Allowed

Canara Bank v. M/s. Cik Parametrics Pvt. Ltd.

DRT8 May 2026OA/140/2022

Case brief

AI extract

What is this about?

In an original application filed by Canara Bank for recovery of dues amounting to Rs. 99 lakhs. The court, hearing the matter ex-parte against respondents, allowed the relief and directed recovery through sale of hypothecated assets.

What did the court decide?

The respondents shall pay Rs. 99,21,504/- with future interest at 9% p.a. from 23.12.2021. Recovery Certificate issued and direction to sell hypothecated assets.

Canara Bank versus M/s. Cik Parametrics Pvt. Ltd. — Execution and Attachment | DRT (2026)

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Presented on: 23.12.2021 Registered on: 03.06.2022 Decided on: 08.05.2026 Duration: Y M D 04 04 15

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 140/2022

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TOTAL CLAIM AMOUNT – Rs. 99,21,504/-

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CANARA BANK,

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A Body Corporate constituted under the Banking

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companies (Acquisition & Transfer of Undertakings)

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Act, 1970, and having its Head Office at Bengaluru (Karnataka State), and having branches amongst the

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other places at Jalna Road, Aurangabad, Aurangabad

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through its Power of Attorney Mr. Vipin S/o. Veer

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Singh (Assistant Manager), Age: 31 yrs., Occ.: Service, … Applicant

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R/o. Jalna Road, Aurangabad.

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Versus

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1. M/s. CIK Parametrics Pvt. Ltd. At L-18/19, MIDC Waluj, Near Old Campack Company, Waluj, Aurangabad-431136.

(OA No.140/2022)

Page 1 of 9

[AMBADAS]

2. Mr. Pralhad Narayan Kardile (Director & Gurantor),

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Age: 51 years, Working Capital Cash Credit.: Business R/o.: At L-18/19, MIDC Waluj, Near Old Canpack Company, Waluj, Aurangabad-431136. Also at Mr. Pralhad Narayan Kardile (Director & Gurantor), Age: 51 years, Working Capital Cash Credit.: Business R/o.: Row House No. B-20, 13-1, Meadows Uptown, Shahnoorwadi, Aurangabad-431001. Also at Mr. Pralhad Narayan Kardile (Director & Gurantor), Age: 51 years, Working Capital Cash Credit.: Business R/o.: Row House No. 153, Indraprastha Colony, Bajaj Nagar, Waluj Industrial Area, Waluj, Aurangabad 431136.

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3. Mr. Gajanan Narayan Ingale, (Director & Gurantor),

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Age: 42 years, Occ.: Business R/o.: At L-18/19, MIDC Waluj, Near Old Canpack Company, Waluj, Aurangabad-431136. Also at Mr. Gajanan Narayan Ingale, (Director & Gurantor), Age: 42 years, Occ.: Business R/o.: At Flat No. A-1, Plot No. 76, Gut No. 14, Town imperia,

(OA No.140/2022)

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[AMBADAS]

Aurangabad-431001. Also at Mr. Gajanan Narayan Ingale, (Director & Gurantor), Age: 42 years, Occ.: Business R/o.: Flat No. 10, Siddhi Vinayak Apartments, Jyotibanagar, Near M M College, Kalewadi, Pimpri, Pune 411017.

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4. Mr. Ashok Kishanrao Chate, (Director & Gurantor), Age: 55 years, Occ.: Business R/o.: At L-18/19, MIDC Waluj, Near Old Canpack Company, Waluj, Aurangabad-431136. Also at Mr. Ashok Kishanrao Chate, (Director & Gurantor), Age: 55 years, Occ.: Business R/o.: Plot No. L-139/9, Waluj MIDC, Waluj, Aurangabad-431136. Also at Mr. Ashok Kishanrao Chate, (Director & Gurantor), Age: 55 years, Occ.: Business R/o.: Plot No. A-72, Galli No. 4, Near Shivaji Putla, Pundalik Nagar, Garkheda Parisar, Aurangabad 431001.

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…Defendants

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APPEARANCES

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For the Applicant Mr. K.D. Pande -Advocate For Defendants Ex-parte

(OA No.140/2022)

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[AMBADAS]

JUDGMENT Delivered on 08.05.2026

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 99,21,504/- (Rupees Ninety Nine Lacs, Twenty One Thousand, Five Hundred and Four only), along with future interest from the date of filing of the Original Application, i.e., 23.12.2021, until the date of realization of the entire outstanding dues from the Defendants.

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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 Working Capital Cash Credit Facility & Term loan facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Working Capital Cash Credit Facility of Rs. 10,00,000/- & Term loan facility of Rs. 80,00,000/- vide sanction letter dated 29.12.2018 on certain terms and conditions. Thereafter, the defendants also availed loan COVID FITL (CFITL) Facility of Rs.

(OA No.140/2022)

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[AMBADAS]

74,947/- on dated 01.09.2020. The agreed rate of interest for the aforesaid loan facilities was @10.60% p.a., @11.45% p.a. & @9.45% p.a. respectively with monthly rests. The Defendants also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

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In order to secure the aforesaid loan facility, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letter, hypothecation agreement dated 31.12.2018 and letter of undertaking, cash credit limit, etc. Additionally defendant No. 2, 3 & 4 stood as guarantors for defendant No. 1 executed deed of guarantee dated 31.12.2018 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 Defendants executed hypothecation agreement dated 31.12.2018 thereby hypothecating existing as well as future entire stocks of raw materials, finished goods,

(OA No.140/2022)

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[AMBADAS]

stock-in-process, stores and spares, packing material of the unit at their factory premises or at some other places including goods in transit, outstanding moneys, book-debts, receivables, plant and machinery installed at factory premises purchased out of the said credit facilities.

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The applicant bank contended that the defendants have failed to keep their promise and commitments agreed by them with regard to due repayment of the loan amount. The defendants 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 defendants to pay with the agreed rate of interest thereon, but the defendants failed and neglected to pay the same. The loan account of the defendants became irregular and classified as NPA on 01.04.2021. Therefore, on 05.12.2021 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, the

(OA No.140/2022)

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[AMBADAS]

defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendants failed to appear in matter though they were served through summons. Hence, the defendants were proceeded ex-parte as per Order dated 12.01.2026.

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The applicant Bank has filed Evidence Affidavit at Exhibit-4 of Mr. Vipin S/o. Veer Singh, Assistant Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exhibit A to T 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 defendants failed to appear and did not 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.

(OA No.140/2022)

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[AMBADAS]

The applicant Bank has claimed charge over hypothecated properties of the borrowers.

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The applicant Bank has claimed future interest @ 10.60%, @ 10% & @ 9.75% p. a. on the Loans from the date of filing i.e. 23.12.2021 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 @ 9% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 140/2022 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 99,21,504/- (Rupees Ninety Nine Lacs, Twenty One Thousand, Five Hundred and Four only), along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e. 23.12.2021 till full payment/realization of the amount mentioned in this operative order.

(OA No.140/2022)

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[AMBADAS]

of raw materials, finished goods, stock-in-process, stores and spares, packing material of the unit at their factory premises or at some other places including goods in transit, outstanding moneys, book-debts, receivables, plant and machinery installed at factory premises purchased out of the said credit facilities vide document at Exh. F in list of documents Exh. 5.

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

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(E) Issue Recovery Certificate accordingly.

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

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(G)

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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:.08.05.2026

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

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(OA No.140/2022)

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Page 9 of 9

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[AMBADAS]

Canara Bank v. M/s. Cik Parametrics Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s. Cik Parametrics Pvt. Ltd.

Case brief

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What did the court decide?

What the court decided

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