Debts Recovery Tribunal allowed the bank's recovery claim against a village proprietor for loan defaults. The court sanctioned principal repayment plus future interest at 9% per annum and directed enforcement against hypothecated assets.
Recovery of Rs. 20,83,269/- plus future interest at 9% p.a. (simple) secured by hypothecated assets and realization thereof.
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: 21.10.2024 Registered on: 22.10.2024 Decided on: 29.10.2025 Duration: Y M D 01 00 08
IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 839/2024
TOTAL CLAIM AMOUNT – Rs. 20,83,269/-
Bank of Maharashtra ,
A Body Corporate constituted under the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970, Having its Head Office at 1501, Lokmangal, Shivaji Nagar, Pune-and branch amongst other places at Osmanabad Branch, Taluka and District Osmanabad, Through its Branch Manager, Mr. Mahendra Kumar s/o. Shri. Rajbahadur, Age: 45 years, Occ.: Service as Branch Manager with Bank of Maharashtra, Osmanabad Branch, Taluka and District Osmanabad, Maharashtra.
… Applicant
Versus
(OA No.839/2024)
Page 1 of 8
[AMBADAS]
Mrs. Nasrin Nashir Shaikh, Age: Major, Occ.: Business, Proprietor M/s. Sadiya Beauty Parlor, Training Center & Ladies Wear R/o.: Kala Maruti Chowk, Arab Galli, Osmanabad-413501.
And
Galli No. 12, Khaja Nagar, Osmanabad-413501.
…Defendant
APPEARANCES
Mr. P.N. Kapadia -Advocate Ex-parte
For the Applicant For Defendant
JUDGMENT
Delivered on 29.10.2025
Brief facts of the application are as under:
(OA No.839/2024)
Page 2 of 8
[AMBADAS]
The applicant bank further states that the defendant approached the applicant bank by filling application with a request to sanction Working Capital Term Loan under Emergency Credit line Guarantee Scheme (Covid Loan). Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Working Capital Term Loan under Emergency Credit line Guarantee Scheme (Covid Loan) of Rs. 5,18,000/- vide,
(OA No.839/2024)
Page 3 of 8
[AMBADAS]
sanction letter dated 17.07.2020 on certain terms and conditions.
The agreed rate of interest was @ 7.50% p.a. with monthly rests. The Defendant also agreed to pay additional interest by way of
liquidated damages in the event of any default in repayment.
(OA No.839/2024)
Page 4 of 8
[AMBADAS]
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 30.06.2021. Therefore on 04.01.2024 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.
(OA No.839/2024)
Page 5 of 8
[AMBADAS]
(OA No.839/2024)
Page 6 of 8
[AMBADAS]
ORDER
(B) The defendant shall pay to the applicant Bank a sum of 20,83,269/- (Rupees Twenty Lacs, Eighty Three Thousand, Two Hundred and Sixty Nine only), along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e. 21.10.2024 till full payment/realization of the amount mentioned in this operative order.
(C) The aforesaid adjudicated amount is secured by the hypothecation of beauty parlor equipments, etc. vide hypothecation agreements dated 19.03.2018 & 18.07.2020 at Exh. A-4 & A-8 respectively in the list of documents Exh. 5.
(D)
(D) The applicant Bank is entitled to sell the hypothecated beauty parlor equipments/articles/goods etc., to recover its dues.
(OA No.839/2024)
Page 7 of 8
[AMBADAS]
(G) File be consigned to the record room.
Sd/-
Pronounced in open court. Place: Aurangabad Date:.29.10.2025
(Dr. J. R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad
(OA No.839/2024)
Page 8 of 8
[AMBADAS]
1 issue framed by the court
Whether the applicant banking company is entitled to recover outstanding dues along with future interest after service of legal notice?
2 provisions across 2 enactments
Bank of Maharashtra
Mrs. Nasrin Nashir Shaikh
Dr. J. R. Chauhan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
