Allowed

Union Bank of India v. M/S Krushnai Meditext Pvt. Ltd.

DRT10 Jul 2026OA/229/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application for recovery of Rs. 1.02 crore principal with future interest at 9% p.a. ordered against a borrower and guarantors for defaulted bank loans, securing the decree over hypothecated goods and book debts.

What did the court decide?

Order for payment of Rs. 1,02,60,057.96 plus 9% p.a. simple interest from date of application; charge created on hypothecated assets; recovery certificate issued.

Union Bank of India versus M/S Krushnai Meditext… — Contract and Commercial Disputes | DRT (2026)

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Presented on: 11.06.2023 Registered on: 05.12.2023 Decided on: 10.07.2026 Duration: Y M D 03 00 29

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 229/2023

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TOTAL CLAIM AMOUNT – Rs. 1,02,60,057.96/Union Bank of India, A Body Corporate constituted under the Banking companies (Acquisition and 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, Ahmednagar, through its Power of Attorney, Mr. … Applicant Kapil s/o Vijaysingh Bilwal (Law Officer), Age: 38 years, Occ.: Regional Office, Ahmednagar.

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Versus

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1. M/s. Krushnai Meditext Pvt. Ltd, R/o.: At Gut No. 885, Near Airtel Tower, At Post Lonivyanknath, Shrigonda, Tq. Shrigonda, Dist. Ahmednagar 413702. AND/OR M/s. Krushnai Meditext Pvt. Ltd, R/o.: At Plot No. C-20/2, MIDC, Nimblak, Ahmednagar 414001.

(OA No.229/2023)

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[AMBADAS]

2. Mr. Mahesh Bapusaheb Nalage, Age: Major, Occ.: Business, R/o.: At Post Lonivyanknath, Shrigonda, Tq. Shrigonda, Dist. Ahmednagar 413702. AND/OR Mr. Mahesh Bapusaheb Nalage, Age: Major, Occ.: Business, R/o.: At Post Ghargaon, Tq. and Dist. Ahmednagar 413702.

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3. Mrs. Neelima Mahesh Nalage, Age: Major, Occ.: Business, R/o.: At Post Lonivyanknath, Shrigonda, Tq. Shrigonda, Dist. Ahmednagar 413702. AND/OR Mrs. Neelima Mahesh Nalage, Age: Major, Occ.: Business, R/o.: At Post Ghargaon, …Defendants Tq. and Dist. Ahmednagar 413702.

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APPEARANCES

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For the Applicant Mr. K. D. Pande -Advocate For Defendants None / No W.S.

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JUDGMENT Delivered on 10.07.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 1,02,60,057.96/- (Rupees One Crore, Two

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Lacs, Sixty Thousand, Fifty Seven, and Ninety Six Paisa only), along

(OA No.229/2023)

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[AMBADAS]

with future interest from the date of filing of the Original Application, i.e., 11.06.2023, 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 through defendant No. 2 and 3 being directors of defendant No. 1 approached and requested the Applicant Bank for Cash Credit Facility & Term loan facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank Sanctioned Cash Credit Facility of Rs. 50,00,000/- & a Term loan facility of Rs. 75,00,000/- vide sanction letter dated 22.01.2019 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facilities was @14% & @13.50% p.a. respectively with monthly rests. The Defendants also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

(OA No.229/2023)

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[AMBADAS]

That, thereafter, the Defendant No. 1 through defendant No. 2 and 3 being directors of defendant No. 1 again approached and requested the Applicant Bank for renewal of Cash Credit Facility & Fresh WCTL facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank renewed and reduced the Cash Credit Facility to Rs. 35,00,000/- & sanctioned WCTL facility of Rs. 15,40,000/- vide sanction letter dated 16.06.2020 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facilities was @ 14% & @ 7.50% p.a. respectively with monthly 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 facility, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letters, letters of undertaking, hypothecation agreements, demand promissory notes, etc., in

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favour of the applicant bank. The defendant No. 2 and 3 stood as

(OA No.229/2023)

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[AMBADAS]

guarantors of defendant No. 1 and they executed letter of guarantee in favor of the applicant bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendants executed hypothecation

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agreement thereby hypothecating:

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All the goods, stocks, raw materials, plant machinery, fixtures, implements, fittings and other installations, furniture, vehicles, computers and all other articles, and things both present and future, whether installed or not, whether lying loose or in cases of being in or upon or about the Borrower’s factory premises, warehouses and godowns at C-20/2, MIDC Nimbalak, Ahmednagar ro wherever else the same may be or be held by any party anywhere to the order and disposition of the Borrower or in the course of transit to the Borrower to the Borrower (including those goods, machinery, implements etc. purchased out of the Term Loan sanctioned by the Bank covered under the Agreement)

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1. All the Borrower’s present and future book debts, outstanding monies, receivables, claims, bills, contracts securities, investments, rights and assets (hereinafter referred to as the “Book Debts”) as security for due repayment to the Bank at any time on demand the total balance outstanding in the various accounts and in installments as agreed in respect of the Term Loan account along with interest thereon.

(OA No.229/2023)

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[AMBADAS]

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 irregular and classified as NPA on 27.01.2023. Therefore, on 19.05.2023 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 appeared in matter but failed to file WS. Hence, right of defendants to file written statement stands closed and they are proceeded with No WS as per Order dated 22.05.2026.

(OA No.229/2023)

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[AMBADAS]

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Kapil Vijaysingh Bilwal, Power of Attorney Holder of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-32 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 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 hypothecated properties.

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The applicant Bank has claimed future interest @14%, @13.50% @7.50% p. a. respectively with monthly rests on three loans from the date of filing i.e. 11.06.2023 of this application till realization

(OA No.229/2023)

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[AMBADAS]

of the claim amount. However, considering the facts of the case, I am of the opinion that if future interest is granted @ 9% per

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annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 229/2023 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 1,02,60,057.96/- (Rupees One Crore, Two Lacs, Sixty Thousand, Fifty Seven, and Ninety Six Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e. 11.06.2023 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 hypothecation of the following assets. Vide documents at Exh. A-7, A-14, A-15 & @-A-22 in the list of documents Exh. 5.

(OA No.229/2023)

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[AMBADAS]

All the goods, stocks, raw materials, plant machinery, fixtures, implements, fittings and other installations, furniture, vehicles, computers and all other articles, and things both present and future, whether installed or not, whether lying loose or in cases of being in or upon or about the Borrower’s factory premises, warehouses and godowns at C-20/2, MIDC Nimbalak, Ahmednagar ro wherever else the same may be or be held by any party anywhere to the order and disposition of the Borrower or in the course of transit to the Borrower to the Borrower (including those goods, machinery, implements etc. purchased out of the Term Loan sanctioned by the Bank covered under the Agreement)

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All the Borrower’s present and future book debts, outstanding monies, receivables, claims, bills, contracts securities, investments, rights and assets (hereinafter referred to as the “Book Debts”) as security for due repayment to the Bank at any time on demand the total balance outstanding in the various accounts and in installments as agreed in respect of the Term Loan account along with interest thereon.

(OA No.229/2023)

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[AMBADAS]

(D) The applicant Bank is entitled to sell the above referred

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hypothecated assets/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) 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:.10.07.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.229/2023)

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[AMBADAS]

Union Bank of India v. M/S Krushnai Meditext Pvt. Ltd.

Case brief

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Union Bank of India v. M/S Krushnai Meditext Pvt. Ltd.

Case brief

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