. Gunda Sahir Waghmode

Case brief

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