Allowed

Bank of Maharashtra v. Matoshri Shetkari Gut

DRT26 Aug 2025OA/698/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the original application filed by Bank of Maharashtra for recovery of dues amounting to Rs.33,93,848 against a registered society and its officials. The Tribunal modified the future interest rate to 10% per annum simple and directed enforcement through hypothecation.

What did the court decide?

Defendants directed to pay Rs.33,93,848 with future interest at 10% simple from the date of filing till realization; Recovery Certificate issued.

Bank of Maharashtra versus Matoshri Shetkari Gut — Banking and Recovery | DRT (2025)

¶1

Presented on:	25.07.2024
Registered on:	09.09.2024
Decided on:	26.08.2025
Duration:	Y M D
	01 01 02

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J.R. Chauhan Presiding officer)

¶3

TOTAL CLAIM AMOUNT – Rs.33,93,848.00/-

¶4

ORIGINAL APPLICATION No.698/2024

¶5

Bank of Maharashtra , A body corporate constituted under the provisions of Banking Companies (Acquisitions and Transfer of Undertaking) Act V OF 1970, 1501, Lokmangal, Shivaji Nagar, Pune and one of its branch Assets Recovery Branch, At Second Floor, Administrative Building, Town Centre, CIDCO, Ch. Sambhajinagar, Dist. Aurangabad-431003, Through its authorized signatory, Shri. Somnath Bajrang Sasane, Chief Manager & Branch Manager, Assets Recovery Branch, Ch. Known as Sambhajinagar, (Formerly Aurangabad)

¶6

… Applicant

¶7

Versus

¶8

Matoshri Shetkari Gut Registered under Agricultural Technology a Management Agency (ATMA) registered society registered under Societies Registration Act of 1860

¶9

[SBJ] (OA No.698/2024) Page 1 of 10

¶10

through Mr. Ramesh Mallikarjun Ghote (President) & Mr. Rohit Balaji Ghote (Secretary), At Gat No. 351, Post Savargaon Rokda, Taluka Ahmedpur, Dist. Latur- 413515

¶11

Mr. Ramesh Mallikarjun Ghote (President) of Matoshri Shetkari Gut Age: Major Occu: Business R/o. Post Savargaon Rokda, Taluka Ahmedpur, Dist. Latur- 413515

¶12

Mr. Rohit Balaji Ghote (Secretary) of Matoshri Shetkari Gut Age: Major Occu: Business R/o. Post Savargaon Rokda, Taluka Ahmedpur, District Latur- 413515 … Defendants

¶13

APPEARANCES

¶14

For the Applicant Smt. Archana B. Karadkhedkar - Advocate For Defendant Nos.1 to 3 Ex-parte

¶15

JUDGMENT (Delivered on 26^th August, 2025)

¶16

The Applicant Bank has filed the present application for recovery of the sum of Rs.33,93,848.00 Paisa (Rupees Thirty-Three Lacs, Ninety-Three Thousand, Eight Hundred Forty-Eight only) as on 30.05.2024 with future interest @11.5% per annum with monthly rests from

¶17

[SBJ] (OA No.698/2024) Page 2 of 10

¶18

31.05.2024 till realization of entire dues and cost of the application from the defendants jointly and severally.

¶19

Brief facts of the application are as under :

¶20

The Bank of Maharashtra is having its Head Office at 1501, Lokmangal, Shivaji Nagar, Pune 411005 and has its various branches, centers and Regional Business offices at various places providing Banking services. The Bank of Maharashtra, Ausa Road Branch, District Latur sanctioned Term loan facility to the defendants. After the loan accounts categorized NPA, for initiating further legal action and recovery of the dues, the loan accounts migrated from Bank of Maharashtra, Ausa Road Branch, District Latur to Asset Recovery Branch, Aurangabad.

¶21

This Original Application is filed by Mr. Somnath Bajrang Sasane, working as Chief Manager & Branch Manager in Asset Recovery Branch, Aurangabad. The Zonal Manager, Deputy Zonal Manager and all Branch Heads irrespective of grade, are designated as Principal Officer under order 29 of Code of Civil Procedure 1908 and officer authorized to initiate and prosecute litigation for and on behalf of bank they are authorized to sign and verify the original

¶22

[SBJ] (OA No.698/2024) Page 3 of 10

¶23

application, pleadings, adduce evidence and to represent the applicant in all proceedings as per the resolution No. 30 LS01 dated 22.03.2022 passed by the Board of Directors in its meeting held at New Delhi on 22.03.2022.

