Allowed

Canara Bank v. Surendra Gangabhishan Baheti

DRT15 Dec 2025OA/80/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Canara Bank to recover Rs. 54,54,402.50/- from the defendant, who failed to repay a cash credit facility. The Tribunal awarded future interest at a reduced rate of 10% per annum and directed the issue of a Recovery Certificate to sell hypothecated assets.

What did the court decide?

Recovery of Rs. 54,54,402.50/- plus future interest at 10% p.a. from filing date; order to sell hypothecated assets and issue Recovery Certificate.

Canara Bank versus Surendra Gangabhishan Baheti — Contract and Commercial Disputes | DRT (2025)

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Presented on: 17.11.2021 Registered on: 05.04.2022 Decided on: 15.12.2025 Duration: Y M D 04 00 28

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 80/2022

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TOTAL CLAIM AMOUNT – Rs. 54,54,402.50/-

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CANARA BANK,

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A Body Corporate constituted under the Banking companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at 112 JC Road, Bangalore in the State of Karnataka and one of its branch offices amongst other places at Shendra Aurangabad. Through its Power of Attorney Holder, Shri. Upendra Vishwakarma.

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… Applicant

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Versus

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Shri. Surendra Gangabhishan Baheti, Prop. M/s. Pankaj Seeds Company, At: Shop No.: 81, Block No.: 4, APMC, Jalna-431 203.

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Also at

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…Defendant

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R/o.: CTS No. 45, Plot No. 3082309, Panchmukhi Nagar, Jalna – 431 203.

(OA No.80/2022)

Page 1 of 7

[AMBADAS]

APPEARANCES

For the Applicant For Defendant

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Mr. G. A. Rajput -Advocate Ex-parte

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JUDGMENT

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Delivered on 15.12.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 54,54,402.50/- (Rupees Fifty Four Lacs, Fifty Four Thousand, Four Hundred Two and Fifty Paisa only), along with future interest from the date of filing of the Original Application, i.e., 17.11.2021, 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 No. 1 approached and requested the Applicant Bank for Cash Credit facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Cash Credit facility of Rs. 45,00,000/vide sanction letter dated 27.03.2019 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was

(OA No.80/2022)

Page 2 of 7

[AMBADAS]

@ 11.20% p.a. with half yearly rests. The Defendant also agreed

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to pay additional interest @2% by way of liquidated damages in

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the event of any default in repayment.

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Further, the defendant has again approached applicant bank for the renewal of the existing cash credit facility. Upon considering the request, the applicant bank renewed the said facility vide renewal letter dated 05.10.2019.

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In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank. These included sanction letters, deed of hypothecation, request letter, etc., in favour of the Applicant Bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendant hypothecated stocks, receivables, book-debts and other movables assets etc., in favor of the applicant bank.

(OA No.80/2022)

Page 3 of 7

[AMBADAS]

The applicant bank contended that the defendant has failed to

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keep his promise and commitments agreed by him 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 01.12.2020. Therefore, on 01.09.2021 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.

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The defendant failed to appear in matter though he was served through summons. Hence, the defendant was proceeded ex-parte as per Order dated 06.09.2023.

(OA No.80/2022)

Page 4 of 7

[AMBADAS]

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Upendra Vishwakarma, Power of Attorney Holder of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-14 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 future interest @11.20% p. a. from the date of filing i.e. 17.11.2021 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 @

(OA No.80/2022)

Page 5 of 7

[AMBADAS]

10% per annum (simple), it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 80/2022 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank a sum of Rs. 54,54,402.50/- (Rupees Fifty Four Lacs, Fifty Four Thousand, Four Hundred Two and Fifty Paisa only), along with future interest @ 10% per annum (simple) from the date of filing of the O.A. i.e. 17.11.2021 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 stocks, receivables, book-debts and other movables assets vide document at Exh. A-5 in list of documents Exh. 5.

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(D) The applicant Bank is entitled to sell the hypothecated articles/ goods etc., to recover its dues.

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(E) Issue Recovery Certificate accordingly.

(OA No.80/2022)

Page 6 of 7

[AMBADAS]

(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. Place: Aurangabad Date:.15.12.2025

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

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(OA No.80/2022)

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Page 7 of 7

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[AMBADAS]

Canara Bank v. Surendra Gangabhishan Baheti

Case brief

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Canara Bank v. Surendra Gangabhishan Baheti

Case brief

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