Allowed

Union Bank of India v. Mr. Devram Ganpat Patil

DRT21 May 2026OA/768/2024

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 of Rs. 25.76 lakhs from three defendants who defaulted on a term and crop loan. While permitting recovery of future interest, the court moderated the claimed rate from 12% to 7% simple annual interest, citing the agricultural nature of the loan. The judgment also authorized the sale of mortga

What did the court decide?

Ordered defendants to pay Rs. 25,76,831.10 with future interest at 7% per annum (simple) and directed issuance of Recovery Certificate.

Union Bank of India versus Mr. Devram Ganpat Patil — Contract and Commercial Disputes | DRT (2026)

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Presented on: 07.09.2024 Registered on: 24.09.2024 Decided on: 21.05.2026 Duration: Y M D 01 08 14

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 768/2024

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TOTAL CLAIM AMOUNT – Rs. 25,76,831.10/-

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Union Bank of India,

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A Body Corporate constituted under the Banking companies (Acquisition and 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 Main Branch, Dhule through its Authorized Person, Mr. Bhatusing Shamsing Thakur (Branch Head), Age: 40 yrs., Occ.: Service, R/o. Station Road, Dhule.

… Applicant

(OA No.768/2024)

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[AMBADAS]

Versus

1. Mr. Devram Ganpat Patil, Age: Major, Occu.: Agriculture R/o.: At Post Khandlay Br. Tq. and Dist. Dhule, 424001.

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2. Smt. Narmadabai Devram Patil,

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Age: Major, Occu.: Agriculture R/o.: At Post Khandlay Br. Tq. and Dist. Dhule, 424001.

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3. Mr. Daga Ananda Patil,

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Age: Major, Occu.: Agriculture R/o.: At Post Khandlay Br. Tq. and Dist. Dhule, 424001.

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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 21.05.2026

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 25,76,831.10/- (Rupees Twenty Five Lacs, Seventy Six Thousand, Eight Hundred Thirty One and Ten Paisa only), along with future interest from the date of filing of the

(OA No.768/2024)

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[AMBADAS]

Original Application, i.e., 07.09.2024, 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. 1 & 2 approached and requested the Applicant Bank for Term loan facility & Crop Loan Facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned a Term loan facility of Rs. 5,40,000/- & Crop Loan Facility of Rs. 50,000/- vide sanction letter dated 21.05.2009 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facilities was @12% p.a. 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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In order to secure the aforesaid loan facility, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letter, registered mortgage deed bearing

(OA No.768/2024)

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[AMBADAS]

daybook no. 2024 dated 22.05.2009, letter of undertaking,

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demand promissory note, letter of continuity & hypothecation

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agreement. Additionally defendant No. 3 stood as guarantor for defendant No. 1 & 2 and executed deed of guarantee on

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22.05.2009 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 & 2 created first charge over their immovable properties under daybook no. 2024 dated

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22.05.2009 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 Agricultural land admeasuring 01 Hector 46 R out of Gut No. 94/1, situated at Village Khandlay, Tq. & Dist. Dhule., which is bounded as under:

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East: Gut No. 93, West: Gut No. 95, South: Gut No. 91, North: Gut No. 96.

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ii) All that piece and parcel of Agricultural land admeasuring 1 Hector 63 R out of Gut No. 93/2-B, situated at Village Khandlay, Tq. & Dist. Dhule., which is bounded as under: East: Gut No. 68, West: Gut No. 94,

(OA No.768/2024)

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[AMBADAS]

South: Gut No. 91, North: Gut No. 98.

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The applicant bank further states that in order to secure the aforesaid loan facility, the defendant No. 1 to 3 also executed hypothecation agreement thereby hypothecating Tractor bearing Registration No. MH 18-N-9870 & Trailer for tractor bearing registration No. MH 18 N 9871, crops, herds, flocks, fish catch, silk worms and cocoons etc.

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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 irregular and classified as NPA on 31.03.2019. Therefore, on 29.08.2024 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, the

(OA No.768/2024)

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[AMBADAS]

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 publication. Hence, the defendants were proceeded ex-parte as per Order dated 09.02.2026.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Bhatusingh s/o. Shamsing Thakur, 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.

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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.

(OA No.768/2024)

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[AMBADAS]

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 @12% p. a. on term loan from the date of filing i.e. 07.09.2024 of this application till realization of the claim amount. However, considering the facts of the case being agriculture Loan, I am of the opinion that if future interest is granted @ 7% 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. 768/2024 is allowed with

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costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 25,76,831.10/- (Rupees Twenty Five Lacs, Seventy Six Thousand, Eight Hundred Thirty One and Ten Paisa only), along with future interest

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@ 7% per annum (simple) from the date of filing of the

(OA No.768/2024)

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[AMBADAS]

O.A. i.e. 07.09.2024 till full payment/realization of the

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amount mentioned in this operative order.

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mortgage of the following immovable properties vide document at Exh. A-8 in list of documents Exh. 5.

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i) All that piece and parcel of Agricultural land admeasuring 01 Hector 46 R out of Gut No. 94/1, situated at Village Khandlay, Tq. & Dist. Dhule., which is bounded as under:

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East: Gut No. 93, West: Gut No. 95, South: Gut No. 91, North: Gut No. 96.

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ii) All that piece and parcel of Agricultural land admeasuring 1 Hector 63 R out of Gut No. 93/2-B, situated at Village Khandlay, Tq. & Dist. Dhule., which is bounded as under:

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East: Gut No. 68, West: Gut No. 94, South: Gut No. 91, North: Gut No. 98.

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(D)

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

(OA No.768/2024)

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[AMBADAS]

(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:.21.05.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.768/2024)

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[AMBADAS]

Union Bank of India v. Mr. Devram Ganpat Patil

Case brief

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Union Bank of India v. Mr. Devram Ganpat Patil

Case brief

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