Allowed

Canara Bank v. Sudhir Bhaurao Ghuge

DRT7 May 2026OA/335/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of Rs. 53,68,786/-. After the defendants'ex-parte absence, the court reduced the claimed future interest from 15% to 7% per annum and ordered the sale of mortgaged agricultural land to realize the dues.

What did the court decide?

Defendants ordered to pay Rs. 53,68,786/- plus future interest at 7% p.a. Simple. Charge confirmed on mortgaged lands proving recovery certificate.

Canara Bank versus Sudhir Bhaurao Ghuge — Banking and Recovery | DRT (2026)

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Presented on: 28.04.2025 Registered on: 03.05.2026 Decided on: 07.05.2026 Duration: Y M D 01 00 09

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 335/2025

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TOTAL CLAIM AMOUNT – Rs. 53,68,786/-

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CANARA BANK,

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A Body Corporate constituted under the Banking companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at 112, J.C. Road, Bangalore Karnataka State and one of its Br. Railway Station Road, Aurangabad, through its Chief Manager Mr. Akhilesh Chandra M.C. Joshi.

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… Applicant

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Versus

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1. Sudhir Bhaurao Ghuge, Age: Major, Occ.: Agriculture, R/o.: Plot/House No. 36 Shilp Nagar, Padampura, Aurangabad.

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2. Rajesh Sudhir Ghuge, Age: Major, Occ.: Agriculture, R/o.: Plot/House No. 36 Shilp Nagar, Padampura, Aurangabad.

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3. Kumudini Sudhir Ghuge, Age: Major, Occ.: Agriculture, R/o.: Plot/House No. 36 Shilp Nagar, Padampura, Aurangabad.

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…Defendants

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APPEARANCES

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For the Applicant For Defendants

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Mr. Sameer J. Pande -Advocate Ex-parte

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JUDGMENT

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Delivered on 07.05.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 53,68,786/- (Rupees Fifty Three Lacs, Sixty Eight Thousand, Seven Hundred and Eighty Six only), along with future interest from the date of filing of the Original Application, i.e., 28.04.2025, until the date of realization of the entire

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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 & 2 approached and requested the Applicant Bank for Agricultural Term loan. Upon considering the request and financial needs of

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the Defendants, the Applicant Bank Sanctioned Agriculture Term

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loan facility of Rs. 7,00,000/- vide sanction letter dated 15.03.2008 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @13% 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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The Applicant Bank states that the Defendant No. 1 & 2 again approached and requested the Applicant Bank for Another Agricultural Term loan. Upon considering the request and financial needs of the Defendants, the Applicant Bank Sanctioned Another Agriculture Term loan facility of Rs. 7,00,000/- [which is referred as 2^nd loan] vide sanction letter dated 16.07.2009 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @13% p.a. with half yearly rests. The

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Defendants also agreed to pay additional interest @2% by way of

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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 letters, hypothecation agreements, simple mortgage deeds dated 30.06.2009 & 16.07.2009, demand promissory notes, etc. Additionally defendant No. 3 stood as guarantor for defendant No. 1 & 2 and executed deed of guarantee 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 executed simple mortgage deeds dated 30.06.2009 & 16.07.2009 in favor of the applicant bank. The mortgage was created in respect of the following properties:

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SCHEDULE OF MORTGAGED LAND-I

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i) All that piece and parcel of Agricultural land, admeasuring 2.82 H.R, part of Gut No. 45, situated at Moharda, Tal. Kannad, Dist.

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Aurangabad, which is owned and possessed by defendant No. 1 i.e. Sudhir Bhaurao Ghuge.

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SCHEDULE OF MORTGAGED LAND-II

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i) All that piece and parcel of Agricultural land, admeasuring 1.24 H.R, part of Gut No. 191, situated at Chambharwadi, Tal. Kannad, Dist. Aurangabad, which is owned and possessed by defendant No. 1 i.e. Sudhir Bhaurao Ghuge.

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ii) All that piece and parcel of Agricultural land, admeasuring 1.24 H.R, part of Gut No. 192, situated at Chambharwadi, Tal. Kannad, Dist. Aurangabad, which is owned and possessed by defendant No. 1 i.e. Sudhir Bhaurao Ghuge.

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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

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irregular and classified as NPA. Therefore, on 21.04.2025 the

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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 summons. Hence, the defendants were proceeded ex-parte as per Order dated 06.01.2026.

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The applicant Bank has filed Evidence Affidavit at Exhibit-4 of Mr. Akhilesh Chandra S/o. Mohan Chandra Joshi, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Annexure A-1 to A-23 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

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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 @15% p. a. from the date of filing i.e. 28.04.2025 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. 356/2025 is allowed with

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(B)

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costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 53,68,786/- (Rupees Fifty Three Lacs, Sixty Eight Thousand, Seven Hundred and

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Eighty Six only), along with future interest @ 7% per annum (simple) from the date of filing of the O.A. i.e. 28.04.2025 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 mortgage of the following immovable properties vide document at Annexure A-3 & A-9 in list of documents Exh. 5.

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SCHEDULE OF MORTGAGED LAND-I

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i) All that piece and parcel of Agricultural land, admeasuring 2.82 H.R, part of Gut No. 45, situated at Moharda, Tal. Kannad, Dist. Aurangabad, which is owned and possessed by defendant No. 1 i.e. Sudhir Bhaurao Ghuge.

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SCHEDULE OF MORTGAGED LAND-II

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ii) All that piece and parcel of Agricultural land, admeasuring 1.24 H.R, part of Gut No. 192, situated at Chambharwadi, Tal. Kannad, Dist. Aurangabad, which is

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owned and possessed by defendant No. 1 i.e. Sudhir Bhaurao Ghuge.

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