Allowed

Union Bank of India v. M/S Dwarakadheesh Vastra Dalan

DRT19 Jun 2026OA/885/2024

Case brief

AI extract

What is this about?

In this ex-parte proceedings, the Debts Recovery Tribunal adjudicated an application filed by Union Bank of India for recovery of dues. Being satisfied with the unchallenged evidence and documentary proof of defaults and mortgage, the Tribunal granted the claim against the borrower-dubuitants.

What did the court decide?

Directing Defendants to pay Rs. 51,18,812.95 with future interest at 8% p.a. (simple) from 27.10.2024, and granting right to sell mortgaged properties.

Union Bank of India versus M/S Dwarakadheesh Vastra Dalan — Company and Corporate | DRT (2026)

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Presented on: 27.10.2024 Registered on: 21.11.2024 Decided on: 19.06.2026 Duration: Y M D 01 07 22

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 885/2024

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TOTAL CLAIM AMOUNT – Rs. 51,18,812.95/-

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Union Bank of India,

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A Body Corporate constituted under the Banking companies (Acquisition & Transfer of Undertaking) Act No. V of 1970, Having its Head office at 239, Vidhan Bhavan Marg, Nariman Point, Vidhan Bhavan Marg, Mumbai-400021 in the State of Maharashtra and its Branch ARB Branch Aurangabad Maharashtra through its Authorized officer Abhaykumar Dattatray Baviskar, Add: ARB Branch Chh. Sambhajinagar (Aurangabad).

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… Applicant

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Versus

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1. M/s. Dwarakadheesh Vastra Dalan a partnership firm Through its Partner, Saroj Madhukar Aute Age: Major, Occ.: Business, Add:- CTS No. 19646, Shop No. 01, Ground Floor, Adjacent to Taksali Lawn, Railway Station Road, Chh. Sambhajinagar – 431001.

(OA No.885/2024)

Page 1 of 10

[AMBADAS]

2. Mrs. Saroj Madhukar Aute, Age: Major, Occ.: Business, Add:- Plot No. 33, D-1, Madhuban Nutan Yeshwant, Housing Society, Near Azad Chowk, N-8, CIDCO, Tal. And Dist. Chh. Sambhajinagar 431003.

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3. Mr. Sagar Madhukar Aute,

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Age: Major, Occ.: Business, Add:- Plot No. 33, D-1, Madhuban Nutan Yeshwant, Housing Society, Near Azad Chowk, N-8, CIDCO, Tal. And Dist. Chh. Sambhajinagar 431003.

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4. Mrs. Snehal Amit Aute,

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Age: Major, Occ.: Business, Add:- Plot No. 33, D-1, Madhuban Nutan Yeshwant, Housing Society, Near Azad Chowk, N-8, CIDCO, Tal. And Dist. Chh. Sambhajinagar 431003.

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5. Mr. Rahul Madhukar Aute,

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Age: Major, Occ.: Business, Add:- Plot No. 33, D-1, Madhuban Nutan Yeshwant, Housing Society, Near Azad Chowk, N-8, CIDCO, Tal. And Dist. Chh. Sambhajinagar 431003.

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6. Mr. Amit Madhukar Aute,

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Age: Major, Occ.: Business, Add:- Plot No. 33, D-1, Madhuban Nutan Yeshwant, Housing Society, Near Azad Chowk, N-8, CIDCO, Tal. And Dist. Chh. Sambhajinagar 431003.

…Defendants

(OA No.885/2024)

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[AMBADAS]

APPEARANCES

For the Applicant Mr. Mohite Eshwar Krishnarao -Advocate For Defendants Ex-parte

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JUDGMENT

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Delivered on 19.06.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 51,18,812.95/- (Rupees Fifty One Lacs, Eighteen Thousand, Eight Hundred Twelve and Ninety Five Paisa only), along with future interest from the date of filing of the Original Application, i.e., 27.10.2024, 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 the Defendant No. 1 to 4 approached and requested the Applicant Bank for Cash Credit facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned Cash Credit facility of

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Rs. 49,00,000/- vide sanction letter dated 25.01.2022 on certain

