Allowed

Bank of Maharashtra v. M/S Needa Enterprises Prop. Bachha Moiuuddin Khan

DRT5 Dec 2025OA/1488/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the recovery application filed by Bank of Maharashtra against M/s Needa Enterprises. The court ex parte against the absent defendant, adjusted the claim amount by deducting penal interest claims, and reduced future interest from 13.5% to 9% p.a. before granting recovery. The judgment directs the sale of the mortgaged property if necessary and issues a recovery c

What did the court decide?

Defendant directed to pay Rs.59,34,732/- with future interest at 9% p.a., secured by mortgage, and recovery certificate issued.

Bank of Maharashtra versus M/S Needa Enterprises Prop. Bachha… — Banking and Recovery | DRT (2025)

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Presented on: 23.09.2022 Registered on: 17.11.2023 Decided on: 05.12.2025 Duration: Y M D 03 02 12

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1488/2023.

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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 Karanja Branch, Raigad.

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… Applicant

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Versus

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M/s Needa Enterprises Prop. Bachha Moiuuddin Khan Addresses: -

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( i )- Bhusari Estate, Shop No.3, Khopoli, Pen Road, Shil Phata, Khopoli, District Raigad – 410 203. ( ii )- Gala No.11, Golden View Apartment Karanja Road, Uran, Raigad-400 702. ( iii )-Bungalow No.11, Little Leela CHS, Near Narayani Dham, Village Pirangut, Taluka Maval, District Pune. ( iv )-Veena Nagar, Mhada Colony, Khopoli, Taluka Khalapur, District Raigad. … Defendant

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APPEARANCES

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For the Applicant For the Defendant

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Advocate Mr. Vallabh Tokekar Ex-parte.

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TOTAL CLAIM AMOUNT – Rs.59,45,095.08Ps.

(OA No.1488/2023)

Page 1 of 6

[ANIL]

JUDGMENT

(Delivered on 5^th December, 2025)

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The Applicant Bank has filed present application for recovery of aggregate sum of Rs.59,45,095.08Ps [i.e.Rs.42,91,914/- towards Cash Credit Account No.60131310314; Rs.11,65,544.24Ps towards Working Capital Term Loan Account No.60355303414 & Rs.4,87,636.84Ps towards Funded Interest Term Loan Account No.60355302614) together with future interest thereon at the rate of @ 13.50% p.a. with monthly rests from the date of filing original application, till repayment/realization of amount from the Defendant.

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Brief facts of the application are as under:-

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Defendant approached to the applicant bank for availing Cash Credit Facility and requested to sanction Cash Credit Facility. Applicant bank considered the request of defendant and sanctioned Cash Credit of Rs.83,30,000/- to defendant on 26.04.2013, upon certain terms and conditions.

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

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In addition to the above security documents, the defendant executed Simple Mortgage duly executed and registered in the Office of Sub Registrar, Lonawala, Pune at Sr. No.1959/2013 on 25.04.2013 of the immovable property i.e. all that piece and parcel of Bungalow No.11 bearing Municipal Council House No.28/A, situated at Retreat Valley Co-op Housing Society Ltd. area admeasuring 1400 sq. fts. consisting Four room lying being and situated at Gat No.16/14 and

(OA No.1488/2023)

Page 2 of 6

[ANIL]

16/11/2 situated at village Valvan, Lavhalwadi, Lonawala, Taluka Maval, District Pune, together with all fixtures, more particularly mentioned in Schedule of the Original Application.

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In the year 2017, the defendant approached applicant bank for review, renewal and reducing the existing Cash Credit of Rs.83.30 lakhs. Accordingly, applicant bank reviewed, renewed and reduced Cash Credit of Rs.83.30 lakhs to Rs.50 Lakhs on 15.06.2017.

