Allowed

Bank of Maharashtra v. Ms Star Polymer through Its Proprietress Sau Jayashri Vijay Netake

DRT26 Nov 2025OA/1435/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by Bank of Maharashtra to recover approximately Rs. 31.55 lakhs from a defaulting defendant. The court adjusted the claim amount by deducting processing fees and reduced future interest from claimed rates to a uniform 9% per annum.

What did the court decide?

Recovery of Rs. 31,55,736/- with future interest at 9% p.a. and issuance of a Recovery Certificate.

Bank of Maharashtra versus Ms Star Polymer through Its… — Banking and Recovery | DRT (2025)

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Presented on: 18.12.2022 Registered on: 06.11.2023 Decided on: 26.11.2025 Duration: Y M D 02 11 08

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1435/2023.

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Bank of Maharashtra ,

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A Body Corporate constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act 1970 having its Head Office at “Lokmangal” 1501, Shivajinagar, Pune-5 and Branch amongst other places at 1137, Gugale Building, Yerwada, Pune-411 006.

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… Applicant

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Versus

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M/s Star Polymer Prop. Sou. Jayashri Vijay Netake Address-1- S.No.22P/22/2, Flat No.A-201, Prasun Savoy Dhanori Road, Nr. Bharat Restaurant, Dhanori-411 015.

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Address-2- Shop No.1-108, Plot No.T-80, “Mangalmurti Ind”Bldg. MIDC Bhosari, District Pune-411 026.

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… Defendant

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APPEARANCES

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For the Applicant For the Defendant

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Advocate Sheetal Deole Ex-parte.

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TOTAL CLAIM AMOUNT – Rs.31,58,472/-.

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JUDGMENT (Delivered on 26^th November, 2025)

(OA No.1435/2023)

Page 1 of 6

[ANIL]

1 The Applicant Bank has filed present application for recovery of aggregate sum of Rs.31,58,472/- (i.e.Rs.19,22,481/- towards Term Loan Account; Rs.3,67,487/- towards WCTL Account; Rs.5,90,750/towards Enhanced Cash Credit Account and Rs.2,77,854/- towards Term Loan Account) together with future interest thereon at the rate of @ 11.80%; @9.25%; @12.80% and @9.25% p.a. respectively from the date of filing of this application i.e. 18.12.2022 till repayment/ realization of amount from the Defendant.

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2 Brief facts of the application are as under:-

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Defendant is Proprietress of M/s Star Polymer approached to the applicant bank on 14.05.2018 and requested for a Term Loan of Rs.16 lakhs for purchase of Machinery and Cash Credit of Rs.2 Lakhs as Working Capital for business purpose.

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Applicant bank considered request of the defendant and sanctioned Term Loan of Rs.16 lakhs for purchase of Machinery and Cash Credit of Rs.2 Lakhs as Working Capital for business purpose on 02.06.2018 on certain terms and conditions.

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In order to secure the aforesaid Loan facilities, Defendant executed certain loan documents on 18.06.2018 in favour of the Applicant Bank, as mentioned in Para Nos.5.6 of the Original Application.

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Defendant also executed a combined Hypothecation agreement dated 18.06.2018 for securing above mentioned Term Loan and Cash Credit Loan and hypothecated plants and machinery, goods, stocks of raw material, item, inventories, stocks in process, semi-finished and finished goods, stores and spares, stock in trade etc.

(OA No.1435/2023)

Page 2 of 6

[ANIL]

3 Defendant again approached the applicant bank and requested for support under COVID-19 for outcoming of pandemic due to Lockdown of COVID-19. Applicant bank considered the said request and sanctioned a Working Capital Term Loan under the scheme of Emergency Credit Line Guarantee Scheme of Rs.3,69,000/- to the defendant on 20.06.2020.

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In order to secure the aforesaid Loan facility, Defendant executed certain loan documents on 02.09.2020 in favour of the Applicant Bank, as mentioned in Para Nos.5.12 of the Original Application.

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The Defendant has executed hypothecation agreement on 02.09.2020 for securing Term Loan of Rs.3,69,000/- and thereby hypothecated plants and machinery, goods, stocks of raw material, item, inventories, stocks in process, semi-finished and finished goods, stores and spares, stock in trade etc.

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Defendant again approached to the applicant bank in March 2022 and requested for enhancement in the Cash Credit Limit from Rs.2 Lakhs to Rs.6 Lakhs as Working Capital for the business purpose of defendant.

