Allowed

Bank of India v. Sudhakar Jotiram Karad

DRT16 Feb 2026OA/53/2024

Case brief

AI extract

What is this about?

In Debt Recovery ApplicationNo. 53/2024, the Aurangabad Debt Recovery Tribunal adjudicated in favor of the Bank of India against three defaulting individuals. The tribunal recovered the claim amount with reduced future interest and ordered the sale of mortgaged properties or issuance of a recovery certificate.

What did the court decide?

Defendants to pay Rs. 21,41,046.83 plus future interest at 7% p.a.; order to sell mortgaged properties or issue recovery certificate.

Bank of India versus Sudhakar Jotiram Karad — Contract and Commercial Disputes | DRT (2026)

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Presented on: 27.03.2023 Registered on: 07.02.2023 Decided on: 16.02.2026 Duration: Y M D 02 10 20

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD

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(Before Shri Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 53/2024

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TOTAL CLAIM AMOUNT – Rs. 21,41,046.83/-

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BANK OF INDIA,

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A body corporate constituted under Banking

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Companies (Acquisition and Transfer of Undertakings) Act 1970 having its Head Office at Star House, Plot No, C-5, G Block,

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Bandra Kurla Complex, Bandra (East) … Applicant Mumbai- 400051, and having one of its Branches at Kasargaon MIMSR Campus, Vishwanathpuram, Ambejogai Road,

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Kasargaon, Dist. Latur 413512 and acting

(OA No.53-2024)

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[Ambadas]

through one of its Principal Officer, having an authority (POA) to sign, verify and file the application.

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Versus

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Sudhakar S/o Jotiram Karad,

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… Defendants

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Age: Major, Occ: Business,

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R/o: Village Rameshwar,

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Tal. & Dist. Latur- 413511.

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And,

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Gut No. 127, 128 and 151 situated at

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Dinegaon, Tal. & Dist. Latur- 413511.

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Kashinath S/o Ramu Karad,

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Age: Major, Occu: Business,

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R/o: Village Rameshwar,

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Tal. & Dist. Latur- 413511.

(OA No.53-2024)

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[Ambadas]

Bankat S/o Pandharinath Chavan,

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Age: Major, Occ: Business, R/o: Village Rameshwar,

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Tal. & Dist. Latur- 413511.

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APPEARANCES

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For the Applicant Mr. Deshmukh A. U.- Advocate For Defendants Ex-parte

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J U D G M E N T Delivered on (16.02.2026)

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The Applicant Bank has filed the present application for recovery of the sum of Rs. 21,41,046.83/- (Rs. Twenty-One Lakhs, Forty-One Thousand, Forty-Six and Eighty-Three Paisa Only) together with interest @2.5% p.a. (above the Bank of India Base Rate from time to time rising or falling, herewith which is presently @13.25% p.a. plus @1% p.a. Tenor Premium) with monthly rests upon Term Loan Facility from 06.03.2023 till the full realization of the entire dues and costs from the Defendants.

(OA No.53-2024)

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[Ambadas]

Brief facts of the application are as under:

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That the Defendants approached the Applicant Bank and requested for the sanction of a Credit Facility. Upon considering the Defendant’s representation, request, and financial needs, the Applicant Bank sanctioned Credit Loan facility of Rs. 10,00,000/under the scheme of Minor Irrigation (Laying of Pipelines and Digging of Well) to Defendant No.1 vide sanction letter dated 23.03.2013 on certain terms & conditions.

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The agreed rate of interest for the Credit Loan Facility was @13.25% p.a. plus @1% p.a. Tenor Premium with yearly rests.

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In order to secure the aforesaid Term Loan facility. The Defendants executed the loan documents in favour of the Applicant Bank namely sanction letter, demand promissory note, request letter, hypothecation agreement, letter of undertaking, equitable mortgage etc.

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The Applicant Bank contended in order to secure the Term Loan facility, Defendant No. 1 is the borrower and Defendant Nos. 2 &

(OA No.53-2024)

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[Ambadas]

3 stood as guarantors for the said facilities. The Defendant No. 1 executed Registered Mortgage Deed dated 25.03.2013 of the following properties in favour of the Applicant Bank:-

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All the piece and parcels of land situated at Gut No. 127,

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(Area 2 H 68 R) situated at Village Dindegaon, Tq & Dist. Latur

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belongs to Mr. Sudhakar Jotiram Karad in the state of

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Maharashtra within the jurisdiction of the Sub Registrar-

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Latur together with the buildings, sheds, standing thereon

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And bounded as follows:-

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East :- Land of Vilas Jotiram Karad,

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West :- Kesar Jawala Shiv, South :- Land of Ramrao Vyankatrao Karad, North :- Land of Sayas Vyankatrao Karad.

