Allowed

Bank of Maharashtra v. Tarachand Rakhmaji Argade (Deceased)

DRT5 Jan 2026OA/875/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's original application for recovery of dues totaling over one crore rupees. The court accepted the bank's claim and fixed future interest at 6% per annum simple interest instead of the claimed 7%, securing the debt via mortgaged agricultural properties.

What did the court decide?

Direct the respondents to pay the sum of Rs. 01,41,19,876/- along with future interest @ 6% p.a. simple from 14.10.2024 till realization, secured by specified mortgaged properties.

Bank of Maharashtra versus Tarachand Rakhmaji Argade (Deceased) — Banking and Recovery | DRT (2026)

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Presented on: 14.10.2024 Registered on: 15.11.2024 Decided on: 05.01.2026 Duration: Y M D 01 02 21

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 875/2024

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TOTAL CLAIM AMOUNT – Rs. 01,41,19,876/-

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Bank of Maharashtra,

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(A Government of India Undertaking) having its Central Office at Lokmangal, Shivaji Nagar, Pune, and amongst other branches a branch at Sangamner, Tq. Sangamner, District Ahmednagar, Through its Authorized Officer, Shri. Somnath Bajrang Sasane, Age: 38 years, Occ. Service as Chief Manager of Asset Recovery Branch, R/o. Bank of Maharashtra, Aurangabad Head Office, Near Prozone Mall, Tq. and …Applicant Dist. Aurangabad.

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Versus

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1. Tarachand Rakhmaji Argade, Since deceased through L.Rs. 1A. Sheela Tarachand Argade, Age: 62 Years, Occ.: Agriculture, R/o.: @ Post Nimgav Jali, Tq. Sangamner, Dist. Ahmednagar.

(OA No. 875/2024)

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[AMBADAS]

1B. Kiran Tarachand Argade, Age: 51 Years, Occ.: Agriculture, R/o.: @ Post Nimgav Jali, Tq. Sangamner, Dist. Ahmednagar. 1C. Prakash Tarachand Argade, Age: 49 Years, Occ.: Agriculture, R/o.: @ Post Nimgav Jali, Tq. Sangamner, Dist. Ahmednagar.

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2. Sheela Tarachand Argade,

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Age: 62 Years, Occ.: Agriculture, R/o.: @ Post Nimgav Jali, Tq. Sangamner, Dist. Ahmednagar.

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3. Prakash Tarachand Argade, Age: 49 Years, Occ.: Agriculture, R/o.: @ Post Nimgav Jali, Tq. Sangamner, Dist. Ahmednagar.

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4. Kiran Prabhakar Sathe,

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Age: Major, Occ.: Agriculture, R/o.: @ Post Nimgav Jali, Tq. Sangamner, Dist. Ahmednagar.

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5. Mohanrao Madhav Deshmukh,

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Age: Major, Occ.: Agriculture, R/o.: @ Post Nimgav Jali, Tq. Sangamner, Dist. Ahmednagar.

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6. Vijay Raja Gosavi, Age: Major, Occ.: Agriculture, R/o.: @ Post Nimgav Jali, Tq. Sangamner, Dist. Ahmednagar.

…Defendants

(OA No. 875/2024)

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[AMBADAS]

APPEARANCES

For the Applicant Mr. Sharad V. Natu -Advocate For Defendants Ex-parte

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JUDGMENT

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Delivered on 05.01.2026

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 01,41,19,876/- (Rupees One Crore, Forty One Lacs, Nineteen Thousand, Eight Hundred and Seventy Six only), along with further interest from the date of filing of the Original Application, i.e., 14.10.2024, 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, defendant No. 1 (Now deceased) to 3 approached the applicant bank seeking financial assistance in the form of Term Loans and Cash Credit Facility. Upon scrutiny of the submitted documents, the applicant bank sanctioned Term loan of Rs. 14,00,000/- Term loan of Rs. 27,00,000/- & Cash Credit Facility of Rs. 06,00,000/- vide sanction letter dated 10.10.2014,

(OA No. 875/2024)

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[AMBADAS]

