Allowed

Union Bank of India v. M/s. S. R. Computers and Networks

DRT24 Jun 2026OA/241/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Union Bank of India to recover dues of Rs. 51 lakh plus interest. The court proceeded ex-parte due to default by borrowers, affirming the bank's claim and securing it over mortgaged properties.

What did the court decide?

Defendants ordered to pay Rs. 51,01,178 with future interest at 9% p.a.; mortgage properties adjudicated as security; directed to sell properties for recovery; Recovery Certificate issued.

Union Bank of India versus M/s. S. R. Computers… — Contract and Commercial Disputes | DRT (2026)

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Presented on: 25.01.2023 Registered on: 02.01.2024 Decided on: 24.06.2026 Duration: Y M D 03 04 29

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 241/2023

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TOTAL CLAIM AMOUNT – Rs. 51,01,178/Union Bank of India, A Body Corporate constituted

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under the Banking companies (Acquisition and Transfer of Undertakings) Act v, 1970 Having its Head office at 239, Backbay Reclamation Bombay

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400021 and one of its Brach at Assets Recovery Branch, Union Bank of India, 28/29 Hajari Chamber, Station Road, Friends Colony, Aurangabad, through

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its Authorized Officer, Mr. Dasari Thirupathi, Age: 34 years, Occ.: Branch Manager, New osmanpura Branch Aurangabad and having authority to file the application which includes the authority to file sign and verify the application.

… Applicant

(OA No.241/2023)

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[AMBADAS]

Versus

1. M/s. S.R. Computers and Networks, Shop No. 12, Sodhi Complex, Sabji Mandi, Paithan Gate, Aurangabad.

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2. Sachin Ashroba Kadam,

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Age: 41 Years, Occ.: Business R/o.: A-4, Pahade Residency, Shivaji Nagar Road, Opp. Janki Hotel, Ramkrishna Nagar, Aurangabad. And

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Sachin Ashroba Kadam, Age: 41 Years, Occ.: Business R/o.: Flat No. 202, Building No. B-11, Shubhlabh Enclave Gut No. 38, Nakshatrawadi, Aurangabad.

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3. Rushikesh Balasaheb Bangale,

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Age: 40 Years, Occ.: Business R/o.: Plot No. 19, Maya Nagar, N-2 CIDCO, Aurangabad. And Rushikesh Balasaheb Bangale, Age: 40 Years, Occ.: Business R/o.: Row House No. C-20, Akshay Labh, Nakshtrawadi, Paithan Road, Aurangabad.

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4. Rajani Balasaheb Bangale, Age: 66 Years, Occ.: Business R/o.: Row House No. C-20, Akshay Labh, Nakshtrawadi, Paithan Road, Aurangabad.

…Defendants

(OA No.241/2023)

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[AMBADAS]

APPEARANCES

For the Applicant Mrs. Rajashree R. Yewale - Advocate For Defendants Ex-parte

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JUDGMENT

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Delivered on 24.06.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 51,01,178/- (Rupees Fifty One Lacs, One Thousand, One Hundred and Seventy Eight only), along with future interest from the date of filing of the Original Application, i.e., 25.01.2023, 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 being proprietor approached and requested the Applicant Bank for financial assistance. Upon considering the request and financial needs of the Defendants, the Applicant Bank Sanctioned Cash Credit facility of Rs. 40,00,000/- vide sanction letter dated

(OA No.241/2023)

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[AMBADAS]

24.01.2014 on certain terms and conditions. The agreed rate of

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interest for the aforesaid loan was @13.75% p.a. 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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Thereafter, the Defendant No. 1 again approached and requested the Applicant Bank for renewal of cash credit facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank renewed the Cash Credit facility of Rs. 40,00,000/- vide sanction letter dated 18.08.2016 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @12.60% p.a. 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.

(OA No.241/2023)

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[AMBADAS]

These included sanction letter, letter of continuity, letter of

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undertaking, hypothecation agreement, demand promissory note, mortgage deed bearing document No. AGG-1-482-2014 dated 27.01.2014 etc., in favour of the applicant bank. Additionally defendant No. 2 to 4 stood as guarantors for defendant No. 1 and executed deed of guarantee dated 29.01.2014 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 property under mortgage deed bearing document No. AGG-1-482-2014 dated 27.01.2014 in favour of the Applicant Bank. The mortgage was created in respect of the following properties-

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i) All that piece and parcel of Flat No. 202 admesuring 620.00 sq. feets on stilt first floor, in Building B-11, in Shubh Labh Enclave, construction on Gut No. 38, Nakshatrawadi, Taluka and District Aurangabad, which is bounded as under: North: Side Margin, South: Flat No. 204, East: Side Margin,

(OA No.241/2023)

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[AMBADAS]

West: Staircase.

ii) All that piece and parcel of Row House No. C-2, admeasuring 96.17 Sq. meters, built up area, forming part of scheme known as Akshay Labh, Gut No. 86(P), Nakshatrawadi, Taluka and District Aurangabad, which is bounded as under: North: Row House No. C-3, South: Row House No. C-1, East: Other Row Houses, West: Road.

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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 irregular and classified as NPA. Therefore, on 06.01.2023 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, the defendants failed and

(OA No.241/2023)

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[AMBADAS]

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 paper publications. Hence, the defendants were proceeded ex-parte as per Order dated 07.04.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Dasari Thirupathi, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents as Annexure A-1 to A-17 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 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.241/2023)

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[AMBADAS]

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 @12.60% p. a. from the date of filing i.e. 25.01.2023 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 @ 9% per 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. 241/2023 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 51,01,178/- (Rupees Fifty One Lacs, One Thousand, One Hundred and Seventy Eight only), along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e. 25.01.2023

(OA No.241/2023)

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[AMBADAS]

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. Vide document at Annexure A-10 in the list of documents

Exh. 5.

(OA No.241/2023)

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(D) The applicant Bank is entitled to sell the mortgaged immovable property 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) 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:.24.06.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.241/2023)

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Page 10 of 10

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[AMBADAS]

Union Bank of India v. M/s. S. R. Computers and Networks

Case brief

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Union Bank of India v. M/s. S. R. Computers and Networks

Case brief

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