Allowed

Union Bank of India v. M/S. Kamalakar Krushi Seva Kendra

DRT6 Jan 2026OA/58/2024

Case brief

AI extract

What is this about?

Union Bank of India filed an original application to recover dues of Rs. 1.22 crore along with future interest from borrowing entities and guarantors who failed to repay cash credit and term loan facilities. The defendants did not appear. The IT allowed the application, ordered payment of principal and future interest at 8% p.a., confirmed charges over mortgaged properties, and issued a recovery c

What did the court decide?

Order allowed; defendants to pay Rs. 1.22 crore plus future interest at 8% p.a. from filing date; property secured; recovery certificate issued.

Union Bank of India versus M/S. Kamalakar Krushi… — Contract and Commercial Disputes | DRT (2026)

¶1

Presented on: 23.01.2023 Registered on: 09.02.2023 Decided on: 06.01.2026 Duration: Y M D 02 11 13

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 58/2024

¶3

TOTAL CLAIM AMOUNT – Rs. 1,22,90,045.72/-

¶4

Union Bank of India,

¶5

A body corporate constituted under the Banking Companies (Acquisition & 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 Bharadi, Tq. Sillod, District Aurangabad and having Assets Recovery Branch, 28/29, Hazari Chambers, Friends Colony, Station Road,. Aurangabad through its power of Attorney Holder, Smt. Sadhana Babasaheb Sanap, (Chief Manager), Age: 50 yrs., Occ.: Service, R/o. ARB, Station Road, Aurangabad

¶6

… Applicant

¶7

Versus

¶8

1. M/s. Kamalkar Krushi Seva Kendra Through its Proprietor, Mr. Manohar Shankar Gulawe Age: Major, Occupation: Business, R/o.: Bajar Patti, Bharadi, Tq. Sillod,

(OA No.58/2024)

Page 1 of 11

[AMBADAS]

Dist. Aurangabad-431113.

¶13

2. Mr. Manohar Shankar Gulawe

¶14

Age: Major, Occupation: Business, R/o.: Wadod Chatha, Post Bharadi, Tq. Sillod, Dist. Aurangabad-431113. AND/OR Mr. Manohar Shankar Gulawe Age: Major, Occupation: Business, R/o.: G. P. House No. 583 Old G. P. House No. 830, Gut No. 561, Village Wadodchatha, Tq. Sillod, Dist. Aurangabad 431113. AND/OR Mr. Manohar Shankar Gulawe Age: Major, Occupation: Business, R/o.: G. P. House No. 577 Old G. P. House No. 549, Village Bharadi, Tq. Sillod, Dist. Aurangabad 431113.

¶15

3. Mr. Kamalkar Manohar Gulawe

¶16

Age: Major, Occupation: Business, R/o.: Wadod Chatha, Post Bharadi, Tq. Sillod, Dist. Aurangabad-431113.

¶17

4. Mr. Gajanan Jagannath Kshirsagar

¶18

Age: Major, Occupation: Business, R/o.: Bajar Patti, Bharadi, Tq. Sillod, Dist. Aurangabad-431113.

¶19

5. Mr. Nagesh Shankarrao Sonttake

¶20

Age: Major, Occupation: Business, R/o.: Punyayi Niwas, Plot No. 72, Sapkal Wadi Road, Behind Hanuman Temple, Shikshak Colony, Sillod, Tq. Sillod, Dist. Aurangabad-431112.

…Defendants

(OA No.58/2024)

Page 2 of 11

[AMBADAS]

APPEARANCES

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

¶27

JUDGMENT

¶28

Delivered on 06.01.2026

¶29

The Applicant Bank has filed the present application for the recovery of a sum of Rs. 1,22,90,045.72/- (Rupees One Crore, Twenty Two Lacs, Ninety Thousand, Forty Five and Seventy Two Paisa only), along with future interest from the date of filing of the Original Application, i.e., 23.01.2023, until the date of realization of the entire outstanding dues from the Defendants.

¶30

Brief facts of the application are as under:

¶31

The Applicant Bank states that the Defendant No. 2 being proprietor of defendant No. 1 approached and requested the Applicant Bank for Cash Credit Facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned Cash Credit Facility of Rs. 5,00,000/- vide sanction

(OA No.58/2024)

Page 3 of 11

[AMBADAS]

letter dated 02.11.2004 on certain terms and conditions.

¶36

Thereafter on request and demand of the defendant from time to time to renew and enhancement of said Cash Credit Facility to the extent of Rs. 1,00,00,000/- vide sanction letter dated 02.02.2015 on certain terms and conditions. The agreed rate of interest for the Cash Credit Facility was @13.28% p.a. 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.

¶37

That, Thereafter the defendant again applied to the applicant bank for renewal of said Cash Credit Facility of Rs. 1,00,00,000/-, the applicant bank renewed the said facility vide sanction letter dated 27.03.2019 on certain terms and conditions. The agreed rate of interest for the Cash Credit Facility was @10.25% p.a. 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.