¶24

The Defendant Nos. 1 to 3 are the resident of Post Savargaon Rokda, Taluka Ahmedpur District Latur. The defendant No.1 is registered society under Agricultural Technology Management Agency (ATMA) a society registered under Societies Registration Act of 1860. Defendant No.2 is President and Defendant No.3 is Secretary of the defendant No.1. The Defendant No.1 is the principal borrower. The defendant No.1 was in need of financial assistance and hence, the defendant No.1 to 3 approached the applicant bank and requested for Cash Credit Loan Facility. Considering the request of the defendant No.1 to 3, the applicant bank sanctioned and granted the Cash Credit Loan of Rs. 30,00,000/- (Rupees Thirty Lacs only) to the defendant No.1 vide Sanction Letter dated 29.12.2022.

¶25

It was agreed by the defendants to repay the Cash Credit Loan of Rs. 30,00,000/- (Rupees Thirty Lacs only) with rate of interest @2.85% per annum above MCLR which was at

¶26

[SBJ] (OA No.698/2024) Page 4 of 10

¶27

the time of sanction was @11.05% per annum with monthly rests.

¶28

In order to secure the aforesaid Cash Credit Loan of Rs.30,00,000/- (Rupees Thirty Lacs only), availed by the defendant No.1, the defendant No.1 to 3 signed, executed and acknowledged various necessary loan and security documents in favour of the applicant bank i.e. Sanction Letter dated 29.12.2022, Demand Promissory Note dated 02.01.2023, and Hypothecation Agreement dated 02.01.2023 executed by defendant No.1 thereby hypothecating all present and future stock in trade consisting of raw materials, finished goods, in process of manufacturing and other merchandise whatsoever, being movable properties, belonging to defendants or at the defendants disposal or stored or be stored or bought in to upon or in course of transit to the defendants factory or premises including or at any other place in the defendants possession or occupation or at any other place, stocks, inventory, all books debts & receivables, Multifacility Agreement dated 02.01.2023, Consent Letter for Unconditional Cancelability Clause dated 02.01.2023 mentioned in Paragraph No.5.3 and 5.4 (A to D) of the Original Application.

¶29

[SBJ] (OA No.698/2024) Page 5 of 10

¶30

After availment of loan amount, the defendants committed defaults in repayment, due to which loan account of the defendants became NPA on 29.08.2023.

¶31

The particulars of the claim are as under:

¶32

Cash Credit Loan Account No.60434992834

¶33

Sr. No.	PARTICULARS	Amount(Rs.)
A	Amount outstanding as on 30.05.2024	29,39,309.00
B	Accrued interest	4,54,539.00
	Total	33,93,848.00

¶34

(Total Rs. Thirty-Three Lacs Ninety-Three Thousand Eight Hundred Forty-Eight only).

¶35

The applicant bank has maintained the Term Loan Facility Account of the defendants regularly and has taken entries of all the transactions in the account of the defendants. The Statement of Account is duly certified as per Section 4 of the Banker’s Books Evidence Act 1891 stating the rate of interest and compounding interest. It is further certified that, the interest charged is at such a rate and capitalized at such a periodical rests as permitted by Reserve Bank of India.

¶36

The applicant bank further submitted that the defendants committed defaults in repayment of the loan amounts and

¶37

[SBJ] (OA No.698/2024) Page 6 of 10

¶38

as such the loan accounts of the defendants classified as Non-Performing Asset on 29.08.2023. However, the defendants failed and neglected to pay the outstanding dues of the applicant bank of Rs.33,93,848.00 as on 30.05.2024. Therefore, the applicant bank issued legal notice on 13.06.2024 to the defendants through its panel Advocate thereby calling upon the defendants to pay its dues of Rs.33,93,848.00/- as on 30.05.2024 and future interest, costs, expenses etc. from 31.05.2024 onwards till realization of entire dues.