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The applicant bank considered the request of defendant and enhanced Cash Credit up to Rs.6 lakhs as Working Capital for business purpose on 16.04.2022, on certain terms and conditions which defendant has accepted.

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Defendant after enhancement of Cash Credit executed certain security documents on 16.04.2022 for securing said Cash Credit of Rs.6 Lakhs, as set out in Para No.5.17 of Original application.

(OA No.1435/2023)

Page 3 of 6

[ANIL]

Defendant again approached applicant bank on 31.05.2022 and requested for Term Loan of Rs.3,45,000/- for purchase of Oven to the defendant. Again, applicant bank considered the said request of the defendant and sanctioned Term Loan of Rs.3,45,000/- for purchase of Oven on 02.06.2022, on certain terms and conditions.

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In order to secure the aforesaid Term Loan facility of Rs.3,45,000/-, Defendant executed certain loan documents on 04.06.2022 in favour of the Applicant Bank, as mentioned in Para Nos.5.21 of the Original Application.

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4 Applicant Bank contended that after availing Term Loan Facilities and Cash Credit facilities, the defendant failed and neglected to pay outstanding amount and comply with the terms and conditions in which the said facilities were granted to them. Due to defaults, the Applicant Bank has classified accounts of the defendant as NPA as per Reserve Bank of India norms. The Applicant Bank sent notice dated 29.11.2022 through its advocate to the defendant and recalled for its outstanding dues. However, even after issuance of notice, the defendant has failed to pay the installments in Term Loan Account and also failed to regularize the account or pay interest in Cash Credit Account.

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Hence, this application is filed.

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5 Defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte against them vide Order dated 04.07.2025 passed below the Application (Exh.-01).

(OA No.1435/2023)

Page 4 of 6

[ANIL]

6 The Applicant Bank has filed Claim Affidavit of Prakash Singh, Chief Manager & produced on record the Loan Transaction documents (Exh.10) at Exhibits.AW-1 to AW-26, which corroborates the case of the Applicant Bank.

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7 I have heard arguments of the learned Advocate for the Applicant Bank.

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8 Since the defendant failed to appear and contest the application, I find no reason to disbelieve the evidence of the Applicant Bank. Therefore, the Applicant Bank is entitled for reliefs as claimed.

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9 The Applicant Bank has claimed relief in respect of hypothecated assets, as mentioned in Para No.5.8 & 5.14 of the Original Application. However, there is no detailed description with respect to hypothecated assets. Therefore, the relief in terms of hypothecated assets cannot be granted.

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10 The applicant bank has claimed Rs.293/- towards Penal interest and Discharge Tax for Term loan account; Rs.313/- towards penal interest, discharge fee and discharge tax for WCTL Account; Rs.1656/- towards penal interest for Enhanced Cash Credit Loan account and Rs.474/- towards penal interest, discharge fee and discharge tax for Term Loan account, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.31,58,472/- is reduced to Rs.31,55,736/-.

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11 The Applicant Bank has claimed future interest @ 11.80%; @9.25%; @12.80% and @9.25% p.a. respectively for all the loan facilities. However, considering the facts of the case, I am of the opinion that if

(OA No.1435/2023)

Page 5 of 6

[ANIL]

future interest is granted @9% p.a. (simple) to all the loan facilities, it would be just and reasonable rate of interest.

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Hence, I pass the following order :- 12.

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ORDER

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(A) Original Application No.1435/2023 is allowed with costs.

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(B) Defendant shall pay an aggregate sum of Rs.31,55,736/- (Rupees Thirty One Lakhs Fifty Five Thousand Seven Hundred Thirty Six only) to the applicant bank with future interest @9% p.a. from the date of filing of the Original Application i.e. 18.12.2022 till payment/realization of the amount mentioned in this operative order, to the Applicant Bank.

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(D) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the Applicant Bank and the defendant.

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Sd/Place : Pune (Dilip G. Murumkar) Date: 26.11.2025 Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.1435/2023)

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Page 6 of 6

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[ANIL]

Bank of Maharashtra v. Ms Star Polymer through Its Proprietress Sau Jayashri Vijay Netake

Case brief

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Bank of Maharashtra v. Ms Star Polymer through Its Proprietress Sau Jayashri Vijay Netake

Case brief

What is this about?

What did the court decide?

What the court decided

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