(OA No.58/2024)

Page 4 of 11

[AMBADAS]

That, Thereafter the defendant again applied to the applicant bank for renewal of said Cash Credit Facility of Rs. 1,00,00,000/-, the applicant bank renewed the said facility vide sanction letter

¶42

dated 23.06.2020 on certain terms and conditions.

¶43

That, Thereafter the defendant approached to the applicant bank for sanction of Term Loan Facility under CELC scheme and upon considering the request and need of defendant, the applicant bank sanctioned a CELC term loan facility of Rs. 10,00,000/-, vide sanction letter dated 28.05.2020 on certain terms and conditions.

¶44

That, thereafter the defendant again applied to the applicant bank for renewal of the said cash credit facility of Rs. 1,00,00,000/- & to grant a fresh term loan facility under UGECL scheme. Upon considering the request of the defendant, the applicant bank sanctioned and renew the said cash credit facility of Rs. 1,00,00,000/- and a fresh term loan facility under UGECL scheme of Rs. 16,00,000/- vide sanction letter dated 30.09.2020 on

(OA No.58/2024)

Page 5 of 11

[AMBADAS]

certain terms and conditions. The agreed rate of interest for the

¶49

Cash Credit Facility was @10.30% p.a. & for fresh term loan facility was @7.50% p.a. 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.

¶50

In order to secure the aforesaid loan facility, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letters, letter of continuity, renewal letters, and hypothecation agreement, mortgage deed bearing daybook No. 3010 dated 15.10.2020 etc. Additionally defendant No. 3 to 5 stood as guarantors for defendant No. 1 & 2 and executed deed of guarantee in favour of the Applicant Bank.

¶51

The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendants created first charge over their immovable property by executing mortgage deed bearing daybook No. 3010 dated 15.10.2020 in favour of the Applicant

(OA No.58/2024)

Page 6 of 11

[AMBADAS]

Bank. The mortgage was created in respect of the following properties-

¶56

i) All that piece and parcel of NA Land bearing G.P. House No. 583 Old G. P. House No. 830, admeasuring 720 sq. ft., along with shops constructed, thereon situated at Village Bharadi, Tq. Sillod, Dist. Aurangabad, which is bounded as under: East: Urdu School, West: Babu Anna Hotel, South: Bazar, North: Shivram Patil.

¶57

ii) All that piece and parcel of NA Land bearing G.P. House No. 577 Old G. P. House No. 549, Part of land along with Residential Hous and Commercial Shops constructed thereon totally admeasuring 1 R out of Gut No. 561, situated at Village Wadodchatha, Tq. Sillod, Dist. Aurangabad, which is bounded as under: East: Gotha of Parbhat Bhika, West: 8 ft. lane, South: Road, North: Ramji Pundlik.

¶58

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

(OA No.58/2024)

Page 7 of 11

[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 28.07.2022. Therefore, on 27.12.2022 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.

¶63

The defendants failed to appear in matter though they were served through court commissioner. Hence, the defendants were proceeded ex-parte as per Order dated 26.11.2025.

¶64

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Sadhana Babasaheb Sanap, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-55 along with list of documents Exh.5 which corroborates the case of the applicant Bank.

(OA No.58/2024)

Page 8 of 11

[AMBADAS]

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

¶69

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.

¶70

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

¶71

The applicant Bank has claimed future interest @10.30%, @8% & @7.50% p. a. from the date of filing i.e. 23.01.2023 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.

(OA No.58/2024)

Page 9 of 11

[AMBADAS]

ORDER

(A) Original Application No. 58/2024 is allowed with costs.

¶77

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 1,22,90,045.72/- (Rupees One Crore, Twenty Two Lacs, Ninety Thousand, Forty Five and Seventy Two Paisa only), along with future interest @ 8% per annum (simple) from the date of filing of the O. A. i.e. 23.01.2023 till full payment/realization of the amount mentioned in this operative order.

¶78

(C) The aforesaid adjudicated amount is secured by the mortgage of the following immovable properties vide documents at Exhibit A-19 & A-20 in list of documents Exh. 5.

(OA No.58/2024)

Page 10 of 11

[AMBADAS]

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

¶85

(E) Issue Recovery Certificate accordingly.

¶86

(F) The Registrar is directed to send the copy of the Judgment and Recovery Certificate to the applicant and defendants.

¶87

(G) File be consigned to the record room.

¶88

Sd/-

¶89

Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.06.01.2026 Debts Recovery Tribunal, Aurangabad

¶90

(OA No.58/2024)

¶91

Page 11 of 11

¶92

[AMBADAS]

Union Bank of India v. M/S. Kamalakar Krushi Seva Kendra

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S. Kamalakar Krushi Seva Kendra

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Bank of Maharashtra versus Tarachand Rakhmaji Argade (Deceased)

Union Bank of India versus Mr. Shubham Sunil Patil

Bank of Maharashtra versus Madhukar Laxman Borade (Deceased)

Union Bank of India versus Mahesh Dnyandeo Dhavale

Maharastra Gramin Bank versus M/S Ganesh Agro Industries

State Bank of India versus Mr. Youraj Ashok Taksal