Allowed

Bank of India v. Mr. Machhindra Devrao Gavhane

DRT3 Jul 2026OA/292/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Bank of India's application admitting the outstanding dues of Rs. 26,56,016.07 payable by the defendant borrowers and their guarantors. The court adjusted the future interest rate to 7% simple per annum and declared the mortgaged agricultural lands as security for the recovery.

What did the court decide?

Order allowing the application, directing defendants to pay Rs. 26,56,016.07 with future interest at 7% p.a. simple, securing the debt via specific mortgaged lands, and directing issue of a Recovery C

Bank of India versus Mr. Machhindra Devrao Gavhane — Banking and Recovery | DRT (2026)

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Presented on: 10.05.2025 Registered on: 22.05.2025 Decided on: 03.07.2026 Duration: Y M D 01 01 23

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 292/2025

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TOTAL CLAIM AMOUNT – Rs. 26,56,016.07/-

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Bank of India

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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 branch amongst other places at Lasur Station, Tq. Gangapur, Dist. Chh. Sambhajinagar through its Power of Attorney, Mr. Vitthal Onkar Chavan, Age: 38 yrs., Occ.: Service, … Applicant R/o. Lasur Station, Tq. Gangapur, Dist. Chh. Sambhajinagar.

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Versus

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1. Mr. Machhindra Devrao Gavhane, Age: Major, Occ.: Agri., R/o.: At Post Shillegaon, Tq. Gangapur, Dist. Chh. Sambhajinagar 431115.

(OA No.292/2025)

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[AMBADAS]

2. Mr. Devrao Parasram Gavhane,

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Age: Major, Occ.: Agri., R/o.: At Post Shillegaon, Tq. Gangapur, Dist. Chh. Sambhajinagar 431115.

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3. Mr. Mahendra Machhindra Gavhane,

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Age: Major, Occ.: Agri., R/o.: At Post Shillegaon, Tq. Gangapur, Dist. Chh. Sambhajinagar 431115.

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4. Mr. Krishna Ashok Gavhane,

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Age: Major, Occ.: Agri., R/o.: At Post Shankarpur, Tq. Gangapur, Dist. Chh. Sambhajinagar 431115.

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…Defendants

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APPEARANCES

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For the Applicant For Defendants

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Mr. K.D. Pande Advocate Ex-parte

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JUDGMENT Delivered on 03.07.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 26,56,016.07/- (Rupees Twenty Six Lacs, Fifty Six Thousand, Sixteen and Seven Paisa only), along with further interest from the date of filing of the Original Application, i.e., 10.05.2025, until the date of realization of the entire outstanding dues from the Defendants.

(OA No.292/2025)

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[AMBADAS]

Brief facts of the application are as under:

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That, the Defendant No. 1 & 2 had approached to the Applicant bank and requested to sanction a Term loan facility and Crop Loan facility. Upon considering the request and need of the defendants, the Applicant Bank sanctioned a Term loan of Rs. 1,50,000/- & Crop loan facility of Rs. 2,50,000/- vide sanction letter dated 11.02.2013 on certain terms and conditions. The agreed rate of interest was @ 13.75% @11.50% 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.

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That, thereafter, the Defendant No. 1 to 3 had approached to the Applicant bank and requested to sanction another Term loan facility. Upon considering the request and need of the defendants, the Applicant Bank sanctioned another Term loan of Rs. 5,00,000/- vide sanction letter dated 01.01.2014 on certain terms

(OA No.292/2025)

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[AMBADAS]

and conditions. The agreed rate of interest was @11.50% p.a.

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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.

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That, thereafter, upon the request and demand of the defendant, the above crop loan facility of Rs. 2,50,000/- came to be renewed and restructured to the extent of Rs. 2,28,133/- dated 30.06.2016

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on certain terms and conditions.

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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 deeds bearing daybook nos. 806 & 263 dated 22.02.2013 & 21.01.2014 respectively. Additionally Defendant No. 3 & 4 stood as guarantor for Defendant No. 1 & 2 and executed a Deeds of Guarantee dated 11.02.2013 & 01.01.2014 in favour of the Applicant Bank.