(OA No.885/2024)

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[AMBADAS]

terms and conditions. The agreed rate of interest for the aforesaid

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loan was @8.80% p.a. with monthly 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 Defendant No. 1 to 4 executed various loan documents in favour of the Applicant Bank. These included sanction letter, letter of undertaking, hypothecation agreement, demand promissory note, registered mortgage deed bearing No. 1500/2022 dated 29.03.2022 etc., Additionally defendant No. 5 and 6 stood as guarantors for defendant No. 1 to 4 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 by executing registered mortgage deed

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bearing No. 1500/2022 dated 29.03.2022 in favour of the

(OA No.885/2024)

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[AMBADAS]

Applicant Bank. The mortgage was created in respect of the following properties-

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i) All that piece and parcel of Row House No. A-18 (Grampanchayat Milkat No. 2865), adm. 662.62 Sq. Feet, Sai Pride of Village Jogeshwari, Tal. Gangapur, Dist. Aurangabad, which is bounded as under:

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East: 4 Mt. road side margin, West: Row House No. A-1, South: Row House No. A-17, North: 7.5 Mt. Road.

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ii) All that piece and parcel of Row House No. B-38 (Grampanchayat Milkat No. 2921), adm. 502 Sq. Feet, Sai Pride of Village Jogeshwari, Tal. Gangapur, Dist. Aurangabad, which is bounded as under:

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East: Row House No. B-53, West: 4 Mt. Road, South: Row House No. B-39, North: Row House No. B-37.

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East: Row House No. B-52, West: 4 Mt. Road, South: Row House No. B-40, North: Row House No. B-38.

(OA No.885/2024)

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[AMBADAS]

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 26.05.2024. Therefore, on 04.06.2024 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 failed to appear in matter though they were duly served. Hence, the defendants were proceeded ex-parte as per Order dated 03.02.2026.

(OA No.885/2024)

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[AMBADAS]

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Abhaykumar Dattatray Baviskar, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Annexure A to F 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 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 @8.80% p. a. on term loan from the date of filing i.e. 27.10.2024 of this application

(OA No.885/2024)

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[AMBADAS]

till realization of the claim amount. However, considering the facts of the case, I am of the opinion that if future interest is granted @ 8% 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. 885/2024 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 51,18,812.95/- (Rupees Fifty One Lacs, Eighteen Thousand, Eight Hundred Twelve and Ninety Five Paisa only), along with future interest @ 8% per annum (simple) from the date of filing of the Original Application i.e. 27.10.2024 till full payment/realization of the amount mentioned in this operative order.

(OA No.885/2024)

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[AMBADAS]

document at Annexure C/4 and D in the list of documents Exh. 5.

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i) All that piece and parcel of Row House No. A-18 (Grampanchayat Milkat No. 2865), adm. 662.62 Sq. Feet, Sai Pride of Village Jogeshwari, Tal. Gangapur, Dist. Aurangabad, which is bounded as under: East: 4 Mt. road side margin, West: Row House No. A-1, South: Row House No. A-17, North: 7.5 Mt. Road.

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ii) All that piece and parcel of Row House No. B-38 (Grampanchayat Milkat No. 2921), adm. 502 Sq. Feet, Sai Pride of Village Jogeshwari, Tal. Gangapur, Dist. Aurangabad, which is bounded as under: East: Row House No. B-53, West: 4 Mt. Road, South: Row House No. B-39, North: Row House No. B-37.

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iii) All that piece and parcel of Row House No. B-39 (Grampanchayat Milkat No. 2922), adm. 502.45 Sq. Feet, Sai Pride of Village Jogeshwari, Tal. Gangapur, Dist. Aurangabad, which is bounded as under: East: Row House No. B-52, West: 4 Mt. Road, South: Row House No. B-40, North: Row House No. B-38.

(OA No.885/2024)

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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:.19.06.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.885/2024)

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[AMBADAS]

Union Bank of India v. M/S Dwarakadheesh Vastra Dalan

Case brief

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Union Bank of India v. M/S Dwarakadheesh Vastra Dalan

Case brief

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