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In the year 2018, the defendant again approached the applicant bank for review, renewal and reducing the Cash Credit limit of Rs.50 lakhs and accordingly, as per the request of the defendant, existing Cash Credit of Rs.50 Lakhs was reviewed, renewed and reduced to Rs.41.50 Lakhs on 15.12.2018.

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Again in the year 2020, as per the request of the defendant, the applicant bank restructured the existing Cash Credit Facility of Rs.41.50 Lakhs as (1) Cash Credit of Rs.40 Lakhs; (2)- Working Capital Term Loan of Rs.10 Lakhs and (3) Funded Interest Term Loan of Rs.5.33 Lakhs on 30.03.2020, as per the requirement and demands of the defendant.

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The applicant bank submits that Cash Credit of Rs.40 Lakhs was to be reviewed annually and other term loans was to be repaid as mentioned in the original application.

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Applicant bank states that operations under Cash Credit Account was not satisfactory & the defendant failed to serve interest under the Cash Credit Facility. The defendant failed to repay the said loan and hence Loan accounts were classified as NPA on 30.11.2019.

(OA No.1488/2023)

Page 3 of 6

[ANIL]

Therefore, the applicant bank through its Advocate issued Recall Notice on 01.08.2022 calling upon the defendant to pay the outstanding amounts together with costs, charges and interest. However, defendant failed and neglected to comply with the demands of the Notice.

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Hence, this application is filed.

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Defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte against them vide Order dated 09.07.2025 passed below the Application (Exh.-01).

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The Applicant Bank has filed Claim Affidavit of Mr. Sourabh Kaneri, Branch Manager & produced on record the Loan Transaction documents (Exh.10) at Exhibits.AW-1 to AW-14, 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 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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The applicant bank has claimed penal interest of Rs.6,578/- for Cash Credit Account; Rs.1,148/- for Working Capital Term Loan; and Rs.2,637/- for Funded Interest Term Loan (Total Rs. 10,363/-), which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.59,45,095/- is reduced to Rs.59,34,732/-.

(OA No.1488/2023)

Page 4 of 6

[ANIL]

The Applicant Bank has claimed future interest @13.50% p.a. for all the loan facilities. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% p.a. (simple), it would be just and reasonable rate of interest.

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Hence, I pass the following order :-

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ORDER

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(A) Original Application No.1488/2023 is allowed with costs.

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(B) Defendant shall pay a sum of Rs.59,34,732/(Rupees Fifty Nine Lakhs Thirty Four Thousand Seven Hundred Thirty Two only) [i.e. Rs.42,85,336 /- towards Cash Credit Account No.60131310314 ; Rs.11,64,396/- towards Working Capital Term Loan Account No. 60355303414 and Rs.4,85,000 /- towards Funded Interest Term Loan Account No. 60355302614] with future interest @9% p.a. from the date of filing of the Original Application i.e.23.09.2022 till payment/ realization of the amount mentioned in this operative order, to the Applicant Bank.

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(C) The above said amount is secured by mortgage of following immovable property i.e. all that piece and parcel of Bungalow No.11 bearing Municipal Council House No.28/A, situated at Retreat Valley Co-op Housing Society Ltd. area admeasuring 1400 sq. fts. consisting Four room lying being and situated at Gat No.16/14 and 16/11/2 situated at village Valvan, Lavhalwadi, Lonawala, Taluka Maval, District Pune, together with all fixtures, more particularly mentioned in Schedule of the Original Application.

(OA No.1488/2023)

Page 5 of 6

[ANIL]

(D) The Applicant Bank is entitled to sell the mortgaged immovable property to recover its dues.

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(E) Issue Recovery Certificate.

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

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Place :- Pune. Date :- 05.12.2025

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Sd/(Dilip G. Murumkar) Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.1488/2023)

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Page 6 of 6

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[ANIL]

Bank of Maharashtra v. M/S Needa Enterprises Prop. Bachha Moiuuddin Khan

Case brief

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Bank of Maharashtra v. M/S Needa Enterprises Prop. Bachha Moiuuddin Khan

Case brief

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