Allowed

Bank of Maharashtra v. M/s. Hindusthan Traders

DRT4 Nov 2025OA/566/2024

Case brief

AI extract

What is this about?

Application by Bank of Maharashtra for recovery of loan dues against borrower and guarantors allowed ex-parte. Court approved claim amount and reduced future interest rate to 10% p.a. directed sale of hypothecated assets.

What did the court decide?

Defendants directed to pay Rs. 21,12,794/- with future interest at 10% p.a.; directed to sell hypothecated assets; Recovery Certificate issued.

Bank of Maharashtra versus M/s. Hindusthan Traders — Contract and Commercial Disputes | DRT (2025)

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Presented on: 28.01.2024 Registered on: 31.07.2024 Decided on: 04.11.2025 Duration: Y M D 01 09 06

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD

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(Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 566/2024

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TOTAL CLAIM AMOUNT – Rs. 21,12,794/-

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Bank of Maharashtra,

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A body corporate and constituted under the Banking Companies (Acquisition of Undertaking) Act, 5 of 1970, carrying on banking business and having its Head Office at “Lokmangal”, 1501, Shivaji Nagar, Pune – 411 005 and Branch Office at Sangamner Branch, District Ahmednagar-422605. Through its Authorized officer, Shri. Jyotiranjan Samantaray, Age: 37 years, Occu.: Service, Working as Chief Manager, Sangamner Branch, District Ahmednagar-422605.

… Applicant

(OA No.566/2024)

Page 1 of 8

[AMBADAS]

Versus

1. M/s. Hindustan Traders,

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Office at Sr. No. 131/3/2 & 131/86, Tiranga Chowk, Maldad Road, Sangamner, Tal-Sangamner, District. Ahmednagar 422605. Through its partners.

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2. Vikram Balkrishna Gadakh,

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Age: Major, Occupation: Business, Address: Shivneri, Anandnagar, Maldad Road, Sangamner, Tal- Sangamner Dist. Ahmednagar.

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3. Vishal Balkrishna Gadakh,

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Age: Major, Occupation: Business, Address: Shivneri, Anandnagar, Maldad Road, Sangamner, Tal- Sangamner Dist. Ahmednagar.

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4. Roshani Rambhau Phatangare,

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Age: Major, Occupation: Business, Address: Shivneri, Anandnagar, Maldad Road, Sangamner, Tal- Sangamner Dist. Ahmednagar.

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5. Kishor Sambhaji Sable,

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Age: Major, Occupation: Business, Address: Saikrupa Bunglow, Lane No. 2, Shivaji Nagar, Sangamner, Tal- Sangamner Dist. Ahmednagar 422605.

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…Defendants

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APPEARANCES

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For the Applicant For Defendants

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Mr. Atul A. Mishra -Advocate Ex-parte

(OA No.566/2024)

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[AMBADAS]

JUDGMENT

Delivered on 04.11.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 21,12,794/- (Rupees Twenty One Lacs, Twelve Thousand, Seven Hundred and Ninety Four only), along with further interest from the date of filing of the Original Application, i.e., 28.01.2024, until the date of realization of the entire outstanding dues from the Defendants.

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Brief facts of the application are as under:

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The applicant bank states that Defendant No. 1 approached the applicant bank seeking financial assistance for the form Term loan facility and Cash Credit Facility. Upon scrutiny of the submitted documents, the applicant bank sanctioned Term loan facility of Rs. 10,00,000.00/- (Ten Lacs) and a Cash Credit Facility of Rs. 15,00,000.00/- (Fifteen Lacs) vide sanction letter dated 15.07.2020. The agreed rate of interest for the aforesaid loan

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facilities was @9.55% p.a. with monthly rests. The defendant also

(OA No.566/2024)

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[AMBADAS]

agreed to pay an additional interest by way of liquidated damages in case of 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, deed of hypothecation, request letters. Additionally Defendant No. 2 to 5 stood as guarantors for defendant No. 1. and executed deed of guarantee on 15.07.2020 in favour of the applicant bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facilities sanctioned to them, the Defendants executed deed of hypothecation thereby hypothecating machineries and other movable assets created from bank finance in favour of the applicant bank.

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The applicant bank contended that the defendants have failed to keep their promise and commitments agreed by them with regard to due repayment of the loan amount. The defendants failed to operate the loan account properly and failed to pay the agreed

(OA No.566/2024)

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[AMBADAS]

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 defendant No. 1 became irregular and classified as NPA on 21.07.2023. Therefore, on 03.08.2023 the applicant bank issued legal Notice to the defendants. The defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendants failed to appear in matter though they were served through paper publication. Hence, the defendants were proceeded ex-parte as per Order dated 01.04.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Shri. Jyotiranjan Samantaray, Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. AW-1(1) to AW-1(17) along with

(OA No.566/2024)

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[AMBADAS]

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 defendants 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 future interest @12.55%p.a. on the aforesaid loan facilities from the date of filing i.e. 28.01.2024 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 @10% 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. 566/2024 is allowed with

costs.

(OA No.566/2024)

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[AMBADAS]

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 21,12,794/- (Rupees Twenty One Lacs, Twelve Thousand, Seven Hundred and Ninety Four only), along with future interest @10% per annum (simple) from the date of filing of the Original Application i.e. 28.01.2024 till full payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the hypothecation of stock & book-debts, raw materials, stock in process and finished goods and receivables, plant & machinery purchased out of bank’s finance etc. vide hypothecation agreements dated 15.07.2020 at Exh. AW-1(6) & AW-1(14) in the list of documents at Exh. 5.

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(D) The applicant Bank is entitled to sell the hypothecated machineries and others movable assets, to recover its dues.

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(E) Issue Recovery Certificate accordingly.

(OA No.566/2024)

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[AMBADAS]

(F) The Registrar is directed to send the copy of the Judgment and Recovery Certificate to the applicant and defendants.

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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:.04.11.2025

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

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(OA No.566/2024)

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Page 8 of 8

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[AMBADAS]

Bank of Maharashtra v. M/s. Hindusthan Traders

Case brief

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Bank of Maharashtra v. M/s. Hindusthan Traders

Case brief

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