Allowed

Bank of Maharashtra v. M/s Zorco Organic Manures

DRT28 Oct 2025OA/273/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Bank of Maharashtra's application for recovery of Rs. 43,97,127.04 owed by M/s. Zorco Organic Manures. The tribunal awarded future interest at 9% p.a. and directed the sale of hypothecated assets to recover the dues.

What did the court decide?

Respondent ordered to pay Rs. 43,97,127.04 plus future interest at 9% p.a. from 18.11.2023; permission granted to sell hypothecated property.

Bank of Maharashtra versus M/s Zorco Organic Manures — Contract and Commercial Disputes | DRT (2025)

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Presented on: 18.11.2023 Registered on: 19.03.2024 Decided on: 28.10.2025 Duration: Y M D 01 11 10

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 273/2024

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TOTAL CLAIM AMOUNT – Rs. 43,97,127.04/-

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Bank of Maharashtra ,

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(A Government of India Undertaking) having its Central Office at Lokmangal, Shivaji Nagar, Pune, and amongst other branches a branch at Newasa, Tq. Newasa, Dist. Ahmednagar, Through its Authorized Officer, Shri. Sagar Vitthalrao Somase, Age: 41 years, Occ.: Service as Branch Manager, R/o.: Bank of Maharashtra, Newasa Branch, Prarabdha Building, Newasa, Tq. Newasa, Dist. Ahmednagar.

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… Applicant

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Versus

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M/s. Zorco Organic Manures, Through its Proprietor, Komal Subhash Nande, Age: Major, Occ.: Business, R/o.: @ Post Pachegaon, Tq. Newasa, Dist. Ahmednagar.

…Defendant

(OA No.273/2024)

Page 1 of 7

[AMBADAS]

APPEARANCES

For the Applicant For Defendant

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Mr. Natu Sharad V. -Advocate Ex-parte

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JUDGMENT

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Delivered on 28.10.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 43,97,127.04/- (Rupees Forty Three Lacs, Ninety Seven Thousand, One Hundred Twenty Seven and Four Paisa only), along with future interest from the date of filing of the Original Application, i.e., 18.11.2023, 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 with a request to sanction Term Loan facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Term Loan facility of Rs. 33,25,000/- vide, sanction letter dated 07.04.2021

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on certain terms and conditions. The agreed rate of interest was

(OA No.273/2024)

Page 2 of 7

[AMBADAS]

@ 9.05% p.a. with monthly rests. The Defendant also agreed to

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pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

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The applicant bank further states that the defendant approached the applicant bank by filling application with a request to sanction Cash Credit Facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Cash Credit Facility of Rs. 14,25,000/- vide, sanction letter dated 05.10.2021 on certain terms and conditions. The agreed rate of interest was @ 9.05% p.a. with monthly rests. The Defendant also agreed to pay additional interest by way of liquidated damages in the event of any default in repayment.

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In order to secure the aforesaid loan facilities, the Defendant executed various loan documents in favour of the Applicant Bank. These included sanction letters, demand promissory notes, hypothecation agreements etc., in favour of the Applicant Bank.

(OA No.273/2024)

Page 3 of 7

[AMBADAS]

The Applicant Bank further contends that, in order to secure the aforesaid loan facilities, the Defendant executed hypothecation agreements on 07.04.2021 & 05.10.2021 thereby hypothecating plant, machinery, receivables etc., in favour of the applicant bank.

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The applicant bank contended that the defendant has failed to keep her promise and commitments agreed by her with regard to 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 07.04.2023. Therefore on 22.05.2023 the applicant bank issued legal notice to the defendant through their advocate. Despite service of Notices, the defendant failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

(OA No.273/2024)

Page 4 of 7

[AMBADAS]

The defendant failed to appear in matter though she was served through court commissioner. Hence, the defendant was proceeded ex-parte as per Order dated 10.03.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Shri. Sagar Vitthalrao Somase, Branch Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-11 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 on the hypothecated property of the borrower.

(OA No.273/2024)

Page 5 of 7

[AMBADAS]

The applicant Bank has claimed future interest @9.05% p.a. from the date of filing i.e. 18.11.2023 of this application till realization

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of the claim amount. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 273/2024 is allowed with

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costs.

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(B) The defendant shall pay to the applicant Bank a sum of 43,97,127.04/- (Rupees Forty Three Lacs, Ninety Seven Thousand, One Hundred Twenty Seven and Four Paisa only), along with future interest @ 9% per annum (simple) on outstanding amount, from the date of filing of the O.A. i.e. 18.11.2023 till full payment/realization of the amount mentioned in this operative order.

(OA No.273/2024)

Page 6 of 7

[AMBADAS]

(C) The aforesaid adjudicated amount is secured by the hypothecation of plant, machinery, receivables vide hypothecation agreements dated 07.04.2021 & 05.10.2021 at Exh. A-4 & A-8 respectively in the list of documents Exh. 5.

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(D) The applicant Bank is entitled to sell the hypothecated plant and machinery/articles/goods 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) 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:.28.10.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.273/2024)

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Page 7 of 7

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[AMBADAS]

Bank of Maharashtra v. M/s Zorco Organic Manures

Case brief

What is this about?

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Bank of Maharashtra v. M/s Zorco Organic Manures

Case brief

What is this about?

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