Allowed

Union Bank of India v. Ms Bombay Engineering Company

DRT19 Aug 2026OA/72/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by a bank for recovery of bank dues amounting to Rs. 35,38,722.05 from borrowers who failed to repay loans. The court upheld the mortgage charges and ordered the release of recovery certificate.

What did the court decide?

Ordained payment of principal sum of Rs. 35,38,722.05 plus future interest at 12% p.a. and issued recovery certificate for the sale of mortgaged properties.

Union Bank of India versus Ms Bombay Engineering Company — Company and Corporate | DRT (2026)

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Presented on: 04.01.2025 Registered on: 04.02.2025 Decided on: 19.08.2026 Duration: Y M D 01 07 15

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 72/2025

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Union Bank of India,

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TOTAL CLAIM AMOUNT – Rs. 35,38,722.05/-

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A Body Corporate constituted under the Banking

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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 Bhusawal, Tq. Bhusawal, Dist. Jalgaon through its Power of Attorney Mr. Tushar Dadarao Nawale (Branch Head), Age: 45 yrs., Occ.: Service, R/o. … Applicant Bhusawal, Tq. Bhusawal, Dist. Jalgaon 425201.

(OA No.72/2025)

Page 1 of 11

[AMBADAS]

Versus

1. M/s. Bombay Engineering Company Through its Proprietor, Mr. Anil Hargovind Singhwani, Age: Major, Occ.: Business R/o.: At 140/2, Mirkhad Building, Opp. S.K. Oil Mill, Shivajinagar, Bhusawal, Tq. Bhusawal, Dist. Jalgaon 425201.

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2. Mr. Anil Hargovind Singhwani, Age: Major, Occ.: Business R/o.: At 140/2, Mirkhad Building, Opp. S.K. Oil Mill, Shivajinagar, Bhusawal, Tq. Bhusawal, Dist. Jalgaon 425201.

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3. Mrs. Kuldeep Anil Singhwani, Age: Major, Occ.: Business R/o.: At 140/2, Mirkhad Building, Opp. S.K. Oil Mill, Shivajinagar, Bhusawal, Tq. Bhusawal, Dist. Jalgaon 425201.

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…Defendants

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APPEARANCES For the Applicant For Defendants

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Mr. K. D. Pande -Advocate Ex-parte

(OA No.72/2025)

Page 2 of 11

[AMBADAS]

JUDGMENT

Delivered on 19.08.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 35,38,722.05/- (Rupees Thirty Five Lacs, Thirty Eight Thousand, Seven Hundred Twenty Two and Five Paisa only), along with future interest from the date of filing of the Original Application, i.e., 04.01.2025, until the date of realization of the entire outstanding dues from the Defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that the Defendant No. 2 being a 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 a Cash Credit facility of Rs. 30,00,000/- vide sanction letter dated 30.06.2012 on certain terms and conditions. The

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agreed rate of interest for the aforesaid loan was @15% p.a. with

(OA No.72/2025)

Page 3 of 11

[AMBADAS]

monthly rests. The Defendants also agreed to pay additional interest @2% by way of liquidated damages in the event of any

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default in repayment.

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Thereafter, the Defendant No. 2 being a proprietor of defendant No. 1 approached and requested the Applicant Bank for Term loan facility under GECL Scheme. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned Term loan facility of Rs. 6,00,000/- under GECL Scheme vide sanction letter dated 26.06.2020 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 letters, registered sale deeds bearing daybook nos. 1032 & 2502 dated 23.02.2005 & 17.08.2020, letter of undertaking, demand promissory note, & hypothecation agreement. Additionally defendant No. 3 stood as guarantor for

(OA No.72/2025)

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[AMBADAS]

defendant No. 1 & 2 and executed deed of guarantee 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 Defendants created first charge over their immovable property under registered sale deeds bearing daybook nos. 1032 & 2502 dated 23.02.2005 & 17.08.2020 respectively in favour of the Applicant Bank. The mortgage was created in respect of the following properties-

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i) All that piece and parcel of Room No. 1 on Plot No. 5 area admeasuring 11.15 sq. meters, situated at Survey No. 135/1/2/2, Bhusawal, Tq. Bhusawal, Dist. Jalgaon, which is bounded as under. East: Remaining Portion of same Plot No. 5, West: 6.00 meters wide road, South: 5.00 meters open space, North: Room No. 2.

