Allowed

Union Bank of India v. Ms Balaji Fertilizers

DRT24 Aug 2026OA/731/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Union Bank of India's application for recovery of outstanding dues and future interest against defaulting borrowers, fixing the interest rate at 9% p.a. and securing the claim via mortgaged property.

What did the court decide?

Defendants to pay Rs. 4,89,96,737.59 with future interest @9% p.a. (simple) from filing date; mortgage property secured; Recovery Certificate issued.

Union Bank of India versus Ms Balaji Fertilizers — Contract and Commercial Disputes | DRT (2026)

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Presented on: 19.11.2025 Registered on: 18.12.2025 Decided on: 24.08.2026 Duration: Y M D 00 09 05

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 731/2025

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TOTAL CLAIM AMOUNT – Rs. 4,89,96,737.59/-

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Union Bank of India,

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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 Udgir, Tq. Udgir, Dist. Latur, through it’s authorized officer, Mr. Vivek Hanumantrao Karpe (Branch Manager), Age: 36 yrs., Occ.: Servic, R/o.: Udgir, Tq. Udgir, Dist. Latur 413517.

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Versus

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… Applicant

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1. M/s. Balaji Fertilizers, Through its Prop. Mr. Manesh Madhav Marewar Age: Major, Occ.: Agri., R/o.: At Shop No. 3-2-983, Chidrewar Building, New Mondha Road, Udgir, Tq. Udgir, Dist. Latur 413517.

(OA No.731/2025)

Page 1 of 8

[AMBADAS]

2. Mr. Manesh Madhav Marewar

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Age: Major, Occ.: Agri., R/o.: At Shop No. 3-2-983, Chidrewar Building, New Mondha Road, Udgir, Tq. Udgir, Dist. Latur 413517.

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3. Mr. Madhav Ganpati Marewar

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Age: Major, Occ.: Agri., R/o.: At Shop No. 3-2-983, Chidrewar Building, New Mondha Road, Udgir, Tq. Udgir, Dist. Latur 413517.

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…Defendants

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APPEARANCES

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For the Applicant For Defendants

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

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JUDGMENT

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Delivered on 24.08.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 4,89,96,737.59/- (Rupees Four Crore, Eighty Nine Lacs, Ninety Six Thousand, Seven Hundred Thirty Seven and Fifty Nine Paisa only), along with future interest from the date of filing of the Original Application, i.e., 19.11.2025, until the date of realization of the entire outstanding dues from the Defendants.

(OA No.731/2025)

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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. 2 being proprietor of defendant No. 1 approached and requested the Applicant Bank seeking financial assistance. Upon considering the request and financial needs of the Defendant, the Applicant Bank Sanctioned Cash Credit Facility of Rs. 4,50,00,000/- vide sanction letter dated 12.12.2022 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @9.80% p.a. respectively with monthly rests. The Defendant also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

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In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank. These included sanction letter, registered mortgage deed bearing daybook no. 223 dated 11.01.2023, letter of undertaking, demand promissory note, letter of continuity & hypothecation agreement. Etc., Additionally defendant No. 3 stood as guarantor for

(OA No.731/2025)

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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 executed registered mortgage deed bearing daybook no. 223 dated 11.01.2023 in favour of the Applicant Bank. The mortgage was created in respect of the following property-

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All that piece and parcel of property bearing M.C. No. 3-2-982, Old 3-3-372, new admeasuring 3000 sq. feet in Sarvoday Housing Society, Udgir, Tq. Udgir, Dist. Latur, which is bounded as under:

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East: Property of Yusufoddin Madarsab Devanikar, West: Property of Yashwant Murlidharrao Jalnapurkar, South: Property of Vijaykumar Ranganath Parswear, North: Market Yard 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

(OA No.731/2025)

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[AMBADAS]

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 21.08.2025. Therefore, on 03.11.2025 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 15.05.2026.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Vivek Hanumantrao Karpe, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-15 along with list of documents Exh.5 which corroborates the case of the applicant Bank.

(OA No.731/2025)

Page 5 of 8

[AMBADAS]

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

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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 property of the borrower which is mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @9.80% p. a. from the date of filing i.e. 19.11.2025 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), it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 731/2025 is allowed with costs.

(OA No.731/2025)

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[AMBADAS]

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 4,89,96,737.59/- (Rupees Four Crore, Eighty Nine Lacs, Ninety Six Thousand, Seven Hundred Thirty Seven and Fifty Nine Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 19.11.2025 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-10 in list of documents Exhibit 5.

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All that piece and parcel of property bearing M.C. No. 3- 2-982, Old 3-3-372, new admeasuring 3000 sq. feet in Sarvoday Housing Society, Udgir, Tq. Udgir, Dist. Latur, which is bounded as under:

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East: Property of Yusufoddin Madarsab Devanikar, West: Property of Yashwant Murlidharrao Jalnapurkar, South: Property of Vijaykumar Ranganath Parswear, North: Market Yard Road.

(OA No.731/2025)

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[AMBADAS]

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

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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:.24.08.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.731/2025)

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Page 8 of 8

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[AMBADAS]

Union Bank of India v. Ms Balaji Fertilizers

Case brief

What is this about?

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Union Bank of India v. Ms Balaji Fertilizers

Case brief

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