¶39

Hence, this Original Application filed by the applicant bank to recover the dues from the defendants jointly and severally. The applicant bank further prayed for directions to sell the hypothecated properties to recover the dues of the applicant bank.

¶40

The defendants were served through RPAD on 11.10.2024 but failed to appear despite of service and as such, as per order dated on 06.05.2025, defendants were proceeded ex-parte.

¶41

The applicant bank has filed Claim Affidavit of Evidence (Exhibit-04) of Mr. Somnath S/o Bajrang Sasane, Chief

¶42

[SBJ] (OA No.698/2024) Page 7 of 10

¶43

Manager and Branch Manager, Bank of Maharashtra, Asset Recovery Branch, Ch. Sambhajinagar, Dist. Aurangabad i.e. the applicant bank, and has produced on record the Original loan documents marked at Exhibit Nos.A-1 to A-10 alongwith List (Exhibit-05), which corroborates the case of the applicant bank.

¶44

I have heard argument of the learned Advocate for the applicant bank.

¶45

Since the defendants filed to appear and contest the application, I find no reason to disbelieve the un-rebutted evidence of the applicant bank. Therefore, the applicant bank is entitled for reliefs as claimed.

¶46

In this matter the applicant bank has claimed the relief for Rs.33,93,848.00 Paisa (Rupees Thirty-Three Lacs, NinetyThree Thousand, Eight Hundred Forty-Eight only) as on 30.05.2024 in the Cash Credit Loan Account with future interest @11.5% per annum with monthly rests from 31.05.2024 till the date of realization of the entire dues, and costs from the defendants jointly and severally. However, considering the facts of the case, I am of the opinion that if future interest is granted @10% per annum (simple), it

¶47

[SBJ] (OA No.698/2024) Page 8 of 10

¶48

would be just and reasonable rate of interest.

¶49

Hence, I pass the following order.

¶50

ORDER

¶51

(A) Original Application No.698/2024 is allowed with costs.

¶52

(B) Defendant Nos.1 to 3 are hereby ordered and directed to pay jointly and severally to the applicant the aggregate sum of Rs.33,93,848.00 Paisa (Rupees Thirty-Three Lacs, Ninety-Three Thousand, Eight Hundred Forty-Eight only) along with future interest @10% per annum (simple) from the date of filing of the original application i.e. 25^th July, 2024 till full payment/realization of the amount.

¶53

(C) The aforesaid adjudicated amount is secured by the Hypothecation Agreement dated 02.01.2023, thereby hypothecating all present and future stock in trade consisting of row materials, finished goods, in process of manufacturing and other merchandise whatsoever, being movable properties, belonging to defendants or at the defendants disposal or stored or be stored or bought in to upon or in course of transit to the defendants factory or premises including or at any other place in the defendants possession or occupation or at any other place, stocks,

¶54

[SBJ] (OA No.698/2024) Page 9 of 10

¶55

inventory, all books debts & receivables, mentioned in Paragraph No.3-A & 5.4 (B) of the Original Application and in the List of Documents (Exhibit-05) marked at Exhibit A-5.

¶56

(D) The applicant Bank is entitled to sell the hypothecated properties as is mentioned in the Paragraph No.3-A & 5.4 (B) of the Original Application and in the List of Documents (Exhibit-05) marked at Exhibit A-5, to recover its dues.

¶57

(E) Issue Recovery Certificate accordingly.

¶58

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

¶59

(G) File be consigned to the Record Room after due compliance.

¶60

Pronounced in open Court. Date:26.08.2025 Sd/(Dr. J.R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad.

¶61

[SBJ] (OA No.698/2024) Page 10 of 10

Bank of Maharashtra v. Matoshri Shetkari Gut

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. Matoshri Shetkari Gut

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of baroda versus Subhash Ramchandra Ghadge

Bank of Maharashtra versus Matoshri Shetkari Gut

Prakash Tulshiram Adhav versus Edelweiss Asset Reconstruction Company Limited

Canara Bank versus M/S Shivans Agro Food Products

State Bank of India versus Akhilesh Kumar Upadhyay

Asha Ganpatrao Vedpathak versus Dcb Bank Limited