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ii) All that piece and parcel of Room No. 11 admeasuring 163.75 sq. meters, in Survey No. 50/1-B, situated at Fekri, Tq. Bhusawal, and Dist. Jalgaon, which is bounded as under. East: Remaining Portion of same Plot No. 5, West: Survey No. 50/1A, South: Plot No. 12, North: Open Space.

(OA No.72/2025)

Page 5 of 11

[AMBADAS]

iii) All that piece and parcel of property bearing Plot No. 1, admeasuring 216.75 sq. meters out of Gut No. 50/1-B, situated at Fekri, Tq. Bhusawal, and Dist. Jalgaon, which is bounded as under. East: M.H. No. 3778, West: M.H. No. 3987 South: Govt. Road, North: Using Small Road.

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iv) All that piece and parcel of Two Storied Building bearing Municipal House No. 3845 totally admeasuring 73 sq. mtrs, constructed on CTS No. 2783-B/4, situated at Tq. Bhusawal, and Dist. Jalgaon, which is bounded as under. East: 12.00 meters wide road, West: 9.00 meters wide road, South: Adj. S. No. 50/1/A, North: 12.00 meters wide road.

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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.72/2025)

Page 6 of 11

[AMBADAS]

irregular and classified as NPA on 29.05.2023. Therefore, on 16.11.2024 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 appeared in matter but they did not file written statement within stipulated period. Hence, the defendants were proceeded with “No WS” as per Order dated 04.05.2026.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Tushar Dadarao Nawale, Branch Head 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.

(OA No.72/2025)

Page 7 of 11

[AMBADAS]

Since the defendants failed to file the written statement 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 @15% p. a. from the date of filing i.e. 04.01.2025 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 @ 12% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

(OA No.72/2025)

Page 8 of 11

[AMBADAS]

ORDER

(A) Original Application No. 72/2025 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 35,38,722.05/- (Rupees Thirty Five Lacs, Thirty Eight Thousand, Seven Hundred Twenty Two and Five Paisa only), along with future interest @ 12% per annum (simple) from the date of filing of the O.A. i.e. 04.01.2025 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 property vide documents at Exh. A-6, A-10, Exh. A-16 to A-20 in list of documents Exh. 5.

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i) All that piece and parcel of Room No. 1 on Plot No. 5 area admeasuring 11.15 sq. meters, situated at Survey No. 135/1/2/2, Bhusawal, Tq. Bhusawal, Dist. Jalgaon, which is bounded as under.

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East: Remaining Portion of same Plot No. 5, West: 6.00 meters wide road, South: 5.00 meters open space, North: Room No. 2.

(OA No.72/2025)

Page 9 of 11

[AMBADAS]

ii) All that piece and parcel of Room No. 11 admeasuring 163.75 sq. meters, in Survey No. 50/1-B, situated at Fekri, Tq. Bhusawal, and Dist. Jalgaon, which is bounded as under.

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East: Remaining Portion of same Plot No. 5, West: Survey No. 50/1A, South: Plot No. 12, North: Open Space.

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East: 12.00 meters wide road, West: 9.00 meters wide road, South: Adj. S. No. 50/1/A, North: 12.00 meters wide road.

(OA No.72/2025)

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.

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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:.19.08.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.72/2025)

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Page 11 of 11

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[AMBADAS]

Union Bank of India v. Ms Bombay Engineering Company

Case brief

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Union Bank of India v. Ms Bombay Engineering Company

Case brief

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