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All the piece and parcels of land situated at Gut No. 128,

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(Area 0 H 32 R) situated at Village Dindegaon, Tq & Dist. Latur

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belongs to Mr. Sudhakar Jotiram Karad in the state of

(OA No.53-2024)

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[Ambadas]

Maharashtra within the jurisdiction of the Sub RegistrarLatur together with the buildings, sheds, standing thereon And bounded as follows:East :- Cannel, West :- Kesar Jawala Shiv, South :- Road, North :- Land of Datta Raosaheb Lomte.

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All the piece and parcels of land situated at Gut No. 151,

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(Area 0 H 50 R) situated at Village Dindegaon, Tq & Dist. Latur belongs to Mr. Sudhakar Jotiram Karad in the state of Maharashtra within the jurisdiction of the Sub RegistrarLatur together with the buildings, sheds, standing thereon And bounded as follows:East :- Land of Nilawati Atmaram Bondar, West :- Land of Motiram Shahaji Karad, South :- Land of Vilas Jotiram Karad, North :- Rameshwar Shiv Road.

(OA No.53-2024)

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[Ambadas]

The Applicant Bank further contended that the Defendants failed to keep their promises and commitments agreed by them with regard to the 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. Therefore on 09.01.2018 & 01.03.2023, the Applicant Bank issued legal 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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Despite Service of summons, the defendants neither appeared nor filed WS. Hence, they proceeded ex-parte vide Order dated 28.07.2025.

(OA No.53-2024)

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[Ambadas]

The Applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Prashant S/o Sharadchandra Nashikkar, Lead District Manager of the Applicant Bank and has produced on record the original loan transaction documents as Exh. A (AW-1) to I (AW-9) 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 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 future interest at @13.25% per annum with monthly rests from 06.03.2023 till the full realization of the entire dues and costs from the Defendants. However, considering the facts of the case, I am of the opinion that awarding future interest at @7% per annum (simple), it would be just and reasonable.

(OA No.53-2024)

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[Ambadas]

Hence, I pass the following order.

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ORDER

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(A) Original Application No. 53/2024 is allowed with costs.

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(B) The Defendants shall pay Jointly and Severally to the Applicant Bank a sum of Rs. 21,41,046.83/- (Rs. Twenty-One Lakhs, Forty-One Thousand, Forty-Six and Eighty-Three Paisa Only) along-with future interest at @7% per annum (simple) from the date of filing of the Original Application, i.e., 27.03.2023, till full payment/ realization of the said amount.

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(C) The aforesaid adjudicated amount is secured by mortgage of immovable property in favour of the Applicant Bank vide documents as Exh. F/ AW-6 in list of documents Exh.5. The mortgaged properties are described as follows:-

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All the piece and parcels of land situated at

(OA No.53-2024)

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[Ambadas]

Gut No. 127,n(Area 2 H 68 R) situated at

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Village Dindegaon, Tq & Dist. Latur belongs to

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Mr. Sudhakar Jotiram Karad in the state

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of Maharashtra within the jurisdiction of the

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Sub Registrar- Latur together with the buildings,

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sheds, standing thereon and bounded as follows:-

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East :- Land of Vilas Jotiram Karad,

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West :- Kesar Jawala Shiv,

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South :- Land of Ramrao Vyankatrao Karad,

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North :- Land of Sayas Vyankatrao Karad.

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All the piece and parcels of land situated at

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Gut No. 128, (Area 0 H 32 R) situated at

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Village Dindegaon, Tq & Dist. Latur belongs to

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Mr. Sudhakar Jotiram Karad in the state of

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Maharashtra within the jurisdiction of the

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Sub Registrar- Latur together with the buildings,

(OA No.53-2024)

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[Ambadas]

sheds, standing thereon and bounded as follows:East :- Cannel, West :- Kesar Jawala Shiv, South :- Road, North :- Land of Datta Raosaheb Lomte.

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All the piece and parcels of land situated at

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Gut No. 151, (Area 0 H 50 R) situated at Village Dindegaon, Tq & Dist. Latur belongs to Mr. Sudhakar Jotiram Karad in the state of

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Maharashtra within the jurisdiction of the

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Sub Registrar- Latur together with the buildings,

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sheds, standing thereon and bounded as follows:East :- Land of Nilawati Atmaram Bondar, West :- Land of Motiram Shahaji Karad, South :- Land of Vilas Jotiram Karad, North :- Rameshwar Shiv Road.

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(D) The Applicant Bank is entitled to sell the mortgaged immovable properties and hypothecated

(OA No.53-2024)

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[Ambadas]

articles/goods etc., to recover its dues.

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(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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Place : Aurangabad Date : 16.02.2026

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Sd/-

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

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(OA No.53-2024)

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[Ambadas]

Bank of India v. Sudhakar Jotiram Karad

Case brief

What is this about?

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Bank of India v. Sudhakar Jotiram Karad

Case brief

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