Allowed

Union Bank of India v. Agrimo Agro Industries Pvt. Ltd.

DRT14 Aug 2026OA/458/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Union Bank of India for recovery of approximately Rs. 2.33 crores from borrowers and guarantors. The court reduced the claimed future interest from 12% to 9% p.a. and decreed the sale of mortgaged immovable property to recover dues.

What did the court decide?

Defendants are directed to pay Rs. 2.33 crores plus 9% p.a. simple interest from filing date, and the mortgaged property is declared liable for sale to recover dues.

Union Bank of India versus Agrimo Agro Industries… — Contract and Commercial Disputes | DRT (2026)

¶1

Presented on: 11.06.2025 Registered on: 31.07.2025 Decided on: 14.08.2026 Duration: Y M D 01 02 03

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 458/2025

¶3

TOTAL CLAIM AMOUNT – Rs. 2,33,42,788.21/-

¶4

Union Bank of India,

¶5

A body corporate constituted under the Banking companies (Acquisition & Transfer of Undertakings) Act, 1970 having it’s Registered Office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021 & having branches amongst the other places at Cross Road, Solapur and having it’s Asset Recovery Branch (ARB), at Plot No. 3, 1^st Floor, Sahakar colony, Shahnoorwadi, Chh. Sambhajinagar, through its Power of Attorney, Mr. Ram Shankarrao Mhaske (Chief Manager), Age: 42 yrs., Occ.: Service, R/o. Plot No. 3, 1^st Floor, Sahakar Colony, Shahnoorwadi, Chh. Sambhajinagar 431005.

¶6

… Applicant

¶7

Versus

¶8

1. M/s. Agrimo Agro Industries Pvt. Ltd. Having its registered office at Plot No. L-31, North Industrial Area, Chincholi MIDC, Tq. Mohol, Dist. Solapur 413255.

(OA No.458/2025)

Page 1 of 8

[AMBADAS]

2. Mrs. Muktabai Shivshankar Andhalkar,

¶13

Age: Major, Occ.: Service, R/o.: At Post Wadgaon (Kati), Tq. Tuljapur, Dist. Osmanabad 413623.

¶14

3. Mr. Shivshankar Yedappa Andhalkar, Age: Major, Occ.: Service, R/o.: At Post Wadgaon (Kati), Tq. Tuljapur, Dist. Osmanabad 413623.

¶15

…Defendants.

¶16

APPEARANCES

¶17

For the Applicant Mr. K.D. Pande -Advocate For Defendants Ex-parte

¶18

JUDGMENT

¶19

Delivered on 14.08.2026

¶20

The Applicant Bank has filed the present application for the

¶21

recovery of a sum of Rs. 2,33,42,788.21/- (Rupees Two Crore, Thirty Three Lacs, Forty Two Thousand, Seven Hundred Eighty Eight and Twenty One Paisa only), along with further 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.

¶22

Brief facts of the application are as under:

(OA No.458/2025)

Page 2 of 8

[AMBADAS]

The Applicant Bank states that the Defendant No. 1 through defendant No. 2 and 3 had approached and requested the Applicant Bank for Cash Credit facility & Term Loan Facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank Sanctioned Cash Credit facility of Rs. 1,50,00,000/- & Term Loan Facility of Rs. 68,00,000/- vide sanction letter dated 30.08.2022 on certain terms and conditions. The agreed rate of interest for aforesaid loan facility was @ 9.95% per annum 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.

¶27

In order to secure the aforesaid loan facility, the Defendants executed various loan documents in favour of the Applicant Bank, including the sanction letter, demand promissory note, registered simple mortgage deed bearing daybook no. 5033 dated 29.09.2022 etc., Additionally defendant No. 2 and 3 stood as

(OA No.458/2025)

Page 3 of 8

[AMBADAS]

guarantors for defendant No. 1 and executed deed of guarantee

¶32

dated 29.09.2022 in favour of the Applicant Bank.

¶33

The Applicant Bank further contends that, in order to secure the Loan sanctioned to them, the Defendants executed registered simple mortgage deed bearing daybook no. 5033 dated 29.09.2022, in favour of the Applicant Bank. The mortgage was created in respect of the following property –

¶34

All that piece and parcel of Industrial Plot No. L-31 admeasuring 2839 sq. mtrs., in Chincholi Industrial Area situated at Chincholi, Tq. Mohol, Dist. Solapur, which is bounded as under: East: - 25 mtrs. MIDC Road, West :- Plot No. L-21 & L-22, South: - Plot No. L-10, North: - Plot No. L-30.

¶35

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

¶36

rate of interest as per terms and conditions of the sanction letter. Thereafter, the applicant bank repeatedly made demand of loan

(OA No.458/2025)

Page 4 of 8

[AMBADAS]

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 28.09.2024. Therefore, on 23.05.2025 the applicant bank issued legal Notice to the defendants. The defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

¶41

The defendants failed to appear in matter though defendant No. 1 was served through paper publication and defendant No. 2 and 3 served through RPAD. Hence, the defendants were proceeded exparte as per Order dated 11.05.2026 and 07-08-2026.

¶42

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Ram Shankarrao Mhaske, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-24 along with list of documentsExh.5 which corroborates the case of the applicant Bank.

(OA No.458/2025)

Page 5 of 8

[AMBADAS]

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

¶47

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.

¶48

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

¶49

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 @ 9% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

(OA No.458/2025)

Page 6 of 8

[AMBADAS]

ORDER

(A) Original Application No. 458/2025 is allowed with costs.

¶55

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 2,33,42,788.21/- (Rupees Two Crore, Thirty Three Lacs, Forty Two Thousand, Seven Hundred Eighty Eight and Twenty One Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 11.06.2025 till full payment/realization of the amount mentioned in this operative order.

¶56

(C) The aforesaid adjudicated amount is secured by mortgage of the following immovable properties vide document at Exh. A-18 in list of documents Exh. 5.

¶57

All that piece and parcel of Industrial Plot No. L-31 admeasuring 2839 sq. mtrs., in Chincholi Industrial Area situated at Chincholi, Tq. Mohol, Dist. Solapur, which is bounded as under:

(OA No.458/2025)

Page 7 of 8

[AMBADAS]

East: - 25 mtrs. MIDC Road, West :- Plot No. L-21 & L-22, South: - Plot No. L-10, North: - Plot No. L-30.

¶62