Allowed

Bank of Baroda v. Prakash Pralhad Salve

DRT6 Oct 2025OA/270/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal adjudicated an original application filed by Bank of Baroda for recovery of dues from Mr. Prakash Pralhad Salve. The defendant appeared ex-parte. The Tribunal allowed the application, directed payment of the principal amount with future interest, and granted power to sell hypothecated assets.

What did the court decide?

Ordered to pay Rs. 35,95,682.47 with future simple interest at 8% p.a.; allowed sale of hypothecated assets to recover dues; recovery certificate issued.

Bank of Baroda versus Prakash Pralhad Salve — Contract and Commercial Disputes | DRT (2025)

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Presented on: 27.03.2022 Registered on: 02.08.2022 Decided on: 06.10.2025 Duration: Y M D 03 06 09

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 270/2022

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TOTAL CLAIM AMOUNT – Rs. 35,95,682.47/-

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Bank of Baroda ,

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A body corporate constituted under the under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, and having its Head Office at Mandavi, Baroda and Branch amongst of the other places at Parbhani, Dist. Parbhani through its Power of Attorney Mr. Vijay Baliram Patil (Chief Manager) Age: 39 yrs., Occ: Service, R/o. Parbhani, Dist. Parbhani.

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… Applicant

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Versus

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Mr. Prakash Pralhad Salve, Proprietor of M/s. Rudra Enterprises, Age- Major, Occ.: Business, R/o. Anand Nagar, Behind Railway Station, Parbhani, Dist. Parbhani – 431401.

…Defendant

(OA No.270/2022)

Page 1 of 8

[AMBADAS]

APPEARANCES

For the Applicant For Defendant

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Mr. K. D. Pande - Advocate

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Ex-parte

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JUDGMENT

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Delivered on 06.10.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 35,95,682.47/- (Rupees Thirty Five lacs, Ninety Five Thousand, Six Hundred Eighty Two and Forty Seven paisa only), along with future interest from the date of filing of the Original Application, i.e., 27.03.2022, until the date of realization of the entire outstanding dues from the Defendant.

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Brief facts of the application are as under:

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The Applicant Bank states that the Defendant had approached and requested the Applicant Bank for a Term loan Facility & Overdraft facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank Sanctioned Term Loan Facility of Rs. 32,20,000/- & Overdraft facility of Rs. 1,00,000/- vide sanction letter dated 17.05.2019 on certain terms

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

(OA No.270/2022)

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[AMBADAS]

facilities was @ 10.65% p.a. with monthly rests. The Defendant also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment. Thereafter the defendant again approached the Applicant Bank for a Term loan Facility under COVID-19 scheme. Upon considering the request and financial needs of the Defendant, the Applicant Bank Sanctioned Term Loan Facility under COVID-19 BGEECL scheme of Rs. 6,00,000/- vide sanction letter dated 09.06.2020 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facilities was @ 7.85% p.a. with monthly rests. The Defendant 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 executed various loan documents in favour of the Applicant Bank. These included sanction letters, letter of continuity,

(OA No.270/2022)

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[AMBADAS]

hypothecation agreements, demand promissory notes, etc., 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 Defendant executed deeds of Hypothecation, thereby hypothecating vehicle i.e. Eicher Prime mover Pro 5035 CB BS4 DW (Double Axle running Gear with wheel Rims and JK Tyres with Wabco make ABS fittings and LPG Tank Capacility 18 MT, present and future movables, plants and machineries, goods, raw materials, items, inventories, stocks in process, semi-finished and finished goods, stores and spares (consumables), stock in trade, goods in process, movables in transit, assets, vehicles, goodwill, trademarks, copyrights, patents, tangible and intangible assets, contracts and agreements, outstanding monies, claims bills, receivable, book debs (due or to become due), and all rights, titles, and interest of the borrower.

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The applicant bank contended that the defendant has failed to keep his promise and commitments agreed by him with regard to

(OA No.270/2022)

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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 defendant 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 29.10.2021. Therefore, on 14.11.2021 the applicant bank issued legal notice to the defendant through their advocate. Despite service of Notice, the defendant failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendant failed to appear in matter though he was duly served. Hence, the defendant was proceeded ex-parte as per Order dated 25.02.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Vijay Baliram Patil, Chief Manager of the applicant Bank, and has produced on record the original loan transaction

(OA No.270/2022)

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[AMBADAS]

documents as Exh. A-1 to A-31 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 defendant 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 hypothecated properties and personal property of the borrower.

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The applicant Bank has claimed future interest @ 8.5% p.a. and @ 2% penal interest from the date of filing i.e. 27.03.2022 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 @ 8% (simple) on outstanding amount, it would be just and reasonable rate of interest.

ORDER

(OA No.270/2022)

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[AMBADAS]

(A) Original Application No. 270/2022 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank a sum of Rs. 35,95,682.47/- (Rupees Thirty Five lacs, Ninety Five Thousand, Six Hundred Eighty Two and Forty Seven paisa only), along with future interest @ 8% p.a. on term loan (simple) on outstanding amount from the date of filing of the Original Application i.e. 27.03.2022 till full payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by hypothecation of vehicle i.e. Eicher Prime mover Pro 5035 CB BS4 DW (Double Axle running Gear with wheel Rims and JK Tyres with Wabco make ABS fittings and LPG Tank Capacility 18 MT, present and future movables, plants and machineries, goods, raw materials, items, inventories, stocks in process, semi-finished and

(OA No.270/2022)

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[AMBADAS]

finished goods, stores and spares (consumables), stock

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in trade, goods in process, movables in transit, assets,

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vehicles, goodwill, trademarks, copyrights, patents, tangible and intangible assets, contracts and agreements, outstanding monies, claims bills, receivable, book debs (due or to become due), and all

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rights, titles, and interest of the defendant.

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(D) The applicant Bank is entitled to sell the above referred hypothecated articles/goods/vehicle, 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 defendant.

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(G)

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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. Place: Aurangabad Date:.06.10.2025.

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

(OA No.270/2022)

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[AMBADAS]

[AMBADAS] (OA No.270/2022) Page 9 of 8

Bank of Baroda v. Prakash Pralhad Salve

Case brief

What is this about?

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Bank of Baroda v. Prakash Pralhad Salve

Case brief

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