Allowed

Central Bank of India v. Dashrath Pundlik Sonawane

DRT27 Aug 2026OA/349/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by Central Bank of India to recover Rs. 89,23,913 plus future interest from defaulting borrowers. The court awarded a 12% simple interest rate and granted a charge over mortgaged immovable properties.

What did the court decide?

Direction to pay principal sum of Rs. 89,23,913 with future interest at 12% p.a.; establishment of charge over mortgaged properties and issue of Recovery Certificate.

Central Bank of India versus Dashrath Pundlik Sonawane — Specific Performance | DRT (2026)

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Presented on: 25.03.2025 Registered on: 13.06.2025 Decided on: 27.08.2026 Duration: Y M D 01 05 02

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 349/2025

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TOTAL CLAIM AMOUNT – Rs. 89,23,913/Central Bank of India, A body corporate constituted under the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970, Having its Central Office at Chandermukhi, Nariman Point, Mumbai and branch amongst other places at Waluj Branch, Chhatrapati Sambhajinagar Through its Branch Manager, Mr. Shivaji Tukaram Kad, Age: 38 years, Occ.: Service as Branch Manager, Central Bank of India, Bajaj Residential Area Branch, Chh. Sambhajinagar. R/o.: Chh. Sambhajinagar.

… Applicant

(OA No.349/2025)

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[AMBADAS]

Versus

1. Dashrath Pundlik Sonawane, Age: Major, Occupation: Business, R/o.: Plot No. 47, CIDCO Growth Center, Waluj, Chh. Sambhajinagar.

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2. Manobendra Purnochandra Chakrborty,

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Age: Major, Occupation: Business, R/o.: RH-55, MIDC Area, Waluj, Chh. Sambhajinagar.

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…Defendants

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APPEARANCES

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Mr. Atul A. Mishra - Advocate Ex-parte

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For the Applicant For Defendants

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JUDGMENT

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Delivered on 27.08.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 89,23,913/- (Rupees Eighty Nine Lacs, Twenty Three Thousand, Nine Hundred and Thirteen only), along with future interest from the date of filing of the Original Application, i.e., 25.03.2025, 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:

(OA No.349/2025)

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[AMBADAS]

The Applicant Bank states that Defendant No. 1 approached and requested the Applicant Bank for Cash Credit Facility. Considering the request and financial requirements of the Defendant, the Applicant Bank sanctioned the Cash Credit Facility of Rs. 14,00,000/- vide sanction letter dated 10.06.2010 on certain terms and conditions. The agreed rate of interest for the said facility was @13.50% per annum, with monthly rests. The Defendant further agreed to pay additional interest @ 2% per annum by way of liquidated damages in the event of default in repayment.

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The applicant bank further states that the defendants again approached the bank to enhance the Cash Credit Facility. Upon Considering the request and financial requirements of the Defendants, the Applicant Bank enhanced the Cash Credit Facility to Rs. 48,00,000/- vide sanction letter dated 09.01.2012 on certain terms and conditions. The agreed rate of interest for the

(OA No.349/2025)

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[AMBADAS]

said facility was @13.50% per annum, with monthly rests. The Defendants further agreed to pay additional interest @ 2% per annum by way of liquidated damages in the event of default in repayment.

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Furthermore, defendants again approached the bank to enhance the Cash Credit Facility. Upon Considering the request and financial requirements of the Defendants, the Applicant Bank enhanced the Cash Credit Facility to Rs. 76,00,000/- vide sanction letter dated 30.03.2013 on certain terms and conditions. The agreed rate of interest for the said facility was @13.50% per annum, with monthly rests. The Defendants further agreed to pay additional interest @ 2% per annum by way of liquidated damages in the event of default in repayment.

