Allowed

Bank of India v. M/s. Rahul Engineering Works Prop. Mr. Surekhs Ashok ,Mohite

DRT29 Oct 2025OA/579/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's ex parte application for recovery of Rs. 72,45,544/- term loan, Rs. 26,70,097/- cash credit, and Rs. 1,30,927/- FITL with future interest, dismissing penal interest claims and rejecting relief on hypothecated assets due to lack of details.

What did the court decide?

Defendant to pay Rs. 72,45,544/- Term Loan, Rs. 26,70,097/- Cash Credit, Rs. 1,30,927/- FITL with future interest; Recovery Certificate issued.

Bank of India versus M/s. Rahul Engineering Works Prop. Mr. Surekhs Ashok… — Insurance | DRT (2025)

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Presented on .. 05.01.2022 Registered on .. 10.03.2022 Decided on .. 29.10.2025 Duration .. Y—M—D 03--09--24

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 579/2022.

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Bank of India,

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A Banking company incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act V of 1970 and Banking Company as defined in Section 2 (e) of Recovery of Debts to Banks and Financial Institutions Act, 1993 and having its head office at Star House, C-5, G Block, BandraKurla Complex, Bandra (E), Mumbai – 400051 and branch at – Pimpri, Dr. Ambedkar Chowk, Opposite PCMC Building, Old Mumbai-Pune Highway, Pune 411 018.

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… Applicant

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Versus

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M/s. Rahul Engineering Works,

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A proprietary concern through its Proprietor – Mrs. Surekha Ashok Mohite, Age 48 years,

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Factory Add. A-60, Pavana Industrial Complex, T-204, MIDC, Bhosari, Pune 411 026.

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Sanap ( OA No. 579/2022 ) 1 of 7

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Address 1 :- Block J, 131, MIDC, Bhosari, Pune 411 026. Address 2 :- House No. 23, Laxman Nagar, Thergaon, Pune 411033. Address 3 :- Survey No.21/10, Dange Chowk, Near Laxmi Narayan Mangal Karyalaya, Thergaon, Pune 411033. … Defendant

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Appearances :- For Applicant Advocate Aarati Ahuja. For Defendant Ex parte.

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Total Claim Amount – Rs.1,00,59,265/-

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JUDGMENT (Delivered on 29^th October, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.1,00,59,265/- together with future interest for Term Loan and Cash Credit @8.65% per annum and for Funded Interest Term Loan @6.85% per annum from the date of Application till realization of the entire dues from the defendant.

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Brief facts of the application are as under :-

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The defendant is a proprietary concern engaged in engineering job works. As per the loan application dated 21.09.2018 of the defendant, the applicant Bank sanctioned the Term loan facility of Rs.56,27,000/- and Cash Credit facility of Rs.24,00,000/- for the purpose of

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Sanap ( OA No. 579/2022 ) 2 of 7

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Working Capital to the defendant vide Sanction Letter dated 19.11.2018 and the said credit facilities were covered under CGTMSE Scheme.

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In order to secure the aforesaid loan facilities, the defendant has executed necessary loan and security documents in favour of the applicant Bank. The defendant has also created security in favour of the applicant Bank by executing hypothecation cum loan agreements of stock and book debts. The defendant has also executed Acknowledgments of Debt on 15.11.2021 and thereby confirmed the balance outstanding in loan accounts.

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Further, the defendant again approached the applicant Bank for grant of FITL vide loan application. Accordingly, the applicant Bank sanctioned Funded Interest Term Loan of Rs.1,22,469/- to the defendant under CGTMSE Scheme on 30.11.2020.

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The applicant Bank contended that the defendant committed defaults in payment of installments and failed to regularize the accounts. Hence, on 30.03.2021, the applicant Bank has classified the account of the defendant as Non-Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 16.06.2021, the applicant Bank issued Recall/Demand

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Sanap ( OA No. 579/2022 ) 3 of 7

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Notice to the defendant. Despite service of Notice, the defendant failed and neglected to pay the outstanding dues of the applicant Bank.

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Hence, this application is filed.

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The defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte against the defendant as per Order dated 22.04.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Rajendra Sadashiv Kale, Branch Manager and Principal Officer of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1-1 to AW1-32 along with list (Exhibit 7), 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 evidence of the applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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The applicant Bank has claimed relief in respect of hypothecated assets. However, there is no detailed description with respect to the hypothecated assets,

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Sanap ( OA No. 579/2022 ) 4 of 7

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therefore, the relief in terms of hypothecated assets cannot be granted.

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The applicant Bank has claimed Penal Interest of Rs.11,581/- for Term Loan, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.72,57,125/- towards Term Loan is reduced to Rs.72,45,544/-.

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Moreover, the applicant Bank has claimed Penal Interest of Rs.1,116/- for Funded Interest Term Loan, which cannot be granted and the same is required to be deducted from the total claim amount. Thus, the total claim amount of Rs.1,32,043/- towards FITL is reduced to Rs.1,30,927/-.

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The applicant Bank has claimed future interest for Term Loan and Cash Credit @8.65% per annum and for Funded Interest Term Loan @6.85% per annum. Considering the facts of the case, I am of the opinion that if future interest is granted for Term Loan and Cash Credit @8.65% per annum (simple) and for Funded Interest Term Loan @6.85% per annum (simple), it would be just and reasonable rate of interest.

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Hence, I pass the following order.

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Sanap ( OA No. 579/2022 ) 5 of 7

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O R D E R

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A} Original Application No. 579/2022 is allowed with costs.

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B} The defendant shall pay to the applicant Bank the sum of Rs.72,45,544/- (Rupees Seventy Two Lakhs Forty Five Thousand Five Hundred Forty Four only) towards Term loan facility along with future interest @8.65% per annum from the date of filing of the Original Application i.e. 05.01.2022 till full payment/realization of the amount mentioned in this operative order.

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C} The defendant shall pay to the applicant Bank the sum of Rs.26,70,097/- (Rupees Twenty Six Lakhs Seventy Thousand Ninety Seven only) towards Cash Credit loan facility along with future interest @8.65% per annum from the date of filing of the Original Application i.e. 05.01.2022 till full payment/realization of the amount mentioned in this operative order.

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D} The defendant shall pay to the applicant Bank the sum of Rs.1,30,927/- (Rupees One Lakh Thirty Thousand Nine Hundred Twenty Seven only) towards Funded Interest Term Loan facility along with future interest @6.85% per annum from the date of filing of the Original Application i.e. 05.01.2022 till full

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payment/realization of the amount mentioned in this operative order.

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E} Issue Recovery Certificate.

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F} The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendant.

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Sd/( Dilip G. Murumkar ) Place : Pune Presiding Officer Date : 29.10.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 579/2022 ) 7 of 7

Bank of India v. M/s. Rahul Engineering Works Prop. Mr. Surekhs Ashok ,Mohite

Case brief

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Bank of India v. M/s. Rahul Engineering Works Prop. Mr. Surekhs Ashok ,Mohite

Case brief

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