Allowed

Union Bank of India v. Mr. Rameshwar Baburao Gaikwad

DRT7 May 2026OA/374/2025

Case brief

AI extract

What is this about?

In an original application for recovery of loan dues, the Debts Recovery Tribunal allowed the applicant bank's claim for Rs. 20,09,451.50 plus 8% simple future interest secured by a mortgage on residential property, as defendants were absent.

What did the court decide?

Recovery of Rs. 20,09,451.50 and future interest @8% p.a. (simple) secured by mortgage; direction to sell mortgaged property and issue Recovery Certificate.

Union Bank of India versus Mr. Rameshwar Baburao… — Contract and Commercial Disputes | DRT (2026)

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Presented on: 11.06.2025 Registered on: 24.06.2025 Decided on: 07.05.2026 Duration: Y M D 00 10 26

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 374/2025

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TOTAL CLAIM AMOUNT – Rs. 20,09,451.50/-

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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, Chh. Sambhajinagar through it’s authorized officer, Mr. Avinash Anand s/o. Anil Kumar (Chief Manager), Age: 36 years, Occ.: Service, R/o. Paithan Gate, Chh. Sambhajinagar 431001.

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… Applicant

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Versus

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1. Mr. Ramesh Baburao Gaikwad

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Age: Major, Occ.: Business, R/o.: At Plot No. 146, Trimurti Chowk, Jawahar Colony Garkheda Chh. Sambhajinagar-431005. AND/OR

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1. Mr. Ramesh Baburao Gaikwad Age: Major, Occ.: Business, R/o.: Residential Flat No. 6 3^rd Floor, “Sai Kirti Residency”, Plot No. 11, Gut No. 103, Pruthvinagar, Satara Parisar,

(OA No.374/2025)

Page 1 of 9

[AMBADAS]

Tq. And Dist. Chh. Sambhajinagar 431001.

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2. Mrs. Suvarnabai Ramesh Gaikwad

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Age: Major, Occ.: Business, R/o.: At Plot No. 146, Trimurti Chowk, Jawahar Colony Garkheda Chh. Sambhajinagar-431005. AND/OR 2. Mrs. Suvarnabai Ramesh Gaikwad Age: Major, Occ.: Business, R/o.: Residential Flat No. 6 3^rd Floor, “Sai Kirti Residency”, Plot No. 11, Gut No. 103, Pruthvinagar, Satara Parisar, Tq. And Dist. Chh. Sambhajinagar 431001.

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…Defendants

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APPEARANCES

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For the Applicant Mr. K.D. Pande -Advocate For Defendants 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. 20,09,451.50/- (Rupees Twenty Lacs, Nine Thousand, Four Hundred Fifty One and Fifty Paisa only), along with future interest from the date of filing of the Original Application, i.e., 11.06.2025, until the date of realization of the entire outstanding dues from the Defendants.

(OA No.374/2025)

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[AMBADAS]

Brief facts of the application are as under:

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The Applicant Bank states that the Defendants No. 1 & 2 had approached and requested the Applicant Bank for housing loan facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned Home loan of Rs. 14,50,000/- vide sanction letter dated 22.03.2022 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facilities was @6.95% p.a. with monthly rests. The Defendants also agreed to pay additional interest by way of liquidated damages in the event of any default in repayment.

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The Applicant Bank further states that the Defendants No. 1 & 2 had approached and requested the Applicant Bank for Personal loan facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned Personal loan of Rs. 6,16,000/- vide sanction letter dated 22.03.2022 on certain terms and conditions. The agreed rate of interest for the aforesaid

(OA No.374/2025)

Page 3 of 9

[AMBADAS]

loan facilities was @9.80% p.a. with monthly rests. The

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Defendants also agreed to pay additional interest 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 facility, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letter, composite agreement, housing loan agreement, and sale deed bearing daybook No. 4721 dated

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09.12.2016, demand promissory note etc.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendant No. 1 & 2 created first charge over their immovable property under sale deed bearing daybook

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No. 4721 dated 09.12.2016 in favour of the Applicant Bank. The

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mortgage was created in respect of the following property-

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All that piece and parcel of Residential Flat No. 6, admeasuring carpet area 456 sq. ft., super built-up area 706 sq. ft., on 3^rd Floor in “Sai Kirti Residency” constructed on Plot No. 11, Gut No. 103 sitauted at Satara, Tq. and Dist. Aurangabad, which is bounded as under:

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East: Flat No. 5, West: Open to sky

(OA No.374/2025)

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[AMBADAS]

South: Open to sky North: Open to sky.

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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 on 29.12.2024. Therefore on 20.04.2025 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.

(OA No.374/2025)

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[AMBADAS]

The defendants failed to appear in matter though they were served through RPAD. Hence, the defendants were proceeded exparte as per Order dated 20.02.2026.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Avinash Anand s/o Anil Kumar, Senior Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-25 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.

(OA No.374/2025)

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[AMBADAS]

The applicant Bank has claimed charge over immovable property of the borrowers which is mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @12% p.a. from the date of filing i.e. 11.06.2025 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 @ 8% 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. 374/2025 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 20,09,451.50/- (Rupees Twenty Lacs, Nine Thousand, Four Hundred Fifty One and Fifty Paisa only), along with future interest @ 8 % per annum (simple) from the date of filing of the O.A. i.e.

(OA No.374/2025)

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[AMBADAS]

11.06.2025 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 vide documents at Exh. A-10 to A-13 in list of documents Exh. 5.

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East: Flat No. 5, West: Open to sky South: Open to sky North: Open to sky.

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(D) The applicant Bank is entitled to sell the mortgaged immovable property to recover its dues.

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(E) Issue Recovery Certificate accordingly.

(OA No.374/2025)

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[AMBADAS]

(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. Place: Aurangabad Date:. 07.05.2026

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(Dr. J. R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad

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(OA No.374/2025)

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Page 9 of 9

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[AMBADAS]

Union Bank of India v. Mr. Rameshwar Baburao Gaikwad

Case brief

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Union Bank of India v. Mr. Rameshwar Baburao Gaikwad

Case brief

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