Allowed

Bank of India v. Rajesh

DRT11 Mar 2026OA/1120/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the Bank of India's application for recovery of outstanding term loan, cash credit, and gold loan. The court reduced the claimed future interest rate to 9% per annum and directed the defendant to pay the adjusted amount with interest, enforce the sale of the hypothecated vehicle, and issue a recovery certificate.

What did the court decide?

Defendant to pay Rs. 22,95,655/- with future interest at 9% p.a.; Sale of hypothecated vehicle permitted; Recovery Certificate issued.

Bank of India versus Rajesh — Insolvency and Bankruptcy | DRT (2026)

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Presented on: 27.12.2018 Registered on: 18.07.2023 Decided on: 11.03.2026 Duration: Y M D 07 02 12

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1120/2023.

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Bank of India ,

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A Body Corporate constituted under the Banking Companies (Acquisitions & Transfer of Undertakings) Act V of 1970 having its Head Office at Star House, C-5, G Block, Bandra-Kurla Complex, Bandra (East) Mumbai – 400 051 and Branch Office at- Ratnagiri Branch, Sawarkar Chowk, Netaji Subhash Road, Ratnagiri-415 612.

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… Applicant

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Versus

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Mr. Rajesh Chouthiram Vishwakarma Age adult, Occ.- Business, Address- Rajesh Enterprises, Plot No. E-87, Behind S.T. Depot, MIDC Mirjole, Tal. & Dist. Ratnagiri-415 639.

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... Defendant

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APPEARANCES

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For the Applicant Mr. Satyan Jagtap For the Defendant Ex parte.

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TOTAL CLAIM AMOUNT – Rs.22,95,655/-

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(OA No.1120/2023)

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[ANIL]

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JUDGMENT (Delivered on 11^th March, 2026)

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Applicant Bank has filed present application for recovery of aggregate sum of Rs.22,95,655/- (i.e. Rs.21,36,682/- towards Term Loan facility; Rs.61,630/- towards Cash Credit Facility and Rs. 97,343/- towards Gold Loan Facility) with interest thereon @11.45%p.a.; @9.45% p.a. & @112.20% p.a. respectively with monthly rests from 12.12.2018 till the realization of the entire loan amount with interest from the defendant.

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Brief facts of the application are as under:

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(i)- Defendant is borrower who approached to the applicant bank on 09.01.2014 to grant of Vehicle Loan of Rs.24 Lakhs for purchasing purchase of Mahindra Truxo.

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The applicant bank considered the said proposal and on 24.01.2014 sanctioned Vehicle Term Loan of Rs.24 Lakhs to the defendant, on certain terms and conditions.

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In order to secure the aforesaid loan facility, the defendant has executed necessary loan and security documents as mentioned in Para No.5.4 of the Original Application.

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Defendant has also executed hypothecation Deed and hypothecated Mahindra Truxo bearing Registration No.MH-08-H2706, in favour of the applicant bank.

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Defendant has executed acknowledgment of Debts/Securities Letter dated 28.04.2016 for Term Loan Facility and Acknowledgment of Debts / Securities Letter dated 27.09.2018 for

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(OA No.1120/2023)

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[ANIL]

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Cash Credit Facility and admitted an outstanding in the said loan accounts.

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(ii)- On 30.09.2015, Defendant again requested to the applicant bank for Cash Credit Facility of Rs.50,000/- under Mudra Loan Scheme. The applicant bank sanctioned Cash Credit Facility of Rs.50,000/- to Defendant on 30.09.2015, on certain terms and conditions.

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In order to secure the aforesaid loan facility, the defendant has executed necessary loan and security documents as mentioned in Para No.5.6 of the Original Application.

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(iii)- On 30.12.2015, defendant again requested applicant bank for Gold Loan of Rs.47,600/- against pledge of Gold Ornaments (Weight 33.600 Grams) for Agricultural purpose, which was sanctioned by the applicant bank, on certain terms and conditions.

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In order to secure the aforesaid loan facility, the defendant has executed necessary loan and security documents as mentioned in Para No.5.8 of the Original Application.

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The Applicant Bank contended that the defendant failed and neglected to comply with terms and conditions in which the said facilities were granted to him. The Term Loan and CC accounts were running irregular and defendant was reluctant to pay the amounts. Applicant repeatedly called the defendant to regularize the accounts, but they failed and neglected to comply with the same. Therefore, the applicant through advocate issued Legal Notice dated 05.10.2018 to Defendant and called upon him to repay the entire

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(OA No.1120/2023)

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[ANIL]

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amount outstanding under the said loan accounts. But in spite of receipt of notice, defendant failed to repay the amounts outstanding in the said loan accounts.

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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 as per order dated 23.07.2025 passed below Application (Exhibit-1).

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5.^{The Applicant Bank has filed Claim Affidavit (Exhibit-6) of} Mr. Gaurav Gupta, Authorized Officer and produced on record the Original Loan Transaction documents at Sr. Nos.AW-1-1 to AW-1-27 alongwith 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 the evidence of the Applicant Bank. Therefore, the Applicant Bank is entitled for the reliefs claimed.

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The Applicant Bank has claimed future interest @11.45% p.a. for Term Loan; @9.45% p.a. for Crop Cash Credit Loan & @12.20% p.a. for Gold Loan Facility. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple) for both the loan facilities, it would be just and reasonable rate of interest.

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(OA No.1120/2023)

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[ANIL]

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9. Hence, I pass the following order:-

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ORDER

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(A) Original Application No.1120/2023 is allowed with costs.

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(B) Defendant shall pay to the Applicant Bank an aggregate sum of Rs.22,95,655 /- (i.e. Rs.21,36,682/towards Term Loan facility; Rs.61,630/- towards Cash Credit Facility and Rs.97,343/- towards Gold Loan Facility) with future interest @9% p.a. from the date of filing of the Original Application i.e. 27.12.2018 till payment/ realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by valid and subsisting Deed of Hypothecation of the vehicle i.e. - Mahindra Truxo bearing Registration No.MH-08-H-2706, in favour of the applicant bank, more particularly mentioned in Para No.5.5 of the Original Application.

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(D) The applicant is entitled to sell the hypothecated vehicle to recover its dues.

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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 Bank and the defendant.

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Sd/Place : Pune (Dilip G. Murumkar) Date: 11.03.2026 Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.1120/2023)

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[ANIL]

Bank of India v. Rajesh

Case brief

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Bank of India v. Rajesh

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