Allowed

Union Bank of India v. Mr. Maruti Mhatarba Kadam

DRT10 Jun 2026OA/600/2025

Case brief

AI extract

What is this about?

Union Bank of India filed an Original Application before the Debts Recovery Tribunal, Aurangabad claiming Rs. 20,09,797/- along with future interest as a Term Loan and Crop Loan. Defendants did not appear. Tribunal allowed the application, awarded principal and future interest at 7%, and directed sale of mortgaged properties.

What did the court decide?

Defendants to pay Rs. 20,09,797/- along with future interest @ 7% p.a. (simple); mortgaged properties to be sold for recovery.

Union Bank of India versus Mr. Maruti Mhatarba Kadam — Banking and Recovery | DRT (2026)

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Presented on: 01.09.2025 Registered on: 01.10.2025 Decided on: 10.06.2026 Duration: Y M D 00 09 09

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 600/2025

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TOTAL CLAIM AMOUNT – Rs. 20,09,797/-

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Union Bank of India,

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(Erstwhile “Corporation Bank”) 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 Sugaon Bk., Tq. Akole, Dist. Ahmednagar, through its POA, Mr. Vikram Vilasrao Jadhav (Branch Manager), Age: 36 yrs., Occ.: Service, R/o. Sugaon Bk., Tq. Akole, Dist. … Applicant Ahmednagar 422601.

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Versus

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1. Mr. Maruti Mhatarba Kadam, Age: Major, Occ.: Agri., R/o.: At Khirvire, Tq. Akole, Dist. Ahmednagar 422601.

(OA No. 600/2025)

Page 1 of 9

[AMBADAS]

2. Mr. Bhaurao Mhatarba Kadam, Age: Major, Occ.: Agri., R/o.: At Khirvire, Tq. Akole, Dist. Ahmednagar 422601.

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3. Mr. Devidas Maruti Kadam, Age: Major, Occ.: Agri., R/o.: At Khirvire, Tq. Akole, Dist. Ahmednagar 422601.

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4. Mr. Nivrutti Bhahiru Benke,

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Age: Major, Occ.: Agri., R/o.: At Khirvire, Tq. Akole, Dist. Ahmednagar 422601. …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 Delivered on 10.06.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 20,09,797/- (Rupees Twenty Lacs, Nine Thousand, Seven Hundred and Ninety Seven only), along with future interest from the date of filing of the Original Application, i.e., 01.09.2025, until the date of realization of the entire outstanding dues from the Defendants.

(OA No. 600/2025)

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[AMBADAS]

Brief facts of the application are as under:

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The Applicant Bank states that the Defendant No. 1 to 3 approached and requested the Applicant Bank seeking financial assistance. Upon considering the request and financial needs of the Defendants, the Applicant Bank Sanctioned Agri. Term Loan Facility of Rs. 6,60,000/- & Crop loan facility of Rs. 2,27,600/- vide sanction letter dated 03.06.2016 on certain terms and conditions. The agreed rate of interest for the aforesaid loans was @11.15% & @ 10.40% p.a. respectively with half yearly rests. The Defendants also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

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The Applicant Bank further states that the Defendant No. 1 to 3 again approached and requested the Applicant Bank for conversion of Crop Loan Facility to Term Loan Facility. Upon considering the request and financial needs of the Defendants, the

(OA No. 600/2025)

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[AMBADAS]

Applicant Bank was pleased to convert the same on date 20.09.2019 on certain terms and conditions.

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In order to secure the aforesaid loan facilities, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letter, registered mortgage bearing daybook Nos. 1494 and 1495 dated 17.06.2016, letter of undertaking, demand promissory note, letter of continuity & hypothecation agreement. Etc., Additionally defendant No. 4 stood as guarantor for defendant No. 1 to 3 and executed deed of guarantee dated 18.06.2016 in favour of the Applicant Bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendant No. 1 to 3 created first charge over their immovable property by executing registered mortgage bearing daybook Nos. 1494 and 1495 dated 17.06.2016 in favour of the Applicant Bank. The mortgage was created in respect of the following properties-

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FOR TERM LOAN FACILITY

(OA No. 600/2025)

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[AMBADAS]

i) All that piece and parcel of agriculture land, admeasuring 1 H 38 R, out of Gat No. 523/2, situated at Village Khirvire, Tq. Akole, and Dist. Ahmednagar.

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ii) All that piece and parcel of agriculture land, admeasuring 87 R, Potkharab 0.01 R out of Gat No. 565/1, situated at Village Khirvire, Tq. Akole, and Dist. Ahmednagar.

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FOR CROP LOAN FACILITY

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i) All that piece and parcel of agriculture land, admeasuring 68 R, out of Gat No. 523/2, situated at Village Khirvire, Tq. Akole, and Dist. Ahmednagar.

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ii) All that piece and parcel of agriculture land, admeasuring 58 R, Potkharab 0.01 R out of Gat No. 565/1, situated at Village Khirvire, Tq. Akole, and Dist. Ahmednagar.

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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

(OA No. 600/2025)

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[AMBADAS]

irregular and classified as NPA on 18.09.2022. Therefore, on 08.08.2025 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.

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The defendants failed to appear in matter though they were served through RPAD. Hence, the defendants were proceeded exparte as per Order dated 21.04.2026.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Vikram Vilasrao Jadhav, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-28 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.

(OA No. 600/2025)

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[AMBADAS]

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 @11.15% & @10.40% p. a. on the loans from the date of filing i.e. 01.09.2025 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 @ 7% 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. 600/2025 is allowed with

costs.

(OA No. 600/2025)

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[AMBADAS]

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of 20,09,797/- (Rupees Twenty Lacs, Nine Thousand, Seven Hundred and Ninety Seven only), along with future interest @ 7% per annum (simple) from the date of filing of the Original Application i.e. 01.09.2025 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 immovable properties vide documents at Exh. A-15 & A-16 in list of documents Exhibit 5.

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FOR TERM LOAN FACILITY

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i) All that piece and parcel of agriculture land, admeasuring 1 H 38 R, out of Gat No. 523/2, situated at Village Khirvire, Tq. Akole, and Dist. Ahmednagar. ii) All that piece and parcel of agriculture land, admeasuring 87 R, Potkharab 0.01 R out of Gat No. 565/1, situated at Village Khirvire, Tq. Akole, and Dist. Ahmednagar.

(OA No. 600/2025)

Page 8 of 9

[AMBADAS]

FOR CROP LOAN FACILITY

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i) All that piece and parcel of agriculture land, admeasuring 68 R, out of Gat No. 523/2, situated at Village Khirvire, Tq. Akole, and Dist. Ahmednagar.

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ii) All that piece and parcel of agriculture land, admeasuring 58 R, Potkharab 0.01 R out of Gat No. 565/1, situated at Village Khirvire, Tq. Akole, and Dist. Ahmednagar.

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(D) The applicant Bank is entitled to sell the mortgaged immovable properties and hypothecated 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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Sd/-

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Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.10.06.2026 Debts Recovery Tribunal, Aurangabad

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(OA No. 600/2025)

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[AMBADAS]

Union Bank of India v. Mr. Maruti Mhatarba Kadam

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Mr. Maruti Mhatarba Kadam

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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