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The applicant bank further states that defendants again approached the bank to renew the Cash Credit Facility. Upon Considering the request and financial requirements of the

(OA No.349/2025)

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[AMBADAS]

Defendants, the Applicant Bank renewed the Cash Credit Facility vide sanction letter dated 15.09.2014 on certain terms and conditions. The agreed rate of interest for the said facility was @13.75% per annum, with monthly rests. The Defendants further agreed to pay additional interest @ 2% per annum by way of liquidated damages in the event of default in repayment.

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In order to secure the aforesaid loan facility, the Defendant No. 1 and 2 executed various loan documents in favour of the Applicant Bank. These included sanction letters, hypothecation agreement, and demand promissory notes, registered mortgage deeds bearing daybook nos. 4772/2010 & 2258 /2013 dated 22.06.2010 & 13.06.2013 respectively. Additionally, defendant No. 2 stood as guarantor for defendant no. 1 and executed deeds 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 facilities sanctioned, the Defendants executed

(OA No.349/2025)

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[AMBADAS]

registered mortgage deeds bearing daybook nos. 4772/2010 &

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2258/2013 dated 22.06.2010 & 13.06.2013 respectively. The

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mortgage was created in respect of the following properties:

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1] All that piece and parcel of property bearing Plot No. 47, Survey No. 175, situated at Tisgaon, CIDCO Growth Center Waluj, Chh. Sambhajinagar admeasuring 260.27 square meters (residential house) belonging to defendant No. 1 which is bounded as under: East: Plot No 48, West: 9 meter road, South: 9 meter road, North: Plot no. 58.

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2] All that piece and parcel of property bearing Shop No. 25 & 26, admeasuring 26.710 and 46.048 square meters each situated at first housing scheme, Waluj Mahanagar, Chh. Sambhajinagar, which is bounded as under:

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Shop No. 25 East: Passage, West: Parking , South: Shop No. 26, North: Parking. Shop No. 26 East: 9 meter road, West: Shop No. 27, South: 9 meter road, North: Shop No. 25.

(OA No.349/2025)

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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 15.03.2024. Therefore, on 16.03.2024 the applicant bank issued demand notice to the defendants through their advocate. Despite service of Notice, 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 paper publication. Hence, the defendants were proceeded ex-parte as per Order dated 16.04.2026.

(OA No.349/2025)

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[AMBADAS]

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-04 of Shivaji Tukaram Kad, Power of attorney holder of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-41 as per 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 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 @15.50% p.a. from the date of filing i.e. 25.03.2025 of this application till realization of the claim amount. However, considering the facts of

(OA No.349/2025)

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[AMBADAS]

the case, I am of the opinion that if future interest is granted @ 12% p.a. (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. 349/2025 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 89,23,913/- (Rupees Eighty Nine Lacs, Twenty Three Thousand, Nine Hundred and Thirteen only), along with future interest @ 12% p.a. (simple), from the date of filing of the Original Application i.e. 25.03.2025 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 mortgaged of the following immovable properties vide documents at Exh. A-7 & A-21 in list of documents Exh. 5.

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1] All that piece and parcel of property bearing Plot No. 47, Survey No. 175, situated at Tisgaon, CIDCO Growth Center Waluj, Chh. Sambhajinagar admeasuring 260.27

(OA No.349/2025)

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[AMBADAS]

square meters (residential house) belonging to defendant No. 1 which is bounded as under:

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East: Plot No 48, West: 9 meter road, South: 9 meter road, North: Plot no. 58.

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Shop No. 25 East: Passage, West: Parking , South: Shop No. 26, North: Parking.

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Shop No. 26 East: 9 meter road, West: Shop No. 27, South: 9 meter road, North: Shop No. 25.

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(D) The applicant Bank is entitled to sell the mortgaged immovable properties and hypothecated articles/goods, to recover its dues.

(OA No.349/2025)

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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:.27.08.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.349/2025)

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[AMBADAS]

Central Bank of India v. Dashrath Pundlik Sonawane

Case brief

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Central Bank of India v. Dashrath Pundlik Sonawane

Case brief

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