10.03.2015 & 10.05.2015 respectively. The agreed rate of interest for aforesaid loan facilities was @7% p.a. with monthly rests. The defendants also agreed to pay an additional interest @ 2% by way of liquidated damages in case of default in repayment. 3. In order to secure the aforesaid loan facilities, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letter, hypothecation agreement, demand promissory note, mortgage deed under Maharashtra Provision of Facilities for Agriculture Credit by Banks Act, 1974 etc. Additionally defendant no. 4 to 6 stood as guarantors for defendant No. 1 to 3 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 loan facilities sanctioned, the Defendants executed mortgage deed under Maharashtra Provision of Facilities for Agriculture

(OA No. 875/2024)

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[AMBADAS]

Credit by Banks Act, 1974. The mortgage was created in respect

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of the following property:

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All those piece and parcel of land situated being and lying at Village Nimgaon Jali in Tq. Sangamner, Dist. Ahmednagar, admeasuring 1.60 H in Gut no. 547/2, which is bounded as under: North: Gut No. 549, East: Gut No. 547/2, West: Manchi Shiv, South: Gut No. 542.

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All those piece and parcel of land situated being and lying at Village Nimgaon Jali in Tq. Sangamner, Dist. Ahmednagar, admeasuring 72 R in Gut no. 574/2/1, which is bounded as under: North: Gut No. 573, East: Gut No. 574/2/2, West: 575, South: Gut No. 588.

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All those piece and parcel of land situated being and lying at Village Nimgaon Jali in Tq. Sangamner, Dist. Ahmednagar, admeasuring 1.69 H in Gut no. 571, which is bounded as under: North: Gut No. 573, East: Gut No. 574/2/2, West: 575, South: Gut No. 546.

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The applicant bank contended that the defendants have failed to keep their promise and commitments agreed by them with regard

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to due repayment of the loan amount. The defendants failed to

(OA No. 875/2024)

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[AMBADAS]

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 26.03.2021. Therefore, 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 L.R.s of defendant No. 1 and defendant No. 2 to 6 failed to appear in matter though they were served through RPAD. Hence, the defendants were proceeded ex-parte as per Order dated 03.03.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Somnath Bajrang Sasane, Chief Manager of the applicant Bank, and has produced on record the original loan

(OA No. 875/2024)

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[AMBADAS]

transaction documents as Annexure A-1 to A-32 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.

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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 @ 7% p.a. from the date of filing i.e. 14.10.2024 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 @ 6% per

(OA No. 875/2024)

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[AMBADAS]

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. 875/2024 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. 01,41,19,876/- (Rupees One Crore, Forty One Lacs, Nineteen Thousand, Eight Hundred and Seventy Six only), along with future interest @ 6% per annum (simple) from the date of filing of the Original Application i.e. 14.10.2024 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 Annexure A-5, A-6, A-19 and A-30 in the list of documents Exh. 5.

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All those piece and parcel of land situated being and lying at Village Nimgaon Jali in Tq. Sangamner, Dist.

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[AMBADAS] (OA No. 875/2024)

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Page 8 of 10

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Ahmednagar, admeasuring 1.60 H in Gut no. 547/2, which is bounded as under: North: Gut No. 549, East: Gut No. 547/2, West: Manchi Shiv, South: Gut No. 542.

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All those piece and parcel of land situated being and lying at Village Nimgaon Jali in Tq. Sangamner, Dist. Ahmednagar, admeasuring 72 R in Gut no. 574/2/1, which is bounded as under: North: Gut No. 573, East: Gut No. 574/2/2, West: 575, South: Gut No. 588.

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All those piece and parcel of land situated being and lying at Village Nimgaon Jali in Tq. Sangamner, Dist. Ahmednagar, admeasuring 1.69 H in Gut no. 571, which is bounded as under: North: Gut No. 573, East: Gut No. 574/2/2, West: 575, South: Gut No. 546. (D) The applicant Bank is entitled to sell the mortgaged immovable properties and hypothecated goods / Articles etc.,, to recover its dues.

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(E) Issue Recovery Certificate accordingly.

(OA No. 875/2024)

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[AMBADAS]

(F) The Registrar is directed to send the copy of the

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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/- (Dr. J. R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad

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Pronounced in open court. Place: Aurangabad Date:. 05.01.2026

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(OA No. 875/2024)

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Page 10 of 10

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[AMBADAS]

Bank of Maharashtra v. Tarachand Rakhmaji Argade (Deceased)

Case brief

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Bank of Maharashtra v. Tarachand Rakhmaji Argade (Deceased)

Case brief

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