Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 1.46 Crore outstanding dues. The court mandated payment of principal, future interest at 12% p.a., and directed sale of mortgaged property to recover the dues.
Recovery of Rs. 1,46,35,552.93/- along with future interest @12% per annum from 03.03.2022; sale of mortgaged property directed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Presented on: 03.03.2022 Registered on: 18.06.2022 Decided on: 27.10.2025 Duration: Y M D 03 07 15
IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 159/2022
TOTAL CLAIM AMOUNT – Rs. 1,46,35,552.93/-
CANARA BANK
A Body Corporate duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 Having its Head Office at Banglore-560002 and branch amongst the other places as at SME Branch Jalna Road, Aurangabad - 431001 through Power of Attorney Holder and Branch Manager, Mr. Upendra Prasad Lohani s/o Bachu Prasad Lohani, Age: 45 years, Occ.: Service as Chief Manager, SME Branch, Jalna Road Aurangabad.
R/o. Jalna Road, Aurangabad.
… Applicant
(OA No.159/2022)
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[AMBADAS]
Versus
Mr. Narayan Sudam Matkar, Age: Major, Occu.: Business, Proprietor of M/s Shree Ganraya Plasto Enterprises, Plot No. 7, Gut No. 67, Wadgaon Kolhati, MIDC Waluj, Aurangabad. OR Block No. 3, Plot No. RM-287, Shivalay Chowk, Wadgaon Kolhati, Bajajnagar, MIDC Waluj, Aurangabad.
…Defendant
APPEARANCES
For the Applicant Mr. P.N. Kapadia -Advocate For Defendant Ex-parte
JUDGMENT
Delivered on 27.10.2025
(OA No.159/2022)
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[AMBADAS]
Brief facts of the application are as under:
Subsequently, the Defendant again approached the Applicant Bank seeking enhancement of the Cash Credit facility and continuation of the existing Term Loan. The Defendant also requested a fresh Term Loan. Upon consideration of the said request, the Applicant Bank
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[AMBADAS]
enhanced the Cash Credit facility from ₹30,00,000/- to ₹60,00,000/and sanctioned a fresh Term Loan of ₹21,50,000/-, vide sanction letter dated 31.10.2017, on revised terms and conditions. The agreed rate of interest was 10.45% per annum for the Cash Credit facility and 9.50% per annum for the Term Loan, both with monthly rests. The Defendant once again agreed to pay additional interest by way of liquidated damages in the event of default.
Thereafter, the Defendant again approached the Applicant Bank requesting further enhancement of the Cash Credit facility, continuation of the earlier term loans with existing liability, and sanction of a fresh Term Loan. After evaluating the financial needs of the Defendant, the Applicant Bank enhanced the Cash Credit facility from ₹30,00,000/- to ₹50,00,000/- and sanctioned a fresh Term Loan of ₹35,00,000/-, vide sanction letter dated 11.03.2019, on specific terms and conditions. The agreed rate of interest for these facilities was 12.45% per annum for the Cash Credit facility and 11.60% per annum for the Term Loan, with monthly rests. The Defendant again
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[AMBADAS]
agreed to pay additional interest by way of liquidated damages in case
of default.
In accordance with the guidelines issued by the Reserve Bank of India
(RBI) during the COVID-19 pandemic, the Applicant Bank sanctioned a COVID Funded Interest Term Loan (GFITL) of ₹3,17,244/-, which was disbursed on 03.09.2020. This facility was extended in respect of interest payable on the OCC account for the period from 01.03.2020 to 31.08.2020. The disbursed amount was credited to the OCC account of the Defendant.
Subsequently, as part of a restructuring arrangement sanctioned on 26.03.2021 in line with RBI guidelines, the Applicant Bank granted a Funded Interest Term Loan (FITL) facility of ₹3,02,000/-, carved out from the outstanding OCC liability. This amount, representing the overdue portion of interest, was to be repaid over a period of three years, including a six-month moratorium period.
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[AMBADAS]
executed various loan documents in favour of the Applicant Bank.
These included sanction letters, request letters, hypothecation agreements, demand promissory notes, letters of undertakings, registered mortgage deeds etc., in favour of the applicant bank.
aforesaid loan facilities, the Defendant created a first charge on
his immovable property thereby by executing registered mortgage deed dated 12.08.2015, 08.11.2017 & 15.03.2019. The
mortgage was created in respect of the following property:
All that piece and parcel of property bearing Plot No. 7, Gut No. 67, situated at Wadgaon Kolhati, MIDC Waluj, Aurangabad, admeasuring 294.424 sq. mtrs., alongwith construction thereon, which is bounded as under :
East: Plot No. 6, West: Plot No. 8 South: Compound wall of BKT North: 30 feet Road.
keep his promise and commitments agreed by him with regard to
(OA No.159/2022)
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[AMBADAS]
due repayment of the loan amount. The defendant 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 defendant failed and neglected to pay the same. The loan account of the defendant became irregular and classified as NPA on 29.06.2021. Therefore on 12.02.2022 the applicant bank issued legal Notice to the defendant. The defendant failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.
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[AMBADAS]
documents Exh.5 which corroborates the case of the applicant Bank.
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the claim amount. However, considering the facts of the case, I am
of the opinion that if future interest is granted @ 12% per annum
(simple) on outstanding amount, it would be just and reasonable rate of interest.
ORDER
(B) The defendant shall pay to the applicant Bank a sum of Rs. 1,46,35,552.93/- (Rupees One Crore, Forty Six Lacs, Thirty Five Thousand, Five Hundred Fifty Two and Ninety Three Paisa only), along with future interest @ 12% per annum (simple) from the date of filing of the O.A. i.e. 03.03.2022 till full payment/realization of the amount mentioned in this operative order.
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[AMBADAS]
15.03.2019 at Exh. A-8, A-15 & A-24 respectively in the list of documents Exh. 5.
All that piece and parcel of property bearing Plot No. 7, Gut No. 67, situated at Wadgaon Kolhati, MIDC Waluj, Aurangabad, admeasuring 294.424 sq. mtrs., alongwith construction thereon, which is bounded as under : East: Plot No. 6, West: Plot No. 8 South: Compound wall of BKT North: 30 feet Road
(G)
Sd/-
Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.27.10.2025 Debts Recovery Tribunal, Aurangabad
(OA No.159/2022)
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[AMBADAS]
CANARA BANK
Mr. Narayan Sudam Matkar
J. R. Chauhan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
