The Debts Recovery Tribunal allowed an application filed by Canara Bank against a partnership firm and its partners for the recovery of Rs. 36.55 lakh outstanding under an open cash credit facility, granting relief ex-parte.
Pay Rs. 36,55,509 with future interest at 10% p.a. from 28.04.2023; entitled to sell hypothecated properties.
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: 28.04.2023 Registered on: 15.05.2024 Decided on: 04.10.2025 Duration: Y M D 02 05 06
IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 326/2024
TOTAL CLAIM AMOUNT – Rs. 36,55,509/-
CANARA BANK,
A Body Corporate constituted duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 112 JC Road, Banglore-560002 and branch amongst the other places as at SME Branch Jalna Road, Aurangabad-431001 through Power of Attorney Holder and Chief Manager, Mr. Bharath Raj KA S/o A. Keshav-Bhat Age: 32 years, Occ.: Service as Chief Manager, SME Branch, Jalna Road, Aurangabad. R/o.: … Applicant Jalna Road, Aurangabad-431001.
Versus
1. M/s A.P. Fastneres, A partnership firm registered under the Partnership Act, Having its registered office at Plot No. H-58, MIDC Waluj, Aurangabad
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Through its Partner Mrs. Rehana Rajjak Pathan
2) Mrs. Rehana Rajjak Pathan Age: Major, Occ.: Business Partner of M/s. A.P. Fasteners, Plot No. H-8, MIDC Waluj, Aurangabad-431136. AND Plot No. 56, Gut No. 140, Piyush Vihar, Near Water Tank, Mahanagar-1, CIDCO, Waluj Aurangabad-431136.
3) Mr. Rajjak Fakkedbhai Pathan Age: Major, Occ.: Business Partner of M/s. A.P. Fasteners, Plot No. H-8, MIDC Waluj, Aurangabad-431136. AND Plot No. 56, Gut No. 140, Piyush Vihar, Near Water Tank, Mahanagar-1, CIDCO, Waluj Aurangabad-431136.
…Defendants
APPEARANCES
For the Applicant For Defendants
Mr. P. N. Kapadia -Advocate Ex-parte
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JUDGMENT
Delivered on 04.10.2025
Brief facts of the application are as under:
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with monthly rests, along with additional interest of 2% p.a. as
liquidated damages in the event of default. Subsequently, the Defendants approached the Bank on 15.12.2016 for renewal of the said facilities, which were renewed vide sanction letter dated 15.12.2016. Further, the Defendants submitted an application dated 30.05.2017 seeking a fresh Term Loan of ₹7,50,000/- for the purchase of new machinery (Heading Machine), which was sanctioned by the Bank on agreed terms and conditions, including interest at 10.10% p.a. with monthly rests and 2% p.a. as liquidated damages on default. The Defendants again approached the Bank on 01.01.2019 for renewal of credit facilities, which were renewed vide sanction letter dated 02.02.2019, and again on 01.09.2020, following which the facilities were renewed vide sanction letter dated 01.11.2020 and renewal letter dated 08.01.2021. The Applicant Bank further states that the Term Loan facilities have been fully repaid and closed, and therefore, the
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present Original Application is being filed solely in respect of the outstanding dues under the Open Cash Credit facility.
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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 defendants failed and neglected to pay the same. The loan account of the defendants became irregular and classified as NPA on 11.10.2022. Therefore, on 13.05.2022 and 12.10.2022 the applicant bank issued legal notices to the defendants through their advocate. Despite service of Notices, the defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.
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documents Exh.5 which corroborates the case of the applicant Bank.
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ORDER
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Sd/-
Pronounced in open court. Place: Aurangabad Date:.04.10.2025
(Dr. J. R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad
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1 issue framed by the court
Whether the applicant bank is entitled to recover the outstanding dues from the defaulted borrowers and guarantors.
Canara Bank
M/s A.P. Fastneres
Mrs. Rehana Rajjak Pathan
Mr. Rajjak Fakkedbhai Pathan
Dr. J. R. Chauhan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