(OA No.292/2025)

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[AMBADAS]

The Applicant Bank further contends that, in order to secure the Loan sanctioned to them, the Defendant No. 1 created first charge over his immovable property by executing a registered mortgage deeds bearing daybook nos. 806 & 263 dated 22.02.2013 & 21.01.2014 respectively, 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 Agricultural land, admeasuring 0 H 66 R out of Gat No. 30, situated at Village Manjarpur, Tq. Gangapur, Dist. Aurangabad, which is bounded as under: East :- Land of Rajendra Suryabhan, West :- Land of Mahendra Machhindra, South:- Land of Hirlal Chhagan, North: - Land of Suryabhan Laxman.

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ii) All that piece and parcel of Agricultural land, admeasuring 1 H 50 R out of Gat No. 55, situated at Village Manjarpur, Tq. Gangapur, Dist. Aurangabad, which is bounded as under: East :- Land of Rangnath Ramrao, West :- Land of Suryabhan Parasram, South:- Land of Raju Pandharinath, North: - Land of Sitaram Borade.

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iii) All that piece and parcel of land, bearing Gat No. 30, 55 & 29, admeasuring 3 H 36 R other construction thereon, situated at Village Manjarpur, Tq. Gangapur, Dist. Aurangabad, which is bounded as under:

(OA No.292/2025)

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[AMBADAS]

Land forming part of Gat No. 30 East :- Land of Rajendra Suryabhan, West :- Land of Mahendra Machhindra Gavhane, South:- Land of Hirlal Chhagan, North: - Land of Suryabhan Laxman.

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Land forming part of Gat No. 55 East :- Land of Rangnath Ramrao, West :- Land of Suryabhan Parasram, South:- Land of Raju Pandharinath, North: - Land of Sitaram Borade.

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Land forming part of Gat No. 29 East :- Land of Parasram Gavhane, West :- Part Land, South:- Land of Machhindra Devrao, North: - Land of Chhagan Bhaurao.

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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

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to pay the same. The loan account of the defendant became

(OA No.292/2025)

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[AMBADAS]

irregular and classified as NPA on 04.01.2019. Therefore, on 17.01.2025 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 publication. Hence, the defendants were proceeded ex-parte as per Order dated 07.04.2026.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-04 of Mr. Vitthal Onkar Chavan, Chief Manager 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.

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

(OA No.292/2025)

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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 @ 13.75% & @ 11.50% per annum from the date of filing i.e. 10.05.2025 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 @ 7% 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. 292/2025 is allowed with costs.

(OA No.292/2025)

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[AMBADAS]

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 26,56,016.07/- (Rupees Twenty Six Lacs, Fifty Six Thousand, Sixteen and Seven Paisa only), along with future interest @ 7% per annum (simple) from the date of filing of the Original Application i.e. 10.05.2025 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 following immovable properties vide documents at Exh. A-12 & A-21 in list of documents Exh. 5.

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i) All that piece and parcel of Agricultural land, admeasuring 0 H 66 R out of Gat No. 30, situated at Village Manjarpur, Tq. Gangapur, Dist. Aurangabad, which is bounded as under:

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East :- Land of Rajendra Suryabhan, West :- Land of Mahendra Machhindra, South:- Land of Hirlal Chhagan, North: - Land of Suryabhan Laxman.

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ii) All that piece and parcel of Agricultural land, admeasuring 1 H 50 R out of Gat No. 55, situated at Village Manjarpur, Tq. Gangapur, Dist. Aurangabad, which is bounded as under:

(OA No.292/2025)

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[AMBADAS]

East :- Land of Rangnath Ramrao, West :- Land of Suryabhan Parasram, South:- Land of Raju Pandharinath, North: - Land of Sitaram Borade.

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Land forming part of Gat No. 30 East :- Land of Rajendra Suryabhan, West :- Land of Mahendra Machhindra Gavhane, South:- Land of Hirlal Chhagan, North: - Land of Suryabhan Laxman.

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Land forming part of Gat No. 55 East :- Land of Rangnath Ramrao, West :- Land of Suryabhan Parasram, South:- Land of Raju Pandharinath, North: - Land of Sitaram Borade.

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Land forming part of Gat No. 29 East :- Land of Parasram Gavhane, West :- Part Land, South:- Land of Machhindra Devrao, North: - Land of Chhagan Bhaurao.

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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.

(OA No.292/2025)

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[AMBADAS]

(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:.03.07.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.292/2025)

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[AMBADAS]

Bank of India v. Mr. Machhindra Devrao Gavhane

Case brief

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Bank of India v. Mr. Machhindra Devrao Gavhane

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